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 are excelling in circular economy, as companies are concerned with ensuring traceability, as seen 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 such as standard and generative artificial intelligence was a highlight. AI, especially generative AI, has been applied in various fields 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 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 to the agenda in Supply Chain services.
The impact areas include logistics projects that assess carbon emissions, sustainable purchasing 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 US Inflation Reduction Act, which allocated significant resources for the country's energy transition.
“In Brazil, we have seen this 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 persist about the economic return on this type of investment. COP30, which will be held 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 centrality, the challenges of omnichannelity, and convenience options such as in-store shopping with home delivery or online shopping with in-store pickup, along with inventories closer to consumers and the growth of marketplaces, have significantly increased the complexity of the supply chain.
"The processes and systems needed to be evolved and, mainly, the operations, logistics operators, carriers, and professionals of the GIG economy, who play an increasingly important role in this scenario," reveals Sidney. The author highlights that the GIG economy, based on freelance and on-demand work, has been essential in meeting the flexible needs of the modern supply chain. In this context, the term 'chain' has probably become inadequate, and it is more appropriate to speak of a 'network'. "Operation networks 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 companies' maturity 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 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" according to ISG — in two quadrants. BRQ and PwC are named Rising Stars in one quadrant each.
A customized version of the report is available from Accenture.
