Regional Focus: Cloud-Enabled Supply Chain Transformation in Latin America

Unlocking Agility and Resilience for LATAM Retail and Consumer Goods

Latin America’s retail and consumer goods landscape is undergoing a profound transformation. As digital adoption accelerates and consumer expectations rise, supply chains in the region face a unique set of challenges: fragmented infrastructure, rapidly shifting demand, and the need for scalable, resilient solutions that can flex with market volatility. Cloud migration, data integration, and artificial intelligence (AI) are at the heart of this transformation—enabling real-time visibility, cost optimization, and operational agility for businesses across the region.

The LATAM Supply Chain Challenge

Retailers and consumer goods companies in Latin America operate in a complex environment. Infrastructure can be fragmented, with supply chain networks spanning vast geographies and diverse markets. Traditional, siloed systems often limit visibility and slow down decision-making, making it difficult to respond to demand spikes, supply disruptions, or evolving customer preferences. Meanwhile, the region’s rapid digital adoption—fueled by mobile commerce and omnichannel retail—demands a new level of supply chain flexibility and customer-centricity.

Key challenges include:

Fragmented infrastructure and legacy systems that hinder end-to-end visibility.
Rapid digital adoption driving demand for seamless omnichannel experiences (e.g., buy online, pick up in store, same-day delivery).
Volatile demand and supply disruptions requiring agile, data-driven responses.
Pressure to optimize costs while maintaining service levels and customer satisfaction.

The Cloud Advantage: Foundation for Modernization

Cloud migration is a critical enabler for supply chain modernization in Latin America. By moving core supply chain applications and data to the cloud, organizations gain:

Scalability and resilience to handle demand fluctuations and market disruptions.
Unified data platforms that break down silos and enable real-time insights across inventory, orders, logistics, and customer channels.
Faster deployment of AI and analytics to support predictive forecasting, inventory optimization, and automated decision-making.
Cost optimization through pay-as-you-go models and reduced legacy system expenses.

For example, a leading retailer in the region migrated to a cloud-based commerce platform, resulting in a 50% reduction in development costs, an 80% decrease in on-premise expenses, and a significant lift in sales during peak periods. The new platform enabled rapid enhancements, seamless omnichannel fulfillment, and real-time inventory visibility—turning the supply chain into a strategic asset for growth.

Data Integration: Breaking Down Silos for Real-Time Visibility

Data integration is essential for overcoming the fragmentation that characterizes many LATAM supply chains. By connecting data from inventory, order management, logistics, and customer touchpoints, businesses can:

Achieve end-to-end visibility to proactively manage risks and opportunities.
Enable real-time decision-making for inventory allocation, order fulfillment, and last-mile delivery.
Support omnichannel fulfillment by orchestrating orders across stores, warehouses, and delivery partners.

A major Latin American retailer partnered with Publicis Sapient to implement a supply chain control tower, gaining visibility into overall fulfillment costs—including reverse logistics and item-level transportation costs. This initiative unlocked $145 million in potential savings and delivered immediate gains by optimizing routes and reducing markdowns.

AI-Driven Transformation: From Forecasting to Fulfillment

Artificial intelligence is reshaping supply chains in Latin America by enabling:

Accurate demand forecasting using machine learning models that incorporate product attributes, seasonality, and macroeconomic indicators.
Automated inventory optimization to ensure the right products are in the right place at the right time.
Intelligent order management that dynamically allocates inventory and optimizes delivery promises.
Scenario modeling and risk management to build resilience against disruptions.

For instance, a multinational beauty company in the region leveraged AI-powered forecasting to achieve a 10%+ uplift in forecast accuracy across 900 top SKUs in just six weeks. Another retailer improved fulfillment options and conversion rates by implementing a flexible order management system with ship-from-store and same-day delivery capabilities.

Practical Insights: Building the Future-Ready LATAM Supply Chain

Publicis Sapient’s cloud-first approach is designed to address the unique needs of Latin American businesses:

End-to-end transformation: From strategy and design to implementation and ongoing optimization, we deliver across the full supply chain lifecycle.
Data-driven decision-making: Real-time data and AI power smarter, faster decisions at every level.
Platform-agnostic integration: We work with leading technology partners and integrate with existing systems to maximize value.
Outcome-focused delivery: Our success is measured by improved service levels, reduced costs, and increased agility for our clients.

Real-World Impact: LATAM Success Stories

Supply Chain Control Tower: A leading Latin American retailer gained real-time visibility into fulfillment costs, unlocking $145M in savings and optimizing transportation routes for immediate cost reductions.
AI-Powered Forecasting: A multinational beauty company achieved a 10%+ uplift in forecast accuracy, improving inventory placement and reducing stockouts across hundreds of SKUs.
Cloud-Based Commerce Transformation: Retailers migrating to cloud platforms saw dramatic reductions in operational costs, faster deployment of new capabilities, and significant sales growth during peak periods.

Why Publicis Sapient?

With over 30 years of digital transformation expertise and a global team of 20,000+ experts, Publicis Sapient is uniquely positioned to help Latin American retailers and consumer goods companies modernize their supply chains. Our end-to-end solutions span strategy, technology, data, and change management—ensuring that transformation delivers measurable business impact.

Ready to turn your supply chain into a strategic asset? Connect with our experts to start your journey toward efficiency, agility, and profitable growth in the digital era.