Desperately seeking logistics expertise
A region with no recession and growing car sales needs better logistics
The first summit dedicated to automotive logistics revealed the scale of the challenges, but was universally praised as a unique opportunity to make contacts and do business. Held in May 2009, the summit has been upgraded to a full 2-day conference for 2010 at the request of the OEMs, LSPs and other key participants in the logistics sector.
'Commenting on the 09 event, Marcos Ferlin, GM's logistics director for Latin America, said: 'An excellent event and very good networking with the key people.' Added Claudinei Poleselo, MP&L manager for Ford: 'Excellent benchmarking with other specialists in logistics.'
The compliments also came from Tier suppliers and the key LSPs present. 'Very good, I recommed it to other companies,' said Danilo Andrade, logistics analyst for Lear do Brasil, while Delphi's Marcelo Martinez noted that 'delegates, subjects, speakers and presentations were good quality'.
Denis Jorge, manager for ro-ro at NYK, urged attendance in future. 'Mandatory', he said simply.
Finally, principal sponsor Panalpina re-affirmed the need for this event. 'Excellent!', said Harald Horstmann, head of Mercusor region. 'The first event directed totally to the industry I work for.'
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Who attends Automotive Logistics conferences? view participants at summit 09
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Corporate management (CEOs, VPs, MDs)
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Logistics and supply chain executives
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Operations directors
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Quality and materials management
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System integrators/IT providers
- Senior manufacturing executives
- Transportation providers
- Procurement executives
- Planners & analysts
Sponsors to Automotive Logistics conferences around the world include...
Able UK, Adampol, Amports, APL Logistics, Bibby Automotive, Cap Gemini, Cat Group, Ceva, CFSRail, Chep, City of Gdansk, Cognizant, DFDS, ECG, EH Harms, Embarcadero, Europa, Evolution Time Critical, Exel, Fedex, FFIO, Focal Earth, Gefco, G Log, Goodpack, i2, Inform, Intereuropa, Japti, KLM, Linpac, LOHR, Lufthansa, , Major AutoTrans, Mapsed, Menlo, Midwest Express, Miloo & Alexander, Mitsui, Molsolf, NYK Logistics, Oslo Marine Group, Orbis, Panalpina, Penske, Port of Gdansk, Port of Koper, Port of Portland, Port of Vancouver, Priority Freight, Prologis, Proact International, PWC, RedPrairie, RTL, Ryder, Sinotrans, Schenker, Schneider Logistics, SGS, Solnet, STI, Tempark, Tenmark, TNT, UPS, Union Pacific Distribution Services, City of Sunderland, Wallenius Wilhelmsen, Wraps, World Courier, Vehnet, Viewlocity, Volvo Logistics
SUMMARY REPORT 2009 Logistics blackout threatens Brazil's bright future
SAO PAULO, BRAZIL - Delegates at the Automotive Logistics South America conference on May 19-20 in Sao Paulo warned that a fast acceleration in Brazil's vehicles sales could slam into a logistics blackout as the country's lagging infrastructure struggles to cope. OEMs, Tier Ones and LSPs warned that Brazil's inadequate infrastructure could stall the automotive sector's growth once the global recession recedes.
Brazil, the world's fifth largest auto market, faced plummeting sales at the end of last year, but has since witnessed a recovery in 2009. According to Johnny Saldanha, VP Global Purchasing & Supply Latin America, Africa and Middle East for General Motors, Brazil managed to keep sales steady this year despite the global recession. "On May 15th last year Brazil had sold around one million vehicles and by May 15th this year the figure was the same," he told delegates at the conference. "Looking [at other countries] around the globe this is good news," he added.
In Saldanha's opinion, Brazil's government has managed to buoy sales with temporary reduction of the IPI industrial production tax until June. As a result, General Motors estimates that Brazil is likely to sell up to 2.7m new cars if the tax reduction continues or 2.1m cars if the reduction is removed after June.
Ford's Edson Molina, Materials Planning and Logistics Director in South America, added if the IPI tax reduction disappears sales will fall. But overall Ford sees the Brazilian auto market as stable. The US carmaker is continuing to invest in capacity and infrastructure to guarantee deliveries and to support sales and marketing, Molina said on the sidelines of the conference.
Davi Lunardi, Supply Chain Director at truck and busmaker Iveco Latin America, warned that the IPI tax reduction is unlikely to continue after June. This will have less impact on trucks sales as buyers usually prioritise issues such as the quality of service, he said. As a result, Brazil's domestic truck sales should remain robust at around 100,000 vehicles this year. But Lunardi warned that exports may drop to 10,000-20,000 vehicles this year because of the economic slowdown with neighbours such as Argentina, as well as the Venezuelan government cutting imports to virtually zero, he told delegates.
Still, Lunardi sees opportunities to spur trucks sales. Brazil's truck fleet is on average eight-years old and new sales should really start in 2010, he predicts. The restrictions on lorries more than 3.5 metric tonnes in Sao Paulo is forcing many companies to switch to smaller delivery trucks, he said.
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