Interviews
15 Dec 21

Max Leandro Veras, Servier: Overcoming fleet management barriers in Brazil

Brazil spent much of 2021 trying to deal with the impacts of the COVID-19 pandemic such as factory closures, price increases, and the lack of supplies.  Although the worst does look behind us, there are still challenges for corporate fleet operators in the country.

Helping us to understand what they are and how to deal with them in this Case Study is Max Leandro Veras. Based out of Rio de Janeiro, he is Fleet Specialist for the Brazil unit of global pharmaceuticals group Servier.  

Company

Servier

Name

Max Leandro Veras

Job Position

Fleet Specialist

No. of countries in coverage area

one, Brazil (company present in 150 worldwide)

No. of employees in coverage area

700, Brazil (22,500 worldwide)

No. of vehicles under management

432 light passenger & commercial vehicles, of which 12 are armored

 

Without a doubt, there were several factors that impacted fleet operations in 2021. One of the main ones was the jump in fuel price which has now reached a cumulative increase of 73% in the country this year. Meanwhile, the closing of automobile plants and the lack of raw materials have been the main factors resulting in vehicle price increases.

“These are just a few examples of the hurdles we have been facing in Brazil recently,” says Mr. Veras.

To resolve matters, some of the strategic actions Servier is doing right now include extending its vehicle leasing contracts and applying restrictions to vehicle refueling procedures such as not permitting these activities on weekends. According to the specialist, he basically works around four main pillars.

•    Maximizing Driver Safety
•    Controlling Operational Cost
•    Focusing on Quality
•    Carrying out Strategic Planning

It is also important to put together partnerships with your suppliers that are in fact reciprocal, developing well thought out collaborations from the initial contact up until after-sales service. 

Well-crafted contracts and very clear fleet policies are also needed to optimize your fleet management costs. Remember that efficient cost control contributes to the overall financial health of your company. 

As we make our way into 2022, I know that a full recovery from this recessionary period will not be easy. However, I am calling on all automobile suppliers to work hand-in-hand with governments, finding new incentives that will help not only Brazil, but the world markets return to normal.

Tips for Fleet Managers in Brazil

Develop or acquire a customized fleet management system with precise data

Although sustainability is good, remember that cost efficiency is priority right now

Direct fuel savings actions to Benefit Fleet as opposed to your Tool-For-Trade Fleet

Change from Fleet Management to Mobility Management (e.g. partner with taxi associations)

Inflation (11%, November 2021) is hitting Brazil hard so prepare yourselves accordingly


For more on what is happening in terms of fleet and mobility in Latin America, see our video playlist of what took place during the last Fleet Latam Conference in September.

Photo (source: handout)

Authored by: Daniel Bland
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