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Brazilian and 1st World executives

Rafael Herzberg's picture
Consultant energy affairs, Self employed

Rafael Herzberg - is an independent energy consultant, self-employed (since 2018) based in São Paulo, Brazil * Focus on C level, VPs and upper managers associated to energy related info,...

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  • May 9, 2024
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Brazilian and 1st World executives

There is a difference - glaring by the way  - between executives in the Brazilian electricity sector and those in the 1st World. It's how they see the customer.

Two examples that I experienced, mirror this reality.

A multinational group with several industrial units located in Brazil decided to move some of its production lines to other countries. The reason was very simple: costs in Brazil were far above the competitive benchmark. This group did so and began serving its Brazilian customers by importing from its units in other countries. And this decision was very successful! The local distributor was notified and dealt with the matter according to protocol despite the unit in question having more than 10 MW of demand.

Another example I saw in the interior of the United States. A large grain processing company decided to stop its operations at that location in 3 months, due to unfeasible costs. The service manager of the local distributor, as soon as he found out, passed this information to the CEO. After all, losing this important client would be very bad! The CEO requested a meeting with his counterpart and found out the reason for the decision. He asked for 3 weeks to suggest a solution that would meet the client's cost needs. And the positive surprise: the distributor's CEO created a team to find the solution for the customer and he SUCCEEDED! The reason for the high costs was the "last mile" of bean wagons that came by train but needed to be transferred via diesel truck to get to the plant. The distributor built a 1 mile railway and thus SOLVED the challenge. Good for the customer and good for the DISTRIBUTOR!

These examples show how far we are from true competitiveness!

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Thank Rafael for the Post!
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