Executive Summary​​ 

Transport Services and Logistics Business Plan LLC​​ is a start-up establishment operating as a dispatcher in the United States. The company will serve businesses, personal carriers, and individuals with different oversize loads delivery, and logistics needs from one destination to the other. The company will help manage and schedule freight destination, drivers, and customers. The company will ensure oversize loads and other load types are delivered to customers and vendors swiftly, accurately, and efficiently.

This business plan has been prepared to lay down the fundamental company requirements, core values, and operational strategies that will be used to grow and expand the business and achieve more growth and productivity commercially. Furthermore, this business plan has laid down a funding requirement amounting to $50,000. These funds will be used to expand operating equipment, and fund other business requirements required for the business operations.

Company description and ownership structure

The company as a business, will be organized as a Limited Liability Company (LLC) formed and authorized under the state laws of state businesses. The company will be headed and operated by ### who will serve as the Chief executive officer (CEO) and ### who will help in business management.​​ 

Product & Service Summary

Transport Services and Logistics Business Plan LLC​​ will provide transportation dispatch services for persons/ individuals, companies, and vendors required to haul heavy, bulk, and oversize products and goods. The company will facilitate and enable one hire a truck, mange delivery, and track the freight from the point of dispatch to destination efficiently to ensure they receive their goods on time, in-shape, and efficiently.

These services will be provided for truckload (TL) and less that Truckload (LTL) oversize loads of for hire, and private carriers. These categories require destination to destination freights on a timely and effective way. The services will range from;

• Managing and scheduling drivers, load pick-up and delivery.

• Offering less that truck load (LTL) and Truck load (TL) services of all oversize/overweight loads.

• Regular scheduling of freight services.

• Phone support for all customer’s questions, delivery changes, and scheduling.

• Monitoring drivers, keeping records and ensuring availability is guaranteed.

Market Summary

Industry analysis and overview

Following the recession, the Long-Distance Freight Trucking industry returned to growth as household disposable income grew, leading to increases in industrial production and general trade volume. According to the American Trucking Association, the trucking industry is the lifeblood of the U.S. economy. Over 70% of all the freight tonnage moved in the U.S. goes on trucks. This industry achieved $726.4 Billion in gross freight revenues with 10.49 billion tons of freight moved in 2015. During the period, January 2017, the for-hire truck tonnage rose by 2.09% with perceived growth expected for the next 5 years this growth is expected across its all sectors in moving, dispatching, monitoring, and logistics. The graph below show the expected growth of Long distance trucking services up to the year 2020;

This market size, high returns, and continued growth will form the company’s base for achieved growth and expansion over the next 5 years in dispatch services with the company forecasting stability in its operations in respects to the industry’s performance.

Company positioning and industry statistics

The logistics and transportation industry in the United States is highly competitive. By investing in this sector, the 1st​​ American Pilot Cras LLC will position itself to better facilitate the flow of goods throughout the world's largest consumer market. This will be achieved by offering highly skilled workforce and relatively low costs in dispatch services. According to the American Trucking Association, spending in the U.S. logistics and transportation industry totaled $1.48 trillion in 2016, and represented 8 percent of annual gross domestic product (GDP). The Company with its positioning in dispatch services will relatively earn a share of this Industry’s revenue. The industry has the following statistics overview;

• The number of for hire carrier totaled 586,014 on file, private carriers totaled 747,781 and other interstate motors totaled 144,170.​​ 

• Of all these carriers, 90.8% operate less than five trucks and require dispatch services to manage drivers, and schedule deliveries.

• This industry has employed 7.3 million people across all trucking functions of which 3.5 million are truck drivers.

These statistics, show an industry that has a very high volume of activity and growth which will be in the favor of the company’s operations.

Market need

Growing, new, and under establishment industries in the US without their own dedicated freight fleet capabilities outsource their transportation function. These companies vary in the scale of their operations from medium operations to high operations, but they all have a steady demand for reliable transportation solutions. The Company will actively solicit such customers and offer them management of their deliveries to ensure they make accurate, effective, and on-time deliveries.

Target market

The company’s aim target market is the industry’s requirement for oversize loads freight. The company will target small, medium, and large scale establishments with a requiring to haul oversize loads of a truck Load, and less that Truckload goods commodities. The graph below shows the target market capacity and distribution.

Vision

Transport Services and Logistics Business Plan LLC’s vision is to be the leading partner in dispatch of freight and trucking operations for small and medium enterprises within the next five years. This will be achieved through delivery of professional and value-added services to all customers such that they realize effectiveness, reliability and stability of their transportation functions.

Objectives

The company has defined various short-term and long-term objectives that will be met to ensure productivity is met;

• Develop a strategic operating model that will ensure that the company offers the most effective, accurate and on time dispatch services that can be relied on for different transportation functions.​​ 

• Grow revenue by 50% by the third year of operation

• Acquire funding required to expand the business and achieve productivity

• Build a successful business that has the capacity to respond to the needs of each and every customer.

Keys to Success​​ 

The company has identified various keys to success based on the expectation that need to be achieved. These keys to success are;

• Setting delivery schedules that can be met (setting right expectations).

• Hiring, retaining, and upholding reliable and safe drivers.

• Understanding what the clients are trying to achieve, and help them find the right distribution solution to create long term relationships and partnerships

• Robust and reliable communication implementation that keeps customers in the loop of their delivery schedules.

• Establish and commit to "best practices" in all significant business processes, including ethical production practices and customer support.

• Deliver a flexible pricing model that suits and responds to the needs of every income group.

Start-up​​ Summary

The company requires capital funding amounting to $50,000. These funds will be utilized by the company to facilitate business expansion, objective implementation, and allocate for operating costs of the company. The expenditures for this start-up plan as detailed in the table below;

Product & Services

The company’s main services will  ​​​​ be dispatching oversize loads on behalf of customers. The company will ensure loads are effectively delivered on time and safe. The company will do this by scheduling deliveries, managing drivers, maintaining delivery records, and ensuring delivery integrity is maintained at all times.

Service Description

To achieve targets and value for customers, the trucking company will offer the following services to complement their needs;

Quality Service. The company will provide customers with courteous, prompt, and dependable service. The company will develop a reputation for timely deliveries and the best drivers in the industry, and intends to build upon that.​​ 

All-in-one package. The company will provide customers with an all-in-one dispatch services to ensure that customers receive full control of the transportation function without much ado. The company will take of all the requirements of a transportation function to relieve customers off all the burdens of monitoring their delivery, scheduling deliveries, and managing drivers.

Competitive rates.​​ The company will provide competitive rates for our customers because the company has low cost inputs.​​ 

Package handling. By maintaining dependable and safe equipment, the company will ensure that there is no damage to customer's cargo.

Strategy & Implementation Summary

Management Team

Duties and responsibilities

The above two management positions of the company will be obligated with the following duties and responsibilities of the company.

• Achieves the company’s operational objectives by contributing information and recommendations to strategic plans and reviews; preparing and completing action plans; implementing production, productivity, quality, and customer-service standards; resolving problems; completing audits; identifying trends; determining system improvements; implementing change.

• Meets the company’s financial objectives by forecasting requirements; preparing an annual budget; scheduling expenditures; analyzing variances, and initiating corrective actions.

• Avoids legal challenges by conforming to the regulations of the manufacturing and production commission.

• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.

• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to service accomplishments.

• Any other duty assigned to them.

SWOT Analysis

The SWOT (Strength, Weakness, Opportunities, and Threats) analysis provides a brief description of the present environment in which The Trucking Company is operating. This is a quick overview of the position among internal and external forces influencing operating strategies.

Strengths

• The industry of operation is growing tremendously with volume expected to grow by 30% this the company has higher chances of success now and in the future.

• The company is headed by knowledgeable and experienced management persons.

• Dispatching has low overhead costs, and operational costs that maximize profit.

• The industry forms the backbone of the economy thus a well appreciated industry without much regulations from the government.

Weaknesses

• The market is overly competitive from leading and giant dispatch companies.

• There are increasing costs form fuel levies that are continuously increasing costs of operation.

• There are other options for dispatch that are replacing road functions.

Opportunities

• The company can be expanded to cover wider geographical regions.

• The company can improve capacity by implementing dispatches for other kinds of loads such as delicate loads, and overweight capacities.

• New technologies in the industry are easing management of logistics excellently.

Threats

• Economic downturn can reduce the expected productivity of the industry.

• The industry has a very high amount of risks associated to handling cargo.

• Transportation is being revolutionized with other means such as air, rail, and water systems that are much affective than road.

Value Proposition

The company has developed an operational model that ensures customers do not have to worry about their transportation function. The company handles all dispatch requirements on behalf of the customers to ensure they have a peace of mind about their deliveries while the absolutely do not have to do a thing.​​ 

Competitive Comparison

Competition analysis and plan

The dispatch industry has a vast network of competition all around the United States. The industry has a network of giant dispatch companies who have earned customer trust through effectiveness and accuracy of their services. However,​​ Transport Services and Logistics Business Plan LLC​​ has equipped itself with a competitive plan to survive the vast amounts of competition.

Competitive advantage

• The management team has been equipped with experience to understand how the industry works in dispatch and customer service to ensure customers receive the satisfaction thy deserve from the transportation function.

• The company will rely on an all utility operation model that takes all the work from the customers and ensures they just sit and wait for their deliveries. Customers will not be obliged in any sort of dispatch and delivery management making it more hustle free.

• The company has gone for a specific service (Dispatch of oversize loads) that does not have many players. Many dispatchers do not dispatch for oversize loads giving the company a niche market in the industry.

Marketing Plan

Transport Services and Logistics Business Plan LLC​​ will strive to create awareness of the services being offered in the United States and region of Operation. The company is seeking to position itself as an affordable dispatcher with the best on-time deliveries, delivery management, and dedicated services that takes care of all the needs of the customer. This will see customer achieve excellent logistics management without having to work on their transport function themselves.

The company will also concentrate on smaller carriers with small to medium size functions. Since​​ Transport Services and Logistics Business Plan LLC​​ is a small to medium company, these small carriers will feel comfortable working with us because they will receive the priority, care and attention they cannot get from giant carriers.

Furthermore, the company will market its services as solutions to the many companies requiring cargo to be transported promptly and efficiently. The company's future marketing plans will be nationwide, emphasizing haulage capabilities for any cargo.

Financial risks and contingencies

The company recognizes that it is subject to both market and industry risks. The two primary risks to the company are:​​ 

Industry concentration risk. ​​​​ The Trucking Company has identified that the Trucking industry fluctuates heavily in certain sectors that could hinder growth and development if only one sector is targeted. To mitigate this risk, the company settled for an non-saturated niche market in the dispatch of oversize loads.

Operational risk. The Trucking Company recognizes the fact that there is an inherent risk in transporting cargo. Any damage to cargo may undermine the profitable of the company. To reduce this risk, the company maintains all necessary insurance, safe driving, and road regulations

Pricing Strategy

The company has implemented a standardized pricing model to ensure pricing is average and that it accounts for costs of services and remain profitable for the company’s success. The company will charge services based on the current industry standard average to ensure customers do not feel overpriced and that the pricing in not underpriced to limit the company’s productivity. The company will ensure that all services have a 30% profit margin to take care of business expenses and cost of goods and services efficiently.

Promotion Strategy

Personal Sales

The Company will ensure that it continues the policy of accepting jobs that can be delivered with high customer satisfaction, orders that do not meet tis criteria will be eliminated such that the company will continually provide total quality control over all the services rendered.

Public relations

The company will implement a customer care desk to ensure customers are accepted, questions answered and conflicts resolved effectively. The company will strive to offer the best services achievable in the industry. This will see the company develop a reputable brand image that will be acceptable nationwide

Advertising

The following channels of advertisement will be used to create awareness about the company and its operations nationwide;

• Word of mouth distribution

• Print media advertisements (banners, Flyers, Posters and business cards)

• Effective and timely Sales

• Transparent business practices with high returns on customer satisfaction

• Email marketing

• Social media marketing (Facebook, twitter ad instagram)

• The company will implement a company website in the future to ease customer support, scheduling, and communication.

Financial Forecasts

The company has developed a three-year financial forecast to showcase the company’s productivity, growth, and profitability. This forecast has been developed from the current rates, productivity and trend while considering competition, threats and company weaknesses. The forecast is as follows.

Start-up Summary

Revenue Forecast

Revenue growth

Projected Profit and Loss

Income growth

Projected Cash Flow

Projected Balance Sheet