LOGÍSTICS/TRANSPORT – The sector reinvents itself to overcome the crisis

By Dilnara Titara

The logistics companies had to adapt to the measures implemented for the prevention against the new coronavirus. When the state and city governments determined the closing of almost all commercial activities, the reflexes were great and affected the entire productive chain, including the cargo and logistics sector.

When adapting to the new protocols, the companies in the sector had to reinvent themselves. “Our activity was considered essential and of public utility by presidential decree. That is why we did not stop but revisited the processes and adopted new measures for our employees,” says Marcelo Florio, commercial director of Grupo Protege.

In the past few years, KM Cargo was focused on national air transportation, says Kleber Pavan, the company’s financial director. “So, one of the biggest impacts for us was the cancellation of flights, affecting the entire air network. We had to reinvent ourselves with our armored trucks and adhere to all the sanitary measures”.

Transport profile

The evolution of e-commerce has contributed to the performance of the logistics sector, despite the reduction in volumes transported due to the economic downturn. “With the closing of the stores, the products arrived directly to the consumer’s residences impelled by the online sales,” comments Edson Carillo, vice president of education at Brazilian Association of Logistics (Associação Brasileira de Logística – Abralog).

Usually, logistics has an impact of 5% to 10% on the value of goods. It is a relevant impact.” (Edson Carillo, vice president of education at Abralog).

With the popularization of the Internet and due to the need, during the pandemic, online shopping has strengthened and has started to directly impact the numbers of the cargo transportation in the country. The leverage of online sales has expanded the market for the logistics sector.

Mercado Envios, the logistics unit of Mercado Livre, has registered a very high growth in its volume of e-commerce operations in Latin America, reports the vice president Leandro Bassoi. “It has grown more than 100% in packages sent. People has tried out online shopping, has changed the habits, and has started to purchase products in a different way.”

Rethinking the business

The dynamics of the current days have generated the need to rethink the business. “Retailers are gradually trying to implement distribution centers in strategic states, aiming at reducing the value of freight and delivery time,” says Mauro Pavan, commercial director of KM Cargo. These new operations facilitate and speed out the delivery of the products to the consumer.

In 2020, Mercado Envios announced the opening of five new logistics centers in Brazil, informs the vice president. “One of them is already in service, aiming at duplicating the ability of goods storage and processing.”

The increment in online sales has brought the challenge of more agile, divided and geographically enlarged deliveries. “The client wants more and more agility, and for the logistic chain this generates the need to reinvent itself and adapt to the new times”, highlights Sérgio França, commercial and strategy director of Prosegur.

Technology support

The road modal is the most used in Brazil. “Although the country has wide network, it is below the appropriate when compared to other nations”, says Sérgio. Usually, logistics has an impact of 5% to 10% on the value of goods. Infrastructure issues are particularly more relevant when the usage is close to the limit,” explains Edson.

“A very high growth was registered in our e-commerce operation volume in Latin America – more than 100% in packages sent”. (Leandro Bassoi, vice president of Mercado Envios, logistics unit of Mercado Livre).

The intensification of the use of technology has collaborated a lot to overcome the logistic challenge in the country, highlights Sérgio. “This happens through tools that allow us, for example, to trace internal and external trails that are more efficient, safer and without unnecessary costs”.

“We are optimistic about the logistic market for 2021.” (Sérgio França, commercial and strategic director of Prosegur).

The digital services to organize, promote and sell products show opportunities for logistics and transportation. “We must continue to feel the increment in home delivery. Convenience gains space in retail,” says Edson. “The pandemic has strengthened online sales, especially of electronics,” says Marcelo. “We understand that there will still be enormous growth in e-commerce, a segment that has become a reality in the country,” attests Mauro. The trend is for the segment to adapt to current needs, states Sergio. “We are optimistic about the logistic market for 2021,” he summarizes.

Source: Eletrolar News Magazine 139