At the beginning of 2020, with the foreshadowing of the pandemic arriving in Brazil and with the expectation of social isolation, the entire market began to bet on a slowdown in the economy and a drop in sales. It didn’t take long to see that we were wrong in some aspects. The imposition of home office and distance learning significantly increased the demand for telecommunications services, such as internet and mobile devices. From schools to large companies, everyone needed a lot of connectivity in this new normal.
More than ever, the whole world demanded technology. And this caused an exponential increase in demand for devices embedded with chips, such as smartphones and modems – I speak from experience. In my house there was only one computer and one notebook. During isolation, with two children studying remotely and my wife and I working from home, it was necessary to buy more devices and signal repeaters so that Wi-Fi could reach every room. Many people have had similar experiences, not only in adding devices, but also in improving their internet plan.
This scenario generated a shortage of semiconductors, essential items for the manufacture of chips and other electronics. Aware of this movement, technology companies increased orders for technological components, at the same time that factories reduced production due to lack of raw materials. With the increase in demand and the decrease in production, shortages came.
The crisis intensified to such an extent that to this day the industry has not returned to normal. Even the automobile sector suffered the consequences. When they resumed normal “post-pandemic” production, automakers found themselves at the end of the queue to acquire chips, which caused large companies to reduce production, a fact reported by the international press.
As fábricas de semicondutores estão tentando solucionar o problema, que ainda promete se estender por um tempo. Segundo a CNN, a TSMC (Taiwan Semiconductor Manufacturing Company), responsável por 80% dos semicondutores para carros, anunciou que vai investir US$ 100 bilhões nos próximos três anos para que a capacidade de produção encontre a demanda. Já a Intel, fabricante americana de chips, planeja expandir as fábricas no Arizona com investimento de US$ 20 bilhões. Essas empresas, junto com a Nvidia, companhia que produz placas de vídeo, preveem que a escassez continue até 2022 ou 2023. Como se vê, é um desafio grande que todas as empresas estão (e continuarão) enfrentando.
At Vivo, even with the increase in demand for high-speed internet, we were not caught off guard by the pandemic tsunami, as we were already working on solutions to improve the efficiency of our supply chain. This was fundamental for the next steps in logistics given the new scenario. We joined Blockchain (a technology that gained popularity with the advent of cryptocurrencies) so that we could meet the needs of our current and future customers, even with a global shortage of components.
The company has one of the largest and most complex logistics operations in the telecommunications sector, which involves hundreds of manufacturers of materials that serve commercial operations (smartphones, simcards, notebooks, tablets, gadgets, etc.) and technical operations (network infrastructure materials and “client house” involving internet modems, pay TV decoders and miscellaneous items).
These materials are received in 19 CDs and distributed, in the case of commercial logistics, to more than 1,600 stores or delivered door-to-door to B2C and B2B end customers. In the case of technical logistics, the materials are distributed to more than 100 outposts throughout Brazil, which are distributed to thousands of field technicians, responsible for the implementation and maintenance of the telecom network, as well as the installation of telephone, internet and Pay TV in customers’ homes.
With Blockchain, a solution that stands out for its security, traceability and scalability in the integration of all stages of the logistics chain, we have visibility into the allocation of materials in the production chain in a more reliable way. This allows us to better plan and execute more efficient stock levels at all stages of the logistics chain, including products held by thousands of field technicians, who also have the flexibility to transfer materials between them in a secure and traceable way.
The solution is also essential for tracking the reverse logistics of equipment returned from the field, which is subsequently repaired and, if quality approved, is made available for new installation. Blockchain has increased the visibility of these materials, helping to accelerate the return and recovery, in addition to minimizing the need for greater purchases of new products, very important in the current moment of accelerated demand and restricted manufacturing capacity, in addition to contributing to the circular economy and preservation environmental.