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Logistics Business Plan

Introduction

Haulage refers to the business or process of the movement of goods majorly by road or rail from one place to the other by bus, lorry/truck, or train. It is a business area that will continue to exist as long as there is a requirement for the movement of goods on the globe.

 

Contrary to public opinion, the haulage business though very lucrative can be started with little capital. You can be a stakeholder or an operator in this industry either by being an agent, transporter, or contractor (haulage manager).

 

But before venturing into the business, you need to be able to identify at what level you intend to operate. Is it at a bus or lorry level, intra or interstate transport?  The industry sector: oil and gas or dry cargo? Do you want to start as an agent, transporter, or contractor? It depends on your wherewithal. You also do not need any professional training to start.

 

Research has shown that statistically an average of 100 trucks is shipped to Nigerian shores on a monthly basis. This shows the massive demand for lorries/trucks in the industry, and this demand is still undersupplied. In a developed economy where railways are operational, the demand for truck service is high; talk less of a developing economy like Nigeria where our railways are not functioning. Therefore, there is this endless opportunity for road haulage business in Africa.

 

The Nigerian Logistics Industry is estimated to be worth over $80billion and is forecasted to grow at a double-digit compound annual rate between 2015 and 2025, according to Future Market Insights, driven by increasing industrialization and growing demand from emerging markets. 

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Executive Summary

Overview

The purpose of this business plan is to raise N10,000,000 for the development of a 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 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 truckload” and “truckload” 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.

 

Competition

Our competitors include;

  1. Abex LOGISTICS Nigeria
  2. Carmax Autocare Center Limited
  • Princelink Technologies Ltd

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.

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