According to a report from ISG, supply chain problems affecting Brazil’s economy are prompting a reappraisal of commercial supply chains in the country and leading many Brazilian enterprises to plan for supply chain digitalisation.

Covid 19 caused major problems to emerge in the country’s use of global supply chains. These problems have grown subsequently, and as other countries have resorted to greater supply chain digitalisation, Brazilian enterprises fear increasing loss of competitiveness.

The new digital technologies being considered include: IoT, blockchain, 3D printers and especially AI.

“Digital transformation has become a new imperative,” said Bob Krohn, ISG partner and industry lead, Manufacturing. “Information technology companies specialising in supply chain in Brazil have played a crucial role in improving supply chain operations throughout various industries.”

Providers offer solutions and services that enable the automation, optimisation and integration of processes, boosting operational efficiency, visibility and more assertive strategic decision-making, the ISG report says. After developing these solutions, providers are also taking on responsibility for maintaining, improving and expanding their use across the business, ISG says.

According to the ISG report, dramatic improvements in supply chain technology have led to a corresponding increase in competitiveness. There is a growing number of digitally native companies that form partnerships with enterprise customers to develop innovative solutions that are then made available to other companies and sectors of the economy, the ISG report says.

Of all the available new technologies, artificial intelligence will have the greatest impact on the supply chain, the ISG report says. Advancements in AI, including large language models, will allow Brazilian enterprises to move toward solutions that address long supply chains, volatility and an increasing complexity of variables, the report says. Large amounts of internal and external data, structured and unstructured, stored in data lakes, mined and analysed, will generate new correlations, insights and decision models, ISG says.

“The concept of humans and machines working in symbiosis is becoming a reality,” said Jan Erik Aase, partner and global leader, ISG Provider Lens Research. “The potential applications of AI in the supply chain are enormous.”

The report also examines how Brazilian retail companies are using blockchain technology to aid in food traceability, and addresses the role ESG plays in supply chains in Brazil.