Cisco Authorized Distributors in Brazil (+ A Better Option)

When you’re trying to get Cisco and other IT equipment into Brazil, you might think your only option is to work with a Cisco Authorized distributor in Brazil. While this method is the go-to method for plenty of businesses, it’s simply because they think there’s no other way. 

But there are problems with using in-market distributors, such as:

• In-market distributors may often offer a limited product catalog and longer lead times for the equipment you need.
  
  

• The distributor is typically partnered with one manufacturer, meaning you may have to work with multiple distributors to get all of the products you want to your target destination.
  
  

• In-market distributors are often the more expensive route, with higher total costs due to bill of material markups.
  
  

• Finally, in-market distributors generally offer short-sighted solutions that don’t factor in future business requirements.

Fortunately, there’s a much better model for getting IT products shipped into countries like Brazil. And that’s buying Cisco and other IT equipment locally, and then shipping that equipment into Brazil with a logistics vendor like FGX.

At FGX, we enable our customers to take advantage of the buy local and ship global methodology, providing our customers with:

• More control and flexibility over their global infrastructure
  
  

• Savings in total costs
  
  

• Better business outcomes

Many multinational enterprises trust our team at FGX to deliver best-in-class, seamless, global IT shipping solutions for their infrastructure. We provide coverage to 174 countries with a 99.98% customs clearance and delivery success rate, even to challenging countries like Brazil and China. Please reach out if you’re interested in learning more, or continue reading to learn more about working with Brazilian distributors.

Working with Brazilian Distributors

Before you decide to work with an in-market distributor, you should understand how the process works and what issues you can expect to face. 

Shipping IT equipment into Brazil is difficult because Brazil has complex regulations and high taxes on imported IT equipment. For example, to get equipment into Brazil you need:

• A business entity set up in Brazil (or someone in Brazil to act as the final consumer)
  
  

• A Brazilian bank account with the required funds to pay Brazilian vendors
  
  

• The capability to onboard and contract with equipment vendors (and navigate any language barriers)
  
  

• The staff and local support necessary to manage the shipment when it arrives (for example, someone must be physically present at customs to declare your goods)

Many businesses assume that the distributor either has the IT equipment in Brazil already and/or has the infrastructure required to purchase and ship the equipment into Brazil. But that’s not the case.

In reality, the process of working with a Brazilian distributor works as follows:

• The distributor orders the IT equipment from an OEM in another country (usually from a limited catalog, which we’ll discuss more later).
  
  

• They outsource the shipping process to freight forwarders, IOR services, and delivery teams (usually by using the least expensive means).
  
  

• They have entities in Brazil that act as the receiver of the goods.
  
  

• They’ll often markup the equipment and then sell it to a local reseller.
  
  

• The local reseller will add their own markup and sell it to you.
  
  

• They use hub-and-spoke shipping processes like DHL to handle last-mile delivery (so your products are shipped with other deliveries, increasing the chance they get lost or damaged).

Ultimately, the issue is that distributors are optimized for sales, not international shipping, so they lack the knowledge to provide you with fast and cost optimized solutions.

In the next section, we’ll go into more depth on the challenges of working with Brazilian distributors and show you how FGX overcomes those challenges to provide seamless and efficient deliveries.

If going through a Cisco Authorized Brazilian distributor is still the best option for you, you can locate them with these resources:

• Cisco Partners and Resellers in Brazil

• Cisco Partner Locator

The Challenges of Working with Cisco Authorized Distributors in Brazil (and Why FGX is a Better Solution)

Some businesses think that working with an in-market Brazilian distributor eliminates the logistics process from the equation. In reality, distributors are still ordering your equipment from out-of-country, importing it into their own market  and then shipping it to your requested destination. They just manage the process for you, so you don’t see it. That in and of itself wouldn’t be an issue, except for the fact that it’s expensive, limits your visibility into the supply-chain (which limits your ability to plan business operations), and reduces your operational flexibility. 

Also, Brazilian distributors that are part of the Cisco partner program are only focused on importing Cisco systems and products. If you wanted to ship your own hardware and hardware from other manufacturers, you’d have to coordinate multiple deliveries with multiple vendors, which is extremely difficult. 

Let’s look at the key challenges below, and then explain how working with FGX solves these challenges.

Challenge #1: Limited Flexibility and Longer Lead Times 

Cisco’s (and other OEMs) biggest customer base are US companies, so they prioritize those orders over international sales. Since international orders take second priority to domestic ones, the SLAs of in-market resellers (like Brazilian distributors) are hamstrung. Which is why you’ll often hear of lead times that stretch over six months or longer when buying in-market. This means that:

• You’ll likely have to choose from a limited catalog of Cisco inventory
  
  

• The distributor will have to purchase the equipment from wherever they can get it (and perhaps even wait for the equipment to become available) 

Not only does this limit your flexibility in terms of inventory, it also impacts delivery times. It may take time for a Brazilian distributor to even source the equipment to fulfill your order. They may have to order from different resellers in different locations, so your order will be shipped from multiple starting points. And they may have to use multiple delivery services to transport your equipment.

All of this means that even the Brazilian distributor has little control over when you actually receive your order. This is why distributors often give lead time quotes in the range of 3-9 months, and even those high-variance quotes don’t always turn out to be accurate. Without accurate lead times, you can’t properly plan for the arrival of your equipment or the business operations that depend on that equipment.

Put simply, using a Brazilian distributor limits your control over what products you can buy, how much you pay for those products, how the products are delivered, and when you receive your shipment.

How FGX Gives You More Flexibility

FGX provides a turnkey, door-to-door IT shipping solution that enables you to “buy local and ship global” without the overhead. 

With FGX, you can buy from multiple domestic distributors, consolidate your shipments, and then rely on us to ship to your final destination(s) in Brazil. Since OEMs prioritize domestic orders and there are more domestic resellers than international ones, you get the kind of flexibility that allows you to:

• Choose from a larger inventory and get the products you want (without waiting for equipment to become available)
  
  

• Shop around with different resellers to get a better price
  
  

• Materially handle your gear before they ever get delivered, e.g. configuration or asset tagging
  
  

• Ship all of your equipment from one place

And we give you lead times with variances in days, not months, allowing you to better plan your deployments globally.

Challenge #2: Poor Execution, Transparency, and Customer Experience 

Brazilian distributors are focused on selling goods, not international shipping and logistics. So when it comes to shipping, they outsource the job to 3rd-party shipping providers, such as freight forwarders, IOR services, and delivery teams.

This results in many execution and transparency issues, such as:

• Low quality of service: You have no control over which shipping providers they outsource to, or the quality of service those companies provide. This isn’t a problem in and of itself, but the providers they use are usually slow and very cheap.
  
  

• A long, fractured chain of communication: Getting updates on the status of your shipment requires a game of phone tag — i.e., you call the distributor, the distributor contacts the freight company, the freight company calls their agent, and then reverses the communication back to you.

Also, having multiple parties involved in the shipping process increases the opportunities for unexpected issues to arise that increase costs and delay your delivery.

• Low transparency + inaccurate information: With so many parties involved, it can be difficult to get a clear answer on where your shipment is in the supply chain. Some of our clients who’ve worked with distributors experienced situations where they asked for an update on when their delivery would arrive, were given a delivery timeline of one month, and the shipment didn’t actually arrive for six months.
  
  

• Increased costs: Every party involved will add a markup to make a profit off of the transaction. The more parties involved, the heftier the markup.

FGX Provides Full Transparency and Communication

Working with FGX provides a smoother, more streamlined process where we:

• Help you order the equipment from domestic resellers and have them ship it to us
  
  

• Store the equipment in our facilities until it’s ready to be shipped
  
  

• Provide accurate quotes on the cost and timeline of delivery on a shipment-by-shipment basis
  
  

• Prepare all of the necessary paperwork and compliance requirements prior to anything being shipped
  
  

• Manage your shipment using our private IT supply-chain

Along the way, we provide you with insight and updates into everything we’re doing on your behalf. And since there are no extra middlemen, there are no markups involved in the transaction and you can manage everything through one point of contact.

Challenge #3: Brazilian Distributors Use Suboptimal Shipping and Delivery Processes

A distributor’s primary goal is to sell products at a profit. Often to maximize profits, they’re going to ship your goods via the least-expensive means possible. For example:

• They ship equipment internationally by boat rather than direct airfreight, which takes more time
  
  

• They use hub-and-spoke shipping processes (via vendors like FedEx, DHL, USPS, etc.) for last-mile delivery. Your shipment is delivered with other shipments, increasing delivery time and the risk of equipment getting lost or damaged

Bottom-line: your shipment will not be treated as the priority that it is. And the suboptimal delivery methods that they use increases the timeline and risks involved in your delivery.

FGX Uses Our Optimized Global Supply Chain

FGX treats your shipments as a top priority. We ship internationally via direct airfreight, which is faster and more secure. And we handle last-mile delivery via dedicated shipments, so your goods aren’t just another stop on a delivery route.

We also have customs brokers on-site in Brazil who will manage and clear your shipment once they reach customs. Our customs brokers are experienced at clearing customs and answering any questions or inquiries that come up 

Challenge #4: Working with Brazilian Distributor Increases Total Costs

Many businesses incorrectly assume that Brazilian distributors have supply of IT equipment in Brazil, and that working with a distributor cuts out international shipping costs. But as we’ve discussed, Brazilian distributors are (more often than not) purchasing equipment outside the country and shipping it in. They then pass those shipping costs onto you. The costs are usually implicitly baked into the price but sometimes are explicitly broken out.

In order to understand the full costs of working with a Brazilian distributor, let’s break down the process so you can identify all of the hidden costs involved:

• Purchasing: Brazilian distributors must buy IT equipment from an OEM or another reseller. The reseller will add a markup on the price of the equipment to make a profit. Then the distributor will add in their markup.
  
  

• Reselling: The distributor will often sell the gear to the reseller who will ultimately sell the equipment to you.
  
  

• Shipping: The distributor will outsource the shipping costs to 3rd-party shipping companies. Each shipping company will add a markup for their services, which the distributor will then pass on to you.
  
  

• Taxes: The distributor must pay many of the taxes associated with transporting the goods. They’ll factor the financing of those taxes into their price. 

FGX Is More Cost-Effective

Working with FGX is the premium shipping solution, while still being more cost-effective. This is because, with FGX you get:

1. The Equipment You Want at a Better Price

With FGX, you can buy from domestic resellers with more inventory. And since there are more domestic resellers than international resellers, you can shop around so you get the equipment you want at a better price.

2. Fewer Middlemen

Since your purchase is made closer to the source (i.e., the OEM), there are fewer middlemen involved in the purchasing part of the transaction. And since you’re shipping via our private IT supply-chain, there are no extra costs for 3rd-party freight forwarders.

3. Cost-Minimization

Our team will help you minimize costs wherever possible. When you send us a shipment request, our team generates cost optimized shipping options that take into account your company’s international footprint to look for cost reduction and operational efficiency wherever possible. 

4. Better ROI

Even in situations where the cost of working with FGX is comparable to the cost of a distributor, you’re still better off working with FGX because we provide::

• Agnostic service: This enables you to consolidate your purchases from your hardware vendors.
  
  

• Faster delivery: We provide accurate quotes and timelines. Your equipment is shipped via direct air freight and dedicated vehicles for last mile delivery.
  
  

• Fewer headaches: FGX’s team of project managers manage everything on your behalf via our private IT supply-chain, so you don’t need to do any of the documentation, paperwork, or logistics work needed.
  
  

• Better business outcomes: As we’ll discuss in the next section, our team will work with you to ensure your entire IT shipment occurs exactly as you want it to for an optimal business outcome.

Challenge #5: Brazilian Distributors Aren’t Optimized for Giving You The Best Business Outcomes

An ideal business outcomes encompasses both:

• Getting your goods delivered as quickly, efficiently, and seamlessly as possible
  
  

• Structuring the transaction exactly as your organization wants/needs it to occur (such as commercializing assets in the way you want)

As we’ve stated several times, a distributor’s primary goal is to sell you equipment and make a profit. Getting the equipment to your destination is a secondary goal. And helping you achieve an ideal business outcome isn’t part of their service offering at all. 

Brazilian distributors won’t work with you to help you achieve the exact outcome you want to achieve or help you commercialize assets in the way that you want.

FGX Delivers Ideal Business Outcomes

Working with FGX begins with a consultation where we work to understand exactly what outcome you want to accomplish and present you with the best options for doing so. Then we manage the process for you as efficiently and cost-effectively as possible.

Our private IT supply chain is optimized to deliver goods as quickly and seamlessly as possible, and we have a 10+ year record of flawless shipments. In the vast majority of all shipments that we manage, we’re able to execute the entire process without your interaction.

And we can help you navigate the structure and commercialization of your procurements, such as:

• Leasing: If you don’t have a business entity in Brazil that can obtain a RADAR, we can provide you with a leasing solution for your hardware.
  
  

• Transaction structure: We help you figure out every aspect of the transaction so you can structure it the way that your team prefers. For example, one of our clients bought equipment in the US and wanted to ship it to Mexico. But they wanted the equipment to be owned by their division in Singapore. Another client wanted to ship equipment they already owned into Brazil, rather than buying new equipment. Bottom line: we figure out exactly what you want to occur, then present you with the best options to make it happen.
  
  

• CapEx vs OpEx: Capital expenditure is the cost of acquiring and shipping the goods, and operation expenses are the cost of running your operation. Often, the cost of IT equipment pales in comparison to the potential increase of operation expenses if you don’t get your IT equipment to its destination on time.

When multinational enterprises work with FGX, they gain access to a best-in-class, seamless, global IT shipping experience for their IT hardware. Please reach out if you’re interested in learning more.

Use FGX to Buy and Ship Cisco Equipment into Brazil

At FGX, we have a record of 10+ years of shipments that have cleared customs, in countries all over the world, including Brazil.

Before sending out your shipment, we prepare all of the documentation, licenses, and compliance work required to reduce the time your equipment spends in customs. This includes:

1. Helping You Acquire a RADAR License

Brazil uses a computer system called SISCOMEX to register all import and export procedures. Before you can get an import license and import goods into the country, you must first get a RADAR license from the Receita Federal — an authorization to operate on the SISCOMEX that’s required before you can even ask for an import license.

Acquiring the proper RADAR license isn’t easy. The license is based on the type of company you have in Brazil, how big it is, how much revenue it generates, etc. And it must have the correct allowance for the value of what you’re importing.

Unlike Brazilian distributors, we’ll help you acquire a RADAR license to make the process as easy as possible.

2. Paying Taxes and Fees

Brazil has a 80%+ tax rate on imported goods. Working with a distributor, you often won’t know the total cost until your shipment arrives. In most cases, businesses get a call when the shipment arrives telling them they must pay the taxes and fees before their shipment can clear customs.

This creates a cash flow issue, as most businesses have complex processes for approving payments. As you wait to acquire and deliver the funds, your equipment will be stuck in customs and accrue extra fees.

Unlike Brazilian distributors, we’ll provide you with accurate costs on how much you’ll have to pay in taxes and fees for your goods, so you can prepare ahead of time. If you don’t have the funds immediately available, we can also provide financing to ensure your shipment proceeds smoothly.

3. Navigating the Customs Clearance Process

Our in-house customs brokers will be present at customs to handle the clearance process personally. They’re experts who know how to declare your equipment and properly answer questions in order to avoid/overcome any issues that may get your shipment held up in customs.

FGX provides a turnkey, door-to-door shipping service that manages every aspect of international IT logistics. Our shipping expertise and private supply chain enables us to navigate the international shipping process as quickly and seamlessly as possible on your behalf.

Here’s a more complete list of what you get when working with FGX:

• Consultation: Working with FGX begins with a consultation where we work to understand exactly what outcome you want to accomplish and present you with the best options for doing so.
  
  

• Vendor management: We work with your domestic reseller to ensure we have what we need to execute the shipment, have them ship the equipment to us, and then manage all of your shipments from there to your target country (giving you one single point of contact).
  
  

• Accurate shipping options, quotes, and timelines: We provide you with options for delivering your hardware in compliance, with accurate quotes and low variance timelines. You can obtain quotes on a shipment-by-shipment basis without being locked into any contracts, allowing you the flexibility to scale up and down as needed.
  
  

• Preparation: Prior to anything being shipped out, we prepare all of the documentation and licenses, perform all of the necessary compliance work, fund duties and taxes, etc. — all while giving you full insight into what we’ll be executing on your behalf. This limits the amount of time your equipment spends in customs, reducing risk, costs, and uncertainty.
  
  

• Customs clearance: Once your equipment arrives in customs, our in-house customs brokers handle the customs clearance process personally. We can also arrange to pay the customs fees on your behalf and work out credit terms.
  
  

• Dedicated shipments: We ship your equipment via direct air-freight to its destination’s port of entry. From there, we ship it via direct drive to the destination and provide you with a POD (proof of delivery).
  
  

• Streamlined management: In 99% of shipments, FGX is able to manage all of the shipments with zero end-user interaction.
  
  

• Transaction structuring: We can help you structure the transaction exactly as you want it to occur and employ cost-savings measures wherever possible.

It’s not about shipping servers, it’s about delivering better business results with IT. When multinational enterprise companies work with FGX, they navigate their global IT logistics with confidence. Please reach out if you’re interested in learning more.

Frequently Asked Questions

What is a Cisco Reseller?

The Cisco reseller and distributor business model involves the integration of both sales and MSPs (Managed Service Providers). To become an authorized Cisco reseller or distributor, companies must get certified to sell Cisco services and products.

They then use this expertise to connect businesses with technology solutions (e.g., enterprise networking solutions, cybersecurity tools, IoT devices, security solutions, SD-WANs, firewalls, etc.) from Cisco. And they may offer additional services, such as shipping, installation, consultation, and more.

Most resellers operate domestically in the US. But there are also in-region resellers that operate worldwide in places such as Europe, Canada, France, Spain, Brasil, Latin America, and more.

Why Does Cisco Sell Through Resellers?

Like most OEMs (Original Equipment Manufacturers), Cisco doesn’t have the sales and distribution infrastructure to sell their products at scale. So they establish partnerships with resellers and distributors to outsource aspects of sales and distribution. 

This allows them to reach more customers (and assist customers with their digital transformation) without scaling up their internal infrastructure.