Anyone looking to set up a warehouse in Brazil will need to take a range of factors into account in order to guarantee that the facility runs as smoothly and efficiently as possible.
With the right preparation and knowledge, setting up a warehouse in a foreign country can become a smoother and more efficient process. Beyond determining your goals, there are a few specific points to keep in mind.
One of the most important steps is understanding local regulations and market characteristics. Along with that, you should also focus on choosing the best locations, technology, and, of course, staff.
At Serviap Logistics, we can help you with all of these services to best set up a warehouse in Brazil and we can also help in Mexico, and the United States if you are thinking of further expansion. Contact us today for more information.
Why set up a warehouse in Brazil?
Brazil is the largest and most populated country on the continent. Central regions like São Paulo and Rio de Janeiro are leaders in warehouse inventories, but there are opportunities across the territory, especially with the growth of internet shopping.
It is also geographically strategic. Brazil shares borders with many of the largest countries in South America, including Argentina, Bolivia, Colombia, and Peru. This way, it provides easy access to major markets.
As of now, warehouses in Brazil still experience occasional challenges due to the lack of infrastructure in the logistics sector. Nonetheless, the market shows development due to increasing e-commerce and improving trade relations with China as well as other countries.
Brazil is also one of the largest refrigerated warehousing and logistics providers in all of Latin America, according to the Global Cold Chain Alliance (GCCA). It is the world’s second biggest agricultural exporter, with many warehouses focusing on food.
The Brazilian state offers incentives to foreign businesses looking to start operations within the territory. Accelerated depreciation is available for domestically produced equipment, for example, and there are regional initiatives to boost growth – especially in the north of the country.
Companies of all sizes in Brazil have been investing in technological solutions to increase the efficiency of their operations and compete with both international and national vendors. This includes focusing on AI and other software to facilitate processes.
In summary, when implementing a warehouse in the country, you can lean on an improving economy, investment-friendly policies, a large labor pool, great locations, and plenty of opportunities for growth and expansion.
Key aspects to consider for a warehouse in Brazil
Some details must be taken into account before setting up your business in Brazilian territory. Aspects such as regulatory compliance, human resources, security, and more, may differ from other countries and between states within the country.
As a very large country with potentially high shipping costs, making the right decision on where to open a warehouse in Brazil is important. Coastal locations that are strategic, easily accessible, and close to key markets can cut down transport expenses, but the north and northeast may have tax incentives to boost investment.
Businesses setting up a warehouse in Brazil have to ensure they comply with all regulations and obtain necessary permits before commencing operations. This includes local, national, and, sometimes, international arrangements.
Warehouses have to comply with labor laws and provide competitive wages and benefits to attract and retain qualified staff. Hiring via an employer of record in Brazil can help alleviate some of the pressure on this area.
Companies must ensure they have access to reliable power supplies, water, and telecommunications networks, as well as robust transportation and facilities, like storage racks and conveyor systems. This is easier in some states than others, so check infrastructure provision carefully.
Businesses setting up a warehouse in Brazil must also take steps to ensure the safety and security of their staff and assets, including investing in advanced security technology and hiring trained personnel.
Safety standards across countries
To expand your business in any foreign country, you must beware of country-specific regulations concerning many parts of a company, including, for example, floor markings.
A warehouse in Brazil must always report to the Secretariat of Labor Inspection, which reports to the Ministry of Labor and Employment and is in charge of enforcing legal regulations.
Brazilian inspection authorities work to maintain safe workplaces by combating underpaid work, slavery, child labor, and discrimination. Employers and employees are supported by government platforms to make sure all regulations are followed.
It is also crucial to learn about Brazilian import duties and taxes, because you may have to follow different regulations for specific cases. Thus, the correct classification of goods is decisive if you want to successfully implement a warehouse in Brazil.
Safety standards are an essential aspect of the country’s industrial and occupational health and safety regulations. Failure to comply with these regulations can lead to significant financial and legal complications.
Proper machinery maintenance and safety training on equipment, such as forklifts, pallet jacks, and overhead cranes, are mandatory. Additionally, warehouses in Brazil tend to be built with reinforced walls to prevent unauthorized access.
Types of warehouse in Brazil
Hazardous material warehouse
They store dangerous substances and must comply with stringent safety regulations and standards. They also have special features, such as fire-resistant construction, explosion-proof electrical equipment, ventilation systems, and safety protocols.
They store goods that are not yet cleared for entry into the country. These warehouses are under the control of customs authorities and are used to store goods until procedures and duties are completed.
These use technology to manage inventory, order picking, and storage. An automated warehouse in Brazil, just like in many countries, uses software to manage all aspects of the logistics process, improving efficiency, reducing labor costs, and minimizing errors.
Companies that deal with perishable and sensitive products need to keep them in good condition. With comprehensive temperature-controlled storage facilities, goods like dairy, meat, and pharmaceutical products can remain fresh and intact until delivery.
A very commonly used type of warehouse in Brazil, these facilities are designed to store goods that don’t require any special storage environment. This includes some long-lived food items, textiles, electronics, and machinery.
Small businesses that do not have their own storage facility will often rent part of a shared warehouse. They are accessible for multiple businesses to store goods as they offer flexible storage options and lower costs as the overheads are split.
With a private warehouse, businesses can customize their storage facility to meet their specific needs and requirements. For those companies that are turning over large amounts of stock and/or have highly specific storage needs, a private warehouse is essential.
Serviap Logistics offers assistance in setting up a warehouse in Brazil
At Serviap Logistics, we have plenty of experience helping clients set up a warehouse in Brazil, as well as Mexico and the United States.
We can help you with equipment assembly, as well as specific shop floor necessities, such as signs, labels, floor making, and many more demands.
In addition to infrastructure, we can also advise on warehouse setup, and also give clearer and simpler directions on specific Brazilian regulations concerning safety, duties, taxes, and local workplace laws.
Contact us today to know more about how we can assist you in getting your warehouse in Brazil ready to function.