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Botão de voltarJuly 11, 2024

Supply Chain Digitization Can Boost EBITDA of Brazilian Companies by Up to 4 Percentage Points

A recent McKinsey study of over 30 major Brazilian companies across industries—with combined annual revenues of ~BRL 1 trillion—reveals that supply chain digitization can increase EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) by up to 4 percentage points.

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This article is based on the Brazil Journal piece:Brazil Journal

The Brazil Journal highlights: “Greater visibility and predictability of metrics, coupled with faster decision-making, drive resilience. The opportunity is significant: only 13% of Brazilian organizations that digitized parts of their supply chains fully leverage these technologies’ potential.”

McKinsey’s research, cited by the Brazil Journal, concludes that 24% of surveyed companies maximize the impact of these solutions. For example, a food sector company that adopted an Advanced Planning System (APS) quadrupled its responsiveness to market changes, improved order fulfillment rates (case fill rate) by 3.5 percentage points, and reduced inventory by 27%.

Another success story in the food industry is Grupo Trigo (parent company of chains like Gurumê, China In Box, Koni Store, LeBonton, and Spoleto), which leveraged EASYB2B’s technology to digitize procurement and sales operations, cutting restocking time by 20%.

Outside the food sector, the study mentions a durable goods manufacturer that invested in a digital control tower. Within three months, it reduced delivery backlogs by 80% and increased On-Time In-Full (OTIF) performance by 26 percentage points.

Approximately 75% of respondents believe proper technology use can significantly boost revenues or reduce costs—or both.

The Brazil Journal outlines steps for successful supply chain digitization:

  • Define the focus: 70% of organizations cite setting clear business objectives as the top challenge. Companies must translate aspirations into short-, medium-, and long-term technical and tactical plans, prioritizing areas with measurable value potential.
  • Secure leadership buy-in: Transformations often fail without C-level support, process redesign, and workforce upskilling. Aligning leadership and building cross-functional teams are critical.
  • Start and refine iteratively: While 50% of respondents cite data quality as a barrier, perfection isn’t required to begin. Start with minimum viable data infrastructure and improve continuously alongside tech implementation.

Conclusion

Brazil’s B2B market is rapidly digitizing, following trends in China and the U.S., where tech-driven supply chains enhance efficiency and scalability.

McKinsey’s data indicates now is the optimal time to invest in digitization, as operational efficiency gains translate directly into margin growth and competitiveness.

Additional sources reinforce this trend. For example, Pequenas Empresas & Grandes Negócios reported that EASYB2B digitized B2B sales, processing BRL 700 million. EASYB2B CEO Renato Ferraz states:

“Our platform was built to solve challenges in sourcing suppliers and purchasing inputs efficiently. Companies can create customized supplier portals without coding, using bots and AI to tailor systems to their needs. Our data indexing services, powered by 700,000+ lines of code, drive actionable insights.”

In 2024, EASYB2B is scaling globally through partnerships with major banks like Itaú and Bradesco, pioneering tech-driven supply chain innovations in Brazil.

The time to digitize is now. Brazilian companies that adopt these technologies will not only improve efficiency and reduce costs but also position themselves to compete in an increasingly digital global market.

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