Logistics Business Proposal Template

It is stated that I, [NAME HERE], have been working with the logistics department of ABC company for 12 years. I started my career as an assistant in the following department and after years of hard work and passion, I work as a manager and lead a team of 5 members. The Department of logistics is always in a hurry; we hardly get time to sit as we are always on the phone and making arrangements for our valued customers. We ensure safe travels of products to our valued customers and have gained immense popularity over the years.

My current services with the company [X] are ending soon and I would have to leave this job which put a heavy burden on my chest. After exceptional service, it is difficult to leave the job but I, with a few senior colleagues, have the idea of starting our own logistics business. All the members of this venture have served and are experienced which will be very beneficial for the business. About 50 years of experience will be collected if we start our business and do what we do best i.e., serve our customers.

All the business related to logistics is approved by the XYZ department before starting therefore, I seek your approval. I have designed a complete business proposal for my venture and attached the following letter. I am obliged in advance for considering my request.

Your response is much awaited.

Regards,

[Your Name]
[Designation] at ABC Company

Introduction

Logistics is a process of efficient planning, storing, and transporting goods or materials from the place of their production to the consumers. The sole purpose of logistics is to provide customers with a cost-effective and effective manner. There is a number of features included in this short term that connects people from different places. Primarily, logistics were used by the military to transport weapons and other military goods, they are still used for the military but also find applications in the transport of goods having commercial importance. They are the most important entity in the supply chain.

Major events that encompass logistics include,

Transportation: Valuables and other goods are transported from the point of production, upon the order of the customer, transferred to storage facility or warehouses. They are then transported to other places and this journey of transport continues till the product reaches to customer. Transportation is multimodal and can be through.

Ocean, in a ship or cargo,
Air, by the help of airplane or helicopter
Roads, by cars or trucks
Rails

Managing transportation is a difficult task because it requires detailed planning and managing. Many factors need to be taken into consideration such as a load of shipment weather conditions, mode of transport, traveling distance, special need for specific goods i.e., medicines, dresses, and so on.

Warehousing: Warehouses are used for keeping goods before they are transported again. At a warehouse, goods are received, processed, and delivered to the customer. It is not an easy job to maintain a warehouse efficiently as all the goods have different requirements and are needed to be handle with care. Within a warehouse, inventory of each incoming item, infrastructure is always well-maintained to entertain more orders.

Objectives

To set up a business from scratch at a very late age can be very difficult as it requires your strength and time. I have joined hands with the experts of this field therefore, the workings of the business will not be much difficult. Objectives that need to be tackled include:

Setting up the office at a suitable location so that it is accessible from every corner of the city.
Deciding name and policies for the workings of the business
Purchasing furniture and other items to furnish the office.
Buying equipment that helps in procuring orders and maintain inventory.
Hire extra help to perform tasks outside the office.
Utilizing connections made from our services during the job.

Key to success

The success of a business depends on the following key points which may vary according to the nature of the business:

Procuring orders efficiently to avoid confusion or mistakes.
Providing high-quality products based on customer’s requirements.
Maintaining communication with customers till they have received their orders.
Gaining the trust of customers by going the extra mile to help them if possible.

Skills

Logistics is a complex operation and requires a background in management and a specific skill set for success. Some of those skills include:

Communication skills allow you to communicate with customers and other people in a good manner.
Management ability helps in managing tasks more efficiently and effectively.
Leadership qualities assist you in leading a team in the best possible manner which not only increases their productivity but is also beneficial for the business environment.
Making arrangements at different locations, arranging transport, warehouse and other tasks can be done with connections and networking.
Financial knowledge allows you to make a budget and spend within it. It stops you from spending too much and helps in obtaining fees from customers.

Financials

Every start-up requires money until it starts to earn and support itself. Therefore, money is required for,

Rent of the building.
Hiring employees and their pays
Utilities
Stationery
Furniture
Electricity and other essentials
Transport expenses
Warehouse expenses

Action Plan

Logistics work in a complex way as they involve many components which cannot be gathered under one roof. It is a game of trust that customers put in you for their valuables.

It works in a manner that outlets of the business will be set up at different parts of the city and potentials customers will visit for their work. Customers want to transfer valuables or other materials from one part of the world to another. These outlets may also be approached by factories and industries for shipping their products abroad and entertaining foreign customers.

Products, packaged in a suitable manner, are transferred to the warehouse and are made ready for transportation to their required location. Each product is mentioned in the inventory along with the address of its destination. At this stage, several factors are taken into consideration such as weight of the item, packaging, mode of transportation, destination, and so on.

After processing, each item is transported according to its demand to reach desired place i.e., transportation through road, rail, or air. After reaching abroad, packaged are received by riders and delivered to customers.

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