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ContentsEXECUTIVE SUMMARY OF THE COMPANY......................................................................................1

COMPANY SUMMARY............................................................................................................................1

COMPANY OWNERSHIP.........................................................................................................................2

Vision statement.....................................................................................................................................2

Mission statement...................................................................................................................................2

OBJECTIVES OF NAKAFWAA TRUCKING..........................................................................................2

Quantifiable objectives............................................................................................................................2

Non-quantifiable objectives/goals include..............................................................................................3

LOGISTICS STRATEGIES TOWARD ACHIEVING THE OBJECTIVES OF THE COMPANY...........3

STRATEGIES FOR QUANTIFIABLE OBJECTIVES..........................................................................................3

BASIC STRATEGIES FOR NON- QUANTIFIABLE LOGISTICS OBJECTIVES....................................................4

Keys to Success........................................................................................................................................9

GENERAL SITUATIONAL ANALYSIS...................................................................................................9

START-UP SUMMARY..........................................................................................................................10

Our services...........................................................................................................................................11

MARKET ANALYSIS SUMMARY........................................................................................................12

MARKET SEGMENTATION..................................................................................................................12

Market analysis pie................................................................................................................................13

Market analysis table.............................................................................................................................14

Target Market Segment Strategy...........................................................................................................14

Service Business Analysis.......................................................................................................................15

Competition and Buying Patterns..........................................................................................................15

WEB PLAN SUMMARY.........................................................................................................................15

Website Marketing Strategy..................................................................................................................16

STRATEGY AND IMPLEMENTATION SUMMARY...........................................................................17

POLICIES AND PROCEDURES..................................................................................................................18

ROLES AND RESPONSIBILITIES...............................................................................................................18

COMPETITIVE EDGE.............................................................................................................................19

MARKETING STRATEGY.....................................................................................................................19

SALES STRATEGY.................................................................................................................................20

SALES FORECAST.................................................................................................................................20

MANAGEMENT SUMMARY.................................................................................................................20

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PERSONNEL PLAN..................................................................................................................................21

FINANCIAL PLAN....................................................................................................................................22

Start-up Funding................................................................................................................................22

Important Assumptions.....................................................................................................................23

Projected Profit and Loss...................................................................................................................23

MONITORING AND EVALUATION OF THE STRATEGIES..............................................................24

MANAGING RISKS.................................................................................................................................25

Sources of risks in logistics activities......................................................................................................25

How to mitigate these risks...................................................................................................................25

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EXECUTIVE SUMMARY OF THE COMPANY

Nakafwaa trucking is a new medium- and long-haul dry van trucking business based on Njiro,

Arusha and founded by young entrepreneurs Veronica Fidelis. Nakafwaa trucking will serve

businesses in the multiple routes within the country regions and East and Central African countries

such as Kenya, Uganda, Rwanda, Burundi, Sudan and DRC Congo 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

Nakafwaa trucking's services and scheduling automatically. The business will be managed by

Veronica Fidelis, CEO, and a Chief Operating Officer.

Nakafwaa trucking can be launched for about Tshs 1,500,000,000, largely with the investment of

Veronica Fidelis, and with some investment by investing partners. The business will be launched

with three 18-wheeler trucks with ownership and hiring other seven trucks and will expand its

operations to utilize 25 18-wheelers by the end of its firth year, using auto loans to finance this

expansion. Gross margins will be around 60%, allowing for significant profit by the end of the firth

year as the business scales up. Beyond five years, the business will seek to expand to additional

bases of operation in the east and central African countries 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 south and central African countries.

COMPANY SUMMARY

Nakafwaa trucking, a startup truck company headquartered in Njiro, Arusha, will provide trucking

and logistics management solutions for business clients in the multiple routes within the country

regions and East and Central African countries such as Kenya, Uganda, Rwanda, Burundi, Sudan

and DRC Congo with freight hauling and logistics management services. The business will haul

freight from suppliers to manufacturers to distributors and retailers, operating in partnership with

distribution centers, warehouses, and wholesalers.

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COMPANY OWNERSHIP

Nakafwaa trucking was founded by Veronica Fidelis, a previous owner of a warehousing business

which she successfully exited from after fifteen years of management. Nakafwaa trucking has

been established as a sole proprietorship during its pre-launch phase, but will be reclassified as a

limited liability company to take on partners. Veronica will share ownership with outside investors,

giving 40% of shares to investors

Vision statement

To become the most reliable logistics service provider in east and central African countries

Mission statement

Nakafwaa trucking will simplify distribution of goods for routes within the country regions and East

and Central African countries of its operation, becoming their partner in operating efficiently and

reliably. Nakafwaa trucking will use management of logistics, on-time, accurate deliveries from

destination to destination in the entire area of operations, and partnerships with distribution centers

and warehousing businesses to achieve its goals.

OBJECTIVES OF NAKAFWAA TRUCKING

Nakafwaa trucking intends to serve businesses in the East and Central Africa countries such as

Kenya, Uganda, Rwanda, and Burundi, Sudan and DRC Congo and multiple routes within the

country regions with truck-based distribution services.

Over the first five years of operations, Nakafwaa trucking will seek to meet the following objectives:

Quantifiable objectives

o Owning 10 18-wheeler trucks with dry van trailers

o Having professional drivers staff

o Achieve strong annual revenue based on 2.2 million miles of hauling in the firth year

o Holding 3 integrated storage facility

Non-quantifiable objectives/goals include

o Maximizing customer satisfaction

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o Quality consciousness on timely delivery

o Establish bases in Kampala Uganda and Mombasa Kenya

o Green purchasing and environmental

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LOGISTICS STRATEGIES TOWARD ACHIEVING THE OBJECTIVES OF THE COMPANY

STRATEGIES FOR QUANTIFIABLE OBJECTIVES

Owning 10 18-wheeler trucks with dry van trailers

STRATEGY

To conduct research on modern trucks that will ensure competitive edge in the market

To develop a purchasing plan that will ensure the availability of wheeler trucks and the

purchasing will be conducted periodically

To allocate the fund on purchasing of trucks based on quality, performance and cost

Having professional drivers staff

STRATEGY

Hiring the professional drivers based on their certificates including legal license and experience in performing logistics activities

To develop the training program for drivers so as to increase the knowledge, experience and skills in order to minimize the risk of accidents and to achieve on-time delivery

To use advanced technology in trucking Example GPS

Achieve strong annual revenue based on 2.2 million miles of hauling in the firth year

STRATEGY

To establish multiple routes within the country regions To establish routes across the country, like establish routes among East and Central Africa

countries such as Kenya, Uganda, Rwanda, Burundi , Sudan and DRC Congo Serving large number of customers with affordable price To publish advertisement in different media like Television, Radios, Newspaper and other

social medias To support the organization policies of operating under cost effective way

Holding 3 integrated storage facility

STRATEGY

To make decision on facility location, the storage facilities will be located within East Arica countries

The facility should be rented and not build The facilities should start to operate within the first year of the plan

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BASIC STRATEGIES FOR NON- QUANTIFIABLE LOGISTICS OBJECTIVES

Quality consciousness on timely delivery

STRATEGY

Using the flexible and reliable transportation network

The company will have a group of right people planning, executing and optimizing the

transportation network,a team of transportation professionals with a mix of real world experience

and solid academic and analytical skills

Once the company has solid base of information, the data will be analyzed then optimizing the

freight. There are two levels of optimization: strategic and tactical. Strategic optimization looks at

procurement processes, mode selection and overall network design. Tactical optimization is

considering if you’re using right carriers, if deliveries and pickups on-time, etc. Shippers need to

analyze cost of service daily to see where they’re having carrier performance or other service issues.

The next step is reporting and continuous improvement. After building that solid foundation of data

accuracy and visibility and have the right team in place and made changes to optimize your freight;

then it’s time to report track and seek continuous improvement. By creating executive dashboards

and actionable reports, quarterly business reviews, and continuous ad-hoc reporting it’s possible to

examine trends over time and how you’re trending versus a prior period.

Gaining visibility and leveraging the data can help companies identify opportunities to take cost and

inefficiency out of their supply chain. Logistics should to be a resource to the entire company and

help the organization meet its strategic objectives and drive value for shareholders and customers.

Having professional drivers

This ensures the reliability on drivers to deliver the goods on time. The NTC company will

strict adhere the qualifications and experience of the drivers of the company.

Regular inspection and services to the vehicles

The vehicles will be inspected by the group of specialists before and after operations. This is

to say before the vehicle starts operation will be inspected and the inspection form should be

filled as well when the vehicle reaches destination will be inspected. This ensures that the

vehicles are fit and reliable to deliver the goods on time.

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Utilizing the technology as efficient as possible.

Company will acquire GPS on vehicles in order to make expediting on timely delivery of the goods

but also feedback in case of any interruption.

Company will utilize the "Lettuce” as an inventory management program to create instant digital

catalogs, validate credit card info on the spot (perfect for trade shows), calculate shipping charges,

sync with QuickBooks, forecast inventory needs and give wholesalers 24/7 access and ordering

capability, slashing countless hours off the back-end fulfillment process.to ensure that order

processing time is minimal and efficient as possible in order to facilitate quality and timely delivery

of the orders.

Maximizing customer satisfaction

STRATEGY

Re engineering the accessibility via internet

Generating the efficient and reliable service accessibility via internet, this will be implemented by

disseminate the reliable Nakafwaa’s WEBSITE, and e-mail with proper description of the company

itself and scope of services to be offered including a diverse of services to customer i.e online

ordering,e-auctions, necessary information to customers including the company’s schedule,

promotions, various updates, pioneered technologies or services.

Providing the room for feedback

This is a proper scale to measure how the Nakafwaa’s services are efficient and satisfactory.. But

here importantly is how efficiently the views, comments and feedback will be collected and worked

upon , this will be by

providing the printed Nakafwaa’s memos and cards with space to be filled with customer to whoever

is happened to receive the service directly or indirectly , they will be available at every department in

the company from the gatekeeping to the entire company, each one should make sure provide the

cards moreover they will be of two forms, open and guidedwhere by the Open will allow the

customer to express fully his opinions can even go with it and the guided one on which the customer

will have to simply answer the question prepared for example the services are good, better, best,

worse, average then customer will have just to tick to any of his choice then living the card

Having the regular weekly board meeting

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To check and pass through the performance and the customer services feedback

Establishing the logistics performances scorecard

The scorecard will contain logisticsvision, objectives and strategies which will be signed by

C.E.O or Board.

Establishing a blended team delivering logistics outcomes

The team will make follow up on the implementation and outcomes of the prior logistics

strategies set

Establish bases in Kampala Uganda and Mombasa Kenya

STRATEGY

Setting the 20% of the total logistics budget for research

This particularly is for establishment bases at Kampala Uganda and Mombasa Kenya, the

appropriated fund will be utilized on analysis of the (SWOT) Strength, Weaknesses, Opportunities

and Threat to the Nakafwaa’s company on establishing the services in Kampala and Mombasa

including proposing the best ways for conducting and winning the market in the mentioned places,

the facilities required, fundamental policies, efficient routes, capacity of facilities and utilities

availability

Conducting a complete risk and resilience assessment prior to establishing a new supply chain

While designing and building a resilient supply chain from the very beginning is much more cost-

effective than trying to change the supply chain in mid-stream, many organizations must redesign

them as they live with the results of one or more disasters or shocks.A resilient supply chain is one

that is flexible in the face of disruptive events.  For example, an inbound supply chain that uses Just-

In-Time delivery of parts is lean and cost-effective in the short term, but may be easily disrupted by

events beyond the control of its managers.  Resilience means having the flexibility of being able to

choose from multiple suppliers, several backup modes of transport, or keeping 24-48 hours of parts

on hand to smooth out the parts flow during disruptive events.  This type of built-in resilience can

give operational managers the time to react should the event prove to be a longer-term disruption.

Although logistics systems are called supply chains, they are not linear chains as the name suggests. 

Rather, supply chains are very often complex webs or networks of infrastructure, suppliers, supplies

and services.  Managers can’t use linear thinking when determining the weaknesses and risks in a

complex system.  Therefore, using systems thinking to map and quantify the movement of goods and

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services, and the dependencies between the parts of the supply chain, is a much more effective way

to identify risks in a modern logistics network. 

This map or model can then be used to demonstrate to company decision-makers where

vulnerabilities exist, and by extension which parts of the network are at greatest risk.

Large firms with their own planning departments run scenarios to determine the most costly and the

most vulnerable nodes in the network, and use the results of the scenarios to mitigate the risks ahead

of time. 

Identifying vulnerabilities and mitigating the supply chain risks ahead of time is critical to your

survival when the disruptive event hits.  This extra time can mean the difference between collapse

and the ability to save money, recover faster and with less impact on the business and, most

importantly, its customers.

A resilient supply chain is the product of thorough analysis and careful planning. Tomorrow`s

resilience is the product of the smart decisions made today.

Green purchasing and environmental Consciousness

STRATEGY

Offering priority and proper credibility to green logistics

In order to ensure that the Nakafwaa trucking company practices green logistics, it will give

priorities to matters relevant to green logistics including setting policy and give specifications that

considers green logistics when purchasing and acquiring the company facilities for instance when

purchasing vehicles, we prefer vehicles that do not cause effects to the environment such air

pollution. This is fresh approach to eco-friendly transportation

Outsourcing/hiring specialists for vehicle inspection

 In order to minimize effects of the emissions to the environment that in turn affects people and the

atmosphere. Nakafwaa will hire the specialists who will carry the vehicles inspection when they are

bought before commence of operations to ascertain if the Nakafwaa vehicles do not produce

emission to the environment.

Strict adherence on vehicle disposition

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Following the prior calculated depreciation time for each vehicle, Nakafwaa company will have the

vehicle terminated from the premise after full depreciation of the vehicles, this is due to the fact that

the vehicles that have reached depreciation time do not add value to the company rather cost and in

this case they tend to produce tense smoke and noise

Inviting the agencies, NGO’S and other stakeholders dealing with green environment

Nakafwaa company will have the program of inviting the green environment stakeholders to the

company including companies, agencies and NGO’S, in order to collaborate with them in assessing

on proper and efficient ways in conserving the environment, depending on the activities performed

in the Nakafwaa company moreover the company will set 5% of the total logistic budget to facilitate

this, but also to appoint representatives to attend to several summit concerning with environment

conservation.

Keys to Success

The keys to success in the trucking business are:

o Strong communication systems between drivers, bases, and clients

o Setting delivery schedules that can be met (i.e. setting the right expectations)

o Hiring and retaining reliable, safe drivers

o Understanding what clients are trying to achieve, and helping them find the right distribution

solution to create long-term relationships

o Collaborate and embrace the ever-changing global marketplace

GENERAL SITUATIONAL ANALYSIS

Using SWOT analysis to review the situations around our operation environment including internal and external factors

From the view of SWOT analysis

STRENGTH

Reliable vehicles

NTC has reliable vehicles that ensure provision of services to all kind of customers,

Professional employees

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Being experts and leading company in term of professionalism as the company have drivers and logistics experts who have experience in trucking and hauling movements

Accessible website

Online service requisition through our website where by our customer can be able to send their details and payment to the company for shipping their cargo to and from different location around east and central African countries

WEAKNESS

Controlling our third part partners

Since the company hires warehouse services and vehicles so it become more difficult to assess the total facilities management

Limited number of international drivers

Even with the installation of GPS systems in our trucks still we are limited to number of drivers who have international driving experience especially in cross border routes example DRC and south Sudan routes

OPPORTUNITIES

Development of industrial and agricultural sectors

We delighted to explore the development of the agricultural industry as its expansion means there are a lot of material and agricultural products from and to different location within the boundaries of our operations.

Contractions of industries in Tanga and other regions as government emphasizes industrials revolution that guarantee us with nonstop operations

Reliable infrastructure

The infrastructure of all east and central African countries have been improved in a manner that give us a smooth hauling activities

Regional and economic integrations

The presence of east African regional integration that guarantee member countries to practice free trade movements is another great opportunity for the company to reach its strategic targets though facilitating the flow of material across the whole zone.

THREATS

Congestion in borders

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Normally there are a lot of procedures to go through for cross border activities which result into large congestion of trucks and hence this causes delays in hauling movements

Climatic conditions

It is very risk and difficult to control nature of different geographical position especial to African countries. For example earthquake threat in northern Kenya cannot be detected and as the result it may cause damage to infrastructures and resulting delays and even damage to cargo that transported

Political instability and terrorism

The situation in Congo, Rwanda and Burundi as well as south Sudan has been instable and cause uncertainty in hauling movements. Terrorism threats from al shabab in Kenya also challenge our operations

START-UP SUMMARY

The start-up expenses include some of the basic set-up costs for the Nakafwaa trucking office -

stationery (business cards and letterhead), rent for the office and a large adjacent parking lot for two

month's rent and one month's security at Tshs400, 000 per month, and computer equipment.

Marketing expenses include brochures and website development. Other expenses include legal

consultation fees to ensure that all precautions are taken to limit the risk of the business and to

establish templates for client and partner agreements, insurance premiums for the first year of

operation to cover liability associated with the service, the office, and the trucks, and licenses and

permits for the business. Motor vehicle registration, VAT registration, business license and Tax on

profit

Cash required will be used to fund the months of operation before cash flow break even is achieved

and to allow for adequate cash reserves to reduce the risk of running low on cash if targets are not

met. Other current assets include office supplies, software for accounting, scheduling, and resource

management and light equipment. Long-term assets include three new 18-wheelers, estimated at

Tshs 300,000,000 each (approximately Tshs 240,000,000 for the cab and Tshs 60,000,000 for the

trailer). The business will purchase new in order to better ensure that deliveries are made on time and

that the usual risks of aging equipment are avoided.  Tshs 150,000,000 is budgeted for three forklifts

estimated at Tshs 50,000,000 each, one per truck. An additional Tshs 50,000,000 is budgeted for

long-term assets including repair equipment and tools which it is cost-effective to own in-house,

satellite-tracking equipment for each truck, and office furniture.

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While some trucking businesses hire owner-operators of trucks, Nakafwaa trucking will maintain

greater control over the service it offers by owning the trucks, ensuring that it always lives up to its

name.

Our services

Nakafwaa trucking will offer the following services for businesses in the multiple routes within the

country regions and in other countries of operations;

Pick-up and delivery of goods with a maximum per-delivery weight of 30,000 kg 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 Nakafwaa trucking's scheduling software to allow for

seamless logistics

In the future, Nakafwaa trucking will add the following services:

Temperature-controlled shipping especially for perishable goods to expand the range of

customers

Trucks are operated by qualified and well-trained drivers with spotless records. Drivers are safety

trained and re-tested for knowledge of laws as they change. A dedicated suite of software and

communication systems will allow for the logistical management mentioned above.

MARKET ANALYSIS SUMMARY

The Nakafwaa trucking company serves as a key link between raw material suppliers,

manufacturers, wholesalers, distributors, and retailers in most industries. The company includes dry

van, flatbed and bulk/tank trucking over short-haul (up to 100 miles), medium-haul (100 to 250

miles), and long-haul (250 miles and up).

Nakafwaa trucking will compete in the market for medium and long haul dry van trucking in the

East and Central Africa countries such as Kenya, Uganda, Rwanda, and Burundi, Sudan and DRC

Congo and multiple routes within the country regions.

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This market serves businesses ranging from the packaged goods/grocery industry to the clothing

industry to high-tech equipment, as well as commercial relocations. Customers which require

frequent dry van shipping generally have the appropriate-sized loading dock for the standard 9' high,

8' 6" wide, and 53’ length dry van cargo area.

MARKET SEGMENTATION

The market analysis table covers likely market segments within the seven states which Nakafwaa

trucking will serve;

Raw Material Suppliers

Shipping large quantities of materials to and from large manufacturers in the East and Central

Africa countries such as Kenya, Uganda, Rwanda, Burundi, Sudan and DRC Congo and multiple

routes within the country regions. These materials generally do not require refrigeration or

temperature control. Manufacturers maintain some on-site storage for these supplies and generally

have some flexibility as to when deliveries can be received, except when projections are mistaken

and supplies drop low. Packaging supplies also must be shipped to manufacturers and are included in

this group.

Manufacturers

Often outsource the distribution of their goods to businesses that specialize in serving one the type of

retailer or business. Their packaged goods are often shipped to only one wholesaler/distributor,

creating a regular business in shipping between the two locations.

Wholesalers/Distributors

That serve large retailers assemble truckloads of goods from the many manufacturers they serve.

While they often have their own trucks or distribution means, some of these firms do not either

because they are smaller or because they attempt to limit their investment in assets. 

Others may require additional trucking support when they are operating at capacity but not prepared

to expand their shipping capacity.

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Market analysis pie

30%

50%

20%Raw material suppliers

Manufacturers

Wholesalers/distributers

Market analysis table

Market Analysis

Year

1

Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

Raw Materials Suppliers 20% 1,500 1,800 2,100 2,400 2,700 19.99%

Manufacturers 20% 2,500 3,000 3,500 4,000 4,500 20.00%

Wholesalers/Distributors 20% 1,000 1,200 1,400 1,600 1,800 19.99%

Total 20% 5,000 6,000 7,000 8,000 9,000 20.00%

These representation pie and table for market analysis show us our prospective trends of customers

throughout the five years plan and CAGR (Calculated Average Growth Rates)

Target Market Segment Strategy

Nakafwaa trucking will begin by focusing specifically on the segment of manufacturers in the East

and Central Africa countries such as Kenya, Uganda, Rwanda, Burundi, Sudan and DRC Congo and

multiple routes within the country regions.

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By serving manufacturers, Nakafwaa trucking can provide an affordable shipping solution for new

and growing manufacturers over purchasing their own trucks.

Raw material suppliers sometimes require flatbed or bulk or tank trucking which will not be an

initial service offered by Nakafwaa trucking and wholesalers often have their own trucks. These

segments are expected to yield some customers, but by focusing first on the middle of the supply

chain with manufacturers, Nakafwaa trucking will be introduced to suppliers and distributors who

may require their services without having to engage in full marketing campaigns to these segments.

Service Business Analysis

The assumption outlines that:

The Tanzania trucking industry includes about 110,000 for-hire carriers and 350,000

independent owner-operators

Total industry revenue is nearly Tshs200 billion

Major players in the industry include Mohamed trans, Azam transportation and Asas.

The industry is fragmented, with the 50 largest companies accounting for less than 30% of

the market

The industry includes carriers that use commercial motor vehicles and doesn't include

carriers like UPS and FedEx or private carriers (companies that transport their own products

and raw materials). The report writes that "demand is driven by consumer spending and

manufacturing output. The profitability of individual companies depends on efficient

operations

Competition and Buying Patterns

In addition to competing with other trucking companies, including national carriers, Nakafwaa

trucking will compete with rail and air cargo transportation. However, for the distances it intends to

travel, and due to the few rail lines over the countries it intend to operate, trucking is at an

advantage.

Shippers choose between trucking companies based on:

o Their track record of on-time and accurate deliveries

o Their price

o Their ability to partner with the shipper to offer logistics expertise and added services.

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WEB PLAN SUMMARY

The Nakafwaa trucking website will serve as a source of basic information for those who find it via

Internet searches, as well as a sophisticated account management portal for clients. For potential

clients, the website will serve as a deeper explanation of the services and background of the

company than a brochure or advertisement can provide. Specific calls to action on the website will

ask users to call to speak to a salesperson or to fill in a form with their basic information and a good

time to speak with them, so that a salesperson can contact them. Even one-time clients will be able to

access up-to-date information about the NTC and current location of their deliveries. Clients who

subscribe to preferred services will have access to more advanced information and functions.

Website Marketing Strategy

Nakafwaa trucking will utilize the following means to promote its website as a marketing tool:

Re engineering the accessibility via internet

o Generating the efficient and reliable service accessibility via internet, this will be

implemented by disseminate the reliable Nakafwaa’s WEBSITE, and e-mail with proper

description of the company itself and scope of services to be offered including a diverse of

services to customer i.e. online ordering, e-auctions, necessary information to customers

including the company’s schedule, promotions, various updates, pioneered technologies or

services.

o Initial and ongoing search engine optimization by the Web developer

o Google Ad words campaign which can be reduced or defunded if organic search rankings are

high enough

o Mention of the website URL in all brochures and advertisements

Development Requirements

The website's components will have the following requirements:

Front End

o Homepage - Mirroring a basic brochure about Nakafwaa trucking

o About Us - Background on the partners, mission, and basics of the business

o Contact - Form to submit information and phone number to reach a salesperson during

business hours

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o Services - Deeper description of the service options along with images of the trucks and a

map of the area served.

Delivery Tracking

Form - To enter delivery code which was designated for the delivery

Map - Shows current location of the delivery on a map

Statistics - Gives ETA, minutes late or ahead of schedule, status of pick-up or drop-off, other

notes about the order

Account Management

a) Login - Login form for client username and password

b) Account Profile - Basic client information, settings related to interface between client

systems and Nakafwaa trucking if direct links have been established

c) Scheduling - Calendar on which pickups and deliveries can be scheduled and rescheduled

d) Alerts - Settings for email or text alerts about deliveries which can be sent to client

Back End

Database Entry - Ability to search within and make changes and edits to the client and scheduling

information in the database

Billing Interface - Website sends billing information for completed jobs directly to accounting

software for bill creation

The website will be developed over a three month period. Many elements can be adapted from off-

the-shelf or open source software, but others must be developed from scratch to interface between

client software and the Nakafwaa trucking database.

STRATEGY AND IMPLEMENTATION SUMMARYNakafwaa trucking will focus its strategy on the following areas:

o Securing financial support for all activities and for the entire five years implementation

period

o Building and maintaining its on-time reputation to command revenue per mile slightly over

the industry average

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o Targeting manufacturers in all five major cities of united republic of Tanzania in the first

wave of marketing as the segment most in need of Nakafwaa trucking's services

o Recruiting required senior logistics personnel to manage implementation of the activities

within the strategy

o Establish a complete trucking business. The company is currently working toward becoming

a complete trucking business with a fleet of trucks which includes long-haul trucks. The

management of the company has identified a good customer base which it can tap into once

all the necessary equipment has been acquired. This will enable the company to service areas

outside its current domain and increase profit levels.

o Establishing a strong software/Web component to the business to drive adoption of our

preferred client services

POLICIES AND PROCEDURES

Cost reduction policy

Through JIT deliver

Hiring of trucks and drivers

Maintaining minimum number of staffs

Green procurement policy

Purchasing and Use green products i.e. our trucks and other handling equipments

Reduce the use of carbon footprint products in our operations

Quality initiative policy

Order processing mechanism i.e. the use of ERP and our website

Ensure effective flow of information to and from our customers

Ensuring proper handling of cargo during its movements

ROLES AND RESPONSIBILITIES

CEO is responsible for:

a) Developing and recommending the Company’s strategy, supported by yearly business plans

and budgets, to the Board for approval

b) Running the business and implementing the policies and strategies adopted by the Board

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c) Consistently striving to achieve the Company’s financial and operating goals and objectives

COO is responsible for:

a) Coordinating and controlling efficiency operations of the company core activities

b) Scheduling and allocation of staff to duties and trucks operations

c) Monitoring the effective flow of information to both parties of the operations

d) Assess the principal risks of the Company and to ensure that these risks are being monitored

and managed

Accountant is responsible for:

a) Managing books of accounts and payrolls

b) Advising the CEO on effective allocation of funds and investment capabilities

c) Provide financial reports on time basis.

d) Control the effective operation of marketing and business practices

e) Ensure that expenditures of the Company are within the authorized annual budget of the

Company

Logistics engineer (administrator) is responsible for:

a) Operation scheduling

b) Maintenance scheduling

c) Vehicle inspection control

Drivers and w/house manager responsibilities

Day to day operation include shipping and stores management

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Time frame for the NTC in implementing strategic logistics objectives

NO. STRATEGIC LOGISTICS OBJECTIVES TIME FRAME IMPLEMENTATION TOOLS1. Owning 10 18-wheeler trucks with dry van

trailers2 trucks @year Initial Capital budget

Retained earnings Long term bank loans

2. Having professional drivers staff Within first 3 months of each year in all 5years

Recruitment and review of the available drivers

Offer training to available drivers

3. Achieve strong annual revenue based on 2.2 million miles of hauling in the firth year

Almost 5 years Having better and new trucks

Employee motivation Diversification

4. Holding 3 Integrated storage facilities Within 3 years at least 1 storage facility @ year

Choose better location Proper building of those

storage Retained earnings

5. Acquisition of inventory management program.

3 months Initial Capital budget

COMPETITIVE EDGE

Nakafwaa trucking 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 Nakafwaa trucking 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.

MARKETING STRATEGY

o Nakafwaa trucking will attempt to rapidly achieve awareness in republic of Tanzania country

regions about its business in the first year, followed with awareness in big cities like

Kampala Uganda, Mombasa and Nairobi Kenya, Kigali Rwanda, and Kinshasa DRC in

future years.

o It will seek to position itself not as the most inexpensive carrier, but as a carrier with the best

on-time record coupled with advanced systems to help clients manage their logistics better.

Smaller businesses may feel more comfortable working with a smaller carrier as they fear

being lost in the shuffle by bigger carriers who also handle huge accounts.

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o Building a website with visibility on search engines and in databases of trucking companies

(see Web plan)

o Creating a compelling brochure of Nakafwaa trucking services which will be distributed

through direct mail, and kept in stock for networking events

o Exhibiting at Northern zone business service conferences, especially for sectors of the

manufacturing industry

o Advertisements in trade publications

o Public relations efforts including press releases related to the business launch and its unique

preferred client account management package

MANAGEMENT SUMMARY

Veronica Fidelis, CEO, will manage the strategic direction, sales and marketing of Nakafwaa

trucking. He developed experience in all of these areas through work in his previous warehousing

business, which he launched and successfully sold after fifteen years of operation.

The Chief Operating Officer (COO) position will be filled by a partner who will be granted up to

10% of shares in the business after meeting certain milestones. Additional shares will be granted if

the COO contributes capital to the business. The COO will manage operations, finances, human

resources, and procurement. The business will require additional personnel including an

administrator/dispatch center operator and a sales/marketing support associate.

These individuals will be managed by the COO and the CEO, respectively. Three part-time truck

drivers will be hired initially.

THE NTC ORGANISATIONSSTRACTURE

PERSONNEL PLAN

Truck driver salary listed here covers only wages paid which are not directly attributable to client

jobs. This includes training, repair work, returns from deliveries, and other required driving with

empty trucks. It is expected that this will be less than 20% of driver wages. Truck drivers will grow

from three part-time at launch to four full-time by the end of year 1, eight full-time by the end of

year 2 and 10 full-time by the end of year 3. There will be more full-time truck drivers than trucks as

the business will attempt to utilize the capacity of the trucks at least 60 hours per week and will limit

overtime of drivers.

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The sales/marketing associate will be hired in the fourth month after the CEO has directly executed

all sales and marketing operations for the first three months.

THE NTC ORGANISATIONSSTRACTURE

Personnel Plan

Year1

monthly

(000)

Year 2

monthly

(000)

Year3

monthly

(000)

CEO Tshs5,800 Tshs7,000 Tshs7,800COO Tshs5,000 Tshs6,000 Tshs7,000Sales/Marketing Associate Tshs2,700 Tshs4,000 Tshs4,500Administrator Tshs3,600 Tshs4,000 Tshs4,500 Truck Drivers (Non-Job Payroll)

Tshs5,000 Tshs9,000 Tshs13,000

Total People 17 23 31Total Payroll Tshs22,100 Tshs30,000 Tshs36,800

FINANCIAL PLAN

Nakafwaa trucking will establish its business with three trucks and a launch financed by the owner

and investor's equity. Starting debt-free will enable the business to take on debt once it has

established cash flows to purchase additional trucks over the first threeyears. Profits will swing

positive in the second year after a loss in the first year.

After the first three years, the business can sustain growth of at least three additional trucks per year,

and begin to add additional bases of operation throughout the region so that truck drivers who do not

live in the Arusha area can be hired and trucks do not have to return to this base after all jobs.

CEOCOO

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Dividends will not be paid out, as cash will be used in the business to prepare for expansion to

additional offices and purchase equipment on better terms going forward.

After five years of operation, the business will seek a strategic sale to a national freight trucking

operator for which Nakafwaa trucking's geographic and technological focus will be a good match.

Important Assumptions

The business assumes the cost of fuel at an average of the past two years, slightly higher than today's

fuel prices. This is considered a conservative estimate as it is possible that fuel will stay below this

number during at least part of the start-up phase. However, if fuel becomes significantly more

expensive, the gross margins of the business will drop.

Start-up Funding

Veronica Fidelis will provide the majority of start-up funding out of savings from the sale of his

previous business. Additional investment will be from investing partners who will be granted 20% of

shares in the business for their investment.

Projected Profit and Loss

Major expenses include:

Payroll: Covers the management, staff, and truck driver wages (when not directly attributed to jobs)

Marketing/Promotion: Projected higher in the first year and then dropping due to extra marketing

devoted to the launch and the weaning off of search engine marketing over time

Depreciation: Reflects the growing investment in trucks and equipment over the years. Trucks are

depreciated on a 10 year straight-line schedule. The depreciation is Tshs12,500 per month per truck

or Tshs14,580 per month including the additional equipment purchased with each truck. The

business will grow from four trucks at the end of year 1 to six at the end of year 2 to eight at the end

of year 3.

Truck Maintenance/Repair: Estimated at Tshs200000 per month per truck to start and rising to

Tshs225000 in year 3 due to aging of some of the first trucks purchased.

Rent & Utilities: Projected to rise slightly due to inflationary increases

Insurance: Will grow with the number of trucks and size of operations

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Payroll Taxes: Applied to payroll as listed and half of the direct cost of sales (truck driver wages)

Licensing and Permitting: Include ongoing renewals of licenses and additional licenses for new

trucks as they are purchased

The business expects a net loss in the first year as operations and sales scale up appropriately. Net

profits will begin in the second year

START-UP FUNDING TABLE

Start-up Funding Tshs(000’)

Start-up Expenses to Fund 203,000

Start-up Assets to Fund 1,142,000

Total Funding Required 1,345,000

Assets

Non-cash Assets from Start-up 660,000

Cash Requirements from Start-up -

Additional Cash Raised 482,000

Cash Balance on Starting Date -

Total Assets 1,142,000

Current Borrowing 5,000

Long-term Liabilities 140,000

Total Liabilities 145,000

Capital

Planned Investment

Veronica Fidelis 800,000

Investors 218,000

Additional Investment Requirement 482,000

Total Planned Investment 1500,000

Loss at Start-up (Start-up Expenses) (203,000)

Total Capital 1,297,000

Total Capital and Liabilities 1,442,000

Total Funding 1,345,000

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MONITORING AND EVALUATION OF THE STRATEGIES

In addition to the assessment of each strategic objective, the following key indicators will be used to

monitor progress of implementation of the logistics strategies;

Logistics technical working group established and operational

Implementation of project components will be monitored through quarterly professional

board meeting led by the company CEO

Yearly update of the company logistics strategy

MANAGING RISKS

Sources of risks in logistics activities

How to mitigate these risks

The company has sets its activities in a way that it adapt to change through the following strategies

Speculative Strategy

o A company bets on a single scenario, Spectacular results if the scenario is realized

o For example The Company will always opt to bet that exchange rate benefits, rising

productivity would offset higher labor costs but the company should build bases overseas

later when this equation changed

Operation shifting

o Flexible bases in Uganda, Rwanda and Kenya

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o Shift operations from region to region

Information sharing

o Larger presence in many regions and markets increases availability of information

o Can be used to anticipate market changes/find new opportunities

Regional coordination

o Multiple zone facilities allows greater market leverage

o Increased leverage limited by international laws/political pressures

Political leverage

o Higher political leverage in overseas operations with global operations

Provision of escort to our delivery trucks

o Installation of GPS trucking is not enough to guarantee the cargo is safe and secured

throughout the way in some regions due to terrorism, robbery and instability of the

governments such as rebels and riots in DRC and Burundi.