Analysis of the Brazilian pharmaceutical retail market: main characteristics, players and successful practices / Análise do mercado farmacêutico brasileiro: principais características, atores e práticas de sucesso

The Brazilian retail pharmaceutical market is going through an extremely important moment. The accelerated growth presented in recent years tends to remain, leading Brazil to become one of the five largest markets worldwide in the short term. In addition, although still very fragmented, the market is experiencing a gradual consolidation process. Such transformations and outlooks, along with the economic context of the country, create high level of interest from investors and other stakeholders. This chapter answer the following questions: What is the economic relevance of the Brazilian pharmaceutical retail market, its main characteristics and perspectives? Which are the players in this market? Which are the main brands, their characteristics, performances and successful practices? What would be the strategy recommendations for a player's success considering the current market momentum? The method was based on literature review and a semi-structure interview with a senior executive of a main player. Overall, the main players have been obtaining good operational and financial performance. These companies have different characteristics in regards to financial performance, footprint, positioning, number of stores, and operation of retail outlets, among others. They also feature numerous strategic initiatives, which are analyzed in order to identify good market practices and recommendations for success, touching on topics such as expansion, store format, customer service, management and growth mechanisms. The results of this chapter were partially presented before by Fernandes at al. (2016). Therefore, we believe this chapter is useful to business managers and investors in this market (generating better understanding and enabling more conscious strategic analysis) as well as academics studying it (as it serves as a reference for future studies).

An assessment of biomass supply chain : a DEA application

Renewable energy generation reduces carbon emissions and responds to the targets for renewable energy sources of most EU countries; it also enhances infrastructure resilience and creates flexibility of the energy matrix. However, the availability of biomass may drastically differ from country to country within the EU. In most cases, the most challenged countries to achieve high targets for sustainability are not those with a sufficiently large supply of biomass. Because of this, it is necessary to design new biomass supply chain networks and improve the existing networks. This paper aims to assess the efficiency of biomass alternative pathways of the supply network from South America to Europe. In this particular work, three scenarios of biomass using two transportation systems were investigated, i.e., transportation of wood logs, pellets and torrefied biomass in the country of origin by truck and train transportation. Efficiency was measured using a data envelopment analysis (DEA) model derived from CCR. The results present the most efficient supply chain alternatives and highlight the feasibility of establishing closer cooperation between Brazil and countries in Europe for green energy generation. This information can assist in the process of planning and decision-making to determine the practicability of the implementation of torrefaction facilities using the most efficient logistical pathway

Optimising the product distribution decisions for government feeding programs in developing countries

Institutional markets have evolved as one alternative way for smallholder farmers to access the market and supply their produce at a known in advance price and quantity. This helps planning agricultural operations and provides security of income, which is critical for the farmer livelihoods. One such example is the PNAE government feeding program in Brazil, where schools source raw materials and ingredients from local smallholder farmers for school meals. This work presents a Decision Support System (DSS) supporting farmers decisions on which schools to supply, with which products and how to organise the logistical activities, to maximise the net income from participation in these markets. The DSS is applied after the farmers have knowledge which bids they have been successful in, and therefore they have clarity on the potential supply areas. The decisions at this stage can be quite complex, with several factors to be considered simultaneously, such as product range, quantities and price for each school that a bid was won, distance and logistical costs, and logistical synergies when delivered quantities in the same area are larger. At the same time there are constraints such as the land, transportation and resource availability. The proposed DSS is novel in supporting smallholder farmer decisions on supplying institutional markets. The results of the DSS application for a specific smallholder farmer settlement in Brazil are presented and discussed, to assess its applicability

E-Commerce: compared efficiency of major retailers in Brazil and Canada

O e-commerce varejista (B2C – business-to-customer) cresce mais em mercados em desenvolvimento do que em desenvolvidos, porém, a maioria dos estudos na área foram destinados aos mercados desenvolvidos. O presente trabalho teve por objetivo comparar a eficiência relativa de empresas de capital aberto que atuam no varejo de produtos físicos online em um mercado desenvolvido (Canadá) e um em desenvolvimento (Brasil), separadamente, e discutir as práticas de cada mercado. Para isso, foi proposta uma abordagem instrumental nova, a partir de um modelo integrado de Análise Envoltória de Dados (DEA) e Teoria do Controle Ótimo (OCT) para medir a eficiência de custos totais de estoque, que foi, a partir da teoria de gestão lean, integrado o conceito de eficiência de capacidade (i.e, gestão dos ativos físicos). Além disso, o modelo também incorporou diretamente a inflação e, indiretamente, a margem bruta. O modelo foi aplicado a dados públicos de dois conjuntos de empresas classificadas como Varejo (Var) ou Vestuário e Bens de Consumo não Duráveis (VBCnD) – um composto por 12 empresas canadenses (CA) e outro por 17 brasileiras (BR) –, durante o período de 2016 a 2019. Depois, foi feita uma análise qualitativa do B2C das empresas. Os resultados mostraram que, em ambos os países, as empresas Var foram mais eficientes do que as VBCnD. Há indícios de que as empresas BR estavam em uma fase mais avançada da transição digital. No Brasil, as empresas Var priorizaram vendas por app (aplicativo) e marketplace (próprio ou de terceiros) e as empresas VBCnD, por app e loja virtuais. Já no Canadá, as empresas Var priorizaram lojas virtuais e app, enquanto as VBCnD, marketplace (de terceiros) e app. Não foi observada nenhuma empresa CA que controlasse um marketplace, prática comum no Var BR. No Brasil, houve a estratégia em que duas empresas atuavam em paralelo, uma especializada em B2C e outra em varejo físico, mas elas não se mostraram mais eficientes. Os resultados apontaram as empresas BR Magazine Luiza, Arezzo, Estrela e Via Varejo como benchmarks do mercado, portanto, suas melhores práticas devem ser estudadas.Retail e-commerce (B2C - business-to-customer) grows more in developing markets than in developed ones, however, most studies in the area were aimed at developed markets. This thesis aimed to compare the relative efficiency of publicly traded companies that operate in the retail of physical products online in a developed market (Canada) and another in development (Brazil), separately, and to discuss the practices of each market. To this end, a new instrumental approach was proposed, based on an integrated model of Data Envelopment Analysis (DEA) and Optimal Control Theory (OCT) to measure the efficiency of total inventory costs, based on the theory of lean management, integrating the concept of capacity efficiency (i.e., management of physical assets). Also, the model directly incorporated inflation and, indirectly, the gross margin. The model was applied to public data from two sets of companies classified as Retail (Var) or Non-Durable Clothing and Consumer Goods (VBCnD) - one composed of 12 Canadian companies (CA) and another by 17 Brazilian companies (BR) -, during the period from 2016 to 2019. Then, a qualitative analysis of the B2C of the companies was made. The results showed that, in both countries, Var companies were more efficient than VBCnD. There are indications that BR companies were at a more advanced stage of the digital transition. In Brazil, Var companies prioritized sales by app and marketplace (own or third parties) and VBCnD companies, by app and virtual store. In Canada, Var companies have prioritized virtual stores and apps, while VBCnD, marketplaces (third parties), and apps. Although it is a common practice for BR Var companies, no observed CA company controls a marketplace. In Brazil, there was a strategy in which two companies operated in parallel, one specialized in B2C and the other in physical retail, though they were not more efficient than the market. The results pointed to BR companies Magazine Luiza, Arezzo, Estrela, and Via Varejo as market benchmarks, so their best practices should be studied

Analysis of the efficiency of soybean transportation routes in the main Brazilian and American corridors using Data Envelopment Analysis (DEA)

A presente pesquisa está inserida na questão da infraestrutura logística para o transporte de carga a granel, especificamente a soja, a partir das principais mesorregiões produtoras dos dois maiores produtores mundiais, Brasil e Estados Unidos, até os principais portos exportadores. Este trabalho tem por objetivo analisar a eficiência das rotas e corredores nacionais de transporte de soja, levando em consideração os três pilares da sustentabilidade (econômico, social e ambiental). O método parte de uma revisão de literatura sobre o tema, seguido de uma explanação sobre eficiência, por meio da Análise Envoltória de Dados (DEA), e uma contextualização do cenário de escoamento em ambos os países. Foram determinadas 72 rotas brasileiras e 30 norte-americanas com diversas composições de modais. Os dados foram analisados por correlação e análise de componentes principais (PCA) e teste de Wilcoxon. Em seguida, as variáveis foram inseridas num modelo DEA de Slack-Based Measure (SBM), que minimiza os inputs (variáveis de entrada) e maximiza outputs (variáveis de saída) simultaneamente. Foi aplicado, como técnica quantitativa de desempate, o índice composto. Os resultados mostraram que as rotas norte-americanas foram as mais eficientes. Além disso, combinações de curtos trajetos de caminhão e longas rotas de modais hidroviários ou ferroviários estavam entre as eficientes. Ou seja, os resultados se mostraram coerentes com a literatura e a expectativa de especialistas. Em resumo, o uso da DEA pode notadamente fortalecer a análise de rotas e corredores domésticos nacionais usados para o escoamento produtivo da soja a granel e pode direcionar políticas de investimento públicas e privadas.This research is focused on the logistics infrastructure issue used for bulk transportation, specifically soybeans, from the main producing municipalities of the world biggest producers, Brazil and USA, to the key exporting ports. This dissertation aims to analyze the efficiency of routes and corridors, taking into account the three pillars of sustainability (economic, social and environmental). The method starts with a literature review of corridor benchmarking, efficiency measurement through data envelopment analysis and contextualization of transportation scenarios in both countries. It was identified 72 routes in Brazil and 30 in the US, considering several combinations of transportation mode (road, inland waterway and rail). Data were analyzed through correlation, principal component analysis (PCA), and Wilcoxon Test. Subsequently, variables were inserted in Slack-Based Measure (SBM) DEA model. This model simultaneously minimizes inputs and maximizes outputs. It was applied the quantitative tiebreaking method of the compound index. The results showed that the American routes among the most efficient ones. In addition, the combinations of short trips of trucks and long trips of barges or trains were also among the most efficient. In other words, the results were coherent with literature and expectation of specialists. In summary, it is clear that the use of DEA can noticeably improve the strength of the analysis of national domestic routes and corridors used in the productive chain of bulk soybeans

Fostering Innovative SMEs in a Developing Country: The ALI Program Experience

Small and medium enterprises (SMEs) play an essential economic role through income and employment generation as well as reducing inequalities. In this regard, continuous innovation is a pillar for guaranteeing SMEs’ survival worldwide. In Brazil, the ALI Program (Portuguese acronym for Local Innovation Agent) trains groups of SMEs to implement a continuous innovation process based on agile methodologies. This paper applied focus group methodology to investigate whether, after participating in the program, SMEs practice some innovation processes in their business and the difficulties perceived by entrepreneurs in incorporating innovation processes into their ventures. Based on the extant literature and on the focus group, it was observed that SMEs see innovation as a risk, fear innovating because of tradition, family, and/or generational context, and do not see innovation as a process suitable to be systematized with agile tools. In addition, factors such as the age of the SMEs’ leaders, the age of the SMEs, the gender of the SMEs’ leaders, and the nature of the SMEs (family business or not) may affect their openness to innovation. Recommendations are stated for practitioners (such as ALIs) to improve their training quality, policymakers to improve and create similar programs, and researchers interested in future research directions

Digitalization as an Enabler to SMEs Implementing Lean-Green? A Systematic Review through the Topic Modelling Approach

Small- and medium-sized enterprises (SMEs) play a fundamental role in the global economy. However, SMEs usually have different characteristics from larger enterprises, e.g., essential resource restrictions, lower performance, and higher environmental impacts. This requires them to search for strategies to be more competitive and sustainable. A possible solution relies on introducing Lean-Green practices. Previous research indicated that digitalization could be an enabler of Lean. Lean can also help to achieve increased environmental performance using the Lean-Green approach. In this study, this important yet under-studied area is investigated as we consider digitalization as an enabler for implementing lean in SMEs, with a focus on Lean-Green practices. A systematic literature review is executed, following a new framework based on topic modelling for extracting the papers. The topic modelling is executed through latent dirichlet allocation (LDA) which is a machine learning technique. In methodological means, this paper represents an example of the frontier of digitalization for research activities. Regarding the investigated focus, the main findings revealed that digitalization is an enabler to Lean and to Lean-Green. As digitalization supports information sharing, it consequently fosters performance measurement systems, improvements, and value chain integration

Digitalization as an Enabler to SMEs Implementing Lean-Green? A Systematic Review through the Topic Modelling Approach

Small- and medium-sized enterprises (SMEs) play a fundamental role in the global economy. However, SMEs usually have different characteristics from larger enterprises, e.g., essential resource restrictions, lower performance, and higher environmental impacts. This requires them to search for strategies to be more competitive and sustainable. A possible solution relies on introducing Lean-Green practices. Previous research indicated that digitalization could be an enabler of Lean. Lean can also help to achieve increased environmental performance using the Lean-Green approach. In this study, this important yet under-studied area is investigated as we consider digitalization as an enabler for implementing lean in SMEs, with a focus on Lean-Green practices. A systematic literature review is executed, following a new framework based on topic modelling for extracting the papers. The topic modelling is executed through latent dirichlet allocation (LDA) which is a machine learning technique. In methodological means, this paper represents an example of the frontier of digitalization for research activities. Regarding the investigated focus, the main findings revealed that digitalization is an enabler to Lean and to Lean-Green. As digitalization supports information sharing, it consequently fosters performance measurement systems, improvements, and value chain integration

Competitive Priorities and Lean–Green Practices—A Comparative Study in the Automotive Chain’ Suppliers

For organizations to remain competitive, they must now adapt to sustainability requirements, which have become performance criteria for supplier selection for most original Equipment manufacturers (OEMs). In this sense, environmental performance is now included as a competitive priority throughout the supply chain. Therefore, this study aims to verify, through two case studies, the competitive priorities of two first-tier suppliers from the automotive chain that have adopted lean and green practices. The findings show that the quality priority is the main source of competitive advantage and the focus of the operations that are analyzed here, while the environmental priority is not considered the most important by the companies. However, it is still included as a priority. Furthermore, it is demonstrated that lean practices could generate compatibility for the environmental priority, even indirectly, while trade-offs can arise between priorities. Therefore, the integration between lean and green practices can facilitate the inclusion of the environmental priority into the operations strategy and management systems

Allocative control Data Envelopment Analysis (DEA) model to evaluate inventory control systems when there is a relationship among variables

The purpose of this paper is to present an allocative control Data Envelopment Analysis (DEA) model to measure the efficiency of systems with variables that have a relationship to each other, such as inventory control systems. The static model includes intermediate variables (a common variable class in dynamics models). It is applied to 647 companies (Decision Making Units – DMU) from South and North America (mainly USA, Brazil, and Chile), considering their production inventory systems with data from accounting variables. The model minimizes the inventory and production costs to calculate allocative efficiency. The output is demand, the input is production, and the intermediate variable is inventory. Their costs are in the objective function. There is a variational constraint from Optimal Control Theory (OCT) to describe the relationship between demand, production, and inventory. In summary, the model calculates the efficiency preventing the possibility of a projection that ignores the relationship between these variables. The proposed model is relevant because this relationship always occurs in a practical sense in inventory control systems