I interviewed Carlos Rivero Bianchi who discussed What does LinkedIn Represent Today for the Supply Chain Management Professionals.
It's good to speak with you today, Carlos. Looking forward to hearing your views today on software for supply chain, the Latin American supply chain status. My first question is can you provide a brief background of yourself?
I am an entrepreneur in the supply chain field. I have worked in this area for more than 20 years. I started my career at IBM Argentina. For around five years, I was in the role of project leader for the IT supply chain software solution implementation in South America in countries like Argentina, Chile, Peru, Ecuador, and others. And this was my first approach to the IT for logistic scenario. And I really got very involved with this because after moving from IMB, I started working on a big, big 3 PL companies with persons in all of South America and Central America. There I was working as an IT manager and by 2004, I decided to open my own business. I founded Globaltech were we create a software suite with [inaudible 00:01:03] and TMS capabilities and actually running in more than 800 customers across all America.
I used to speak in different universities and colleges regarding logistics and IT and logistic environment. And we used to be a member of different companies dedicated to providing software solution for different industries.
Can you talk about the state of software for supply chain in Latin America? What is currently happening?
Supply chains in South America could not be considered as a single scenario. I mean, more than 10 countries are part of South America, which is not a big deal. However, all of them have difference in the supply chain need, mainly because of the market maturity and especially because of the topography, different geographical situations, different kinds of cities. They look similar, but they are very different. For example, there are some small countries such as Uruguay where logistics would be considered really easy for the short distance, usually served by truck.
But other countries like Colombia has to use air freight to move almost any cargo due to the lack of good roads. So this difference with be reflected in the solutions provided by local vendors. The software solution provided by local vendors, making the local solution the strength or weakness, depending on where they were developed and the kind of market they are trying to serve.
Creating very good TMS solutions and cargo solution, but it's very difficult to find a complete software suite who serves your warehouse, the distribution,your cargo, and for custom clearance needs.
On the other hand, you have a weak economy. So the world class solutions are usually unaffordable. And even when big companies could afford them, a lot of customization is needed. And this customization is usually very difficult for those who don't know the local needs.
So in summary, this situation created a great opportunity for a regional software vendor who knows across country needs and creates software considering they need an affordable price for this market.
Where do you see the opportunities and the threats?
Usually, a growing market will always present a lot of opportunities. And in South America, there are plenty of them for a new software company who really understands their local needs and can offer a software with world-class functionalities but at an affordable price for this market.
But you have to keep in mind that the local market is gaining maturity in this field, in the supply chains, and they are looking, always, for new ways to do the logistics better with an aspiration to implement a new concept in hardware and software for the industry, trying to imitate leading companies worldwide.
So I think that the big opportunity here is to be the first mover in this scenario, trying to get into the market with a novel solution, with world-class solutions, and to get their market needs satisfied.
What are your recommendations for moving forward?
Well, my recommendation for these companies who are trying to get into South America is first of all, you have to clearly understand the market. This is, as I mentioned before, there are different needs, different countries, different people. Even when the companies look similar, you will find regional company who work at a single one, they are different. They are forced to do the thing different ways. Sometimes for local government regulation they have to do it in a different way.
So this company who is trying to get into the market, they have to do it with the local needs in mind and try to avoid a one-size-fits-all concept and move to this market with a scalable and customizable software solution.
About Carlos Rivero Bianchi
Carlos Rivero Bianchi
Founder & CEO at GLOBALTECH SCM SOLUTIONS, Corp