Logistics Business Plan
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Our Competitive Edge
PATILAD LOGISTICS will establish a competitive edge through its dogged focus on on-time deliveries for its specific target market. Software systems, communication systems, operational choices and marketing materials will all be oriented around this goal. By making customers more assured of on-time delivery with PATILAD LOGISTICS than with competitors, they will be more likely to use the business overall, as they can never be sure when a few hours can make an incredible difference to their potential revenues or expenses.
Financial Considerations
PATILAD LOGISTICS seeks N10 million in long-term financing to cover start-up costs, equipment, building expenses, and working capital.
Funding for the launch of the business is provided primarily by equity from the partners and investors.
Our market survey and research shows that PATILAD LOGISTICS holds the promise of reaching positive cash flow in its 7th month of operation. The advantage of this, is the provision it makes for accelerated repayment of its loan obligations, as well as for dividends to be paid to the owners.
Revenue is expected to amount to N12,984,326 and profit N3,592,736 in our first year of operation.
Description
Table of content Page
Executive Summary 4
Business Description 7
Vision 8
Objectives 9
Mission 9
Keys to Success 9
Our Services 10
Market Analysis 11
Market Segmentation 11
Pricing Strategy 12
Competitor Analysis 12
Sales and Marketing Plan 13
Promotion 15
Distribution Strategy 15
Pricing 15
Risk 15
SWOT Analysis 16
PEST Analysis 16
Operational Plan 17
Management plan 20
Financial Plan and Projections 21
Executive Summary
Overview
The purpose of this business plan is to raise N10,000,000 for the development of an state-of-the-art logistics and haulage business while showcasing the expected financials and operations over the next three years. PATILAD LOGISTICS is a new medium- and long-haul dry van trucking business based in Lagos Nigeria and founded by veteran entrepreneur Dayo Adetiloye. We are committed, honest and quality focused. Our LOGISTICS will serve businesses in Lagos (eventually expanding to include Abuja, Kano, Katsina, Port Harcourt, and Warri) with freight hauling and logistics management services. The business will develop a reputation for its on-time and accurate service as well as sophisticated Web and software functionality, allowing clients to align their business with PATILAD LOGISTICS’ services and scheduling automatically. The business will be managed by Dayo Adetiloye, CEO, and a Chief Operating Officer.
The Company
PATILAD LOGISTICS can be launched for about N10,000,000, largely with the investment of Dayo Adetiloye, and with some investment by investing partners. The business will be launched with three 18-wheeler trucks and will expand its operations to utilize eight 18-wheelers by the end of its third year, using auto loans to finance this expansion. Gross margins will be around 60%, allowing for significant profit by the end of the third year as the business scales up.
Beyond three years, the business will seek to expand to additional bases of operation in the Southwest and to add trucks with refrigerated and temperature-controlled trailers. The business will be positioned for sale to a national freight-hauling service seeking to expand to, or add operations in, the entire nation.
Products and Services
PATILAD LOGISTICS will offer the following services for businesses in from Lagos:
- Pick-up and delivery of goods with a minimum per-delivery weight of 9000kg from and to locations in its geographic range by 18-wheeler trucks hauling dry van trailers
- Both “less than a truck load” and “truck load” services
- Online tracking information detailing the location of all GPS-tagged trucks and the status of deliveries, including expected arrival times for pick-up or delivery
- Phone support for all customer questions, delivery changes, and scheduling
- Preferred client services including online accounts, regular schedules of shipping, or linking of client order information directly to PATILAD LOGISTICS’ scheduling software to allow for seamless logistics.
The Market
PATILAD LOGISTICS will compete in the market for medium and long haul dry van trucking in Nigeria. This market serves businesses ranging from the packaged goods/grocery industry to the clothing industry to high-tech equipment, as well as commercial relocations.
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