Evolutions in sustainability impact and alter the delivery of supply chain services in Brazil

The new edition of the ISG Provider Lens™ Supply Chain Services 2024 report for Brazil, produced and distributed by TGT ISG, highlights that supply chain service providers have been excelling in circular economy, as companies are concerned with ensuring traceability, as in the food and export markets. 

To support these initiatives, companies are adopting technologies such as blockchain, IoT, and Big Data, ensuring greater transparency and alignment with sustainable practices. Among the main points discussed in the report, the integration of the value chain using technologies like standard and generative artificial intelligence was one of the highlights. AI, especially generative AI, has been applied in various areas, such as industry, logistics, and control towers, promoting greater automation, efficiency, and productivity in processes.

According to the TGT ISG report, supply chain service providers in Brazil, including consulting, technology, and BPO, have been adopting strategies such as acquiring companies, investing in centers of excellence, developing new offerings, and training talent. These initiatives reflect the broad scope of this sector, which is crucial for the agenda in Supply Chain services.

The areas of impact include logistics projects that evaluate carbon emissions, sustainable procurement with clear criteria for suppliers, waste management, and the responsible use of water and natural resources in manufacturing, among others. This focus has been reinforced by global events, such as COP27, held in Sharm El Sheikh, Egypt, in 2022, and the U.S. Inflation Reduction Act, which allocated significant resources for the country's energy transition.

"In Brazil, we observe the topic on the agenda of boards and in C-level discussions. However, according to supply chain service providers, companies' demands are still timid or limited, as doubts about the economic return on this type of investment still persist. The COP30, which will be held in 2025 in Belém, Pará, may bring changes to this scenario," comments Sidney Nobre, distinguished analyst at TGT ISG and author of the study.

The focus on the customer, the challenges of omnichannelity, and convenience options, such as buying in-store and receiving at home or buying online and picking up in-store, along with inventories closer to consumers and the growth of marketplaces, have significantly increased the complexity of the supply chain.  

“The processes and systems have needed to evolve, and, above all, the operations, logistics operators, carriers, and professionals in the GIG economy, who play an increasing role in this scenario,” reveals Sidney. The author highlights that the GIG economy, based on autonomous and on-demand work, has been essential to meet the flexible needs of the modern supply chain. In this context, the term ‘chain’ has likely become inadequate, making it more appropriate to speak of a ‘network.’ “Networks of operations or ecosystems represent the new reality for structuring and managing supply chains, in order to meet customer demands and exceed their expectations. Only with new technologies and the evolution of the maturity of companies through solid suppliers will it be possible to achieve significant productivity gains and handle such complexity,” he concludes.

The 2024 ISG Provider Lens™ Supply Chain Services report for Brazil evaluates the capabilities of 40 suppliers in four quadrants: Supply Chain Advisory and Consulting Services, Supply Chain IT Operations Services, Supply Chain BPO Services, and Circular Supply Chain Services.

The report names Accenture as a Leader in all four quadrants. It names EY as a Leader in three quadrants and IBM and Tech Mahindra as Leaders in two quadrants each. Deloitte, ILOS, McKinsey, Stefanini, TCS, and Xcelis Solutions are named as Leaders in one quadrant each.

Furthermore, Alvarez & Marsal is named as a Rising Star—a company with a "promising portfolio" and "high future potential" by ISG's definition—in two quadrants. BRQ and PwC are named as Rising Stars in one quadrant each.

A customized version of the report is available at Accenture.