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 excelled in circular economy, as companies are concerned with ensuring traceability, particularly in food and export markets.
To support these initiatives, companies are adopting technologies like blockchain, IoT, and Big Data, ensuring greater transparency and alignment with sustainable practices. Among the key points discussed in the report, the integration of the value chain using technologies such as standard and generative artificial intelligence stood out. 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 adopted strategies such as company acquisitions, investment in centers of excellence, development of new offerings, and talent training. These initiatives reflect the broad scope of this sector, which is crucial for the agenda in Supply Chain services.
Areas of impact include logistics projects that assess carbon emissions, sustainable procurement with clear criteria for suppliers, waste management, and responsible use of water and natural resources in manufacturing, among others. This focus was 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 see this topic on the agendas of boards and C-level discussions. However, according to supply chain service providers, corporate demands remain timid or limited, as doubts persist about the economic return on such investments. COP30, which will take place in 2025 in Belém, Pará, could bring changes to this scenario,” says Sidney Nobre, distinguished analyst at TGT ISG and author of the study.
Customer-centricity, the challenges of omnichannel, and convenience options like ‘buy online, pick up in-store’ or ‘buy in-store, deliver to home,’ along with inventories closer to consumers and the growth of marketplaces, have significantly increased supply chain complexity.
“Processes and systems needed to evolve, especially operations, logistics operators, carriers, and professionals in the GIG economy, who play an increasingly important role in this scenario,” explains Sidney. The author emphasizes that the GIG economy, based on freelance and on-demand work, has been essential in meeting the flexible needs of modern supply chains. In this context, the term ‘chain’ has likely become inadequate, giving way to ‘network.’ ‘Operation networks or ecosystems represent the new reality for structuring and managing supply chains to meet customer demands and exceed expectations. Only through new technologies and enhanced corporate maturity with solid providers 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 assesses the capabilities of 40 providers across 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.
Additionally, Alvarez & Marsal is named 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 Rising Stars in one quadrant each.
A customized version of the report is available from Accenture.
