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Affordable Transportation for E-commerce Expansion

The e-commerce segment generated approximately R$ 170 billion in 2022, according to the Brazilian Association of E-commerce (ABComm). This is an extremely competitive market that demands constant process optimization and agile management from its players. It is within this context that the largest marketplace in Latin America sought out Galeazzi & Associados to stay ahead of its competitors.



The challenge? At that time, Amazon was implementing a policy of delivering products within 48 hours in the United States. In Brazil, however, Amazon had low penetration and longer delivery times. Therefore, it was crucial for this client to be prepared for the strong entry of its direct competitor into the market, with delivery times of less than 48 hours. But how to achieve that?

The first problem: The postal service (Correios) was responsible for 95% of deliveries, which would hardly guarantee such service level agreements (SLAs). The second problem was eliminating the delay caused by sellers in posting the products at a Correios agency. The third problem was absorbing the cost of the first mile, which was previously covered by the seller (and would become burdensome when added to the collection process). Therefore, it was necessary to reduce the average delivery time from 7 days to less than 2 days, while incorporating a significant cost into the supply chain. In other words, how to make it faster and cheaper? And how to deal with dozens of small and medium-sized carriers instead of monitoring a single major operator?

Focused on enabling faster and more affordable delivery for the client, Galeazzi & Associados designed the distribution network, including the location of distribution centers, transfer networks, collection and delivery processes. Initially, they mapped out 75 carriers that would support the first phase of the project. The goal was to, within 4 years, complete over 80% of deliveries through their own network, with same-day delivery in major cities and within 48 hours throughout Brazil.

Once contracted, they trained the carriers to work with a client that sought excellence in all aspects and taught the client how to work with small service providers. As the result of the project, Galeazzi enabled the company to establish its own distribution network, reducing the delivery time from 7 days to less than 2 days, and reducing the cost of deliveries in Brazil from an average of R$ 21.10 per delivery to less than R$ 9.00.

Interested in learning more about how logistics revision and optimization can help your business thrive? Contact us!



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