Logistically Speaking, Tomorrow’s Not Just Another Day When Conducting Business in Brazil. Juniper Networks.

The Juniper Networks - Flash Global Logistics Brazil case study is now available for download on the homepage of Supply & Demand Chain Executive. It can be found in the Case Studies section, left tab in the Sponsored Research box. Contact Flash to discuss your service parts logistics requirements in Brazil.

Toby Gooley of DC Velocity sheds light on the logistics challenges associated with doing business in Brazil, in the article below, “The rocky road to Rio: What shippers need to know about doing business in Brazil”. The piece outlines the unique Brazil requirements related to transportation and taxes (including nota fiscal), and the important role of 3PLS’s that specialize in this market. Specialists provide an outsourced advantage for companies needing to gain better control of the inbound shipment process while improving compliance with import regulations.

As a mission critical logistics provider serving up total aftermarket solutions in Brazil, Flash Global Logistics is ahead of the curve. Recognizing the importance of this emerging market years ago, Flash developed a full service end to end solution including Distribution Center, tri-lingual Command Center, in country management, and the most comprehensive network for clients’ customer coverage. Flash became legal entity for importer of record services, provides a system that is NF-e compliant for nota fiscal, has fiscal system link to Siscomex, provides broker registration at Siscomex for import and export for clients, with complete operational transparency for billing and cost.

What does this provide for clients? Client inventory moves door to door in 12 days or less. Speed of transit lessens the need for excess replacement stock and saves them dollars in the inventory pipeline. Customer satisfaction is enhanced. Clients have one point of contact to manage their Brazil mission critical service parts logistics operation and assist with import, export for repair and return, transport of material, end to end visibility and in country customer assistance. Clients receive visibility and data to make knowledgeable decisions, the support to flexibly navigate this challenging market, resulting in cost efficiency and revenue drivers within their supply chain.

You can learn more about Flash Brazil at http://www.flashlogistics.com/brazil. Read on for tips in the article by Toby Gooley, found in DC Velocity, below:

The rocky road to Rio: What shippers need to know about doing business in Brazil

Brazil may be the new "land of opportunity," but longstanding logistics and bureaucratic headaches remain.

By Toby Gooley

The "Road to Rio" is a busy one these days. Brazil sailed through the global economic recession relatively unscathed, and its economy is more stable today than perhaps at any time in its history. A growing middle class has sparked demand for housing and retail goods. All of this has combined to make Brazil one of the world's few economic bright spots—and a very attractive market for manufacturers, retailers, and the businesses that serve them.

That's why companies from around the globe are moving into Brazil in a big way. But like the manufacturers that rushed into China more than a decade ago, they're discovering that new markets can present new challenges. To make it in Brazil, businesses have to adapt to the country's unique logistics environment and play by some often-mystifying rules. Here's a brief look at just a few of Brazil's many challenges and some strategies for dealing with them.

Get a good accountant!
Any discussion of logistics in Brazil starts with laws and taxes, which are a frequent source of frustration for outsiders. Brazil is "highly regulated, it is protective of domestic industry, and you have to deal not just with inconsistent laws and regulations but also with inconsistent interpretation of those laws and regulations," says Humberto Flores, president for the Americas of DHL Supply Chain's technology and aerospace business unit.

As an example of inconsistent enforcement, Dale Rogers, professor of supply chain management at Rutgers University, cites an electronics manufacturer's experience with a law requiring products manufactured in Brazil to be returned to their point of origin for disposition. Rogers, who is also the leader of the supply chain sustainability practice at Brazil's Instituto de Logística e Supply Chain (ILOS), says the manufacturer was excused from compliance in 2009, was required to comply this year, and will get a break from enforcement again in 2011. "This sort of thing seems capricious, and it can be confusing," he says. "Brazilian managers are very flexible and are able to change course quickly. For the typical American, who thinks things are going to stay the same, it's hard to adjust."

Brazil's tax system is equally complicated. "There are more than 70 different types of taxes, and there are monthly debits and credits. You have to be able to understand how that will impact your business," says São Paulo-based Bill Scroggie, managing director of Penske Logistics in South America. He advises adding tax experts to your team to help navigate national and state tax codes. Tax compliance is so important that competition for knowledgeable accountants is fierce, he warns.

The tax regime has a big influence on transportation. For example, the CTRC (truck bill of lading) and the nota fiscal (fiscal invoice) are not just shipping documents; they are supporting documents on which the complex Brazilian tax system is based, confirming for tax purposes that a delivery actually took place and that a sale has been completed. In 2008, federal authorities began a modernization program that will standardize the tax bookkeeping system and convert it to an electronic system. The CTRC and nota fiscal are in the process of changing to the new system. The modernized tax system will promote information sharing at all levels of government almost in real time, and it will save taxpayers money by eliminating paper documents and reducing bureaucracy, Scroggie explains.

The tax burdens are so heavy that sometimes "where you route a truck is actually determined by tax rules rather than what makes the most sense from an efficiency point of view," says Rogers. Companies often route shipments to take advantage of varying state value-added taxes on sales and services, he explains. Because those rates depend in part on whether a transaction is intra- or interstate, it can be cheaper overall to ship longer distances.

The bustling city of Manaus exemplifies how tax benefits can take precedence over logistics efficiency in Brazil. The city, located at the confluence of the Amazon and Rio Negro rivers in the middle of the Amazon jungle, has only one road in and out—the poorly maintained Brazil Route 174, which cannot accommodate heavy truck traffic. The nearest consumer market is 1,500 miles away, Flores says. But tax incentives designed to promote manufacturing in underdeveloped areas are so attractive that dozens of multinational companies—Sony, Phillips, Nokia, Samsung, and Whirlpool, to name a few—bring raw materials and components in for assembly and ship out finished products, mostly for domestic consumption.

The lack of highway access means manufacturers are forced to use freighter aircraft, barges, and small ships to move the goods in and out of the jungle. Heavier goods travel four days up the Amazon River and the Rio Negro to Manaus and four days back down the Amazon for export or domestic consumption. Air freight is typically reserved for high-value, lightweight items, such as cell phones.

It's hard to imagine that the benefits of manufacturing in Manaus outweigh the logistical drawbacks, but companies that manage to qualify for the full range of tax breaks can halve tax liabilities that would otherwise account for 45 percent of the goods' value, according to Flores. That more than compensates for the added logistics costs, he says.

Be realistic about transportation
The transportation challenges may be daunting, but they're not insurmountable. In Brazil, where there's a will, there's a way—even in some very remote areas. Earlier this year, for example, the global freight forwarder Damco and a local barge company launched an all-water service from Porto Velho on the Madeira River to Manaus. The service will help businesses in the remote states of Rondonia, Acre, and Mato Groso export cotton, leather, minerals, lumber, and beef.

Because Brazil is such a vast country, it's important to be realistic about what's feasible when it comes to transportation, experts say. "The country's economy is expanding quickly, but the infrastructure, including ports, airports, and roads, has not been able to keep up," Scroggie says.

Infrastructure has been in the spotlight lately because Brazil will host soccer's World Cup in 2014 and the summer Olympics in 2016. Better roads, ports, and airports will be needed to support those events. But more than 90 percent of respondents to a survey of supply chain professionals in Brazil, conducted by BDP International earlier this year, questioned whether much-needed improvements would actually be completed in time to meet the demands of these events.

In the meantime, the country's seaports are putting a lot of money into improving their facilities, says Rogers. And an expansion project in São Paulo has added a six-lane highway along with a "ring road" that routes trucks around the city center. Diverting trucks to the ring road has already reduced traffic volume inside the city by 40 percent, Scroggie reports.

Whether a company does business with big chain stores, with mom-and-pop stores in the city, or with customers in the Amazon jungle, Scroggie advises setting realistic expectations regarding both transit times and delivery agreements. Companies must make sure their contracts' transportation provisions are consistent for all parties, and that any penalties or consequences for late or failed deliveries are clearly spelled out in agreements throughout the supply chain, he says. Agreements should also take into account the varying regulations and conditions imposed in each state, he adds.

Another matter to settle in advance is how transportation-related communication will take place. For example, it may take several weeks to get a signed proof of delivery from a small retailer in the interior because the physical document has to make its way back through the logistics network. "You have to have agreed-upon rules about how that will happen," Scroggie says.

Use 3PLs to your advantage
As Brazil becomes an increasingly important player in global supply chains, logistics outsourcing is taking on a bigger role. More than 60 percent of respondents to the BDP International survey said they were outsourcing more of their transportation-related functions to third-party logistics companies (3PLs). Respondents also said they were relying more on specialized service providers to gain better control of inbound shipments and improve compliance with import regulations.

Big-name multinational 3PLs are active in Brazil, but there are also a number of homegrown competitors. "Brazilian 3PLs tend to be smaller than the companies multinationals typically deal with," says Rogers. Some of the better-known Brazilian 3PLs include Rapidão Cometa, Grupo J&uactue;lio Simões, and Tagma.

The big multinational 3PLs have an advantage because they can participate in global contracts for multinational clients and they hire bilingual staff, Scroggie says. The local logistics companies may have a pricing edge, but with the exception of some of the larger firms, they typically employ only Portuguese speakers.

Third-party service providers have already made big inroads into Brazil's warehousing market. It's common to see large multi-client facilities or warehouses that are shared by multiple logistics providers. "A warehouse may have 1 million square feet but five different 3PLs, each with 200,000 square feet," Scroggie reports. Whether a company operates its own warehouses and DCs or outsources depends in large part on volume. For example, French retailer Carrefour outsources its DC operations, while Wal-Mart Stores runs its own facility, though it outsources its e-commerce fulfillment.

Growth and change
Companies seeking to learn more about logistics management in Brazil will find there's no shortage of resources. They can choose from a variety of logistics and supply chain conferences, trade shows, and degree programs, including conferences and seminars organized by ILOS, which collaborates with the Council of Supply Chain Management Professionals. In addition, IntraLogística, the monthly magazine published by Instituto IMAM, offers an excellent introduction to warehousing and material handling trends in Brazil.

But those in the know warn that logistics-related information can have a short shelf life. The logistics and supply chain scene in Brazil is growing fast and changing almost daily. "Brazil has changed dramatically in the 10 years I've been going down there," says Rogers. "If your perception of Brazil is based on what it was a few years ago, you'll be wrong. If your perceptions are even two years old, they'll be out of date. And if they are five years old, not much is the same."

Flash Global Logistics bridges the gap to South America and continues to grow its presence in key locations for our clients. With over 90 locations in Mexico, Latin America and the Caribbean, Flash serves our clients as One company with One Single Technology Platform. Flash incorporated in Brazil in 2008, with a DC and Command Center. Have a look at our new Brazil micro site, specific to Brazil operations.
www.flashlogistics.com/brazil

Flash Global Logistics Continues Brazil Expansion:  Extended Network, Decreased Cycle Time, Customs Clearance Solutions provide Client Advantages in Critical Market

Customized Tools, Team and Technology Facilitate Emerging Market Growth

Pine Brook, NJ – April 14, 2010  – Flash Global Logistics, leader in single source innovative supply chain solutions for mission critical parts and products, announces growth of its Brazil Operations to include 26 forward stocking locations in Brazil, a Distribution Center, tri-lingual Command Center, and capabilities as a legal entity for import and export of parts and products. Flash systems are electronic nota fiscal compliant to allow for filing within the Brazilian fiscal system.

"Our clients and the marketplace are demanding capabilities in BRIC countries, particularly Brazil to facilitate their customers’ trade,” said Jim van Leenen, CEO and President Flash Global Logistics. “Flash has invested in Brazil to out-service the competition, guaranteeing reduction in cycle time into and out of Brazil beyond the perceived standards. For companies requiring innovation, speed, and an end to end solution from import through storage, shipment and reverse logistics in Brazil, Flash is positioned to assist companies of many sizes across various industries to reach their customers and end users.”

Flash Global Logistics has increased speed and efficiency of shipments in many emerging markets, including Russia. For instance, a shipment that may have taken 8 weeks to reach Moscow from the UK can be achieved in under three weeks with no Customs issues with the help of Flash, due to regional expertise of Flash’s team.

Flash recently expanded capabilities for import of medical parts into Brazil, providing consultation regarding classification of goods and the harmonized code system. Flash is speaking onsite April 15 at the Reverse Logistics Association conference in São Paulo.

About:
Flash Global Logistics, Inc. provides mission critical supply chain solutions for clients worldwide. Flash is headquartered in the US, incorporated in Germany and Brazil. Flash provides solutions with speed, accuracy, systems integration and global expertise. Service capabilities and infrastructure span 700 FSL’s, 13 multi-client DC’s, command centers and regional offices, including rapid setup/deployment for global movement, management & tracking of critical inventory, network modeling/analysis, global IOR/EOR services, trade management and automated compliance via FLASHTRAC. Flash serves high tech clients in computer data storage/networking, healthcare, communications, electronics. Asset light for flexibility and client cost efficiency, Flash engineers solutions, mapping service applications directly to clients’ requirements. www.flashlogistics.com

Contact:  Amy Minarik, 973.808.3366

Russia is Ready for Technology -
Are You Ready to Service the Russian Market?
Flash Global Logistics to Present “Challenges And Opportunities”
A Service Strategy for the Russian Market At Strategic Service Management Conference

Attendees to learn how to capitalize upon emerging markets though strong supply chain strategy and infrastructure.

Pine Brook, NJ, October 19, 2009 - Flash Global Logistics, the global leader in single source supply chain solutions for mission critical parts and products, today announced that Philippe Jadoul, VP International for Flash Global Logistics, will be speaking at the Strategic Service Management Conference in Amsterdam at 12:00 on October 28, 2009.

Russia, one of the emerging market BRIC countries, has its own inherent challenges and opportunities. Successfully navigating the intricacies of the international supply chain for Russia, including IOR/EOR, customs clearance and compliance, centralizing your service practices and planning for sustainable growth are necessary for profitability and success in the market.  Mr. Jadoul will discuss the keys to developing and implementing the right model that will support a highly successful after sales strategy in the hot emerging Russian market.

“Emerging markets are essential to corporate growth,” says Jadoul.  “Globalization and expansion require a service infrastructure that can adapt to and manage diverse and constantly changing laws and regulations.  Moving service parts into and out of countries and across borders expediently and with relatively low cost can be a challenge without the proper knowledge.  During our discussions at SSM, we will explore how companies can successfully overcome these challenges and capitalize upon the significant opportunity that lies in the emerging Russian technology corridor.”

Join Jadoul and other executives from Flash Global Logistics and gain knowledge on how to achieve a competitive advantage, plan your strategy, leverage your investment in the region, or consider and determine if this is a market for your company’s growth and expansion.

Jadoul continues, “Education, planning and execution will eliminate costly mistakes and service obstacles as companies enter into client agreements to support sales in this region.  Once services are established, the benefits will extend throughout the organization and can build stronger relationships and higher revenues.”

Strategic Service Management is a high-profile conference that concentrates on delivering fresh insight and key strategies that enables companies to achieve sustainable growth and deliver agile support to customers across global markets.  In three consecutive days, attendees will join over 150 service professionals from across Europe and learn how to implement successfully in a competitive environment, protect brand integrity and overcome this year’s most challenging service issues, including:

• Leveraging in-depth metrics to quantifiably measure performance and maximize service potential
• Adopting remote diagnostics to improve operational effectiveness, boost resolution rates and minimize service downtime
• Deploying tools and techniques to optimize customer lifetime value and increase aftermarket wallet-share
• Establishing successful outsourcing partnerships to streamline service delivery and achieve operational excellence
• Adopting a proactive approach to service and driving customer satisfaction through accurate forecasting

To support its clients in Russia, Flash recently expanded its capabilities and infrastructure to 59 locations across the region, as well as having established strong professional relationships locally to enable correct and transparent cross-border operations, thus helping clients ensure compliance to in-country requirements.

Additionally, Flash maintains IOR/EOR relationships for clients in 85 countries worldwide. 

About Flash Global Logistics:  Flash provides mission critical inventory management and engineers supply chain solutions for clients worldwide.  Flash is headquartered in the U.S. and is incorporated in Germany and Brazil.  The company’s global capabilities and infrastructure span approximately 700 Forward Stocking Locations, 12 multi-client distribution centers, five command centers and several regional offices.  Services include rapid setup and deployment for the global movement of critical parts and products, including IOR/EOR in approximately 85 countries, evaluation of in-country requirements, paperwork documentation/streamlining, minimization of customs clearance times, VAT deferment management and bonded warranty warehouses.  Flash’s blue chip client roster includes companies in high tech, healthcare, telecommunications, semiconductor, computer data storage and networking.  With asset light network modeling for flexibility and maximum cost consideration for clients, Flash engineers solutions that map service applications directly to clients’ requirements.  For more information, please call 973.808.3360 or visit www.flashlogistics.com.

Russia Press FGL

Russia Opened as Emerging Technology Corridor;
Market Grows as Companies Seize Opportunities of Globalization

Flash Global Logistics expands its capabilities to satisfy increasing service parts logistics needs in hot, emerging Russian market.

Pine Brook, NJ, September 15, 2009 - Flash Global Logistics, the global leader in single source supply chain solutions for mission critical parts and products, today announced a network increase of 59 locations in Russia, including Importer and Exporter of Record (IOR/EOR) expertise, to satisfy significant growth and technological demand in the Russian market. The logistics leader acts in advance to provide infrastructure support for increasingly critical client needs for strategic service logistics in the region.

“Russia is one of the most important emerging markets today,” says Philippe Jadoul, VP International, Flash Global Logistics. “With rapid corporate growth of 20-50% last year, prior to recent projections of economic contraction, demand for material movement due to technological expansion in the area requires strong after sales strategy. Strategic service logistics providers are responsible for ensuring that their clients receive the 99.9% service levels to which they’ve become accustomed elsewhere, in this emerging market. Flash Global Logistics is excited to provide mission critical logistics in both major and emerging global markets and to assist our clients by engineering solutions for their sustainable growth and expansion.”

According to industry experts, Russia will be one of the major markets to consider in the coming years, as the region is evolving more quickly compared with the parallel changes that occurred in North America and Western Europe. To meet these considerations, Flash has expanded its capabilities to 59 locations in Russia, as well as having established strong professional relationships locally to enable correct and transparent cross-border operations, thus helping clients ensure compliance to in-country requirements.

Additionally, Flash maintains IOR/EOR relationships for clients in 85 countries worldwide.

About Flash Global Logistics: Flash provides mission critical inventory management and engineers supply chain solutions for clients worldwide. Flash is headquartered in the U.S. and is incorporated in Germany and Brazil. The company’s global capabilities and infrastructure span approximately 700 Forward Stocking Locations, 12 multi-client distribution centers, five command centers and several regional offices. Services include rapid setup and deployment for the global movement of critical parts and products, including IOR/EOR in approximately 85 countries, evaluation of in-country requirements, paperwork documentation/streamlining, minimization of customs clearance times, VAT deferment management and bonded warranty warehouses. Flash’s blue chip client roster includes companies in high tech, healthcare, telecommunications, semiconductor, computer data storage and networking. With asset light network modeling for flexibility and maximum cost consideration for clients, Flash engineers solutions that map service applications directly to clients’ requirements. For more information, please call 973.808.3360 or visit www.flashlogistics.com.

Russia Press FGL

GlassHouse Technologies Expands Service Model in China and Brunei

Flash Global Logistics is selected as critical logistics provider for 4 hour service, IOR / EOR

Pine Brook, NJ, June 10, 2009 – GlassHouse Technologies, Inc., a global provider of IT infrastructure services enabling organizations to consolidate, virtualize, protect and manage their IT environments, has chosen Flash Global Logistics, Inc  as its critical logistics provider for seven locations in China and one in Brunei requiring four (4) hour service, including Importer and Exporter of Record (IOR/EOR) capabilities in Brunei.

GlassHouse provides a range of Customer Support Services for hardware and software providers, including 24/7 call center support, global field service support, global logistics storage and distribution support, as well as technology integration and professional services.  Level 1 and Level 2 technical service must be performed in conjunction with critical parts being dispatched under the strict timelines of 4 hour service level agreements for maximum uptime and business continuity.  GlassHouse demands a high level of responsiveness and international solutions for rapid deployment, storage, import, export, customs and clearance time efficiency in a scalable solution to serve its customers.  Flash’s capabilities to deliver these services in all major and minor markets across the globe are the basis for the working relationship in China and Brunei.

“Flash Global Logistics’ core competency includes mission critical global logistics to achieve key performance indicators for aggressive service level agreements,” says Brian Ritchie, SVP & GM Support and Managed Services Division, GlassHouse Technologies, Inc. “This is why they were chosen as our logistics partner.  Flash is supporting a growing part of our business, especially in the Asia/Pacific region, and we have full confidence in their ability to help us keep our worldwide customers satisfied with high performance and unparalleled support.”

“Globalization provides challenges alongside extreme opportunities, especially in the current economy,” says Jim van Leenen, CEO and President, Flash Global Logistics.  “Flash is surfacing as the leading emerging market provider partner, developing solutions for clients in challenging markets, including BRIC countries – Brazil, Russia, India and China.  We proudly support GlassHouse Technologies, providing best in class service to achieve their critical logistics needs.”

Flash is also incorporated in Germany and Brazil with Distribution Centers in both locations, and recently added 66 locations to its China network.

About:  GlassHouse Technologies is a global provider of IT infrastructure services enabling organizations to consolidate, virtualize, protect and manage their IT environments.  GlassHouse delivers services through Transom^SM, a unique delivery framework comprised of proprietary software tools, methodologies and domain expertise.  GlassHouse reduces costs, decreases risk and improves service levels by providing measurable results and vendor independent solutions. GlassHouse focuses on the storage, data protection, virtualization, security and data center markets.  www.glasshouse.com

About:  Flash Global Logistics provides mission critical inventory management and supply chain solutions for clients with real time visibility and a configurable IT system worldwide.  Flash’s global capabilities and infrastructure span approximately 700 FSL’s, 14 Multi-Client DC’s, 5 Command Centers and regional FLASH offices, providing rapid deployment and setup for global movement of critical parts and products, including IOR/EOR, evaluation of in-country requirements, paperwork documentation/streamlining, minimization of customs clearance times, VAT deferment management and bonded warranty warehouses.  FLASH clients include high tech, healthcare, telecommunications, semiconductor, computer data storage and networking industries requiring global part availability in 90 min / 2 and 4 hours with real-time information via FLASHTRAC^©. Using real-time visibility, strategic inventory positioning, a configurable web-based IT solutions system, and local personnel with global business market expertise, FLASH’s customized solutions improve customer satisfaction while minimizing expense.  www.flashlogistics.com

 

Contact:
Amy Minarik, 973.808.3360

Amy Minarik
Director Marketing and Public Relations
Flash Global Logistics, Inc.|PO Box 2036
10 Old Bloomfield Avenue|Pine Brook, NJ 07058 USA

Flash Global Logistics, leading global critical logistics solutions provider, adds 66 locations to its network in China enhancing its existing distribution, customs clearance and Importer or Record (IOR) capabilities. Flash leads the industry as an emerging market provider partner, developing solutions for clients in challenging markets that hold opportunities for global growth, including BRIC countries – Brazil, where Flash incorporated in 2008 with a fully functional Distribution Center and Command Center, Russia, India and China.

Under the guidance of Philippe Jadoul, VP International, Flash provides rapid deployment and setup for import/export of critical parts and products, evaluation of in country requirements, paperwork documentation and streamlining, minimization of customs clearance times, VAT deferment management and bonded warranty warehouses where necessary.

To learn more about Philippe Jadoul and his team of International Directors, please click here