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New Agribusiness Study Results Reported from University of Sao Paulo (Global Sourcing Approach to Improve Cash Flow of Agribusiness Companies in...

July 24, 2014



New Agribusiness Study Results Reported from University of Sao Paulo (Global Sourcing Approach to Improve Cash Flow of Agribusiness Companies in Brazil)

By a News Reporter-Staff News Editor at Agriculture Week -- Current study results on Agribusiness have been published. According to news reporting out of Sao Paulo, Brazil, by VerticalNews editors, research stated, "We developed a multiechelon location-inventory modeling approach and applied it to redesign the global network of four large transnational agricultural companies operating in Brazil. The results show that tax planning is the most significant factor in minimizing the operating cash outflow and that inventory carrying costs play a more important role than transfer freight, handling, and fixed costs."

Our news journalists obtained a quote from the research from the University of Sao Paulo, "Distribution centers and production plants in countries within the Mercosur are excellent targets for cash outflow reduction and service level improvement. Furthermore, contrary to common sense, reducing operating costs can sometimes increase cash outflow in companies with large volumes of tax credit in Brazil."

According to the news editors, the research concluded: "Our methodology generated processes that helped one company reduce its logistic cash outflow by 49 percent and its logistics costs by $10 million."

For more information on this research see: Global Sourcing Approach to Improve Cash Flow of Agribusiness Companies in Brazil. Interfaces, 2014;44(3):317-327. Interfaces can be contacted at: Informs, 5521 Research Park Dr, Suite 200, Catonsville, MD 21228, USA.

Our news journalists report that additional information may be obtained by contacting R. Hamad, University of Sao Paulo, Polytechnic Sch, Transportat Engn Department, BR-05508900 Sao Paulo, Brazil.

Keywords for this news article include: Brazil, Sao Paulo, Agriculture, Agribusiness, South America

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


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Source: Agriculture Week


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