Brazil: Improving Your External Relationship Management for More Effective Temperature Controlled Logistics
This article from Pharmaceutical Outsourcing discusses temperature controlled logistics in Brazil:
We’ve all heard that Brazil is a giant. And, as we know from fairy tales, a giant can have an own unpredictable nature that can make things difficult. This analogy can be used in our logistics and supply world. When in such a situation, what exactly happens and how do we manage the giant’s bad mood?
First of all, we should take a closer look at this giant. Brazil is 8,514 km2 in area, and is home to 204 million people. (2010 data). In 2014, Brazil’s estimated nGDP was as high as US $3,072T. Just to compare, Canada has an are of 9,984 km2 and is home to 34 million people, with an estimated GDP of US $1.793T. Brazil is a giant that offers a Human Development Index (HDI) of 0.755 and his bad mood becomes apparent when we notice Canada has an HDI rating of 0.913. To keep things working, Brazil’s logistics issues result in costs that represents a GDP of 11.7%; a tad higher than the USA’s 8% 2013-based costs.
Government policies are an important part of this huge logistics bill. One example of this issue is the tax dispute between states, which creates situations that result in pharmaceutical goods being manufactured in Northeast states but having them consumed in the Southeast region, creating a huge logistics problem. In other words, we send products 2,000 km for no good reason than politics, mainly using highways that are not in the best shape. Air transport in Brazil does not have the capacity that permits full service of drugs distribution, forcing us to use planes for major hub transfers but living with a potential last-mile syndrome. This is a real nightmare for cold chain transport planners and an ever-present difficulty for distribution companies that must guarantee 2-8°C within 48 hours, most of the time with no insulated trucks. The use of subcontracted drivers just adds another level of unpredictability to this equation.
Source: Pharmaceutical Outsourcing