Logistics Industry In Canada

Published Date: 02 Nov 2017

In current Logistics industry in Canada reveals strong growth rate with growing higher demand. As we can see global scenario of Logistics industry, annual business or Logistics industry is world’s 3.5 trillion USD. The annual cost of Logistics industries in every country lies between 9% to 20% of their GDP.

Now if we have a look at the Canadian Logistics industry, they have got the highest level of momentum. Supply chain management has become main and technical source of competitive industries. We can look around and see the Canadian government making high investment to improve the infrastructure. Many companies are re-processing their supply chain to make it more effective.

The growth of new business strategies and solution seems significant for new industries players to make a footprint and to endure in these highly economical industries. The selection of services and enlargement of new applications will be on strategy in logistics business. As per the statistics, big logistics industry troupes have revealed that even in aggressive market, enlargement rates at more than 20% can be constant.

The Company Elite Shipping and Logistics Pvt Ltd is an India based company providing different logistics services like warehouse management, cold storage facility, transportation and distribution and serving different industries.

Competitive advantage: The weapons by which Elite Logistics can differentiate itself in the Canadian logistics industry are as follows.

Vast experience in India

Large storage space system with latest technological software like ERP, RFID.

Hi-tech cold storage facility for fast moving consumer goods services

Well experienced working team with latest knowledge

Updated latest tracking system

Inventory visibility at the time of arrival

Faster and error free order fulfillment

The report also includes the marketing plan which shows that the company use different mediums for the advertisement like print advertisements, sales promotional strategies, web and e mail marketing and video presentation and trade fair in exhibition etc. The environmental analysis derives important data that brings a thought that there is a hundreds of opportunities in the Canadian logistics industry. Financial plan with a catalyst of liquidity, earning and investment plan also a part of description of the project, and in that projections of future income and expenses are described.

Operations of ELITE Logistics Company that will offer the following important services is the heart of this start-up:

Warehouse management:

Our company provides faithful and warranted warehousing solutions which is an integral part of our customer supply chain. Elite Logistics is dedicated to multi distribution centers and has well equipped warehouse system and operations that assure the clients to get optimum level of operation efficiency.

International transportation and distribution:-Elite Logistics works with the industries which have the best work practices like coding integrated delivery management systems. Our latest technological software ensures availability of information and connecting towards distribution.

Global logistics:-Elite Logistics Company provides the service of delivering the final consignment from one place to final destination through broad international network. Our company has skilled, experienced and specialized staff to manage the logistics requirement with global movements.

Just in time delivery:-Just-in-time (JIT) is an inventory strategy that helps to improve a business's return on investment by dropping in-process

Cost optimization:-Discover alternatives with the most cost effective strategies under the given limitation, by maximizing required factors and minimizing undesired ones.

Cold storage facility:-The storage of equipment’s in artificially in an ice-cold place for preservation.

A strapping focus at this core business will be positioned on the development of the latest and innovative for the consumers that bring an important value. At the same time, range of personalized services will be provided which will assist utilize company and personnel capacity. List of services will provide strong growth potentials.

One of the vital goals of the projected business strategy is the growth of exceptional corporate identity. Such uniqueness will create customer reliability and assist to gain competitive advantage.

Corporate Profile

Our company Elite Logistics was established in 1988. Headquarter of ELITE Logistics are located in Mumbai, India. Our company is India’s most reputed public limited company. We are one of the India’s most prestigious logistics and supply chain management partner, offering distinct facility across industries with integration of highly experienced people, process and advanced technology. We Elite Logistics empower our customer business by coordinating the operational and strategic prospective.

Elite Logistics have vast knowledge of supply chain management which includes many operations like planning, controlling, organizing and directing a good range of critical tasks achieved by persons in different provinces and culture and with multi language capabilities.

We are aware about coordinating different events like time, place and people which are essential for supply chain management. We have been continuously making institutions of highly talented specialists which are specially focusing on operating models that compound the clients business.

Our consulting and operation clients advancement team hand over logistics, operation strategy, procurement and sourcing planning, customer full service and service after sales.

Our portfolio speaks at our best experience, evolution and expertise. Elite Logistics works for various industries like pharmaceuticals, infrastructure, retail, telecom and most importantly consumer durable industry.

Our mission

Our mission is to be the ultimate Logistics and supply Chain Company which accomplishes offering accommodated services through confidence innovation with Excellency in services.

Our Goal

Our goal is to improve our customer business by offering them superior solutions while making a value which exceedsstakeholders’ expectations.

Our Core Values

Trustworthiness:This is towards our customers, our work and our human resources. We try to build trust with every client and our employees. It is the fundamental key for our organization.

Respect:Our customers are treated with respect and with great honor as per their expectations. We give maximum receptiveness, respect and consideration for employees and other shareholders.

Distinctions: Distinctions and continuous innovations in our operations are the one which helps in measuring good growth and achievement. It will enhance learning expertise for our employees and value added to our clients.

Team work:our each and every team members and our partners have the ability to work in team with other workers, they are self-motivated people. Team work is the important factor for any venture to get succeed in market.

Corporate Social Responsibility:Our corporate social responsibility towards the society is to return back the equal amountwhat we get from the society we were operating in.

Industries we serve

Power

Retail

Telecom

Sports and Events

Engineering

Pharmaceuticals

Our facilities

Global Logistics:

Elite Logistics Company provides the service of delivering the final consignment from one place to final destination through broad international network. Our company has skilled, experienced and specialized staff to manage the logistics requirement with global movements.

Warehousing:

Our company provides faithful and warranted warehousing solutions which is an integral part of our customer supply chain. Elite Logistics is dedicated to multi distribution centers and has well equipped warehouse system and operations that assure the clients to get optimum level of operation efficiency.

Transportation and Distribution:

Elite Logistics works with the industries which have the best work practices like coding integrated delivery management systems. Our latest technological software ensures availability of information and connecting towards distribution.

Management and Human Resources

International Business and Operation Manager:

Dhavalkumar Patel is well organized person to suit this position. He has worked as a supply chain operation manager at ATLAS logistics for 10 years which is India’s largest logistics company. He was responsible for organize, direct, manage, evaluate and are responsible for the operations and budget of warehouse facilities, including the identification of opportunities for warehousing operation improvements. Dhaval has good education background, he did hismaster’s in business administration and he’s working with us since last one year.

Dhavalconsists of strong analytical skills, problem solving skills, and has good communication power which makes him good representative and coordinator for the international expansion of ELITE logistics and supply chain business. His previous experience make him strong employee as a project coordinator which will be beneficial to our organization.

Finance Operator:

MayankMaisuriyawho is best in the field of financing has work experience for 5 years in DHL Ltd as a Finance operator in finance department.Mayank has done massive contribution for the success of an organisation by applying his knowledge and skills of his financing concepts and budgeting skills. He was the backbone of the DHL Company as he possesses a good knowledge about the finance departmentwhich is one of the essential departments of the organisation and his decisions affect the whole organisation.

MayankMaisuriya has a good academic background; he has completed his Master’s in Business Administration major in finance and Bachelor degree in Business Administration. He has strong analytical skills with a good forecasting ability, computation skills with good interpersonal skills. All this skills and qualifications lead him to become part of the growth of ELITE Logistics. The adding value to the organisation is his finance management skills and communication skills.

Human Resource Manager:

HardikAmreliya is well experienced person to be on this position. He has work experience of 5 years at reliance industries as a recruitment and personnel manager. He had a responsibility for recruiting new staff and improving performance by giving them training. He has a good knowledge about the human resource management as Hardik has a degree of MHRD (ministry of human resource development).

Hardik is a goal oriented person and active team player with different skills. He has a good recruitment skill and good communication power that will help us in our project to recruit new employee. As a recruiter in reliance industries, he did many international projects which results good knowledge about the international culture. As per the experience and knowledge he will become good employee to help us in this project.

Marketing and Public Relations Officer:

Rahul Chavdawho has achieved great heights in the field of marketing possesses good academic qualifications and experience to get selected for this reputed position. He has a very good experience for four years in ESSAR Steel ltd. He worked as a Marketing Manager in this well-known company, Firstly, he was selected as an assistant to marketing manager but because of his dedication and zeal in makinggood marketing decisions he was promoted to the marketing manager post.

Rahul Chavdaholds a strong convincing power, good presentation skills and a communication power that helps him to achieve the trust of the target customers. Another very essential skill that he has is the interpersonal skills by which he can achieve the concept called customer relationship management. He has a good knowledge of multiple languages to create customer awareness which made him a good marketing manager at an international level.

Marketing plan

Environmental analysis of logistics industry

"Logistics means having the right thing at the right place at the right time" (logistics world)

Logistics is a flow of available resources between the point of base and point of destination place in order to fulfill some requirements. (wiki defination)

It is a process of managed physical item such as liquids, materials, food, equipment and also intangible item. Reducing operational cost enhances customer satisfaction and improves delivery performance. Importance of logistics industry is increasing and in current economic world logistics industry has become highly identified in the global scenario.

As per the current economic status and the dynamics of the industry there are many issues prevailing in the market such as pricing pressure, increasing cost of operation, low economy of scale and retention pressure from the client. Service providers have become very significant to complete supply chain integration.

Today, we can look across the world economy where Asia is urbanizing at a rapid pace. India and China are covering the equivalent of the whole population of Canada every 17 months (wiki statastics). A substantial middle class is being shaped, growing by 80 million people each year, people who stand for a rapidly increasing contribution to the global demand for every type of goods. With changing trade from slow emerging economies to a fast growing one, Canada can contribute more fully in the global economic revolution where the strongest prospective import and export markets are. The opportunities are vast. In consideration of these changes and the tardiness which they are taking place, it will be significant to look forward to change and make the long-term investments needed to prepare for it. Logistics and transport will be a fundamental part of all of these efforts.

Canadian businesses are elements of supply chain those regularly cross national borders. Such activities are also interrelated across a variety of sectors, such as manufacturing, natural resources and services. With these developments, globalization has increasingly become more persistent feature of the production process. The rising difficulty of supply chains also means that Canadian businesses can be benefit from trade.

Why target market Canada?

Key Findings (http://www.ic.gc.ca/eic/site/dsib-logi.nsf/eng/h_pj00528.html)

The significant increase in international trade has driven logistics performance to the front position of business approach.

Retailers, Manufacturers and natural wealth industries are depending on their logistics networks to distribute integrated, safe, consistent and efficient solutions to influence their global value chains.

Utilize of continental logistics strategies is an emerging development across many industries.

A rising trend in logistics outsourcing utilize of long-term initiatives with committed facilities, employee, processes and technologies.

Companies are utilizing a balance of strategies within a four Tier global sourcing structure to stable that exchange between opportunities.

Companies are in quest of to establish vibrant, approachable, automated and down cost distribution centers (DCs) which will maintain their logistics global business strategies.

Investment in distribution centers in Canada has amplified by 107 percent over the past six years (major areas of investment to be found in Ontario, Quebec, Alberta, and British Columbia).

Medium-sized and small firms are investing in distribution centers to improved respond to customer mandates and to incorporate more into global value chains.

Logistics modernization is at the front position of global value chain system integration.

Supply chain mandates have a direct force on improvement across value chains.

The top 25 percent performers in whole landed cost and in time shipment are more to be expected to empower in logistics network strategies.

Canada has the 11th largest economy in the world. Canadian economy is dominated by service industry. Canada has a manufacturing sector with the automobile and aircraft industry principally significant to international trade makes up a big element of the Canadian economy, principally because of its natural resources. Mining exports Agricultural, energy and forestry account for about 60 % of Canada’s whole exports.

Canada’s economy is now in a development stage. Economic movement and employment accepted their pre-crisis levels, and have consistently to grow. Canada’s transport industry has united lots of involvement in the economy. In the international open market, supply chain routines are an important economical differentiator. Inventive supply chain strategists argue that supply chain plan, composition and complexity are prejudiced by six main factors: globalization, increasing logistics difficulty, increasing risk, increasing labor costs in the budding world, sustainability, and increasing unpredictability. In this view, logistics has prospered over the last decade as the flow of information has turned out to be supreme to supply chain competence across industries.

Ongoing modernization in logistics has been a key enabler in the growth of global value chains. Shifting parameters in manufacturing, international sourcing, investment, technology and security needs are gripping logistics executives to decision making processes and adjust procurement and over the last few years, a significant competitiveness factor for Canadian firms has been the knack to develop and apply logistics solutions that improve efficiency and flexibility throughout the supply chain. 

Political steadiness and business environment

Canada remains one of the most friendly and advantageous spaces in the world for foreign direct investment and international business. Canada’s economy continues to do better than those of most other industrialized countries. This performance is due to a chain of competitive advantages, such as decreasing business costs and corporate tax rates, complete access to markets, a highly trained and educated workforce, strong public hold up for Research and Development, robust financial institutions, simplicity of the Canadian public institution, democratic system, political steadiness and the protection of settled citizens by the Canadian constitution. Canada offers an excellent business climate as well as the simplicity of doing business, free trade with the rest of North America, economical business costs, financial economy, right to use to credit and political constancy.

Business traditions and practices

Canada is the second biggest country in the world and characterized by an incredible variety of geography, climates and time zones. Canadian society is a diverse fusion of native, French and British customs that have been considerably broadened by a wave of migration from Europe and Asia in the late 19th and early 20th century’s. This enormous multicultural and bilingual nation boast a distinctive society with customs and ethics that must be documented and acceptable should your organization wish to undertaking successfully into Canada’s business segment.

Canada was once populated by many different native people before European settlers slowly evacuated these groups in the 17th century. Canada achieved full independence in 1930 but continued to be-long the Commonwealth of Nations. As one of the world’s richest and largely developed countries, Canada’s position is among the top ten industrialized powers and given its rich natural resources, trained labor force and thriving economic relations with the United States as part of NAFTA, Canada has sound economic projection. The nation’s stable economic expansion allows Canada to offer good quality trade and investments for companies covering a variety of business areas.

Canadian Culture - Key Concepts and standards

Uniqueness –Canadians are very individually oriented and ties with others are comparatively movable. As a result, individual privacy is highly appreciated in Canadian culture and there is a clear difference between public and personal life. From the business perspective, Canadians will generally be more open to conversation. They will also maintain a definite amount of space and confidentiality within the business relationship other than Western countries. Independence is also reflected in individual achievement and it is potential to determine individual success at the same time as other Western nations follow a more self-assured individualism, it is important to note that Canada and its citizens are likely to share a better sense of community and interdependence with erstwhile countries.

Provincial Differences – In such an enormous country, local differences are predictable. Canada boasts an enormously diverse population which includes many Asian, Italian, Ukrainian and aboriginal communities spread all over the country. Each province also has its own unique culture, religious background and intellect of identity. Quebec, for example has a very diverse value system compare to the rest of Canada while English-speaking Canadians are well thought-out to be slightly more reserved. As a result, when undertaking business in Canada, we must keep in mind that the customs of business people may reveal their cultural and local background, which can differ considerably.

Power Distance- In Canada, there is a high level of equal opportunity between community levels, where cooperation and maintaining a definite sense of harmony are encouraged. As a result of this Communication across varying power levels in a business framework appears to be more evenly reasonable.

Communication system-Canada has an outstanding communications.  Canada has one of the world's high levels of universal telephone service.  Canadian communication systems include satellite communications, national information networks, visual fibre networks, cellular telephony, cable TV, and widespread Internet access. 

Products and services

Warehouse management:

Our company provides faithful and warranted warehousing solutions which is an integral part of our customer supply chain. Elite Logistics is dedicated to multi distribution centers and has well equipped warehouse system and operations that assure the clients to get optimum level of operation efficiency.

International transportation and distribution

Elite Logistics works with the industries which have the best work practices like coding integrated delivery management systems. Our latest technological software ensures availability of information and connecting towards distribution.

Global logistics

Elite Logistics Company provides the service of delivering the final consignment from one place to final destination through broad international network. Our company has skilled, experienced and specialized staff to manage the logistics requirement with global movements.

Just in time delivery

Just-in-time (JIT) is an inventory strategy that helps to improve a business's return on investment by dropping in-process

Cost optimization

Discover alternatives with the most cost effective strategies under the given limitation, by maximizing required factors and minimizing undesired ones.

Cold storage facility

The storage of equipment’s in artificially in an ice-cold place for preservation.

Customer demographics

Fast moving good industries

Automobile industries

Power

Retail

Engineering

Pharmaceuticals

Competition and competitive advantage

Major competitors

MGA international logistics (http://www.mgainternational.com/)

Freight management

Trade show shipment

International transport services

Same day and next day delivery within the southern Ontario region

VLS logistics services (http://www.vlslogistics.com/)

Warehousing and distribution

Courier cartage and trucking services

Online order system

NTA transport Inc. (http://www.nolantransport.ca/)

Domestic trucking services

Local cartage

Food grade equipment services

Competitive advantage

Vast experience in India

Large storage space system with latest technological software like ERP, RFID.

Hi-tech cold storage facility for fast moving consumer goods services

Well experienced working team with latest knowledge

Transparency in process

Updated latest tracking system

Inventory visibility at the time of arrival

Faster and error free order fulfillment

Reducing packing materials and cost

Insurance facility for big consignment

Mixture of services that are cost effective as possible

The explicit selection of services and application presented will be monitored continually and differ according to business needs. This plan provides a competitive boundary alongside other companies in the environment and is likely to generate a supplementary demand and the possibility for a price make up.

Pricing strategy

Is decided on the basis of competitive advantage

Overall trade off increased firm profit

Everyday low pricing versus high low pricing

Fixed pricing versus menu pricing

Marketing strategy

In the beginning of the phase, it is a vital task of the marketing model to establish name identification and a unique trade mark. After that the strategy will mostly be targeted to add new customers and generate customer loyalty of repeat customers. A number of marketing and sales promotion strategies are accessible in the logistics industry.

Printed advertisement in international newspapers and magazines are regarded as very important in the beginning phase to attract a large group of prospective customers and draw awareness to the range of articles existing.

Sales promotion strategies have short-term effects only

Exceptional discounts promotion strategy

Marketing alliances with other trading businesses to manufacture cost savings and increase competence are used rarely. Such strategies include reciprocal use of marketing and web promotion events joint promotion arrangements

Web and email marketing is used repeatedly in the industry, even though this would be rarely inexpensive added effort.

Direct mailings are a very resourceful strategy that sends mailings to particular customers or business groups.

Video presentation in trade air and exhibition

Marketing alliances with other trading business, contract with custom broker

The use of marketing and sales promotion takings as follows:

As a broad base to be a focus for new customers the strategy will consist of a combination of printed advertisements and exceptional offers with opening discounts. In addition, a collection of customers will be selected for direct mailings. This strategy is likely to continue for three to four months, after which the effort will turn on the way to create customer loyalty for ordinary customer. This strategy is supplemented by a normal marketing strategy and direct mailings to regular customers. A marketing coalition and online advertisements will also be used.

Operation plan

ELITE Logistics main operation key area is to deliver the final product to the consumer. It covers order processing, transportation, warehousing. It is the most important task in any business because the place, time and quantity of production differ with the place, time and quantity of consumption.

We are planning to set up our business unit in Mississauga as it is one of the largest city and business hub in Canada.

About place:

Well-equipped miscellaneous business centre

Talented workforce

Leading infrastructure for business unit

Approachable to all global and national market

Exceptional community facilities

Cost competitive

Accessible land and building

Eco friendly environment

Legal environment requirement:

Supply chain and logistics association membership

Zoning and building code

Insurance coverage

Permits to run business

Personnel:

We are going to hire 15 to 20 skilled employees on initial stage for that we are going to approach job consultancy firm to get best employee on start-up phase. 50% of employee will be experienced person from the same industry so on initial stage we can reduce the cost of training. Each employee will assign duties as per their experience in the industry.

Suppliers:

On the initial stages we are going to take assistant of existing trucking company for delivery of product we are going to do marketing alliances with other companies logistics company to make our process run smoothly and able to satisfied customer

Communication system:

We are going set up our websites as well as implementation of latest software which are currently using in industries. And as common system like telephone, fax, mobile also is set up so our customer can easily reach to us. With the help of software system our customer will able to track their consignments that will become our main motto for latest communication system.

Trading hours:

As in logistics industry operation will be run for 24hours because it is a moving industry.

Elite logistics operation activity:

Recognition of supplies re-packaging and attach.

The operation of storage as per the customer requests and then handing out, such as distribution, storage and delivering.

Supplies in transport inquiries, tracking in order, timely response.

Consulting services to customers to deliver the goods we must put ourselves in for the customer, at any time to meet customer goods right so that customers anywhere, anytime get to know what they gave us the state of the goods, customer getting of goods custom-built by the tutoring of their re-processing and re-packaging and other logistics activities.

By way of the expansion and growth of customers, to create equivalent and suitable purchasing, sales logistics solution.

By means of customer sales, and dynamically mix social resources to accomplish the zero distance customers and their final clients and just in time inventory to the understanding of the idea.

To go behind on customer sales set-up, build customer distribution, conduct logistics.

Constantly through the addition of resources, optimization, decrease logistics expenditure for our customers to get better competitiveness of their products way to accomplish win-win situation, really shape a strong tactical partnership.

Financial plan

A good financial plan can make aware an investor to make necessary changes that must be made to ensure a smooth alteration through business financial stages. Financial plan should also be liquid with occasional updates when financial changes occur.

When we are going to start-up any new business, the key issue for success of trade is financial plan. Based on our financial plan, banks and financial institution can judge our business investment. Financial plan should be assure that business is forever liquid and it should be profitable. Financial plan should always review constantly so we can get to know about the current financial position and we can uncover and solved immediately.

Our financial plan are created base on 20 logistics companies marketplace sector in the national and international industry. This serves as a group of equivalent firm, as well as own evaluation based on the planned business environment. Our business pan revenue estimation are predictable and cost prediction include reduce for unexpected contingencies.

As per the current business environment, expected capital requirement is estimated to be $50,000 to $60000. The sales boundary is expected to be 7-10%, whereby each section of logistics and supply chain management contribute differently to sales and earnings.

All segments have an ordinary impact to sales in comparative terms (6.5), but have high sales volume. On the basis of our analysis incomes from transportation services can be outstanding in those from low ranked single skills to wide ranging and long term shipping. The sale of services is likely to generate 12 % to 15% sales margin, while the scope from sales of services is average to be close to about 10%.

Depending on the current primary investing amount and income can be varying. Costs will decline relative to sales at an primary investing of $50,000. Outcome of these particular sales is the good operation of capacities in employee at increasing revenues to the regular cost. If our resources are properly utilized, additional employee must be recruited. At the rate of investment of $100,000, management charges are estimated to yield to a direct connection of sales. At sales altitude from $1,000,000- $2,000,000, costs will rise by the factor 1.85. The cost revenue correlation is significant, not only during the beginning phase, but also for intended further extension businesses are capable to make cost reserves of 30-50% throughout progress periods, whereas for the logistics industry; this aspect is nearly 15%. At a definite size, this connection converses for the reason that organizational costs rise brutally. This affects small businesses between 20 and 30 employees most relentlessly.

Investment Plan

The investment plan consists of primary capital needs for the foundation and action of an global logistics business with different goods and facilities for sale. The plan also includes primary marketing and sales promotion expenses.

Investment in development of business

 

Building investment

$ 3,000.00

Furniture

$ 3,000.00

Storehouse

$ 10,000.00

Technical equipment

$ 5,000.00

Software

$ 2,000.00

Additional equipment

$ 1,000.00

 

 

 

 

Investment in development of operational business

Goods

$ 10,000.00

Rent

$ 4,000.00

Additional property expenses (3month)

$ 1,000.00

Content (3month)

$ 4,000.00

Leasing expenses

$ 1,000.00

 

 

 

 

Marketing

 

Start promotion

$ 2,500.00

Online application

$ 500.00

 

 

 

 

Employee costs

 

Employee recruitment

$ 500.00

Beginning employee investment (1month)

$ 3,000.00

 

 

 

 

Founding costs

 

Consulting

$ 200.00

Founding fee

$ 200.00

Insurance(1month)

$ 500.00

 

 

 

 

Financial costs

 

Interests (3month)

$ 1,200.00

Liquidity

$ 2,300.00

Break-even Analysis

The break-even analysis shows how earnings rise as a function of sales. The break-even point is the point at which incomes from sales cover total costs (fix costs and costs rising with sales).

At sale revenue of $600,000 and given fixed costs, the business will make a profit. Fixed costs are valued at $120, 0000 to $130, 0000 and variable costs at $480, 0000. At realizable revenue of $10,000,000 after 2-3 years profits will rise to $7, 00,000 pre-tax. This signifies an earnings margin of 10% pre-tax and 7% after-tax. These estimates are accurate in this market segment. Growing sales capacity will expansion pre-tax incomes margins, but this progress underneath when managerial expenses arise to climb severely. Up to a sales volume of $3,000,000, earnings margins rise to 12.5%, after which the margin losses to constant 11.5%.

It can be concluded which grave sales capacity the business produces a profit. This helps as a base for a pricing policy. Moreover, the graph shows the total of sales at which a marketing operation can be run profitably.

Liquidity Plan

The liquidity plan shows the sum of finances required to assure permanent liquidity of the business. The plan is based on 4 representative months of a typical business with 10 to 15 employees, annual sales of $1,300,000 and net profits of about $300,000. Revenue estimations are drawn from a standard normal distribution.

 

1 month

2 month

3 month

4 month

Net operating profit

$ 26,000.00

$ 38,000.00

$ 48,000.00

$ 28,000.00

Interest income

$ 200.00

$ 200.00

$ 400.00

$ 300.00

Further income

$ 800.00

$ 400.00

$ 200.00

$ 200.00

 

 

 

 

 

Total revenue

$ 27,000.00

$ 38,600.00

$ 48,600.00

$ 28,500.00

 

 

 

 

 

Storage and logistics

$ 12,000.00

$ 18,000.00

$ 24,000.00

$ 13,000.00

Employees

$ 4,000.00

$ 4,000.00

$ 4,000.00

$ 4,000.00

Leasing costs

$ 500.00

$ 500.00

$ 500.00

$ 500.00

Sales and marketing

$ 1,000.00

$ 1,000.00

$ 1,000.00

$ 1,000.00

Rent

$ 1,000.00

$ 1,000.00

$ 1,000.00

$ 1,000.00

Additional rent costs

$ 200.00

$ 200.00

$ 200.00

$ 200.00

Software

$ 1,000.00

$ 1,000.00

$ 1,000.00

$ 1,000.00

Employees

$ 100.00

$ 100.00

$ 100.00

$ 100.00

Insurance

$ 250.00

$ 250.00

$ 250.00

$ 250.00

Administration

$ 100.00

$ 100.00

$ 100.00

$ 100.00

Capital costs

$ 500.00

$ 500.00

$ 500.00

$ 500.00

Tax

$ 1,500.00

$ 7,000.00

$ 9,000.00

$ 6,500.00

Others

$ 500.00

$ 500.00

$ 500.00

$ 500.00

 

 

 

 

 

Expenses total

$ 22,650.00

$ 34,150.00

$ 42,150.00

$ 28,650.00

 

 

 

 

 

Total income

$ 27,000.00

$ 38,600.00

$ 48,600.00

$ 28,500.00

Total expenses

$ 22,650.00

$ 34,150.00

$ 42,150.00

$ 28,650.00

 

 

 

 

 

Surplus/loss

$ 4,350.00

$ 4,450.00

$ 6,450.00

-$ 150.00

Banking deposit

$ -

$ 4,350.00

$ 8,800.00

$ 15,250.00

Cash

$ -

$ -

$ -

$ -

Liquidity

$ 4,350.00

$ 8,800.00

$ 15,250.00

$ 15,100.00

Earnings Plan

The incomes plan displays the outcomes from normal operations. The proposal is grounded on the first 4 years of industry. Income guesses are tense from a normal supply with anpredictable growth rate of 20 to 30%. Figure below shows profit over time.

 

1 year

2 year

3 year

4 year

Expected sales

$ 700,000.00

$ 820,000.00

$ 960,000.00

$ 1,350,000.00

(-) Costs for goods and transportation

$ 560,000.00

$ 670,000.00

$ 780,000.00

$ 1,100,000.00

 

 

 

 

 

Raw profit 1

$ 140,000.00

$ 150,000.00

$ 180,000.00

$ 250,000.00

 

 

 

 

 

(-) Employee costs

$ 80,000.00

$ 80,000.00

$ 80,000.00

$ 100,000.00

 

 

 

 

 

Raw profit 2

$ 60,000.00

$ 70,000.00

$ 100,000.00

$ 150,000.00

 

 

 

 

 

Common cost

 

 

 

 

Advertise/marketing

$ 10,000.00

$ 15,000.00

$ 15,000.00

$ 15,000.00

Rent

$ 10,000.00

$ 10,000.00

$ 13,000.00

$ 13,000.00

Additional rent cost

$ 4,000.00

$ 4,000.00

$ 5,000.00

$ 5,000.00

Provider

$ 5,000.00

$ 5,000.00

$ 5,000.00

$ 5,000.00

Software licences

$ 5,000.00

$ 5,000.00

$ 5,000.00

$ 5,000.00

Leasing

$ 4,000.00

$ 4,000.00

$ 4,000.00

$ 4,000.00

Capital cost

$ 2,000.00

$ 2,000.00

$ 2,000.00

$ 2,000.00

Tax

$ 5,000.00

$ 7,000.00

$ 10,000.00

$ 20,000.00

Insurance

$ 1,000.00

$ 1,000.00

$ 1,000.00

$ 1,000.00

Controlling

$ 2,000.00

$ 2,500.00

$ 3,000.00

$ 3,000.00

Consulting

$ 1,000.00

$ 1,000.00

$ 1,500.00

$ 1,500.00

Depreciation

$ 5,000.00

$ 5,000.00

$ 5,000.00

$ 5,000.00

 

 

 

 

 

Profit/loss

$ 6,000.00

$ 8,500.00

$ 30,500.00

$ 70,500.00

Risk Analysis

The risk assessment imitates concerns that specify to business standard. Some phases can cover failures over the process phase. Existing list is the key factors that take to the breakdown only. figures are drawn from surveys of 10 logistics Companies with similar results submissions and income, cost and structures that left broke throughout the past three years, as well as studies of unusual inquiry associations.

Inadequate requirement:

This is the most common cause that indicates to business flop. This comprises perpetually little demand, as well as a provisional failure in need. Frequently demand quotes were too confident at the start. Such disasters may also arise from exterior tremors instead of working deficits. 19% of trades with inadequate request become insolvent. 50% of these companies account that, once claim slacked, they didn’t respond consequently because they thought that this singularity was only provisional. Since the anticipated incidence of consumers through the start-up stage is quiet small, a serious triumph matter is to emphasis publicity determination so as to create buyer faithfulness early on, that will benefit diminish the properties of demand instabilities. This is also significant for the upcoming expansion of the industry.

Behaviour of Competition:

Due to few entrance barriers, further companies can insert the market at short rate. Nearly 16% of bankrupt companies were determined run out of the marketplace by that rivalry. A healthier service observation, ground-breaking data and consideration on central corporations are easy earnings for an entrant to increase a practicable stage.

Employee and volume consumption:

Employee ability cannot change easily while demand decreases. Now, trade facilities have ability to operation rate of staffs of 70%, i.e. 70% of Employee-working hours will be straight accredited to sales. With small companies this significance is frequently minor; it means that 30% of operational hours occur without giving any extra income. 13% of such companies go broke for this particular motive.

Liquidity constraints:

An Additional recurrent reason for bankruptcy is not enough liquidity. In this particular case, to be able to adaptably respond to swapping cash requirements, it is essential to adequate funds should be intentional, even though in the beginning stage. Thus, 5-10% financing amount would be assumed as liquidity standby forever. 13% of bankrupt companies’ related liquidity as the cause for insolvency.

Over-indebtedness:

We can look at the business that are counting debt equity ratio to smoothly run their business. Several businesses are doing business on a small equity base with high amount of debt proportion. Majority of business are funds by debt only. If something goes wrong business becomes unprofitable and then debt responsibilities will be not covered. Many firms reported bankrupt about over 10% as a result of going insolvent. Major consideration in business is that a portion of income should be retained for debt solvency or service.

Macroeconomic Conditions:

In current economy income is unexpected it may not come as per our expectation to the business. But at the same time this does not influence the business. It will affect the leverage, profitability and liquidity. In inflation phase costs stay unchanged during such time, but income and profit typically decrease which influence overall profitability. As per the research 10% of the bankrupt businesses reported because of macroeconomic situation, but same time the important point of the business is look healthy.

Location and market:

In the current business world selection of the right customer and right place for business is a very important factor and one of the key decision in the business that has directly impact on the firms future condition. That is why proper research and examination in vital. In research we found that 10% of the business that are debt went bankrupt specially choosing wrong market selection. And one of the main reasons for the failure of the businesses is that they are failing in segmenting the market properly and because of that they are failing in satisfying the expectations of the specific segment. This leads to failure in overall profitability.

Wrong Business Decisions:

Research studies reveal that management incapability to take sound decision in business gets failed in their beginning stages and when businesses going well these mistakes are very rare. Management is the main part that can assess the all pitfall and disappointments. Exterior factors that changed the competitive environment and changing macroeconomic conditions were the most reasons relative to the factors internal. Some other risk for company is high capital cost, unique technology that is prevailing in the logistics industries.

Conclusion

By doing thorough analysis of marketing strategies, financial plan and operations we derived the following conclusion points.

From the thorough research and understanding the Canadian business world and the goods and services market of Canada, and specifically in Ontario region, it is found that the logistics industry is one of the fastest growing industry in Canada, and there are ample number of opportunities in the logistics business. The consistency in growth of logistics business and the increase in demand of the different logistics services in Canada by various industries provide a chance to invest in this industry. And our business structure and experience at the back home country exactly matches these requirements. Elite Logistics has an ability to provide an ultimate solution to the industrial customers with regards to the logistics and the services required in the logistics business. Another very important point that is derived from the research is that our vast back home experience in supply chain management and capability to serve a huge customer base makes a way for the starting logistics business to the company in Canada.

Environmental Scan like political, legal, social and cultural indicates that the foreign direct investment and the increased number of multinational companies is remarkable in the Canadian service industry, And explicitly in logistics service, we realized ample opportunities. Looking at our competitive advantage of large storage space system with latest technology, high-tech cold storage facility, updated order and consignment tracking system as well as faster and error free order fulfillment, it is clear that we can definitely differentiate our service base with the Canadian logistics industry and adds a value to different industries in Canada.

Operations, risk analysis and financial plan point towards that well equipped miscellaneous business center, talented workforce, cost competitive business and set up of operations in eco- friendly environment makes a difference in logistics services. Updated and latest software setup for a sound communication system brings speed and convenience in our business. Financial plan shows that the industries and the customers that we are going to serve finds an exact match with our liquidity plans, investment plan and the last but not the least earning plan. Because of our present status and experience, dedicated marketing team and sound financial budgets and projections, it is clear that this logistics business plan has a potential to get success in the Ontario region of Canada.

Overall analysis, growing demand of services in the logistics industry, ample opportunities for growth and the match between the business plan and logistics industry in Ontario indicates that it is more feasible and beneficial for the company to start a business in Ontario and make a mark in the Canadian logistics industry.

International and national logistics business is one of the largely profitable contained by business service industry. In the global industry, it is significant that the consumer experiences a wide range and proficient logistic services. It will be protect customer loyalty in a market which is very competitive.

The operation of employee’s capacity is significant for the long lasting profitably, the reason behind this is that changing limits and the constraints to suitably moderate employees. For this, the further selling of transportation services is an additional division of the business that is incorporated in the sale of the entire business process.

A cautiously selected choice of new technologies has the prospective to increase a competitive advantage against competitors. A substantial factor in the logistic industry is quality management. Better quality of service at lower cost improves customer’s satisfaction. Improper in service quality can lower the demand whereas better quality services can assist customer’s loyalty.

In logistic industries cost management is an important factor for business to get success where limitations are low.