Brasil em Código - 4th Edition by GS1 Brasil

4 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

LETTER TO THE READER

[

Ongoing developments Since the commercial implementation of the firs bar code in the world in the 70’s, companies and society have gone through deep technological changes that have impacted the way of conducting the business and the relationship. These changes have already been incorporated in our everyday lives, which does not allow thinking in hindsight and think how it would have been if they have not have happened. A good example is that in Brazil until the 1980’s, queues at the supermarkets were huge. At the checkout, the cashier needed to type the prices in a long process. By that time, packagings did not have bar codes printed. Some years later, the adoption of standards and the systems automation have speeded up the processes, considerably decreasing queues. At the back-door store and in the relationship with suppliers, we have had more benefits by controlling stocks and reducing losses. Nowadays, the beep and the purchases at the supermarket checkout are something quite common. The developments on bar codes are non-stopping. The Electronic Product Code (EPC) and the radio-frequency identification (RFID) advance exponentially in different segments – clothing and footwear management, students’ presence control in schools and medicine at hospitals, even in the solid waste disposal. The GS1 DataMatrix is another bar code symbol that accompanies the movement of expansion of mobile technology and it can be scanned by cell phones’ cameras. GS1 takes pride in being responsible for the design, development and disclosure of new technologies and for encouraging modernization. Meanwhile we get prepared to celebrate the 30 years of bar code usage in Brazil in 2013, in this issue we have carried out and extensively research work to tell the history since the bar code conception in the United States and its global spread worldwide. The developments mentioned were only possible through the work of people who with a good dose of daring drive the ongoing technological developments. In another action to spread our cause, we have prepared in this second edition of Brasil em Código, the GS1 Brazil International Conference regarding Logistics and Automation. On June 14th in São Paulo, experts and executives of well-known companies and institutions will get together for a debate on technological trends. We are going to repeat the success of the first event held in 2011, keeping up with our mission of helping in the improvement of processes and getting one step closer towards the bar codes, automation and business developments. João Carlos de Oliveira President of GS1 Brazil

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 5

[TABLE OF CONTENTS

[

Cover The bar code has become essential for the

Interview Sergio Valente, president of DM9DDB, shows

Management Research proves that the use of

50 54 42

7 14 16 29 36 39 41 43 58 59

Short articles Retail Marketing Finances Food safety Technology - Footwear Event - Global Forum Technology - Case Profile Opinion - Edson Petrin

6 Apr/Mai/Jun 2012 [ BRASIL EM CĂ&#x201C;DIGO ]

development of retail and industry. Currently, a barcode is scanned seven billion times a day worldwide. Learn about the history of this standard that has revolutionized the way we do business and consumer habits, besides the trends identified by experts.

the walks of the Brazilian advertising in the digital world

standards associated to cooperative work contributes to the sustainability of the company

Communication Learn more about

Event

Technology Learn about the work of the RFID-CoE, the most important center of development of radio frequency identification technology in Brazil.

Hanging loose A lover of extreme sports, the entrepreneur applies the skydiving lessons to the professional challenges

Human Resources

crowdlearning that helps to spread knowledge among employees and clients The 2nd GS1 International Conference about Automation and Logistics brings sector worldwide trends

Micro and small enterprises adopt simple actions to recruit and retain talents

[

[SHORT ARTICLES

Partnership with Instituto Mauá

GS1 Brazil will approach students and teachers of Maua Institute of Technology (Campus of São Caetano do Sul, Sao Paulo). A partnership sat in February between the two institutions that will carry out lectures on the use of GS1 standards in the supply chain and logistics for undergraduate students in engineering production. At the graduate school in packaging engineering the issues will be the identification and management of flow in the supply chain from the information generated by the barcode. For professors, this content will be presented in more detail. Furthermore, in June GS1 Brazil will participate at the Maua Engineering Week.

E-commerce

In 2011 e-commerce revenues summed R$ 18.7 billion, 26% higher than in 2010, according to the E-bit, a company specialized in the development of electronic commerce in Brazil. In total, 32 million Brazilians have gone shopping online, only this time there were nine million - 61% of them belong to the class C. Among the best-selling categories are: household appliances, computers, electronics, cosmetics and perfumes and fashion. The expectation is that in 2012 e-commerce will grow by 25%.

Retail and technology

GS1 Brazil attended the 24th Super Expofood Rio 2012 event aimed at food and drink organized by the Association of Supermarkets in the state of Rio de Janeiro (ASSERJ), which gathered 45,000 professionals. This year’s theme was “Retail: knowledge, technology and modernity.” The team at GS1 was present with a booth to disseminate standards for supply chain management, as well as lectures on security, mobility and traceability for retailers.

Forget your job Events

The schedule of events does not stop at GS1 Brazil. Between 7 and May 10th, the organization was present in the 28th edition of the Congress and Trade Fair Supermarkets of the São Paulo Association of Supermarkets (APAS) in São Paulo (SP). As a result, between 11 and 12th of May, I participated in the First International Symposium on Clinical and Hospital Pharmacy of Albert Einstein Hospital, also in São Paulo. The same applies to the Hospital Fair between 22 and 25 May. On June 14th it will be held the event Brasil em Código, the 2nd GS1 International Convention on Automation and Logistics in Sao Paulo (SP). In Florianópolis (SC), the entity will be in Fair Exposuper of Santa Catarina Association of Supermarkets (ACATS) between 19 and 21st June.

Separate work from free time is not an easy task for many Brazilians: 45% cannot totally forget professional obligations during their rest time. For 26% of this total, forget about the obligations is complicated, because you need to be on standby. The data are from the Institute of Applied Economic Research (IPEA) disclosed recently. 3,796 paid employees have been interviewed in urban areas in home search.

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 7

Best cities for franchises A research conducted by Rizzo Franchise consulTechnological Carnival

The radio frequency identification technology (RFID) can be applied in many ways, far beyond the logistics. During the broadcast of the Carnival in 2012, the Globo Northeast invested in the model aiming at improving the safety and convenience of the people invited to the Globeleza in Recife (PE). The RFID tags are used to control access to restricted areas and cabin, with the identification of the guests, in addition to the radio integration with Internet platforms, SMS and smart totems. It was the first time that radio frequency identification was used in a large event in Pernambuco.

Awards for the press

tancy, specialized in structure and deployment of franchises, highlighted a hundred best cities to open this kind of business. The study assessed nine segments, considering the cities’ profiles and local demands. According to the Brazilian Franchise Association (ABF), the expectation of the franchise sector is to grow by 15% in 2012. Ranking/City

The traditional Automation Award from GS1 Brazil brings a novelty in 2012: the creation of the category Press. The goal is to honor articles and reports that bring global solutions to automation, standardization of logistics processes; identification and its benefits to the supply chain. Journalists can subscribe to published materials in the Brazilian press between January 2nd and October 5th this year. The winner will receive $ 3,500 .00 and the second placed, a tablet. Since 1998 the Automation Award recognizes companies that use the GS1 standards with improved performance and innovative solutions in automation. More information about the Press category is on the page: www.gs1br.org/premiacaoimprensa.

8 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

Most promising segments

1º São Paulo (SP).........................................education and training, bookstore 2º Rio de Janeiro (RJ).................................bookstore; children 3º Belo Horizonte (MG)............................health and beauty; tourism 4º Brasília (DF)..............................................tourism; education and training 5º Porto Alegre (RS)...................................automotive; tourism 6º Curitiba (PR).............................................automotive; tourism 7º Salvador (BA)...........................................tourism; clothing 8º Fortaleza (CE)..........................................bookstore; automotive 9º Campinas (SP) ........................................education and training; bookstore 10º Goiânia (GO).........................................automotive; tourism

Time to learn

Check out the schedule of GS1 Brazil’s courses in São Paulo (SP). To subscribe, visit the section “Event Center” at the website www.gs1br. org. For information: (11) 3068-6229 or eventos@gs1br.org. May 15th: Bar codes and the Traceability and Trade Items Identification – Visibility, Quality and Safety in the Supply Chain. June 26th: Bar codes and Trade Items Identification.

[

[SHORT ARTICLES

Across the world Champions of sales

Brazil participated in the 13th edition of the Supermeeting Sales Leaders, an event held in March by the Brazilian Association of Supermarkets (Abras). The meeting brought together representatives of the best-selling brands in 220 categories of products sold in supermarkets across the country. GS1 has present with a booth for exposure of the Certification Program of the Barcode.

In April, the president of GS1 Brazil, João Carlos de Oliveira; Celso Couto, CEO and Roberto Matsubayashi, Innovation and Strategic Alliances travelled to Japan accompanied by executives from Brazilian Supermarket Association (ABRAS) and Brazilian Association of Wholesalers and Distributors of Industrial Products (ABAD), to visit the market of distribution and retail of the cities of Tokyo, Chiba and Saitama. During the nine-day trip, the delegation visited several stores and distributors to become familiar with the supply chain management and local search know-how for deploying a Technological Innovation Center, which will be opened later this year in Brazil.

Social networks in the corporate environment

A study conducted between October and November of 2011 by the market research company, Gentlemen Panel (the newly created joint venture between Quest and Curriculum Manager), revealed the views of 1,700 professionals among Brazilian presidents, directors and managers on the use of social networks in the corporate environment. Among the 55% who are in favor of the use of media, 80% believe they can contribute to new business for the company and 60% said improving relationships between employees. On the other hand, among the 29% who are against this practice, 95% say that people do not separate the professional life of social life and waste their time at work with private matters. The vast majority of the interviewed (77%) use mainly Facebook, LinkedIn and Twitter. The study points out that even against the rules, 66.4% of the employees have already used these social networks at work and 46% keep up accessing. Among those who answered, 20% are sure that that by means of social media there have been hiring, promotions and layoffs.

All over the country

This year, the meetings of the GS1 Brazil with its associates will be held in all States. In May, the events of the program GS1 Goes Where You Are will take place at the capitals of Porto Velho (day 14) and Boa Vista (day 15). In June: Florianópolis (day 22), Maceió (26) and Aracaju (27). Entries in the section: Events Center site: www.gs1br.org.

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 9

interview

[

[ sérgio valente

By Denise Turco

Advertising in the digital age

Holding a degree in civil engineering and business administration with a post-graduation at Harvard, it was in the advertising field that Sergio Valente found his feet, as result of creativity and an open spirit to learn and work hard. At the age of 46, Valente has created important campaigns that made him famous at the stage of national

10 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

advertising. The characteristic of the advertiser-engineer is to combine a focus on creative excellence with a commitment with brand business management. Next, Sergio Valente talks about the walks of Brazilian advertising in the digital world.

Photo Sérgio Valente

With the rapid advancement of technology and the development of digital platforms, advertising increasingly seeks to integrate the traditional and new forms of communication. At a time when changes occur rapidly, professionals and companies seek for an ideal model. “There a lot of people experiencing the digital. The trend is that investment in this area will grow aggressively,” says Sérgio Valente, um dos mais expressivos nomes da publicidade brasileira. Desde 2005 na presidência da DM9DDB, one of the most important names of Brazilian advertising. Since 2005 at the presidency of DM9DDB, one of the largest and most awarded advertising agencies in Brazil and abroad, founded by the advertiser Nizan Guanaes, he makes an exception: advertising, good or bad, it does not depend on the platform on which it takes place. “The essence of advertising has not changed, but the way to run it.” With 25 years dedicated to his career in advertising, 15 of them dedicated to DM9DDB, Valente put the agency at the forefront of digital thinking – the agency is a pioneer in mapping supported communication strategies in media convergence. By doing so, the agency won the first title of Cyber Agency of The Year at Cannes, the highest award of the advertising world.

“What determines the quality of results on advertising investment is not the size of the company. It is the strategy built up towards a certain goal”.

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 11

Brasil em Código How do you define the impact of the social medias in field of communication over the last years? Are the new digital medias reinventing advertising? Sérgio Valente AI don’t think that the digital medias are reinventing advertisement. We have two kinds of advertisement: the good one and the bad one. This does not depend on the platform it takes place. The social networks are spaces of socialization that appeared in a tool that is the Internet. People behave in social networks in the same way they behave in networks of relationships that they built in the neighborhood, school and neighborhood. Basically, the consumer still wants to know the most im-

“The challenge for advertisement in the digital world is to allow yourself to try, innovate and maybe, make a mistake” portant things before everyone else to share and thus become relevant to their circle of friends. This works for online and offline environments. And the advertising is made for this consumer. So, in essence, advertising has not changed, but the way to do it which is another issue. BC The Internet has surpassed television and figure as a mean of entertainment more important today, according to a survey conducted by Deloitte, which interviewed ten thousand Internet users in the United States, Japan, Germany, UK and Brazil. For 78% of Brazilians, the TV became less important than the computer. What is your analysis on the growth of online advertising compared to television? 12 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

SV TSergio Valente Television and Internet are complementary media. The story that media will eliminate the other is nonsense. What happens now is that the consumer watches TV with a computer on their lap, a magazine and a newspaper and also with the phone in hand. The online advertising should go up a lot because the comparison basis is still very small. Television will also grow and will continue to play a key role in Brazil, a country that we all know that has a continental extension and a population that loves TV. BC In your opinion, have the strategies been directed with more intensity to the digital world? SV I think it depends on the agency, client and target you want to achieve. There is no doubt whatsoever that a lot of people are looking at the digital. There lots of people experimenting the digital. The trend is that the investment on this field will grow aggressively, but a little bit of this is explained because it starts from a very low basis. BC Nowadays, what is the share of investment in social media advertising? Is there any data market related to it? SV The Brazilian Internet ended 2011 with a share of 5.1% regarding the investment on advertising, according to the Interactive Media Association, a nonprofit institution whose mission is the development of interactive digital media market. At the DM9, we invest more than that. BC The demands of enterprises, whether small, medium or large, are similar in the digital advertising? SV No. The demand from companies in advertising depends on the goals and positions of each one. What determines the quality of results related to

the investment on advertising is not the size of the company. It is a strategy created for a particular purpose. Companies that learn how to use online advertising to meet the objectives that they need to comply should have better results and this is independent of whether we’re talking about small, large or medium-sized enterprises. BC DM9DDB is a pioneer in the virtual world. The company has recently released results of a survey on the behavior of digital consumers. The survey found that changes in behavior generated by digital innovations have little or nothing to do with sex, age or social class, but with different identities. What was the most revealing or interesting thing in this research? SV Actually, the study has shown that changes brought by the digital are related to three new criteria. Firstly, how many and how people used the resources and technology equipment in their lives. Secondly, what their intentions are when consuming several digital products. Thirdly, how much the digital resources serve to shape their own identity. That is, in the digital world, you cannot classify people only through the conventional criteria such as demographics or psychographic profiles. Based on these new criteria, we have reached the profiles: immersed, fascinated, paired, traditional and evolved. The immersed ones have had part of their identity defined from technology and the fascinated want to convey the image of modern and technological. On the other hand, for the paired ones, it is crucial to put into practice life projects. The traditional ones appeal to technology to speed up the tasks, but do not worship it. For the evolved ones, the machine and technology world it is their habitat.

BC How the data from this study may contribute to the brands to improve the understanding of the consumer in the digital age? SV It is a new intelligence. A new way of thinking in how to approach the consumer at the moment he/she is online. How each brand is going to use this depends on its strategy by adapting this new information into their strategy. The one who wants to know about how the DM9 would do, just have to consult us. BC What are the trends and advertising challenges in the digital world? SV You don’t have to be afraid of daring and taking risks once in a while. There are no recipes for success. What works for one brand may not work for the other. The challenge is to give it a try, dare and maybe make a mistake. BC The campaigns produced by DM9DDB already direct something specific for tablets? Do you observe any trends in this direction? SV Yes. We signed the first interactive ad for Sundown Kids. The piece was part of the summer campaign and was linked to the magazine “Veja” on the iPad. In it, consumers could interact, coloring the design of the campaign by touching the screen. I think we should see more ads being created regarding how to explore the characteristics of this platform. It makes no sense to simply put the advertisement printed in the tablet and do not explore the functionality it provides. I think we will have good news on iPhone in the near future.

cial network in Brazil. This is a segment should grow at an alarming rate. BC How do the brands seek to relate to consumers on social networks? What kind of approach are they seeking through advertising? SV In social networks, brands must be open to dialogue, to the content. Again, the approach depends on the strategy of the brand more than the tool. BC The Brazilian advertising is one of the world’s most creative. With this status, the challenge of reinventing is increasing. How do you assess the present situation of Brazilian advertising? What are the main trends and challenges? SV The Brazilian advertising is one of the world’s most creative and we have every condition to maintain this status. We just have not to let it go to the head and believe that we have achieved success. We have lots to do, experiment and grow. We have an industry with strong links that allow the exercise of creativity. Let’s enjoy.

BC How is the advertising directed to the smartphone and mobile phone? SV The demand is increasing. Today, the cellular network is the largest so[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 13

[

digital

[ retail

Enjoying

the

fashion

Learn more about the women’s accessories brand (has come the other way round) most companies - and now the Facebook started to expand through franchising.

By Denise Turco Are you in doubt about what to wear in a wedding party? Do you need tips to match shoes? Do you want to know what colors of makeup are appropriate for your skin type? On Facebook, the page MyGloss, a women’s accessories company, has the answers. The brand was created to promote online advice and discussions about fashion and style and now it is advancing to the expansion. Backed by the interaction that the social network provides with a large number of Brazilians, MyGloss became a source to quench the thirst of women for fashion. At the same time it is the inspiration for the company to create the garments and establish the relationship strategies with consumers. The differential was to bet on the digital world before they have a physical store. Usually companies do the opposite. MyGloss was designed in 2008 by the brother and sister, Rodrigo and Kátia Stocco. Back to that time, they drew the business plan for a franchise network focused on jewelry and ladies accessories. He, at the age of 28, already had a sound experience as regional director of 14 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

Ambev and entrepreneur franchise (he was already a franchisee of five brands). His sister was a fashion designer and architect in charge of designing the garments. In the second year of the company’s planning, they thought that Facebook would be interesting to strengthen the brand by positioning it as a fashion company and thus gain relevance in the digital world. The inspiration came in 2010 as soon as Rodrigo returned to Brazil, after the NRF, the biggest retailer event in the world held annually in New York, MyGloss page on Facebook has more than 400 thousand fans

where he found out that Facebook was already a strong trend there. “In Brazil they talked a lot about Twitter, but we went straight to Facebook. It was a gamble that worked. Today it would be impossible for our company, because the sponsored ads are very expensive, we would not have the capital to do so. At the time it was more accessible because almost no one knew, “says Rodrigo Stocco. It seems a long time ago, but in 2010 very few people heard of Facebook in Brazil. With a page that merges content about fashion in general and advertisements, the differential of this network is the provision of social service, a kind of personalized advice. Women who enjoy the page (they represent 92% of the public) ask suggestions for clothes, shoes, makeup and information on trends. Some even send photos to the consultants to assess whether the look is appropriate. And MyGloss responds individually or prepare contents with common questions that come from fans.

MULTICHANNEL After gaining ground on the Internet and in the social network, it was time to implement the project’s physical

Photos: Disclosure

store. In June 2011, MyGloss opened its first own physical store in Campo Grande (MS). By that time, 60,000 people accessed the Facebook page. Currently the brand has four retail outlets: two in the city of São Paulo, at Mooca and Ibirapuera malls and two other ones in Campo Grande (North and South malls and Campo Grande mall). This year, the brand plans to open 20 franchises in cities with over 400,000 inhabitants and in major cities in the country. The turnover must close to $ 9 million, 200% more than in 2011. The minimum capital to open a MyGloss store is of $ 275, 000 taking into account the trading location. The period of return is of approximately 24 months and the average monthly billing of a unit is of $ 70,000. The store sells purses, belts, necklaces, hair accessories, earrings, bracelets and rings. Prices range from $ 19.00 to $ 499.00. At the retail outlet, the idea is to explore the five senses of the customers. The exhibition of products invites to try them out. The smell and the music store were developed according to the brand concept. Interactivity is also present the consumer experiences the product, takes pictures and sends immediately to social networks. Recently the company has carried out a research in the outlets to measure the conversion rate, that is, who knew the brand through Facebook. Of all people who knew the page MyGloss, 90$ bought; those out of 40% who did not know the brand, did not buy it. “This is due to the level of confidence of people who are in contact with the company on social networking,” says Rodrigo Stocco. Besides the physical store, Facebook page and blog, the company also has online store. The idea is that the consumer experience be multichannel. So the brand offers different points of contact, but with the same products and visual identity. “Today we have an online sto-

re on Facebook, but we will also launch another one in other social network,” says the founder. He said that this is necessary because people do not have the habit of buying through this channel, they still do not feel safe. “Trade in Facebook will grow too, as it was at the beginning of online shops. It is a process of maturation. The administrative headquarters in Campo Grande has three employees and the showroom in São Paulo has ten direct employees. All the production is outsourced to industries that work exclusively for MyGloss. The company hired two consultancy companies which are responsible for the interface with the industry, production management and quality audit. According to Stocco, this model was inspired by the shoe company Arezzo. The example of MyGloss who ventured in digital channels and gained such popularity may be a sign of new times for businesses.

Rodrigo Stocco, MyGloss founder “Our marketing structure is the social networking. Now people enter the physical store and start to associate it to Facebook. “

“Those who access the page find topics about fashion. The product is in the context. On Facebook page, people do not like when brands talk only about their products. This does not bring reliability. So we decided to follow an online service to add value to people and thus create a bond with the brand, “said Stocco. The idea has really proved to be a success. The impact on the online world was much larger than expected and served as a guide for the brand to move forward. Today the page has over 400,000 fans.Young women are the majority - more than half of women who access the page MyGloss are between 18 and 34 years old. Sao Paulo, Rio de Janeiro, Belo Horizonte, Salvador, Recife, Goiânia and Porto Alegre are cities where the page has a greater impact. Despite the young audience, the focus of the brand is the B-class women of all ages. The close contact with potential customers helps in the creation of products and relationships and branding initiatives. For example, the model for the winter collection campaign is a girl who follows the company on Facebook. The idea came up during the development of the campaign, when MyGloss asked who would be the perfect poster girl for the new campaign? Many people responded: “Me”. The company received five thousand registrations and hired a modeling agency to conduct the contest. To cope with this exponential growth in Facebook, the company has three consultants to handle the content. “Today we can say that our marketing structure is the social network. Now people are in the physical store and begin to associate it with Facebook,” said Stocco.

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 15

[

marketing

[ brands

Branding for everyone Brand management techniques help to strengthen the business, no matter the size of the company. By João Guimarães Expressions such as branding and brand management are extensively used when the subject is the way to strengthen a business. As a matter of fact, the quotations represent the same concept, which is still poorly understood in Brazil. Owning a strong brand in the market is the dream of any entrepreneur, after all, greater recognition towards the customer means more sales and thus higher revenues. The problem is that the mystique surrounding these concepts is so high that some believe that conscious image strengthening is only available to large companies and multinationals, which is a mistake. Small and medium entrepreneurs can, or rather, should use branding techniques to strengthen their businesses. However, first of all, it is necessary to define and correctly understand the concept of such word that has been used without great care by many marketing professionals. A brand is the consumers’ perception about a particular product, service

16 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

or organization. That is, the brand is what is experienced by the user and not by its developer. It is clear that the process of design and visual creation is extremely important for the conception of the brand, but we cannot define these characteristics as a whole. According to one of the main entities related to the subject in the world, the American Marketing Association (AMA), branding is not only a matter of winning the consumer’s preference in the face of competition, but to make this person believe Daniela that a product is the Bianchi, from only solution to what Interbrand he seeks. According To build a to Julio Moreira, probrand, just fessor of branding at set clear the post-graduation guidelines. course in communication from the Escola Superior de Propaganda e Marketing (ESPM), the branding has

the function of adding value to people’s lives. “The customer thinks like this: I use this brand because it is a translation of who I am. When it comes to this topic, many people only think about the visual part, but the logo and the objects used only summarizes the values of the manufacturer, “he says. A strong brand creates a desire in the consumer, which in turn creates a sense of belonging to the universe in which that product is inserted. “Your car, the clothes you wear, the appliances, all of this says something about your personality,” says Moreira. “The brand decision process with which we will make a connection is totally emotional. We think it’s rational, but it is not.” This force is not created from day to night. Branding consists of a set of actions that help building brand identity. To Richard Klein, project manager of the Grupo Troiano de Branding, these initiatives directly impact on the company’s management.

“The small entrepreneur must use the concept in and out of its property, that is, along with their employees and the market it serves,” he explains. “Branding does not have any disadvantages.” WHERE TO BEGIN Klein believes that there is no magical formula for success. “If so, the Brazilian Service to Support Micro and Small Enterprises (SEBRAE) would not have a lot of data on companies that shut down prematurely. Some in the first year of existence,” he says. But some advice can be followed. One of the key words to strengthen this kind of relationship with the customer is: focus. Eager to grow, many entrepreneurs leave out the essence of their company and end up failing. A good example is a small restaurant, where you need to call a week before to book a table. “This is part of the aura of the place, this is the charm of the program,” says Professor Moreira. “It can happen to the owner to expand the hall and lose this characteristic and also the customers.” Thus, you must create an identity. A set of characteristics that is evident when the customer calls the company and the employee has a special way to answer the phone, for example. Branding begins at the entrance. The HR department should hire people who will honor the brand. “We are talking about creating a healthy environment. Something that will make people proud of working there, whether five or one hundred people,” says Klein.

around 15 employees. With a motivated team, there is no doubt whatsoever that the environment will be pleasant and cheerful, which will create a good experience for the client. “The client can go to this place, because besides cutting the hair, she can relax. It has a psychological side,” says Moreira. If the experience is nice, she will certainly advertise the beauty parlor. By promoting better working conditions, companies gain in benefits. “When you work with a motivated group who sees value in that project, they become true enthusiasts of that brand,” says Klein. After all, this inner satisfaction of the employees is clear to the consumer, who really puts store into this. “There are a number of initiatives that build the brand image for the customer. They range from polite attention to the attitude of the receptionist and the care cleaning.” Who corroborates this statement is the professor of the ESPM. For him, the key to success lies in basic things.

An example is a beauty parlor with

The consumers’ decision process towards brands is totally emotional.

TIPS FOR A RELEVANT BRAND Focus It is important to learn about the market aimed and stick to the business core.

Commitment Branding begins at the staff recruitment. They need to believe in the product that is sold.

Healthy Environment When it comes to service, providing a pleasant experience to the customer is a halfway there.

Effort Having a defined the concept at the tip of the tongue does not mean recipe for success. It requires work. A strong brand does not come from night to day.

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 17

[

[marketing

STRONG BRAND IN THE BUSINESS OF FOOD

Julio Moreira, from ESPM To strengthen the relationship between the brand and the customer, it is crucial to focus. Ricardo Klein, from the Grupo Troiano “A range of initiatives builds the brand image. They range from assistance to the cleaning care”.

“Simple attitudes such as saying: “good morning” to your client really makes all the difference,” he says. “Often the consumer prefers to pay more to be well served. He is not buying the product, but something else.” QUITE SIMPLE From the point of view of Daniella Bianchi, strategy brand director of Interbrand Brazil, it is entirely possible that small and medium businessmen make the management of their brand. “Companies do not have to get cold feet when we talk about “branding “, states her.

Brand is the perception that consumers have about a particular product, service or organization. 18 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

Daniela believes that in these cases, it is not necessary to have a sophisticated system for building a relevant brand, the entrepreneurs only have to observe what the business processes and the dimensions of their business are. “We need to think strategically and do an exercise regarding what will be the guidelines of the brand,” he says. The values that will be displayed to the consumer, the experience you want to provide, employee engagement, everything must be well defined. After all, no consumer will relate to an identity or a brand without changing their concepts all the time. “It’s important to be loyal to his idea and do not lose the essence,” says Daniella. Finally, a tip for the entrepreneur who is starting a business is: market positioning. ‘”We must be clear about what territory is intended to occupy so as to pursue this objective in a consistent way,” states Daniella.

Founded in 1967 by the engineer Mário Carneiro, according to Daniela Bianchi, strategy brand director from the Interbrand Brasil consutlancy, Casa do Pão de Queijo is a good example of branding for medium enterprises. With a single store located in the center of São Paulo, the shop began selling a family recipe for cheese bread made by Mrs. Arthemia, the owner who is the character of the company logo and mother of the engineer. Due to the affordable price and the high availability of fresh products fresh from the oven, the success was enormous, fact that made Carneiro to open branches, all in good location, which also helped to ensure a heavy flow of customers. This experience of the customers eating a quick snack while on the street became the reference of the store, which created a strong image in the food sector and confidence to the public. Currently, the company has more than 450 branches all over the country, among own stores and franchises. “It is a company that was small and has developed due to the facts mentioned”, says Daniela. The brand must be in the most important channels of the market and be able to respond and react to crises. Thus, it will constantly evolve. “

[

Cover

[ evolution

[ BRASIL EM CĂ&#x201C;DIGO ] Apr/Mai/Jun 2012 19

By Flávia Corbó

History translated into code Some technologies are so incorporated in our daily lives that we cannot imagine how difficult it would be without them. The same happens to the bar code, a crucial tool for the industry and retail development. However, the path between its invention up to its wide use in the supply chain was long and paved with lots of challenges. In 1948, seated on a chair near the seaside in Miami, the USA, the mechanics engineer Joe Wooland imagined the first draft of an idea that would revolutionize the world of business. Involved in a relaxing atmosphere, which featured in the background the sound of waves and children playing, he tried to find the solution for a problem presented to him and his partner, Bob Silver, by the owner of the supermarket chain, Food Fair. How to identify each product at the moment the consumer makes the payment at the POS in an easy way? In the 40’s, the retail concept in the USA and Europe was already close to what has been observed today. The small warehouses, in which a salesman serves the client behind the counter, has been replaced by large stores where products were placed in shelves – self- service. But evolution has brought some problems. Entrepreneurs in the grocery business could no longer organize the inventory; they lost control over the amount of products bought and the cashiers quite often made mistakes in the goods price. It was the demand for better control that the owner of the Food Fair searched the engineers. Thinking about how to solve this issue that Wooland chose the peacefulness of the beach. Influenced by his boy scout past, his first idea was using the Morse code. But the products packagings would not have space to hold a series of dots and dashes. While wandering in his thoughts, he rubbed his feet on the sand. When observing the design formed by thick and thin lines, he got the answer: a 2D image could be easily read by an optical device. Thus, the concept of bar codes was born.

20 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

Whereas the idea came up in a friendly atmosphere, the process to put it into practice was long and crooked, without shade and fresh water, according to the history portrayed in the book “Bar codes: When Business Invents Its Own Language”, by Pierre Georget. “To fill in the space between the idea and the practical application, many technological pieces were necessary”, the device imagined by Wooland was designed to work together to the computer. However, in 1948, this was an innovative and very expensive technology. Only in 1960 it was developed the first computers compatible to the retail operational process. Still, commercially speaking, it was necessary to build an optical reader at an affordable price. Many obstacles have been overcome only through a combination of

factors. Despite the tension created by the II World War e, later on by the Cold War, the companies made huge investments in technology. Technological advances made possible the design of a portable optical reader and contributed to the development of a system which allowed the cashpoint, the computer, the printer and the scanner work simultaneously in real-time. Overcome technological barriers, the economics scenario contributed to the invention to become popular. Between 1967 and 1974, the United States faced a very high inflation. The

grocery business was one the most affected with food price fluctuations – 14.9% from 1967 to 1970 and 40.7% from 1971 to 1974. The bar code was the solution. STANDARDIZATION When everything seemed settled, a new difficult came up. Some products did not have the bar codes, so they could not be read at the POS and were not purchased. Others presented little information that did not help in the product identification. “Wooland and Silver invented the technology, but not the standard. And the

CODE IN EVOLUTION 1985

1960 The first microcomputers emerged and years later, the first optical reader

Real Supermarket opens the first automated store in Brazil

1974 Supermarket in the USA sells the first product identified with bar codes

1973 UPC

1977 EAN

The first standardized bar code. It has 12 digits.

Based upon the adopted model by the USA, 12 European countries gathered together to design a 13-digit symbol, which allowed adding information about the goods origin country

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 21

bar codes could only succeed with a standard that allowed the operation among all retailers and wholesalers in the world”, says Georget. In view of this, producers and wholesalers felt the need to standardize the bar codes. Leaders of large companies organized committees (Uniform Grocery Code Council, later on UCC – Uniform Code Council, GS1 US today) to discuss improvement proposals. The first meetings failed due to disagreements over the amount of lines a bar code should have.

Economic and technological advances enabled the retail automation and the use of standards

Since the first meeting which took place in September, 1969, many debates have been organized until April 1973, when the committee found out the bar codes format and features. Among the options presented in open competition, the chosen model was designed by IBM and was named UPC (Universal Product Code). 25 years later since that afternoon on a beach in Miami, Joe Wooland invention was on the verge of becoming a reality. In the morning of June 26th, 1974, a Marsh’s supermarket costumer, in Ohio, the USA, purchased the first product with bar codes. The purchase of a 10-pack gum made history and is currently on display at the Smithsonian Institute’s National Museum of American History in Washington. From that day on, the invention took off. Nowadays, a bar code is read seven billion a day in the world.

2004 GS1 DataMatrix 2D standard that is able to hold much more information in a space smaller than a bar code. The scanning can be done by scanners equipped with cameras, including smartphones and tablets.

22 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

1994 Plano Real launching helps to settle the Brazilian economy

1999 GS1 Databar

2003 EPC tag

Space reduced bar code that enables its application on small surfaces such as tablets, pills and fruits.

Label holding a chip which can be read by RF.

2011 Valdac Group launches Memove, the first clothing store with RFID technology in Brazil

“The RF technology and the bar codes will live together for at least 50 years” Pierre Georget

EXPANSION Observing the American companies adopt the UPC standard, European entrepreneurs have visited the country to learn more about the new technology. As a result, a European committee was created in April, 1974, in order to assure compatibility between the systems of the two regions. Unlikely to what happened in the USA, the Europeans decided that the code would not be used only at supermarket, but extended to other retail segments. In 1977, in Belgium, 12 countries created the association EAN (European Article Numbering). The group adopted the EAN-13 standard, designed to be compatible with the UPC created in the USA. The difference between the standards was only one digit that enabled the identification of the goods country origin. 25 years later, in 2002, the Canadian and American associations joined EAN International, which beca-

me known as GS1. The change of the name has been made to reflect the bar codes global range. IN BRAZIL The first actions towards the Brazilian retail automation emerged in the 70’s, with the gradual replacement of the manual cashpoints by electronic ones. Only in 1983, with the Commercial Automation Brazilian Association (ABAC), that gathered entrepreneurs from important companies such as C&A, Lojas Americanas and Pão de Açúcar, the process

Mappin was one of the first Brazilian stores to use scanners and optical readers at the cashpoint

started to take shape. “It was at that moment, that we started to show to the Brazilian market the need of using a unique, standardized and global bar code”, says José Humberto Pires de Araújo, GS1 vice-president, in a statement registered in the book “EAN Brazil 20 years”, written by Luiz Carlos Lopes who celebrated two decades of the institution in Brazil. Managing the adoption of the code in the Brazilian market, the association decided to join EAN International in May, 1985. At the same year, Real Supermarket announced the first

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 23

Photo: Folhapress

from GS1 Global

An example of what happened in the USA during the 60’s, the economic scenario has also contributed to the technology final adoption in Brazil. According to Roberto Matsubayashi, Strategic Alliances and Innovation manager from GS1 Brazil, two factors have been decisive to the spread of bar codes on national territory: the end of market reserve in 1992 that by that time restricted the access to the technology; after, in 1994, the Plano Real brought economic stability. “Besides that, the consumer has become more conscious and started to give preference to stores that offered greater agility in client service”, states him. At the end of 1994, Brazil reckoned on more than 80 thousand enco-

[

fully automated store; Mapping began to use scanners and optical readers at the cashpoint and the cashew nut Cajuê, produced by Condor Industry and Commerce made history as the first product to reach the shelves with bar codes. The identification required to the introduction of the product in the European market. “In 1986, it was signed an agreement in which the industry undertook to identify 30% of the products. A new agreement established that for each ten automated stores; at least an optical reader had to be national. From that moment onwards, things took off. The market has been adapting and the bar code standard has been consolidated in Brazil”, says Antônio Galvão Vasconcelos, ABAC former president.

Bar codes have emerged to streamline the supermarkets operations, but it has been expanded to other areas such as logistics and clothing

ded products and the ABAC number members reached seven thousand. Two years later, the association showed a growth of 100% - achieving 13.5 thousand affiliate companies. The numbers led Brazil to the 15th position among countries that practiced automated trade. Taking advantage of the moment, the association held a general meeting in which it has been approved the change of the name to EAN Brazil. The idea was to reinforce the image of integration together with the mission and objectives of the international association. In 2003, a new change was made in alignment to the decision taken by Europeans, Americans and Canadians to exchange the acronym

24 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

EAN for GS1. “Thanks to the modern vision and industry support regarding the retail segment, the bar codes have been placed into packagings in short time. Furthermore, the equipment and system industry believe in a new market niche that has ensured a safe deployment”, says Roberto Demeterco, who has been a former president at GS1 Brazil and at Supermarket Brazilian Association (ABRAS). FUTURE Since that afternoon on a beach in Miami, other types of standards have been created. Ten years ago, the general manager of GS1 at that time, envisaged adopting new codes for products identification. “In the near future, goods will be marked with a

device that it will the holder of its own identification number. The RFID will become financially accessible and it will be implemented to complement a variety of applications in the supply chain. As a matter of fact, the technology adoption is expanding. Nowadays, the RFID is used in the logistics field to the traceability of products in some retail outlets (mainly in the clothing segment), in the electronic toll-collection system (for example, E-ZPass) and even the Army and the Air Force in the supply management. Another technology that has been gaining ground is the GS1 DataMatrix, which can be encoded by readers equipped with cameras. By capturing the image of the symbol, it is possible to access additional information about the product. However, even with the growing interest for new ways of identification, the bar codes designed by Wooland should not lose ground. “On a fairly long horizon, I imagine that the bar codes will continue to be used for being cost-effective and due to its functionality. In most businesses, for bar code application there is no extra charge. Today any other technology is more expensive”, states Matsubayashi. “RF technology and the bar codes will live together for at least 50 years. For RFID to replace the bar codes, it is necessary that it becomes more accessible and this should not happen in the short and long term”, says Pierre Georget. IN PRACTICE The best witnesses about how Wooland idea was crucial for the supply chain development are the industries and retailers. In 2000 the pharmaceutical industry Baxter adopted GS1 standards, facing the market needs, for nearly all clients already had au-

Roberto Matsubayashi from GS1 Brazil Market opening and Plano Real helped in the adoption of bar codes in Brazil

Jefferson Cardoso from Baxter The use of bar codes reduces materials costs and helps to control the inventory

tomated system, besides meeting the requirements of the National Agency for Sanitary Surveillance (ANVISA) related to the control and traceability of hospital and medical devices. “Among the many benefits of adopting bar codes, I emphasize the control and traceability. All product codes are read internally, so that we can monitor its flow, reduce the costs of materials management and inventory control, apart from enhancing our systems automation”, highlights Jefferson Cardoso, Baxter marketing manager. The same benefits are observed at 3M Brazil. “We use the RFID technology in many areas, with innumerous products such as automation and inventory control at libraries, scanning

and electronic passport recognition, automation and traceability of many cattle herds”, says Paulo Berbel, the company packaging engineering and process manager. Today more than reducing lines and controlling inventories, the bar codes – in its many formats, types and technologies -, serving as an important networking tool that searches approach and a greater integration between the consumer and the companies”, says Berbel.

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 25

[

MANAGEMENT

[ SUSTAINABILITY

By Kathlen Ramos

Best practices in the supply chain

26 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

enhancement, greater efficiency and costs reduction. When it comes to wholesalers and retailers that have many partners, the use of standards is of paramount importance. In order to industries produce consumer goods highly demanded, the logistics is a critical step in which the standards can reduce the delivery time to the retailer, wholesaler and final consumer. Differences regarding the results between companies that adopt high levels of standards to the ones that adopt few or do not use them can

mean the business success or failure, according to Wilson José da Cruz Silva, GS1 Brazil Innovation and Strategic Alliances senior advisor. “The lack of business visibility can delay decisions and cause losses. Thus, companies that raised their standard levels showed greater results than the ones that bring low level implementations”. Another aspect of the research shows that a higher number of small and medium enterprises started to adopt GS1 standards. “These companies can

SUCCESS IN BUSINESS GS1 standards ensure efficient in the whole supply chain. Check the study results: > 51% stock reduction > 2% efficiency gains in service from suppliers > 21% lead time reduction at the distribution center > 42% drop in distribution costs > 32% decrease in shortage

Pictures: iStockphoto/Disclosure

IBM Global Business Services in a partnership with the Consumer Goods Forum, a global chain including industries, retailers, service providers in more than 70 countries, has developed an important research on standards provided by GS1 which can help to streamline the results in the whole supply chain. A study called “Make your supply chain more efficient by using GS1 Global Standards” has collected data between May 2010 and June 2011 among the 10 thousand companies in 62 countries. The companies shared its perceptions and showed the benefits of using the standards. The total value of the industries participating in the survey, which include 23 companies in the “Fortune 500” in 2011 (that enlists the largest companies in the USA), is of US$2.25 trillion. The research finds many positive relations between the adoption of the GS1 standards and the business results as the operations evaluation

retail

Research has proven how standards, together with cooperative work among companies, can streamline the whole management of the logistics chain either for the industry or retail sector

industry

standards

higher accuracy, better control over products inbound and outbound and a more efficient replenishment of missing items”, reinforces Silva.

achieve low implementation costs with standardized solutions, for the systems customization is always more costly. Another point is that small enterprises have less capital, so the use of standards improves the controls, which means spend less”, says him. COLLECTIVE WORK The importance of collective work between companies is a point to be highlighted. Changes in the global market conditions (such as commodities price fluctuations) and the clients’ needs (for instance, the

interest for new products) demand a strengthened supply chain, able to synchronize demand and supply. Nowadays, it is one of the industries’ biggest challenges. The report emphasizes that one of the ways to synchronize the businesses between companies is on the adoption of some standards, for example, the GDSN (Global Data Synchronization Network). The GS1 set system standards will provide better visibility in the whole supply chain. This includes inventories with

HOW TO BENEFIT FROM COLLABORATIVE WORK? > Cooperate more closely with your business partners helping to improve the supply chain > Use standards that can lead to a more efficient way to work together > Make the standards clear internally and for business partners in order to have the perfect data synchronization

Global Scorecard e EDI IBM research approached the Global Scorecard tool benefits (used to facilitate the common language between companies and inside each one of them) aiming to do the benchmark in the consumer goods industry. “With the benchmark, the company can find out, for example, if its competitors are using a specific method or best practice and you are not. This can be a good indicator for improvement or strategy change”, say the GS1 Brazil executive. Therefore, scorecards can be used either for internal development or enhancement for action plans together with trade partners. Nowadays, retailers, wholesalers, manufacturers, commodities or packaging suppliers, besides logistics and transportation service providers can enjoy the benefits of this tool. The research shows two study cases to confirm these results. The first of them is the Procter & Gamble (P&G) that uses Global Scorecard data to define the strategy for the supply chain and establish in which technology it should focus on. In this case, the information obtained through benchmarking results used to plan the correct strategy. The second case is the L’oreal that has recently implemented the electronic exchange data (EDI) for most part of the products. The company has benefited from the reduction of missing products in stores and warehouses, enhancing the goods flow anticipation (production and logistics), streamlining truck loads. This process has raised the capacity of commercial units to distribute reliable information regarding products, enabling the company make decisions quickly.

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 27

[

[MANAGEMENT

LEARN ABOUT THE CONSUMER GOODS FORUM

P&G adopts Global Scorecard to define investments on technologies.

At L’oreal, the use of eDI has reduced the number of missing products in warehouses and stores.

Wilson Silva emphasizes other benefits provided by EDI. “Paper use reduction, quickness to deal with the differences in the orders and physical receiving due to previous receiving of despatch advice messages. Thus, the supplier reports what is being delivered at the moment that truck leaves the origin and the client can get ready to receive it.” Thus, we can conclude that tools like these can help in the development of more sustainable businesses. “The use of EDI itself reduces dramatically the use of paper. But, apart from it, GS1 Brazil has been spreading the need of having more quality in the product registration data. Incorrect weights and measures make it not feasible for the appropriate dimensioning for storage and transportation, leading to waste. The use of standards improves the operational performance which is linked to the company financial sustainability”, justifies Silva. The current standards in the market are multiple. So, it is important that the company keeps in touch with GS1 Brazil to have a correct guideline about best practices. Starting from the basics up, companies can implement a standardized identification in all products hierarchical levels, from the item to the pallet. The second step is the order exchange and dispatch message (shipping list) through electronics means. Thus, processes such as receiving, movement, picking, inventory and shipping can already be automated in the whole chain.

28 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

The Consumer Goods Forum is a global chain that gathers CEOs and senior managers of over 650 retailers, manufacturers, service providers and other stakeholders in 70 countries. This means that we can reflect the industry diversity in geography, size, product category and format. The forum provides a global platform to exchange knowledge and initiatives with five priorities: emergent trends, sustainability, safety and health, operational excellence; exchange of knowledge and people development. In this group that GS1 takes part in at the moment, we count on the presence of the 100 largest companies in the world. According to an IBM study, the Consumer Goods Forum members tend to be better informed, therefore, they have better understanding of the value of the global standards, naturally contributing and integrating with business partners. Wilson José da Cruz Silva, senior advisor to the area of innovation and strategic alliances from GS1, explains that the Consumer Goods is a forum of companies interested in thinking together about the future of the supply chains, in how to make it more efficient and sustainable. “A work that is being developed is the products sustainability index which will show, in a standardized way, how sustainable the product is. Due to the fact that it is another product attribute, the idea is that this information makes part of the item registration, shared with the companies through GDSN, the global data synchronization network”, says him.

[

FINANCES

[ PRICING

In addition to the sum of expenditure Fixed and variable costs, brand value or service, taxes, consumer perceptions. All this must be taken into account at the time of pricing.

[ BRASIL EM CĂ&#x201C;DIGO ] Apr/Mai/Jun 2012 29

By Kathlen Ramos

To make that a product leaves the industry, gets into the retail and be distributed to the final consumer with a fair price for those buying and be favorable to the seller, the process is long and strategic. To get to the final value, it is necessary to perform many specific calculations (as the sum of costs and margins) as intangible metrics (including the value of the brand or service added to the purchase at point of sale). For requiring complex analysis, pricing is one of the steps that constantly create problems for manufacturers and retailers, since the price can determine the success or failure of a product or even the company. The first step is to estimate costs by evaluating them and profit margins. “These calculations ensure that a product is not sold with a negative margin. If they sold one million units with an error of $ 1 in value, we reach the amount of U.S. $ 1 trillion in losses,” exemplifies the finances consultant of Brazilian Service Support for Micro and Small Enterprises (SEBRAE-SP), João Paulo Cavalcante Lima. However, despite being crucial to start the pricing process for the costs and margins, other variables are involved to reach this goal, as the analysis of the value of a brand. Price is the added value of what you to convey to your costumer, explains Fabiano Simões Coelho, coordinator of the MBA in finance, auditing and controlling at FGV and author of the book “Formação Estratégica de Precificação” (Atlas Publisher). That’s why in some segments when the consumer sees a product with a high price immediately associates it to high quality. “When do you perceive the brand added value,

30 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

costumers stop taking rational attitudes, because they simply trust in it and do not compare it to others. Thus, the variable of the price is no longer relevant in the decision process, with the result that companies are allowed to charge a higher price”, he says. The President of the PROVAR / IBEVAR, Claudio Felisoni adds that although it is an intangible asset, the brands are very important in the formation of prices. “A typical example is the drugs derived of acetylsalicylic acid, sold by various companies and each one charges different values for the same solution. This difference represents the value of the brand,” he explains. But how do you know the exact value of a brand? According to the graduation coordinator at Trevisan Escola de Negócios, Dalton Viesti, in order to arrive at that answer, it is necessary researches with the consumer and market testing. “Suppose the retailer sells similar products from brand A and B by the same amount of R $ 3 and the consumer always prefers to take A. Then, only to test, the retailer increases the value of A to $ 3.50 and still realizes that the consumer continues to acquire A. In the next step, A goes up to $ 4.00 and we can observe at this moment that the consumer changes his mind and prefers to buy product B. In this case, we were able to check how a brand has more value than a similar one and at which point it is possible to increase the price in order not to lose market share, “he explains. Apart from calculations of tangible and intangible values, to get good prices, it is crucial that there is a partnership between retail and industry. “The proximity between the two is fundamental. Many industries invest

on the development of their distributors, because for them, if they notice that this channel is doing well, it means that sales of products of that specific brand will also increase. It’s the only way to achieve a fair price that the consumer is always looking for”, explains Viesti.”If the companies involved in the negotiations do not work in partnership, prices rise and end up giving way to foreign products,” concludes John Lima, of SEBRAE-SP.

REACH YOUR GOALS The right price is the one that is aligned to the business strategy. Here are some examples:

Goal

Strategy

Sell more expensive product

Increase the price of an item of lesser value to decrease the distance from the most expensive

Sell more the product of inferior quality

Raise the price of higher quality products

Sell more the product of regular quality

Example Popcorn sold at the cinema:

12 Medium R$ 13 Large R$ 14 Small R$

Set with 5 units Set with 10 unis

10 30

R$ R$

Making the median version be very similar to the more expensive version

Corolla: Altis engine 2.0

R$ 86 thousand

Xei engine 2.0

R$ 75 thousand

Xli engine 1.8

R$ 66 thousand

[

[finanças

FORMULA PRICING IN THE INDUSTRY Assuming that a particular factory developed the product A and wants to calculate the price based on the following data: • Raw material of product A: R$3 • Monthly fixed costs: R$100 thousand • Basis of apportionment for product A: 40% of the fixed costs • Estimated quantity for monthly sales: 10 thousand units • Variable expenses as a percentage of revenue: 15%, 5% commission and 10% taxes • Fixed expenses as a revenue percentage: 20%, 15% revenue related to last year in which the fixed expenses were R$300 thousand and revenue R$2 million and 5% related to the forecast of increased expense fixed • Profit as a revenue percentage: 15%

INDUSTRY The setting of prices in the industry must begin from the moment it is anticipated to the release of an item. First, it is essential to carry out a market survey to evaluate the selling price of similar products and thus define how much the consumer is willing to pay for that item. The next step is to evaluate the costs involved. There are direct costs, the variable ones and the indirect which are fixed. “The direct costs and the variables are those involved in production, as the costs of raw materials. The indirect are fixed, the manufacturer will spend anyway, developing the product or not, as employees and water and light bills” explains Viesti. Other factors must be taken into consideration. “Added to those costs should be embedded

taxes and profit margins that you want to get,” says Lee. With these steps completed, we go back to the beginning of the cycle, ensuring that production reached the price originally planned. If the value is not on a par with the market, there are probably flaws in some cases. “If my competitor can put a product on the market at R$ 15 and my production process related to a similar item that the cost is much higher, we need to evaluate it because we cannot get to this result. The manufacturer may, for example, be buying inputs at a high price or have high fixed costs, which increases the price of the final product,” concludes the consultant of SEBRAE-SP.

Check out the following calculation:

total price [ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 31

FORMULA PRICING IN THE TRADE A certain company has 30 retail products and wants to price item A. Then, it gathers the following data, obtaining the value of R$ 40:

RETAIL For the retailer the path is shorter. As in this kind of business retailers buy to resell, we should take into account the acquisition cost, taxes and profit margins aimed at. However, despite the path being shorter, it should not be less strategic. Such as in the industry, it is necessary to analyze the price charged by direct competitors. For intensive products’ distribution such as soft drinks from big brands, it is advisable that the prices are similar to those practiced by the competitors, except in cases where the store offers a distinctive value to the consumer to justify the increase. According to Viesti, a soft drink cost X in a small market and 3x more in a large hotel. In this case, the public is different and the consumer at a luxury hotel is willing to pay this amount. Therefore, each business must assess its value when calculating the price.

32 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

Another precaution is not pricing at random, without calculation, how to buy a product at $ 10 and sell at $ 30, thinking that this is the best deal. “With the advent of the Internet, people search do a lot of research regarding prices before buying, along with the great competition, carrying out such a practice may ruin a company,” warns Viesti. “Many times, the retailer sells a lot, but his business is always at loss. This is one of the signs that there may be a serious error in the calculation of prices,” says Lima, of SEBRAE-SP. The retailer can also work the law of compensation for some categories. He can sell shampoo with a low margin, to be an attractive and earn more in conditioner. Consumers will not notice the price difference.

• Acquisition price of the product A: R$22 • Variable expenses as a revenue percentage: 20%, 5% on commission, 5% average discount charged and 10% on rates • Fixed expenses as a revenue percentage: 10%, 8% on revenue related to last year in which the fixed expenses were of R$40 thousand and a revenue of R$500 thousand and 2% related to the forecast of increased expense fixed • Profit as a percentage of revenue: 15% • Price of the product: R$40 But remember that: despite playing a key role in formulating a pricing strategy, cost should never determine the final price

total price Source: Fabiano Coelho

In the light of the crowdlearning model, companies disseminate knowledge among employees and customers and they can create new products and services based on actual demands.

[

COMMUNICATION

[ COOPERATION

By Camila Mendonça

Sharing to grow

You are interested in learning something when out of sudden you find out that other people also have the same interest. Both interests are disclosed in any given platform such as a specific website or in the social networking. With the news, possible teachers come to teach you and all the ones interested in the subject at a modest cost or even for free - just driven by the desire of disseminating knowledge. Another possibility is to pay by teaching some skill to the one who once was your teacher.

This model is called crowdlearning originated of the English word crowd and learning. The concept complies with the rules of crowdsourcing and corwdfunding, which are based on cooperation, for example. Crowdsourcing is the model that promotes the cooperative creation, through which is possible to develop products, services and technology for a new demand. Experts say that it was from this concept that crowdlearning developed. On the other

hand, crowdfuning is the preconceived model that finances an idea, product or technology cooperatively. Based on the concept, an idea becomes real with the financial assistance of several people, since they like what is being proposed. In exchange for the help, the beneficiary awards the donors a grant to use the service or a product sample of what is being financed. The goal of the crowdlearning is to spread knowledge and broaden debates. “It is a way of promoting group learning”, rsays Mario Faria, Marketing

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 33

Photos: Disclosure

Professor of BSP – Business School São Paulo. The concept can be used to develop any kind of knowledge. In companies, it is more effective to train employees, develop products and launch new sales strategies. It is also a good alternative for motivation, for the employees can learn and teach subjects for which they passionate. The news can also become a tool for entrepreneurs, says Alexandre Marquesi, professor of social networking at the Escola Superior de Propaganda e Marketing (ESPM). “In this case, the process is similar to crowdsourcing”. The collective knowledge can help companies, especially the smaller ones to create new products and services or improve the existing ones according to demand”, states him. According to the professor, the idea is to expand the channels for consumers to speak out about what companies offer. Through their points of view, you can create items in the right measure, according to the customer’s needs. The channels may be the most varied ones ranging from a space on its web site, specific pages for collaboration or social networking. What should not be overlooked is the disclosure of such channels. “The market is no longer that you can hide the action, even if it provides strategic information for businesses,” says Marquesi. “What matters is the strategy will be established with this information,” says him. LEARNING Putting the consumer in the place of an active agent in the process of creating new products and services is not the only way to explore the concept within the company. Experts say that the key application of the term is to take advantage of the skills and abilities of employees, in order to help the company grow. The proposal is simple: if a person knows the rules of trade, for example,

she/he can teach the other employees and even their bosses on the subject. And how the company benefits from this? The result is more knowledgeable people who understand the foreign trade. This new shared knowledge paves the way for the company to launch strategies on the subject. For those who are willing to learn from this model, they have the chance to learn something different, which probably the schools have no interest at all in teaching and it can be taught by someone so passionate about the subject as well as the person interested, says Leonardo Correa, a partner at the company Nós.vc, a crowdlearning platform launched last year. Through it, people offer courses, workshops and debates and if there is significant demand among Internet users, the company organizes events. The company is an excellent example that this model can also be a good deal. Normally, to disseminate knowledge, companies seek specific channels, designed only for this. Correa and his partners, Alex and Mauro Daniel Larusso, only invested time and effort to launch the platform. The profit comes from inscriptions on the percentage of paid meetings promoted by them. Correa believes in the corporate market as a major player in the dissemination of the concept. “For businesses it is good because it creates a community of engaged people, it adds interesting concepts to its public image, generates extra income and it takes advantage of idle space,” he says. One of the projects of the company is the NósLab, in a partnership with the Coworking (the name is just a coincidence), coworking space in Porto Alegre - collective offices, where independent professionals and small enterprises share meeting rooms, reception, secretaries and other spaces in common. The enterprise with shared offices has conducted a series of workshops taught by the coworking

staff, opened to the public. The idea was to take advantage of the space and of the competence of the professionals who worked there. “The model is doing well and we believe that it can be applied to in companies with different shapes”, emphasizes Correa. Sharing knowledge with the public as the shared offices company did, it is more effective than restricting it to the inside the own company, states Mario Faria, marketing professor at BSP – Business School São Paulo. “If the spread of knowledge does not happen in scales, it does not make sense.” EFFECTIVENESS Jeff Paiva, professor of the extension course in social media of FAAP (Fundação Armando Álvares Penteado), has some doubts regarding the crowdlearning effectiveness in the companies. For him, the concept is still new and it has been established

“Crowdlearning is an experimental concept and it has application limits in companies” Jeff Paiva of FAAP

[ BRASIL EM CÓDIGO ] jan/fev/mar 2012 34 34 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

[

[comunication

HINTS TO USE CROWDLEARNING

TIGHT THE TIES

Invest on new channels to obtain consumers’ opinions on products and services. Internet is the best tool for the model, for it increases the power of catching consumers’ attention to criticism and suggestions.

There is no point without following the discussed ideas in new channels. Many suggestions launched can result into good projects.

USE THE INFORMATION

With the result of discussions at hand, think strategically. Are the new demands beyond the scope of the company? Are there resources to invest in this new idea? What is the return?

LEARN WITH EMPLOYEES

Motivate workers that have some knowledge and like sharing what they know with their co-workers.

SET UP LIMITS

In the corporate world, knowledge only for the sake of knowledge does not bring any benefit. In this scenario, crowdlearning will be effective when there is a goal.

GIVE IT A SHOT

Apart from customers and employees, learn with the market. Create new partnerships with companies that you have a close relationship or the ones from the same sector to share information.

WATCH OUT FOR STRATEGIES

In crowdlearning, the more we share knowledge, the better. In the companies, the concept is only effective if it does not put at stake the strategic information.

yet. “It is a concept very experimental which has not caught on yet.” He also says that the sharing of information inside the companies that has always existed. “People have the need to give new names to old things. The pursuit for knowledge in different sources and in a shared way in the corporate world comes from old times. What has changed was the environment”. According to Paiva, the Internet has just accelerated and expanded the process of knowledge. It is as if the crowdlearning was and extension of the e-learning – learning model via Internet. “The difference is that in the corwdlearning we have the sharing and it is not possible to gain knowledge in a passive and lonely way”, Paiva says. Mario Faria also points out to the limits of the concept application in the corporate world. “There are rules in the business environment and the discussions and information sharing are carried out considering the rules and policies established by the companies”, states him. The danger lies in the fact that with these ties, the concept application can get lost and transform the process, that should value the creation and free debates in mere specific knowledge transfer and not always exciting. A good example regarding the crowdlearning is Ted – an event held in the USA that gathers people from three universes: technology, entertainment and design, proposing the launch of inspiring ideas. In this event, applied in many countries, including Brazil, the holders of knowledge teach what they know in less than 20 minutes. The strategy prevents the listeners from getting bored and enabling them to grasp the idea for a later discussion of ideas. Aiming at being effective in the corporate environment, crowdlearning needs to have rules and constant monitoring. In this case, the standards should not be limiting, but guide the process. For example, the learning model to be used by companies should be conducted and take into account, how to expand sales, start exports or create new products. Thus, the model expands the possibilities for innovation based on the knowledge that the companies did not have until then. And when you do this, you pave the way for new capital, “explains Faria. [ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 35

[

MANAGEMENT

[ FOOD SAFETY

A smaller code for a

better control Transport, handling and storage of perishable food put at risk the issue about food safety. To reverse the scenario, supermarkets discuss solutions.

By Paulo Gratão At the food market, the word prevention has a lot of power, for the outraged food intake or any other type of problem can be fatal to the consumer’s health and also damage the image of a company. Direct efforts to food inspection, quality assurance and consumer guidance are important measures, but will it be able to eliminate errors? The Brazilian Supermarket Association (ABRAS) has guided supermarkets entrepreneurs to encourage the conscious consumption and the cooperative control. “If the consumer finds any product with expired date, he should present it to the store manager and receive the same product within the expiry date, totally for free”, says Tiaraju Pires, superintendent at ABRAS. This practice has already been adopted by many stores, but entails losses that could be avoided. The ideal model should guarantee to consumers that food safety is present in all stages of the supply chain. 36 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

At the ABRAS technology and innovation committees, meetings in which we discuss how technology can assist in supermarkets sales, a constant topic has been the importance of the adoption of bar codes that allows you to enter the expiration date of the product. “In this case, we are considering the use of GS1 DataBar, standardized by GS1,” says Pires. The main difference between GS1 DataBar and the other codes, it is the possibility of applying it products with small dimensions such as fruit, jewelry, cosmetics, hardware and medicines. The code can also gather more information about the product, for example,

batch and expiry date. Pires also considers GS1 DataBar as the most suitable solution for being an international standard, besides occupying a small area on the packaging. OVERSEAS The loss of food due to waste cause billionaire damages worldwide. The Food and Agriculture Organization (FAO) of the United Nations whose aim is to combat hunger in the world by increasing agricultural productivity, reveals that a third of all food produced worldwide for human consumption is lost or wasted. When it comes to the waste of perishable food, it sums up to US$458 billion, according to a global

In Korea, GS1 DataBar has already been used to avoid the purchase of expired products when the consumer goes through the checkout.

study conducted by IBM that has measured food losses in the supply chain. In Korea, GS1 DataBar has already been used to avoid the purchase of expired products when the consumer goes through the checkout, similar practice to the one that ABRAS intends to implement in Brazil. The Korean market code has the intelligence to perceive if the date is close the expiry date, which can reduce the price of the product to the consumer, letting him aware of the conditions. For example, if a product has only four days before it expires, the consumer may have 20% or 30% off, informed by the cashier, according to the strategy. This surprises the consumer and helps to get customer loyalty.

Photos: Disclosure

GS1 DataBar is suitable for products with small dimensions and perishable food

[ BRASIL EM CĂ&#x201C;DIGO ] Apr/Mai/Jun 2012 37

[MANAGEMENT

[ The loss of perishable foods throughout the supply chain sums up to U$ 458 billion around the world

By implementing it, the sales in the test stores in Korea has an increase of 60% and a net profit of 22%, besides losses reduction. NEXT STEPS For 2012, the ABRAS committee has a goal talk to industries, printers’ manufacturers and all the ones involved in disseminating knowledge about GS1 DataBar. “We are going to work actively. We are already in a process well advanced in the discussion”, says Pires. According to Marcelo Sá, GS1 business solutions advisor, the code is the suitable tool to prove food safety and enable traceability. “If by any chance there is some contamination, the company has ways to get to the root of problem”, says Marcelo. The statement of Marcelo Sá confirms what has been discussed by the senators of the Committee on Social Affairs (CAS), in the senate of Brazil. Throughout Brazil, there has been a discontinuity of the temperature recommended for the preservation of products in the transport from the manufacturer to supermarkets, according to the senator Cyro Miranda (PSDB-GO), author of the requirement who proposes the discussion. The temperature variation can make the food equally or more unsuitable for consumption rather than the one

38 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

Tiaraju Pires of ABRAS Supermarkets segment proposes the insertion of expiry date into the products in the standardized codes.

whose date has been expired. However, this should not be a justification for less stringent inspections by retailers. “The idea is not to have an expired product on the shelf. The retailer needs to enhance the management and GS1 DataBar is an excellent tool for that”, explains Marcelo Sá. Whereas the implementation of the GS1 DataBar is making great strides to reach the Brazilian supermarkets, the National Agency for Sanitary Surveillance (ANVISA) has developed teaching materials with characters who explain the importance of analyzing many aspects, such as climatic conditions and preservation, in order to teach consumers to get safety food and within

the expiry date. The hints are available at the ANVISA’s website and can also help retailers to understand the best ways of ensuring the safety of the products offered and avoiding mishaps.

Steps to success

Industries and organization signed an agreement to create a commercial and logistics integration tool for the Brazilian footwear sector. Industries and suppliers of the footwear sector are working together on a common cause: standardization. Many companies are already using international standards for more than a decade; however, they are increasingly organizing themselves to speak the same language with its partners through the activities of the Logistics Optimization Group of the Accessories and Footwear Sector, known as GOL. This workgroup was created in 2002 after a successful pilot project conducted by Azaleia Footwear, supported by GS1 Brazil, in order to bring more accuracy in supplying factories through standardization. Experience has shown that the work would only achieve success if it were expanded to the entire industry. Currently the GOL group counts on the participation of companies, sector organizations, manufacturers, suppliers, carriers and retailers.

All products leave the factory with the barcode. This is the starting point for the effective integration between the players of the supply chain both in terms of logistical and commercial aspects - from the supply of raw materials to the point of sale. Furthermore, the transaction carried out by the companies linked to the group includes information electronic exchange, known as EDI (Electronic Data Interchange). Recently, the Brazilian Footwear Industries Association (ABI Footwear), which supports GOL group, has raised funds with the Brazilian Agency for Industrial Development (ABDI) to take a leap in the integration of partners. The associations signed an agreement in January during the event, Couromoda 2012, the largest event of the footwear sector in the country, held in São Paulo. The agreement establishes that during 2012, it will be developed a set of software that will form the

integration virtual platform between companies. The software will be leased to paid servers by ABICALÇADOS, offering conditions for companies to migrate from an international model of logistics operation, indicated in foreign trade global conventions. All platform development is based on international standards managed by GS1. According to Heitor Klein, the executive director of ABICALÇADOS, this model of the logistics operation should include three basic requirements. The first is the electronic data interchange in the message international standard, through the use of files with a unique structure, enabling to send and receive data (purchase order, dispatch advice, price lists and invoice) without the need for customization in each new business relationship. The second requirement is a rigorous process standardization and technological integration of the companies to eliminate losses in handling logistics cargo and traffic information. Finally, the identification of products shipped through a bar code system, allowing benefits from automation, handling and traceability. Ivair Kautzmann, Via Marte information technology manager, who takes part in GOL group and uses EDI for more than 15 years, explains that the software download will be for free. The company can download the file and test it. If you are interested in using it, you have to call a footwear industry which holds the authorization to enable it. “This is a way that we found for companies of other sectors not to use the tool [ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 39

Picutres: iStockphotos

By Raquel Sena

[

TECHNOLOGY

[ FOOTWEAR

Via Marte uses EDI for than 15 years For Grendene, the product identification through bar codes reduces costs and ensures efficiency in the delivery.

without an authorization”, says him. The greatest benefit of the project is the processes integration between supplier and customer. “The standardization is the best way to monitor the whole productive chain, for we benefit from accuracy, efficiency in handling and costs reduction”, points out Julio Cesar, Grendene sales processes analyst. The second stage of the program expects to have the support of SEBRA that will help to disseminate the system with the footwear industries nationwide. “This way, we are going to ensure to the interested companies the possibility to use this important tool at a low cost. The higher the adhesion of industry suppliers and retailers to the standard, the greater the economic gains will be, resulting from reduced losses due to the waiting for rework with the goods or information that flows through the companies”, states Klein. According to Marcelo Sá, GS1 Brazil business solutions advisor, the creation of this tool aims to help companies interested in implementing GS1 standards which have already been adopted by footwear industries. LOOKING TO THE FUTURE Despite the trade balance of the

40 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

Brazilian footwear sector in 2011 have been positive in US$868.5, the performance was lower than in 2010, when it reached $ 1.1 billion. Revenue from exports recorded US$ 1.3 billion in 2011, a decrease of 12.8% over the previous year. On the other hand, the imports grew at 40.4% in 2011, according to the data of ABICALÇADOS, from information at the Department of Foreign Trade, Ministry of Development, Industry and Foreign Trade. Even with the negative performance, the industry’s expectations are focused on the resumption of growth. And, in the opinion of Klein, the deployment of this virtual platform integration will be a solution. “Such a system will provide gains in competitiveness, which is one of the sector’s goals.”

Heitor Klein of ABICALÇADOS This year, it will be developed a new virtual platform integration of the companies that are part of the footwear chain.

[

event

[ global forum

Single guideline Speaking a common language about global patterns. It is with this objective that more than 90 GS1 offices gathered at Global Forum in February, 2012 in Brussels, Belgium (headquarters of the Global Office, GS1 office) to exchange experiences, strengthen the relationship and set new directions for the organization. In this multicultural event held annually, the focus is on learning together. This year, more than 900 people shared knowledge, debated on their countries best practices, showed innovations and took part in training sessions, exhibition and forums. “Most of GS1 offices worldwide meets in this event to discuss about subjects that currently taking place or are going to happen. It is a good opportunity to share experiences and level the knowledge regarding technology”, states João Carlos de Oliveira, GS1 Brazil president, that was present in the event along with his Brazilian staff.

In 2012, one of the priorities is the standard application in the mobile technologies and in the Internet. GS1 will place itself as a player in the digital world, providing companies with reliable information. Therefore, the B2C is another aspect to be developed, considering the trade significant advance via mobile telephone. “GS1’s trend is to use the web platform and the Internet to offer bases for the businesses of our members”, says Charles Sampaio, finance and corporate services manager of GS1 Brazil. One of the highlights of the event was a tool for mobile telephone that will be used to purchase, get product information in the stores, elaborate shopping lists and establish sales through an accessed code via mobile phone. “GS1 has a group work that discuss this subject. It is a gradual process. We believe that in less than three years, we will have this in a nationwide scale”, says Oliveira.

GS1 global event presents initiatives to implement standards for automation in different sectors By Denise Turco

The global association also plans to reinforce its performance in strategic sectors such as the financial and automotive sectors, in which its presence is limited. Another important moment were the discussions promoted by the regional forums involving groups from other continents, says Celso Couto, CEO of GS1 Brazil. “In these meetings we can discuss common issues. For example, Argentina is a way ahead of us in the use of GS1 DataMatrix in the pharmaceutical industry, while in Brazil the use of this code is more widespread in the hospitals.” During the Global Forum, GS1 solutions and innovations were presented in the healthcare sector, retail, transport and logistics. These initiatives helped to keep the sustainability in the supply chain, do the traceability, product recall, prevent counterfeiting and frauds, among other benefits.

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 41

AROUND THE WORLD Learn more about the initiatives for implementation of global standards presented in the Global Forum 2012.

Canada > has developed a service based on cloud computing that manages the capture, review and nutritional data certification. This way, consumers are able to access online information about food. Germany > Standards

application for cash handling processes and the smartphones’ use to support purchasing decisions in the retail.

The United States > The

BRAZIL IN ACTION Each GS1 showed its good practices and activities in a space called Marketplace. GS1 Brazil joined the other MO’s from Bolivia, Chile, Colombia, Guatemala, Paraguay and Venezuela in a stand to present the initiatives directed to micro, small and medium enterprises. The aim was to show how to structure actions to design actions to meet the needs of these companies in terms of global standards, thereby, strengthening its role in the supply chain. More than 300 people visited the stand, says Flavia Costa, marketing and institutional relations advisor of GS1 Brazil. In a panel about retail, the Brazilian team presented the case Memove, Valdac group young fashion brand. What distinguishes the project is the fact that EPC/RFID is used since its manufacturing apparel, going through the distribution centers until it hits the store.

42 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

EPC/RFID is revolutionizing the way how companies, mainly in the retail sector, do business in the food service segments, fresh food, health and financial services.

Hong Kong and Italy >

Joint project between these countries is intended to provide greater visibility of wine in the supply chain using technology based on radio frequency identification.

France > Betting on the use “Increasingly, Brazil is seen as a major player worldwide and the interest for the activities here are enormous. Teams from other countries asked a lot about our economy. The country draws attention to the world stage right now”, states Charles Silva. An innovation is that GS1 Brazil will implement this year the development and technology center. “We will bring experience of other countries that already have this center,” said Couto.

Flavia Costa from GS1 Brazil presented the Valdac group case in the panel about retail.

of global standards in B2C relationships, demonstrated that the sharing of information through a phone and a barcode will soon become part of people daily lives.

Brazil > Solutions to strengthen micro, small and medium enterprises in the supply chain.

[

TECHNOLOGY

[ CASE

Code to simplify

By Paulo Gratão

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 43

Photos: iStockphoto/Disclosure

Joining the Global Location Number (GLN) helps enterprises to prevent logistical problems, apart from controlling better the authenticity of the partners When Wal-Mart acquired the Norwegian retail group Sonae Distribution, brand owner of Big, Mercadorama, Nacional and Maxxi Atacado in the south region of the country, it received a valuable inheritance: the use of a global code for the location of suppliers. It all started when the Wal-Mart area of EDI (Electronic Data Interchange) absorbed the processes of the Sonae and found that the standardization of GLN (Global Location Number) was done in partnership with GS1 Brazil and could be consulted on the system called GEPIR (). The use of these standards streamlined communication, which the company could not do previously. This overview of abbreviations can be translated as follows: The GLN is a global code that is linked to the identification of a physical location such as addresses, warehouses, branches, departments of companies. Its function is to improve the data communication in the supply chain. In general, retailers use the GLN in the electronic data interchange to identify the origin of products and thus facilitate the management. Identification via GLN works as a kind of CNPJ (National Register of Legal Entities), a digital location, in which through a numerical encoding accessed by GEPIR, companies have access to the necessary and corroborative information of authenticity. In the system is possible to insert a lot of information, such as identification and location type, functions supported (see more in the table). 44 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

Furthermore, by storing information such as address, telephone and other contact data, the company reduces costs through the exchange of EDI, which is replaced by streamlined space only for the subject of the message, without delay. According to Altamir Costa, coordinator of the EDI area at Wal-Mart, previously many suppliers reported GLN similar numbers for the company, which always found a supplier registered with the same numbering. In other words, there were many data inaccuracies. Thus, in this case, what made the difference was the use of a worldwide valid standard, the GS1 GLN. “We started to perceive that there were only benefits in the standardization”, says him. Even Wal-Mart faced problems to open a new store due to a supplier who used a unique identification number, without the validation of GS1. “We contacted the supplier and gave him 15 days for him to regularize with GS1. When we cancelled their number, we were able to open ours. After that, we realized that we could not go without validation via GEPIR, until today we are using it”, stated Costa. As well as the retail chain, that adopted the standardization for all the stores nationwide in 2009, more than a million companies are registered in the GEPIR system, which allows consulting the supplier GLN and the EDI exchanges to products requests in a standardized way.

Walmart benefits after having standardized the suppliers’s identification number

Applications of GLN Identification of physical locations > distribution center of a company > dock of a distribution center > specific place for delivery > shelf in the stock or in the store Identification of legal companies > main office > division of a company > branch > bank Identification of function in the legal entity > purchasing department in the retail > billing department > place that issued the order Information linked to GLN > postal addresses > person, department to be contacted > phone numbers, fax and email > opening hours > references of location

[

[ TECHNOLOGY

Carrefour Brazil is one of the companies that use GEPIR to consult suppliers

The numerical identification of a supplier seems to be a detail, but, if not standardized, it may bring further damage, as happened with Wal-Mart. “The problem was with us who did not use the tool. We cannot open a store because of the GLN that was being used by the supplier,” says the coordinator. Whenever new suppliers register themselves in a retail chain, it is verified if the GLN is validated by GS1. If not, Wal-Mart directs the association to seek regularization. IMPROVED FLOW In the Carrefour, other aspects led to the adoption of GEPIR. Ana Ruth Oliveira Lacerda, coordinator of business administration (B2B EDI / NF-e) of Carrefour, explains that the model was adopted when the company put into practice

the migration plan for all suppliers to EDI model, and it would be impractical to consult all the GS1 GLNs by phone or email. “It was a way to optimize and gain synergy in the implementation of this activity, obtaining information”, says her. The department of Ana Ruth is responsible for the system handling at Carrefour. She also mentions that has suggested to GS1 that the adoption of GLN extends from distributors to manufacturers, increasing the amount of information to help in the control. “In my view, the greatest benefit of the GLN is the assurance of the standard of information and its own authorship, including GEPIR, autonomy and flexibility in consulting and obtaining information”, states Ana Ruth.

HOW IT WORKS Check the authenticity of the supplier via GEPIR is simple PROCESS When inserting the supplier GLN in the GEPIR system, the user has access to all the information that can prove its authenticity

GLN 7898357410015

DATA

7898357410015 ABC Ind. com. s/a

BASE

Change of name

GS1 Brazil has adopted the name GEPIR (Global Search Members of GS1) for the previous system known as VGAP (Service Verification of Authenticity Global Prefix), aiming at global standardization. GEPIR is the standard that is currently in place.

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 45

[

EVENT

[ automation

Tecnologies

that guarantee

result

By Raquel Sena

GS1 Brazil promotes the second international convention aiming at presenting new global automation trends and its benefits for business profitability.

Ricardo Amorim will be the master of ceremonies and panel mediator

46 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

The event Brasil em Código – GS1 Brazil International Convention regarding Automation and Logistics reaches its second edition. In 2011, the event counted on the presence of more than 200 businessmen and showed the association’s activities in various sectors, best practices and trends in automation in the supply chain. Due to the success, GS1 Brazil has decided to invest again on the project that presents the theme: “The universal language of profitability.”The expectation is to receive an audience 25% higher compared to the previous year. The convention Brasil em Código will take place on June 14th in São Paulo and it will bring news. In this edition, entre-

Photos: iStockphoto/Disclosure

Captain Robson Peixoto of the Air Force (on the left) and Hugo Bethlem of Pão de Açúcar will speak about the use of standards in their areas of work.

preneurs from various economic sectors will discuss about technological trends and automation in the new economic scenario, in which Brazil has a prominent position and how this can become a competitive advantage for companies that seek profitability and efficiency. Among the guests are: Hugo Bethlem, executive vice president of Grupo Pão de Açúcar, who will speak about the adoption of technologies that generate levels of demand in the retail such as synchronization, visibility and information traceability of products; Mark Harrison, director of the Auto-ID Lab of Cambridge University, who will address the trends in automation and technology. Roberto Matsubayashi, responsible for the area of Innovation and Strategic Alliances of GS1 Brazil and Captain Robson Teixeira Peixoto, the Air Force

Information Technology (IT) advisor, we hope to promote a high-level diswill speak about the success of using cussion for Brazilian executives to get RFID in the Air Force Logistics Center to aligned with the new technologies and automate the processes of storing and worldwide best practices, in order to transporting uniforms and accessories. make the country even more competiRicardo Amorim, president of Ricam tive”, states Oliveira. Consultancy, will the master of ceremonies and panel mediator. “We have as a principle, the development and updating of companies associated with GS1 Brazil. Thus, we believe that we should promote a discussion on the best ways to do so. ServicE The association promotes this convention with the certainty Event: Brasil em Código – 2nd GS1 Brazil that this will be a model for International Convention a debate in other countries”, When: June 14th states João Carlos de Oliveira, Place: Sheraton WTC Hotel, São Paulo (SP) president of GS1 Brazil. Registration: www.brasilemcodigo.com.br. “Based on what happened in our first convention in 2011, [ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 47 [ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 47

[

profile

[ ENTREPRENEURSHIP From a shoe store to a factory that produces four thousand pairs of shoes per day, Vulcasul remains attentive to new technologies such as EPC / RFID for three generations. By Mariana Congo

Family

work 48 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

A The Vulcasul tradition comes since 1930, with a shoe store opened by Agnelo Ferreira da Costa. After 17 years of manual labor, the first machine was purchased. In 1953 the industrial park, located in the town of Itanhandu located in the state of Minas Gerais, was built and today houses the production. “My grandfather had vision of what he wanted for the future and invested. At that time, it was completely different. When he turned on the machines in the factory, the demand for electricity was so great that the city lights went out,” says Luiz Vicente Ferreira Martins, commercial director at Vulcasul. Today, he and his brother, Cesar Augusto Ferreira Martins, manage the company. 50 years later after the opening of the factory, Vulcasul underwent through another major technological revolution: the implementation of radiofrequency EPC/RFID chips (or tags) in the boots sold to the Brazilian Army, after winning in 2009 a competition. In the BID there was a requirement that the parts were equipped with the EPC/ RFID tag.

Fotos: Divulgação/iStockphoto

The technology has been assimilated by the Army in the project in a partnership with GS1 Brazil, aiming at facilitating control in the warehouse when receiving uniforms, boots and other military equipment, avoiding losses and waste of materials. Besides investing in placing chips in the combat boots on the production line, Vulcasul installed a portal with antennas that read EPC/RFID tags. “Before I knew about the existence of the RFID, but I didn’t have any interest for the clients didn’t ask. The Army hasn’t changed its orders for 18 years and I thought that it wasn’t necessary to change”, says Luiz Vicente. The change began when he watched a lecture in the Army about the benefits of identification through radiofrequency and decided to join the competition. “The amount of orders requested by the Army absorb the costs involved in the implementation of the RFID”, says Luiz Vicente. Just to have an idea, we are talking about 500 thousands pair of combat boots supplied per year. ADJUSTEMENT At the production line of Vulcasul which capable of producing four thousand pairs of shoes per day, the factory structural adjustment works to the use of EPC / RFID, with the installation of antennas and portals easy to read. “As we’re always making technological adjustments, there weren’t major disruptions,” says the commercial director. The most difficult thing was to find the best place to install the chip EPC / RFID inside the boots. To adhere it to the footwear sole, it is performed a process of vulcanization, that is, the heating of the rubber. At first, some tags were burned, so they couldn’t be read by the RF antenna. The best place found was the piping of the boots, made of canvas and then sewn. “Other companies put the chip in the sole, because they are shoes that do not need heat in the production. But my

combat boots are designed for war and undergo a heating process of 400 degrees,” says Luiz Vicente. The factory lost 1% of the chips EPC / RFID purchased, but the cost involved in the adaptation process of the production line was predicted and absorbed. Vulcasul employees’ also conducted training sessions with the supplier of tags and antennas. There were various benefits of adopting radio frequency technology. The logistics of Vulcasul is not outsourced, and the installing of the antennas, facilitated the control of what leaves the factory. “Previously there were human mistakes. A box that should have 30 pairs of shoes contained only 29,” says commercial director. In such cases, the human resources department and the production manager talked to employees to explain the mistake and avoid similar situations in the future. Currently, the Vulcasul sales team offers to other customers the ability to identify their products with tags EPC / RFID. Despite the differential, not everybody accepts to test the technology. “The market today is extremely heated, which is good and bad. I provide a lot of shoes for civil construction works and the customers want them today to put the shoes on the feet of their employees tomorrow. So, there isn’t enough time to invest in a new technology, “says Luis Vicente. For the future, the commercial director and grandson of the founder of Vulcasul believes in the love of his kids and nephews - the fourth generation - are nurturing for the family business. When it comes to growth plan, the family has their foot on the ground. “The company is in the ideal size, for we can still control and manage to serve customers by name,” he says. We have three thousand customers in Brazil. A partnership with an Italian group promises to renew the equipment and the technology for the company to start producing PVC boots for civil construction. Without fearing the technolo-

Luiz Vicente, director of Vulcasul 50 years after its foundation, the company has undergone a technological revolution when attempting to implement the RFID.

gical change, Luiz Vicente believes in the company’s success: “We are here because we love what we do.”

COMPANY’S PROFILE

The Vulcasul manufactures and sells boots, combat boots, shoes and military uniforms since 1930. Its focus is the domestic market and the client portfolio includes the Brazilian Army, the Military Police of Minas Gerais, the market for school sneakers, besides Personal Protective Equipment (PPE), especially for civil construction. We have three thousand customers in Brazil and 150 reseller stores. The company is run by the family for three generations and has faced up difficult moments in the early 1990s, but managed to get back on its feet. In the city of about 15,000 inhabitants where the industrial park is located, the city of Itanhandu (MG), the company has 280 employees. [ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 49

[

TECHNOLOGY

[ rfid

By João Guimarães with the collaboration of Denise Turco

Efficient identification Learn more about the RFID Center of Excellence and the projects that place Brazil as a reference in the development of this technology. Responsible for most part of the technological innovations in the world, research centers work to meet the needs of the population and market. Here in Brazil, a particular noteworthy one is the Radio Frequency Identification Center of Excellence, RFID CoE. Located in Sorocaba, in the state of São Paulo, the RFID CoE has 24 collaborators and it is controlled by FIT (Flextronics Technology Institute), a non-profit association connected to the Ministry of Technology and Science, one of the leading research institutions in computer science in Brazil. Apart from the space dedicated to identification technology through radio frequency, FIT is also installed in laboratories in the fields of hardware, software, energy and incubator. Operating since 2005, the RFID CoE is sponsored by Hewlett Packard (HP). In 2002, HP started to do some RFID application tests in cases and pallets in the United States factories. Three years later, it has decided to test the use of this technology directly in

50 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

identify an item and a transmitter connected to an antenna that is responsible for reading the label positioned in a sort of portal to check the item. When the EPC is read, it can be associates to available information in a database as the origin of the product or production data. “For instance, a company has the ability to know everything that is entering and leaving the warehouse”, explains Santos. In the incoming years, the market expects a great intensification in the use of the technology through radio frequency identification, mainly in the

the printer to get more operational benefits and reduce costs. “The company wanted to understand this technology and add value to its manufacturing process”, explains André Santos, manager at the RFID technology laboratory and RFID CoE sustainability. Thus, the HP factory located in Sorocaba was chosen to be the first in the world to carry out the pilot project with the application of this technology in all the stages of the productive chain – manufacturing, distribution and reverse logistics. André Santos, The scanning teof RFID CoE chnology by radio “One of our frequency is a system challenges is to disseminate the used to identify, mause of RFID” nage and do the traceability of products, documents, animals, logistics cargo, etc. It can be used throughout the supply chain and in any market segment. In practice, the RFID works by using tags, readers and antennas that communicate with a computer. The tag comprises a chip which is a recorder of the EPC (Electronic Product Code), a unique number to

In practice The production line installed in the RFID CoE enables to do tests, by simulating a real situation

Photos: Douglas Luccena

areas of logistics and retail. According to Santos, “the market is heated and the technology is mature. The trend is that the RFID covers more segments in the short term”. Projects The RFID CoE is the first and the only center in Brazil accredited by GS1 EPCglobal, the institution responsible for identification standards by radio frequency. The institution located in Sorocaba helps to produce the most current concepts in this field. The institute also has the recognition of major research centers such as MIT and Sophia University. It also participates in the coordination of efforts to connect research labs, universities and suppliers in a network to discuss new horizons for the technology. “One of our challenges is to disseminate the use of

RFID” emphasizes Santos. In the institution’s facilities, it is possible to reproduce the environment in a production line, which enables to test the technology in a real situation before the implementation. Thus, the institution is helping many companies and developing a series of projects. The most current one is the development for the first chip for RFID produced in Brazil, as a result of a partnership between the RFID CoE, the HP and the chip’s manufacturer CEITEC. Another successful initiative is the Smart Waste, developed with HP, which enables to visualize in real time all printers at the time of recycling. That is, the company is able to know how long ago the equipment was manufactured until the time it is recycled. Recently, the project was awarded in the United States by the RFID Journal, the most prestigious

publication in the area. Among the projects of the institute, there are: the creation of a real time management system of the ink cartridges at the point of sales, a device that speeds up the counting of goods in the stocks and an RFID pallet, which makes the identification and location of the item provision in the pallet.

Traceability In this project, by removing the wine from the shelf, the system provides data on origin and consumer tips

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 51

[

HANGING LOOSE

[ QUALITY OF LIFE

the plies , s t r spo rges ap ns to e m e Bo l lesso tr x n e o f s l er o an We paintbal v o l A essm ing and iness life n i s bu kydiv bus y a s the ay-to-d By Mariana Congo the d

52 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

After jumping from the plane, it is a free fall that takes 50 seconds until the parachute opens. With the horizon ahead, the heart in the mouth and mind alert, you must act quickly. “Once the parachute opened in half and began to spin around. I had ten seconds to solve the problem or I would have to open the spare parachute. I managed to pull the parachute by untangling it and solving the problem in five seconds.” It has happened to the businessman Welson Borges, director of the chain Riolax Franchising, factory and franchise of hot tubs and spas. Welson acquired the taste for skydiving three years ago. “It’s a passion since I was a child, it comes from the man’s will of flying,” he says. The businessman from the city of Sao Jose do Rio Preto, located in the state of São Paulo, has always liked extreme sports: he already practiced climbing and rappelling. Now it is the thrill for the freefalling and paintball. In the sky, the sensation of freedom is sharp. The stress and fear of heights disappear. The sensations are different, from the moment of concentration to equipment assembly,

Photo: Disclosure

y k s n e e h w t t r e a B de an

going through the joy shared with friends inside the plane, the tension at the aircraft door, the thrilling of freefalling and the relief when the parachute opens. “The self-esteem increases because you believe in yourself even when you jump from an airplane, free falls at a speed of 220 kilometers per hour and lands safely”, said Welson. The passion became a serious thing and today, after graduating from a course in Boituva (SP), he has accumulated 150 jumps and manages the operations of the Skydiving Club in the city of São José do Rio Preto, created by him and friends in love with the sport. There are 50 members. The skydiving influences his professional life. “I think faster and I know when to get out of difficult situations,” said Welson. The businessman founded the Franchising Riolax in 2005. After investing in manufacturing facilities for the production of bathtubs, resale construction materials for homes and other stores began in 2008. A year later, the strategy changed with the creation of its own stores and franchises. The company invests in the differential of specialized assis-

tance. With 15 stores in the states of Sao Paulo, Parana, Mato Grosso and Minas Gerais, the goal is to increase this to number of 30 franchises by the end of the year. Welson has another hobby: the paintball. In this sport the war is simulated. The weapons seem to be real, but the ammunition is colored ink. The goal is to reach the opponent scoring his clothes with ink and complete the goals, such as rescuing a flag. This passion Welson cultivates for five years. He and his group of friends founded the club Metralhas Paintball in São do Rio Preto City. The 80 lovers of this sport get together for the battles in games of one hour. “This sport cultivates the collective spirit of the team in action. It is sheer excitement from beginning to end,” says the entrepreneur. From his free time to work, the lessons learned are many. “In a battle we need to articulate people to achieve the victory. The same applies to the professional life.”

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 53 [ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 53

[

HUMAN RESOURCES

[ RECRUITING

There are vacancies By Camila Mendonça

With the lack of workforce, when hiring or retaining employees, the scenario is not favorable to small businesses. They still compete with the large companies for the best professionals. The way is study the market, use the creativity and implement a model of people management. 54 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ] 54 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

Hiring people has been no longer a simple task. The economic growth, professional qualification increase and the companies’ need to complete their staff led to the growing competition in the labor market. Companies realized that it was necessary more than a high salary to attract the best professionals. The situation is not different in small enterprises. They represent nearly the total of the Brazilian business community (about 98%) and they are responsible for creating the largest share of jobs in the country: almost of 75% of the two million jobs generated in 2011 are in the micro and small enterprises, according to the Ministry of Labour. Despite the great job offer, many sectors are facing up difficulties to hire and retain people, especially the industry. Con-

Fotos: Divulgação/iStockphoto

trary to developments in the labor market in 2011, the sector has difficulties to grow since the international economic crisis in 2008. The problem got worse due to the appreciation of the Brazilian currency in relation to the dollar - a fact which impacted adversely on exports. “This scenario makes the industry lose competitiveness,” says Carlos Ignacio Jospe, director of the business consultancy, JCI Acquisition. In this situation, the industry loses ground and today represents only 14.6% of the Gross Domestic Product (GDP) - the lowest level since the 1950s, according to the Brazilian Institute of Geography and Statistics (IBGE). And what do these numbers have to do with employment? Simple: without growth, companies lay off workers, what happened in 2011. The manufacturing industry, which has greater relevance in the sector,

reported loss of 25,631 jobs among small enterprises. The downsizing of the industry concerns the government, who is studying measures to prevent that the industry stops. The concern is not in vain. Despite accounting for 20% of small enterprises, industries have an average income of 12% higher than companies of other sectors, according to the Brazilian Service to Support Micro and Small Enterprises (SEBRAE). FROM MACRO TO MICRO The macroeconomic issues have direct impacts on the area of Human Resources (HR) of the companies. “There is no highly qualified staff and the turnover in small industries is high. Although there were many job openings, not half would be fulfilled,” says Carlos Eduardo Oliveira, director of the Right People Consulting.

São Paulo concentrates 25% of small industries in the country SMALL ENTERPRISES PROBLEMS TO RECRUIT AND RETAIN > Loss of ground in the economy, which reduces resources to hire > Difficult to grow due to the macroeconomic scenario > Lack of qualified professionals in the market > Absence of a model of people management > Company size may not attract talents

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 55 [ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 55

10 hints

TO HIRE GOOD PROFESSIONALS > ANALYSE THE MARKET Get to know well the competitors, despite being a large company, it helps to understand what your company lacks to attract people > CERTIFY THE COMPANY There is no use run the company in the same way you run your house. Hiring friends and relatives can create conflicts. In order to grow, it is necessary to have knowledgeable people from the market that understands your business > SEPARATE THE WAYS OF MANAGEMENT The ideal thing is to count on different professionals to manage the business and lead the HR department, although the two areas should be integrated. This separation allows the HR department to develop a model of people management and plan for jobs and wages > LOOK INSIDE THE COMPANY It is not rare to find professionals eager to hold positions inside the company. Keep an eye on these desires and in the employees’ competence > INVEST ON TRAINING Training is the most efficient way of identifying talents that may he hidden. It also allows that strategic positions be occupied by the ones who already know the values and processes of the company > THINK ABOUT CREATIVE SOLUTIONS If training and search inside the company does not make up for the need for workforce, try to imagine how to attract more people. Reference programs can be a solution. Besides, listen to the employees, they can come up with good ideas > OFFER MORE THAN A SALARY Think about ways of attracting talents through differentiated benefits, partnerships and even small stakes in the business > SEARCH OUTSIDE THE COMPANY Young and old professional who have great experience face up difficulties to find professional outplacement can be good options > OPEN A RANGE OF OPPORTUNITIES Evaluate people who do not have enough technical experience, but have potential and are willing to learn. Put store on behavioral skills, for techniques are the easiest ones to acquire > PROVIDE PERSPECTIVES Talking about projects and plans for the company helps to attract who wants to advance the career ladder soon. Link these plans to the candidate’s career growth. Do not let him/her in the dark.

56 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

“The great mistake made by the HR management of small and medium enterprises is to compete for workforce with large companies,” adds Ignacio, JCI. Experts say that at the moment of hiring, the company size matters and is taking into account when deciding issues of employment, particularly of the most prepared. “The main difficulty is to attract candidates to the interview and convince them that despite the size of the company, there are opportunities for professional growth and development. In addition, these organizations need to keep offering competitive remuneration and working conditions compatible with the market, “says Leandro Cabral, commercial director of Catho Online. Lack of workforce, difficulties in competing with large companies and the size of the company are the three major problems to hire and can be summarized to the lack of a model of people management, believes Oliveira, from Right People. Unlikely to what happened before, when the owner also managed the HR, today small and medium-sized enterprises are able to separate the two ways of management, even by means of outsourcing. “No matter the operational aspect, whether it is outsourced or own. The important thing is to have efficient management of human capital,” says Ignacio. HOW TO HIRE GOOD PROFESSIONALS The scenario does not seem conducive to small entrepreneurs, but without solution. Just learn about the market and use creativity. That’s what Ana Meirelles, an analyst of human resources at OTZ Engineering, did. The medium enterprise comprised of 215 employees, has difficulties to hire labor at all levels, although the construction industry is going through a better moment than other industries. “Everybody is employed in the sector,” says Anne. The solutions were inside the company. The OTZ found three areas of ac-

tion to complete the staff: internal training, references and hiring based on behavioral skills and potential. The company has invested in training to boost the growth of the ones who joins the base. “For instance, we have a designer who started working as a receptionist and got interested in the training.” As the base rises, jobs are vacant, but they are filled by the personnel of the market that has no technical conditions for such. “If we feel that the person is willing to learn, we hire them”, he says. To fill in some gaps in this process, the company implemented a program to reward employees who refer friends to work in the company. “If the nominee agrees with our values and gets the job, the one who indicated receives a bonus,” explains Ana. The actions taken by OTZ are simple, but they prevented the company from stopping due to lack of people. The first steps to hire are: analyze the market and look inside the company, evaluates Oliveira, from Right People. pERSPECTIVE Establishing plans for long-term business plans and know where you want to go also helps to attract talent. “Career Plan does not depend on the size of the company. Younger people want a horizon. Give it to them,” suggests Oliveira. “Make it clear what are the business plans and where the professional will be inserted in this scenario,” added Cabral, from Catho. To do this, you need a professional management of the business and HR. Most small and medium-sized companies are family business. It is common to make mistakes by mixing personal life with the management of the company - a factor that affects hiring. A professional company separates the business management from the

HR management, which facilitates the work up of plans for jobs and wages, an important item in attracting talent. Large companies offer aggressive compensation to get staff. In contrast, small enterprises have the advantage of providing more opportunities and more rapid growth, by granting small stakes in the business. “Commissions above the market average, attract mainly younger people, who want to advance in their careers’ fast,” advises Ignácio, from JCI. AND NOW? By filling the staff with a qualified workforce eliminates problems, right? Not exactly. The high turnover, which the average rate was 36% between 2007 and 2009, according to the Ministry of Labour, is one of the biggest problems faced by entrepreneurs in the industry and it is aggravated by the competitive market.

The great turnover is one the biggest issues faced by industry entrepreneurs and it is aggravated by the market competitiveness. In Oliveira’s view, the thing is that most of the offerings in the industry are for the operational level and these professionals end up being attracted by better wages and benefits that large companies offer. The result is the turnover. It may not seem, but this scenario is expensive. Besides expenses on rescinding, entrepreneurs still have to allow time for the HR department to carry out the recruitment procedures. Time that could be used for the process improvement.

Anneliese Rocha from the enterprise Marte Científica In order to decrease the turnover, the company invests on competitive wages, benefits and a good environment.

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 57

[

Carlos Oliveira from People Right consultancy Small enterprises need to create a model of people management to recruit and retain talents

That’s why a good selection procedure is not a synonym of success. Anneliese Rocha, HR director of the entreprise Marte Científica, which produces measurement equipment, understands that. The company has 120 employees who have suffered enough with the high staff turnover. To solve the problem, bet on competitive wages with benefits. Also invest in a good environment to strengthen the bonds. “All our managers started early in the company. The idea is to make them feel part of the growth process,” he says. Defining a strategy for the HR department is essential. “The best way is to make that the employee feels as part of the company, motivating him/her to make not only his/her job, but to make them realize their potential to ensure the

STRATEGIES TO RETAIN TALENTS > MOTIVATE If you identified some technical or behavioral skill of the employee, do not suppress it. Motivation can make him stay. > CREATE A GOOD ENVIRONMENT Stress, accumulation of work and a bad relationship with the boss ruin the motivation. Keep a calm environment by creating life quality programs, involve the family of the employee and establishes tangible goals. > PROVIDE CONITNUOUS TRAINING Companies that offer incentives for the employee to keep up studying make him/ her to feel valued. > STREGTHEN TIES More than having a good relationship with the professional, the company has to close ties with him/her. Help him/her to solve personal problems, without excess and keep him/her apprised of the company’s growth and projects. By doing so, he/ she will have the feeling of belonging. > REINFORCE WAGES AND BENEFITS As the time goes by, increase the wages and expand the range of services. The idea is to avoid that the employee feels attracted to another proposal. 58 Apr/Mai/Jun 2012 [ BRASIL EM CÓDIGO ]

organization’s growth and, consequently, his/her own rise,” says Cabral, the Catho. Leadership is also important to retention. The leader must be willing to help the employee to advance in his/her career. Experts say that problems with bosses are a key factor when the employee decides to leave the company. “If the company does not offer good working conditions, it is unlikely to have a committed staff. People need to believe in the growth of the company and they will follow this process,” adds Oliveira, from the Right People Consultancy. Facing a labor market increasingly aggressive and an economic environment which reduces the industry space, the small entrepreneur cannot continue with the same guidelines for recruitment and retention of the past. The world has changed and people’s perspectives in relation to career as well. You need to monitor these changes. “Without a good staff, it is difficult to grow,” concludes Ignácio.

[

‘

opinion

[technology

Edson Perin

journalist, writer and publisher of the RFID Journal Brazil and the author of the book “TI para negócios” (IT for businesses)

No company invests money into something without thinking about Return on Investment (ROI) and, of course, some technologies offer more benefits - or return - than others. A few years ago, the radio frequency identification (RFID) seemed just another of those endless acronyms for Information Technology (IT). But over the time, the RFID started to show that it was a powerful tool for business, besides bringing the expected ROI. Enterprises of various economic sectors worldwide, including Brazil, already know about the RFID. There are companies of segments such as healthcare, retail, manufacturing, textile, oil and gas, manufacturing, utilities and many other services which have tested solutions with this technology and have had positive results, for instance, lower costs, increased efficiency and productivity gains. Furthermore, some companies are aware about the use of automatic identification to improve the customer experience. Among the RFID tangible benefits, there are many successful examples documented on the site of the “RFID Journal Brasil”, produced around the world with many different companies. I have registered successful Brazilian cases after several conversations with entrepreneurs, business and IT executives, people from the industry for RFID solutions, system users, scholars, etc. For instance, the HP printer factory located in Sorocaba (SP), one of the pioneers in Brazil, serves to illustrate how an assembly line can be become faster and more economical with the RFID. Besides, the whole assembly

‘

Return on investment justifies RFID expansion

process has been improved, the company can ensure that the consumer receives his printer in the box. Thus, the product return rate related to flaws in the assembly dropped to zero, reducing costs and increasing the level of customer satisfaction. Apart from that, the HP Brazil has just been awarded by the “RFID Journal Awards”, in the category Green Solution competing with deployments around the world by controlling its RFID reverse logistics by facilitating the recycling of discarded products by users and the reuse of materials. According to the company, 40% of the raw materials of ink cartridges manufactured in Brazil come from recycling. Another case is the recent Brazilian Gas Station of the Future from Petrobras Distribuidora, in Rio de Janeiro. The BR distributor - in partnership with Intel - decided to get ready for a business opportunity that will come with the license plate of all vehicles in Brazil with RFID tags, the result of a government project called the National System for Automated Vehicle Identification (Siniav). The BR distributor has developed a RFID interface for the gas station in the neighborhood of Barra da Tijuca which is able to automatically identify vehicles and, thus, indicate in a personalized way, what type of oil should be used, recommend the changing of tires and offer additional services such as reporting on the conditions regarding the daily traffic of each driver’s journey. All in high definition screens, among other advanced interfaces. Therefore, we are facing open doors to a new business world increasingly automated, in which the RFID will be the core technology platform. Many people and companies are already taking part in this new scenario. How about you?

[ BRASIL EM CÓDIGO ] Apr/Mai/Jun 2012 59