Supply Chain Frontiers issue #41
What type of supply chain takes years to build and is dismantled just weeks after reaching its peak performance? The answer is one that supports major sporting events such as the 2014 World Cup. This unique breed of supply chain was explored at the Supply Chain Leaders’ 2011 conference, Bogotá, Colombia, May 2011, organized by the Center for Latin-American Logistics Innovation (CLI).
Large-scale sports competitions are usually short lived, but the supply chains that make them possible are meticulously planned over a long period. Fernando Pacheco, Logistics Manager of the 2014 FIFA (Fédération Internationale de Football Association) World Cup Brazil™, began planning the logistics operations for the famous soccer tournament in February of this year. He explained the process at the CLI conference.
Pacheco is responsible for transporting soccer teams from 34 competing countries as well as their equipment and uniforms. He oversees the delivery of equipment needed by the many TV and radio stations that beam coverage of the World Cup tournament throughout the globe. In addition, goods associated with VIP and sponsor catering arrangements come under his purview.
There are 64 soccer games in the competition that take place in 12 cities across Brazil. Some of the venues are thousands of miles apart, and Pacheco will use both air and road carriers to move this complex mix of cargoes. Each team has 56 trucks at its disposal, for instance.
Some of the logistics challenges are beyond his direct control. The country’s airports have to be expanded to handle the anticipated spike in passenger and cargo traffic volumes. “That is the responsibility of the Brazilian government,” says Pacheco. Similarly, the authorities need to modify the country’s import regulations to smooth the way for the influx of goods generated by the tournament.
Changes to Brazil’s trade regulations will require fast-track reforms, explains Pacheco, but these measures are crucially important. He learned this lesson as head of logistics for the 2007 Pan American Olympics in Brazil. “We wrote manuals and procedures to make the process of importing cargo for the games easier; but the legislation was not modified, and there were inefficiencies even though we had good documentation,” he explains.
The 2007 games also underline how each sporting event brings different logistics challenges. That event was held in one city, Rio de Janeiro, and involved multiple sports; whereas the 2014 World Cup will take place in 12 cities, but involve a single sport.
A competition that presents another unique set of supply chain issues is the Dakar Rally, which originally took place between Paris, France, and Dakar, Senegal, but in 2012 will encompass three countries in South America: Argentina, Chile, and Peru. Bikes, cars, and trucks will be required to complete a course more than 9,000 kilometers (5,600 miles) in length between Mar del Plata, Argentina, and Lima, Peru, during 14 days of racing.
French oil company Total Group supplies the fuel for the event, and Leandro Aránguez, Procurement Director, Total, described the supply chain at the CLI conference.
For the last 20 years, Total has partnered with the event organizer to stage the Dakar. The company begins preparing for the next rally about one year before the checkered flag begins the race. “The best way to prepare is to plan,” says Aránguez.
In the 2012 event, there are three supply channels for fuel: conventional gas stations, airports, and GPS stations. The latter is by far the most challenging. The 50 GPS stations are nothing more than map coordinates located along the course where fuel is available for the competitors. Six delivery teams of five people and two back-up teams are responsible for making sure that each refueling point is stocked. One of the biggest headaches is having to drive through miles of sand, which can bog down the vehicles that are delivering the drums of fuel to each point, says Aránguez.
But perhaps the toughest obstacle is not far removed from the difficulties faced by Pacheco’s team: customs controls. Moving fuel between countries can easily run aground on national customs regulations. In some countries, transporting fuel in drums is not allowed and requires special permits, for example. “We need to interact with each government to get the approvals we need,” says Aránguez.
Another common feature – and one that defines the logistics of any big sporting event – is the nature of the decision-making process. “All the managers are trained to make quick decisions, and this is key,” says Pacheco.
For more information on the Supply Chain Leaders’ 2011 presentations and speakers, contact Ana María Prieto, CLI Public Relations, at email: aprieto@logyca.org, or tel: +57 1 4270999, Ext. 191.