Challenges of Supply Chain Management in Brazil : Case: Company X
Karpova, Ekaterina (2017)
2017
Julkaisun pysyvä osoite on
http://urn.fi/URN:NBN:fi:amk-2017112618203
http://urn.fi/URN:NBN:fi:amk-2017112618203
Tiivistelmä
Nowadays, supply chain management (SCM) is essential for businesses due to high complexity of supplies, production and distribution. It enables companies to organize their processes and eliminate wastages making them efficient. It optimizes resources – money, material and information flows – to cut costs because, typically logistics costs account about 20-30% of car manufactures’ expenses. There are many researches, books, strategies and concepts related to SCM because this truly can change a whole company’s performance.
The objective of the thesis is to examine the challenges of SCM that companies of automotive industry face in Brazil. The study was handled under inductive research approach and qualitative methodologies were used. The secondary data was extracted from reliable and up-to-date written and electronic sources. The primary data was collected from semi-structured interviews with five employees of Company X. The gathered information was analyzed what allowed to make conclusions based on both types of data.
The results of the research show that companies operating in Brazil have many challenges related to logistics and supply chain management. Overall conditions for supply chain processes are rather complicated, especially in comparison with European and North American markets. Main external challenges are poor infrastructure, prevalence of road transportation, economic and political instability. They cannot be fully avoided. Therefore, there is a need for companies to adapt and develop their risk management. Main internal challenges that companies have are related to cultural aspects that lead to stressed environment and poor communication, need for technology and qualified labor. There are many other challenges that companies should work on to improve their operations and succeed.
The objective of the thesis is to examine the challenges of SCM that companies of automotive industry face in Brazil. The study was handled under inductive research approach and qualitative methodologies were used. The secondary data was extracted from reliable and up-to-date written and electronic sources. The primary data was collected from semi-structured interviews with five employees of Company X. The gathered information was analyzed what allowed to make conclusions based on both types of data.
The results of the research show that companies operating in Brazil have many challenges related to logistics and supply chain management. Overall conditions for supply chain processes are rather complicated, especially in comparison with European and North American markets. Main external challenges are poor infrastructure, prevalence of road transportation, economic and political instability. They cannot be fully avoided. Therefore, there is a need for companies to adapt and develop their risk management. Main internal challenges that companies have are related to cultural aspects that lead to stressed environment and poor communication, need for technology and qualified labor. There are many other challenges that companies should work on to improve their operations and succeed.