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Pharma Pre-Wholesale Distribution Brazil

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    Pharma Pre-Wholesale Distribution Brazil Suppliers


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    Find the right-fit pharma pre-wholesale distribution brazil supplier for your specific business needs and filter by location, industry, category, revenue, certifications, and more on Beroe LiVE.Ai™.

    Sample Supplier
    Company
    DEUTSCHE POST AG
    Location
    Jackson, Mississipi
    Duns number
    3862211

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    Up to 3 months

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    The Supplier Evaluation Risk (SER) Rating is Dun & Bradstreet’s proprietary scoring system used to assess the probability that a business will seek relief from creditors or cease operations within the next 12 months. SER ratings range from 1 to 9, with 9 indicating the highest risk of failure. We’ve prepared an infographic to help business owners better understand what influences their SER Rating.

    Moody`s ESG Solution
    ESG Profile

    Company and Sector Performance
    58

    100
    Robust (1)
    ESG Perfomance (/100)
    Environment
    71
    Social
    52
    Governance
    61
    6 Domains Performance (/100)
    Business behaviour
    55
    Human rights
    56
    Community Environment
    44
    Corporate governance
    65
    Human resources
    52
    Security Scorecard
    93

    Threat indicators
    B
    87
    Network Security
    Detecting insecure network settings
    A
    100
    Hacker Chatter
    Monitoring hacker sites for chatter about your company
    A
    100
    DNS Health
    Detecting DNS insecure configuration and vulnerabilities
    C
    79
    Application Security
    Detecting common website application vulnerbilities
    A
    97
    Endpoint Security
    Detecting unprotected enpoints or entry points of user tools, such as desktops, laptops mobile devices, and virtual desktops
    A
    100
    Cubic Score
    Proprietary algorithms checking for implementation of common security best practices
    A
    99
    Patching Cadence
    Out of date company assets which may contain vulnerabilities of risk
    A
    100
    Social Engineering
    Measuring company awareness to a social engineering or phising attack
    A
    100
    IP Reputation
    Detecting suspecious activity, such as malware or spam, within your company network
    A
    100
    Information Leak
    Potentially confidential company information which may have been inadvertently leaked

    Industry Comparison
    deutschepost.de
    Industry average
    Adverse Media Appearances
    Environmental Issues
    2
    Workforce Health Safety Issues
    0
    Product Service Issues
    40
    Human Rights Issues
    0
    Production Supply Chain Issues
    12
    Environmental Non Compliance Flags
    54
    Corruption Issues
    0
    Regulatory Non Compliance Flags
    13
    Fraud Issues
    0
    Labor Health Safety Flags
    38
    Regulatory Issues
    13
    Workforce Disputes
    21
    Sanctions
    0
    esg energy transition
    80
    Discrimination Workforce Rights Issues
    17
    esg controversies critical severity
    No

    Pharma Pre-Wholesale Distribution Brazil market report transcript


    Regional Market Outlook on Pre-Wholesale Distribution 

    Brazil's contract logistics market is estimated to grow 2-3 percent in 2018; locations such as Sao Paulo, Parana, Rio de Janerio and Minas Gerais has higher density for pharma operations where the buyer demand is expected to be higher

    Brazil's contract logistics market is valued around $3,135 million in 2017 mainly driven by e-commerce and manufacturing industries, pharma market share is expected to be around ~7-12 percent

    analysis-pre-wholesale-distribution-brazil.png

    Brazil Contract Logistics Market Size (2014-2018F)

    • Brazil's contract logistics market accounts to $3,135 million in 2017 and is expected to grow 2-3 percent by 2018
    • Major demand is driven from e-commerce and manufacturing industries

    Pharmaceutical Market Overview

    • Brazil's major pharma hubs are located in Sao Paulo, Parana, Rio de Janerio and Minas Gerais where the major pharma production units is located
    • Brazil holds ~40 percent of the regional demand in Latin America; it also has compelling healthcare demographic growth drivers,such as strong projected GDP per capita growth,which will lead to increased healthcare consumption

    Pharmaceutical Clusters & Distribution Channels

    About 80 percent of the major pharmaceutical companies outsource their distribution activities to a large 3PL. Since a traditional distribution model is followed,finished products are distributed through wholesalers or retail chains DC's

    • European and American companies, who own or operate through subsidiaries, control the major market share of 70-75 percent including access to SUS (Unified Health System) contracts
    • Due to this, almost 80 percent of the raw materials necessary for manufacturing of generic drugs are imported, therefore heavy concentration of manufacturing plants and DC's are found near the access ports and entry points to the country
    • Another factor which affects the placement of distribution center is the regulation by certain states, licensing is required for having a manufacturing and distribution center operations located in the same state

    ICMS Tax: Brazil

    In early 2016, about 12 Brazilian provinces increased the rate of the ICMS for medicines, citing storage problems due to the economic recession. For medicine, tax increase was ~1.2 percent on average when compared to 2015 value. Thefts continue to increase in Sao Paulo and Rio, which accounting to 80 percent of total thefts

    •  ICMS is a value-added tax (VAT) that applies to sale of goods and services. It is levied by the provinces and not Brazilian federal government. In general, companies pass this tax to consumers
    • When there is movement of goods from one province to another, ICMS is shared between the provinces in two ways. The lesser developed state gets higher share of the ICMS tax. For instance, when ICMS is 18 percent, 12 percent is for less developed province and remaining 6 percent for the more developed
    • Secondly, it is based on producer and consumer status of the province. The producer province gets 7 percent or 12 percent of the value of the product and the consumer province gets the rest of the amount that totals to rate. For instance, if a shipment is charged in 18 percent in the destination province, the producer province gets 7 percent or 12 percent and the consumer province will get rest 11 percent or 6 percent

    Type of Service Providers

    The lack of integrated service providers specific to pharma industries which needs expertise in operation and customized facilities are limited which is a challenge for the client in Brazil.

    In Brazil, ~85 percent of service providers (>5400 suppliers) are road freight companies followed by storage service providers who hold 5-8 percent  (>500) market share in the supplier landscape

    Type of 3PL Logistics Players in Brazil

    • Road freight companies are the major service providers in Brazil since 65-70 percent of goods are transported via road; further lack of quality and connectivity of rail transport has increased the dependency for road freight transportation
    • Warehouse operators (cargo storage and handling service providers) share 5-8 percent of the logistics suppliers with high demands from e-commerce, automotive and pharmaceutical industries
    • Integrated service providers hold a market share of 1-2 percent however availability of  suppliers with expertise in pharmaceutical and healthcare operations is low due to requirements such as customized facilities, regulations and high demand for skilled labors

    Insight on Brazil 3PL Cost Drivers

    Overhead Employment Cost

    • The cost of labor wage has increased up to 3-5 percent from 2017 to 2018 which is all time high wages in Brazil. Despite high wages the demand in Brazil is high due to high volume of consumers

    Transportation Cost

    • In 2016-2017, cost of distribution has remained same despite increase in fuel price, which is influenced by the abundance availability of trucks. The situation is expected to remain same for the year 2018

    Depreciation for Plant and Equipment

    • In an attempt to bring balance to the market after the economic recession land owners have adopted delivery on-demand strategy, and designing projects that meet the tenant's needs

    Driver Wage Rate

    • The minimum labor wage for drivers in Brazil is $26 per hour for the year 2018 which is 1.8 times higher than the median wage of the country

    Rentals for Occupancy

    • In 2018, rentals rate are expected to decrease by 4-5 percent in major locations like Sao Paulo and Rio de Janerio, with high vacancy rates of 20-22 percent and lack of demand

    Technology and other Intangible Assets

    • RFID asset tagging to products remains a predominant trend in pharmaceutical industry, which has gained popularity due to increase in theft of medical goods in Brazil