BUSINESS PLAN (PROPOSE) LOGISTICS PROJECT REPORT Uzair Rafee MBA-II (Sample report draft)
Business Concept : Forwarding and Logistics concepts lies the basic architect of any business enterprise, today modern and scientific systems of business mainly rely on efficient Logistics and Supply Chain management, that is why we believe in our professional capabilities and trust of our valued customers. Key Success Factors : We believe in de-centralize management planning and the key factor of selection and motivation of personals and business associates working with, setting business targets and compelling not only give us the confidence but also making something new and innovative in the shape of developing new products and intelligent business decisions. Vision Statement : Perceive an idea, with the objective of setting a Forwarding/Cargo Agency, based on Import Freight specialization and controlling Income-Expense ratios at par 3:1 By the Grace of Allah Almighty, we believe to make a company that will offer innovative products and key emphasis lies on customer services and confidence building measures. With the objectives of making a pioneering and establish name in the propose Free Port city of Gwadar, we foresee a vision to establish a complete Logistics and Maritime company, having its own systems and resources which enable total supply chain solution and Integrated Logistics services.
Market Analysis: The overall cargo market seems shifting towards medium size enterprises, whom they expect personalize services and at the competitive rates, today in Pakistan all top 10 leading Freight Forwarders & NVOCC companies do not belong to MNC’s but a medium & large size local companies, enjoying customers confidence and support, which gave them + ve growth annually. About market segmentation, Import Freight still has been competitive and most establish forwarders working on export consolidation and CY-CY sales, only few Import nomination, which lies only on endorsement factors, but we initially emphasis on Import Freight business with specialize in new products and CY-CY sales, both free hand and nominated cargo, also customers needs and characteristics keeping in mind. Job Task : 1. Agency making communications.
for
handling
shipments
through
International
2. Make list of target accounts and update on regular basis. 3. Handling of Shipments Documentations & Operations. 4. Revenue generation through Sales & Marketing as per business projections below. Projections: 1. Making of Agency Network Worldwide. 2. Sales & Marketing Development. 3. Gross Revenue reach PKR 100,000 per month within 6 month (2 QTR) and later within closing 1 year reach target of PKR 250,000 per month. 4. New Product development like Airfreight, Seafreight consolidation, Warehousing, Upcountry Sales desk, New route development, etc.
Enterprise Goals and Objectives : ( After 1 year program ) To be Wal-Mart in the International Logistics industry and our core objective and goal is “Smooth Transportation, and Harmonious Inter person Relations”. We value four elements of business most : 1. Staff : We attach great importance to each employee. A talented staff is the most valuable treasure of a company and the foundation on which it maintains sustained growth. Therefore, we will commits to all employees a comfortable, harmonious working environment and a promising future. 2. Client : We aim to maximize its client’s satisfaction, which is the key to its sustained development. To achieve that, we commit itself to the delivery of excellent services. 3. Innovation: This is the magic that keeps a company competitive in the long term. We encourages each employee to innovate in every area such as the work process, marketing modes and the managerial systems, and share his of her points of view with the company. Innovation entails a wide range of knowledge, so we also encourage its staff to keep on learning and broaden their horizon. 4. Execution : Good execution can only help improve productivity and these enhance a company’s competence. Loose execution not only renders in vain all time and efforts invested in making strategies or regulations, but also nourishes employees’ idleness. Therefore, we rejects empty talks and values strict executions. Long & Short term Goals : We foresee strategic goals require 5-10 years to establish as a basis of becoming a service network covering the entire world, in order to provide customers with the online services of an international logistics group. Short term Goals (Year, 2007) : Achieve the creation of 5 branches and offices, Become a globally operated comprehensive logistics company. Mid term Goals (Year, 2010) : Achieve the creation of 8 branches, including regional countries, Become a comprehensive logistics company with global influence. Long term Goals ( Year, 2015) :
Relying on us, global service network and information network systems, assemble and classify the resources of clients from around the world, focus purchasing, provide clients with logistics services which is “one stop”, from Purchase to Transport. We propose our Logistics company, when shifted its base as Head Office at Gwadar, a propose Free port city, where number of mother vessels call, where huge asset based Logistics services demand forecast like Warehousing, Distribution, Express service to cater local commercial needs as well as regional countries transit trade operations. We as Logistics services providers, encompasses three services discipline that match the requirements of multinational corporations : • • •
Multi – modal transportation & distribution . Integrated Logistics products. Supply Chain Management programmes.
Within the above disciplines, we will offer the following specific services and support : AIRFREIGHT : With the cooperation of carrier relationship, we will obtain large-scale allocations and can offer customers the following specific services : • • • • • • • • • •
International and Continental Pick up and Delivery Direct and Consolidated shipments Airport to Airport through Door to Door Complete Export and Import documentation Charters and part charters Oversize shipments Packing and Crating Restricted Materials Break bulk
The benefit to be gained by customers due to this approach includes increased capability and shipment visibility, a reliable, time definite global services and cost effective routings.
OCEAN FREIGHT: We will operate as either a traditional Freight Forwarder or as NVOCC to offer flexible, cost effective, time definite transit times, carriers and services : • • • • • • • • • •
FCL contract management Worldwide NVOCC – FCL and LCL Projects and Charters Weekly sailings Flexible transit times Timely and accurate documentation Vendor consoladation Multi modal transportation Warehousing On – forwarding and distribution
CUSTOM HOUSE BROKERAGE : At many destinations worldwide, customs clearance, remains a primary cause for the delay of time – sensitive cargoes due to complexity and bureaucracy, that is why we need to offer the following services : • • • • • • • • • •
Off – shore pre – clearance Traditional entries Complex, multi lines entries Compliance management and consulting Classification and valuation advice Duty payment Duty drawback programmes Liquidation and other management reports Insurance Bonded facilities
This will benefits to customers include cycle time reduction, fast, accurate clearance, import compliance, increased cash flow, error free documentation and shipment visibility.
LOGISTICS CENTER : We will offer Logistics centers, which will straightforward storage and distribution to complex just – in time inventory management. Among the services will offer are : • • • • • • • • •
Product postponement Pick and pack Just in time inventory Order processing Return management Inventory management Bonded facilities Physical security Perishable storage
With the services and infrastructures will offer, customer benefit through reduced overhead, a cost effective solutions for product and JIT stock postponement, increased cash flow, inventory visibility, reduced cycle time and lower claims for damage and theft. INTEGRATED LOGISTICS : Integrated logistics bundles services to streamline a client’s supply chain. The core logistics services include : global transportation ( Air or Sea ), Custom Brokerage, distribution ( time definite or deferred ), Warehousing, Product postponements ( Kitting, Labeling and localization ), Information Systems ( Including EDI, Bar-coding and ERP linkage ), Project management and Consulting.
ASSUMPTIONS & COMMENTS : We assume business operations with a Revenue task of PKR 100,000 per month within ( 2 QTR ) i.e. ½ year program. This will be achieved by the major job responsibility lies on Mr. Khawar Baqi by giving shipments volume mainly by Sea freight CY-CY trade, initially emphasis would be given on Sea freight cargo as it yield more revenue in term of capital earnings. Also, we have responsible personals available who already have more than 1520 shipments per month in their belt, and they will join us later, before transferring some of their key customers. Presently they are successfully generating revenue of PKR 70,000 per month on a regular basis.
STARTING BALANCE SHEET (Approx) : 1. Office furniture & fixture 2. Electric work & cables 3. Personel Computer (PC) X 2 in number 4. Partnership deed making 5. Registration in Chamber of Commerce 6. Registration in PIFFC 7. Stationery Printing 8. Air conditioner Split unit ( 1.00 ton) 9. Fans & ventilations 10. Bank Account opening 11. Misc. 12. Fax machine (Refurbished) 13. Web page design and Email domain Reg. 14. Telephone Lines X 2 in number 15. Printer/Scanner
PKR 18,000.00 “ 4,000.00 “ 24,000.00 “ 500.00 “ 1,500.00 “ 26,000.00 “ 2,500.00 “ 20,000.00 “ 5,000.00 “ 10,000.00 “ 2,500.00 “ 5,000.00 “ 6,000.00 “ 10,000.00 “ 10,000.00 PKR 145,000.00
MINIMISE STARTING INVESTMENT TILL 1ST 4 MONTH OF OPERATION : 1. 2. 3. 4. 5. 6. 7. 8.
Desk & Chair PC/Printer/Fax machine Telephone line Web page design and Email domain Reg. Bank Account opening Airconditioner Stationery making Misc.
PKR 4,000.00 “ 20,000.00 “ 5,000.00 “ 6,000.00 “ 5,000.00 “ 20,000.00 “ 1,500.00 “ 500.00 PKR 62,000.00
MONTHLY EXPENSE : 1. 2. 3. 4.
Salary for a Person Salary for Office Assistant & Outdoor Telephone & Electricity Misc.
PKR “ “ “ PKR
4,500.00 3,000.00 5,500.00 2,000.00 15,000.00
BALANCE SHEET PROJECTION : Based on the nature of our Business, we only do Invest in starting balance sheet, only readily available business i.e. shipments and agents at overseas ready to engage or ready to do business with us. When we establish office and registration take place, we keep in mind to inject PKR 200,000.00 in Bank account as running finances, needed for payments to Shipping Lines in order to get Delivery order. FIRST 3 - 4 MONTH OF THE OFFICE COMMENCEMENTS : 1. Revenue estimation & projection 2. Number of shipments 3. Expenses
PKR Vol. PKR
60,000.00 12 – 13 15,000.00
PKR Vol. PKR
100,000.00 20 – 22 25,000.00
NEXT 3 MONTH PROJECTION : 1. Revenue estimation & projection 2. Number of shipments 3. Expenses
