The Current State of Supply Chain Management in Brazil

Abstract

Over the last few decades, the concept of Supply Chain Management (SCM), whose main goal of achieving simultaneous cost reduction throughout the supply chain and a perceived increase in value of the product/service, has emerged worldwide as one of the most promising areas of business management. The main objective of this chapter is to present to the international audience a broad panorama of the current situation of SCM in Brazil, such that the reader can increase his/her knowledge concerning some key issues that characterize and/or influence it. Both positive and negative issues are described and analysed from a macro perspective. Additionally, this chapter highlights some cases of successful implementation of SCM practices in Brazil. Due to the scope and contemporaneous nature of the theme, the research design uses an exploratory approach with reference to some case studies. Most data reported in the text were obtained as part of a broader ongoing research project on the identification and analysis of best SCM practices currently implemented in Brazil. Additionally, a framework was developed with the aim of illustrating the logic of the development of the chapter. The text points out that Brazil contains many positive aspects for successful SCM, but some negative issues still remain to be addressed, so that the country can manage its supply chains more effectively, and most of these negative issues are the responsibility of government.

Questions for Review and Discussion

• 1. What are the main current advantages and disadvantages of Brazil in relation to other important countries with emerging economies in terms of the competitiveness of its supply chains?

• 2. Based on the information in this chapter, which logistical and SCM practices published in the literature and/or practiced in developed countries could be successfully implemented in Brazil? Justify/Explain your answer.

• 3. Considering the environmental/sustainability issues and the interest these usually arouse, discuss the main trade-offs that you can identify for an effective SCM with operations carried out (partially or fully) in the Brazilian Amazon region.

• 4. The Modular Consortium implemented by Volkswagen in its lorry and bus chassis factory is very often labelled revolutionary and regarded as largely responsible for the success of the company in the country. How then could you explain the fact that it is still the only such case in the country, and that Volkswagen’s competitors have not yet set up an modular consortium?

• 5. This chapter considers the future major sporting events that will happen in Brazil that, at least in theory, should leave a positive legacy to the country in terms of infrastructure. Based on experience in other countries where these events have occurred in the last decades, do you consider this true or a fallacy? Justify/Explain your answer.

• 6. The chapter presents five current issues that adversely affect SCM in the country. From the Brazilian government’s viewpoint, if you could do a ranking (in descending order) of priority to address these issues, what would you do? Justify/Explain your answer.

• 7. The chapter presents five cases of successful implementation of SCM practices in the country. For you, what are the main lessons that can be extracted from these cases?

• 8. In relation to the workforce, the multicultural nature of the Brazilian people was presented as a welcome factor in the current SCM context. Do you agree with this statement? Justify/Explain your answer.