E business model on logistics1409

BUSINESS PLAN ON E -LOGISTICSSummary of Business Plan of Prompt e-Logistics (Hypothetical model)

04/12/2023SCHOOL OF MANAGEMENT, NIT WARANGAL 2

PROMPT E-LOGISTICS PRIVATE LIMITED

• www.promptlogice.weebly.comCreate Value for business logistics through Operational

Excellence

Even though being a relatively small market, yet prompt e logistics could still be regarded as an attractive destination

for logistics investments

http://www.promptlogice.weebly.com/


E-vision

To enable global connectivity to Prompt logistics limited’s present and future interactive technology strengths, for value added solutions.

To facilitate seamless integrated transportation, distribution and supply chain management, from, to and within the region, thereby increasing value to business to business transactions.


INTRODUCTION• Logistics is the art and science of getting things exactly where they need to be

exactly when they need to be there.

PRELIMINARY DRIVERS

• To create a e-business model which is feasible in reality that is first of its kind in India.

i.e., e-Logistics !

• FIRST MOVER IN THE ABOVE PERSPECTIVE.

•ACTUAL MODEL : To act as a framework for a network of freight services in and around

India and to Provide domestic freight services along the region of Tamil Nadu on pilot

basis.

•Competitive pricing with loyalty benefits for regular shippers could prove a upper hand

with the rise of e-commerce


WEBSITE HOMEPAGE


WEBSITE'S COMPONENTS

Front End

• Homepage

• About Us

• Contact - Form to submit information and phone number to reach us

• Services - Deeper description of the service options

Delivery Tracking

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

• Map - Shows current location of the delivery on a map

• Statistics - status of pick-up or drop-off, other notes about the order


Account Management

Login - Login form for client username and passwordAccount Profile - Basic client information, settings related to interface between client systems sScheduling - Calendar on which pickups and deliveries can be scheduled and rescheduledAlerts - Settings for email or text alerts about deliveries

Back End

Database Entry - Ability to search within and make changes and edits to the client and scheduling information in the databaseBilling Interface - Website sends billing information for completed jobs directly to accounting software for bill creation


MARKET FEASIBILITY

• Tier 2 and Tier 3 freight companies require awareness and who aim for multi orders

• Location preference Chennai - sound knowledge about existing logistics pattern and

network

• The Information Technology industry is, perhaps, typical of the changing and

escalating logistic demands of various industries today for B2B transactions

• The delivery of goods to the customer in the most reliable transit period possible

• The reverse flow of acknowledged, signed delivery records without which, in many

cases, recovery of bills are virtually impossible.


MOTIVATION & GOAL• Plan at start – to form a web of existing freight service providers

• Motivation and Inspirations – A prototype of this kind of model had been tested on pilot basis in Canada

• To make it as the country's most reliable air and surface network offers a pre-determined delivery schedule with close to 100% accuracy. The industry could plan its production with precision and avoid expensive inventory build-up.

• To make it as the country's only express service provider with a dedicated fleet of freighters as business allies (ocean and air freight )


• SEGMENTATION

• To capture B2B companies with a need of Express & e- Logistics

• TARGETING

• Manufacturing sector ,organized retail sector, Raw Material Suppliers , Wholesalers/Distributors etc

• POSITIONING

• South India’s number one allies with express air and integrated transportation (for ocean and air freight)


SERVICES

• Pick-up and delivery of goods with a minimum per-delivery weight of 60 Kgs from and to locations in its geographic range by wheeler trucks hauling trailers

• 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 Timely Trucking's scheduling software to allow for seamless logistics


SOURCES OF FINANCE

• Through Bank Loans – 45%

• Through Self – 40 % ( CEO & COO)

• Through Business Partner – 15% (VP)


ORGANIZATIONAL CHART

CEO

COO CMO

DC MANAGERS

DC SUPERVISORS

Office/ DC Assistant

Security

MANAGER

S

VP


EMPLOYEE STRUCTURE• 1 CEO

• 1 COO

• 1 VICE PRESIDENT Business Partner

• 3 DC MANAGERS : (Rs.30,000 / per Month / per employee)

• 3 MANAGERS : (Rs.25,000 / per Month / per employee)

• 3 Dc SUPERVISORS : (Rs.20,000 / per Month / per employee)

• 12 Office Assistant : Rs.10,000

• 10 Security : Rs.6000


FRAMEWORK OF THE MODELUser Login to Account

Get

quotes & Place requests

Domestic

: Self,

else

select others

Selection of Allies

Checkout process

Dispatch of Vehicle


BUSINESS PLAN


DESCRIPTION OF THE MODEL

• To provide ground freight services along the region of TN & to connect the various tier 2 & tier 3 freight into a single platform where the customer is free to choose from the carrier he intends to send his consignment.

• Pick up of Consignments at Doorstep and in transit insurance till the consignment reaches to the destination.

• Competitive pricing and facility to pay on reach – unique feature of the model.

• All the above, in a click of a button – yes !


ACTUAL BUSINESS PROCESSUser

Navigation in the web for

Quotes & Deals

Network of Strategic

Allies

Self Freight :

Within TN

04/12/2023 19

SELF FREIGHT • On pilot basis, Self freight is done within TN limits.

• Consist of only Domestic Freight.

• On Placing the order and completing the security & Preliminary details, order gets processed.

• Processing time (4 hours) : Telephonic Verification & Vehicle dispatch

• Order gets safety Packing at shippers end. Agreement, Terms & Conditions are subjective to imply.

• Mini vehicles plunge over door to door pickup and reach to the distribution center. Consignments are replaced to trucks and dispatched to their respective destinations.


STRATEGIC ALLIES

• Once the entered destination is out of reach, the user is directed to the allies page. Alternatively the user can also proceed directly to the allies page if intended.

• Consists a list of allies and their pricing schemes. Few based on weight alone and rest depending upon weight and destination.

• On the best deal selection, the user is directed to the verification page. Moving forward, the user enters the pickup address for his consignment.

• On pickup, the consignment is then brought to the DC from where it is taken to the respective Allies DC for dispatch.


MAJOR CITY ALLIES


FLOW PROCESS

• User login/registration.• Email id & Mobile verification• Profile updation (Not mandatory)• For Telephonic quotes, Profile login / creation not mandatory.

Preliminary Information


LOCATION FINDER • The Location Finder provides you with information on locations

serviced by Prompt Logistics in India.

• It also outlines the services available for each location and the contact details of the our logistics allies office which serves as a contact point for that location.

You may search by Pin Code or Location Name for locations in India.

Enter a Pin code or the name of the location to find out if services are available to the location required by you.

• When you find your desired location and wish to do transactions to that location, use the quotes details in website


CONTACT

• For contact details of the our office in the location required by you, you may search by using the options given below - by State or by location or by Pin code.

You will view the address,telephoneof the contact office. You may also send messages to these area offices, once located.

25

Attributes Fixed Component Variable Component

Initial Startup & Setup Rs. 5,00,000

Web Maintenance & Server

Rs.25,000 Rs.5000 per month

Payment Gateway (based on

Transactions)

1.5 % on India Swipe (Startup) & 2.5% on

Billdesk per Transaction

Franchisee / Agency Rs. 1,00,000 per firm (per year)

Vehicle Lease Cost Deposit Rs.20000 Rs. 15,000 per Vehicle per month

Trip Related Cost Rs. 10,000 per vehicle per day

Quantity Related Cost Rs. 90,000 per trip

Distribution Centers Rs 20,000

Employee Salary Rs 405000 per month(43 employees)

Overhead Cost Rs. 15,000 per month

Misc. Maintenance Cost

Rs. 10,000- 20,000 per month


ROI & BREAK EVEN

• A profitability measure that evaluates the performance of a business by dividing net profit by net worth.

• The point where total costs (expenses) and total sales (revenue) are equal. Break-even point can be described as a point where there is no net profit or loss.

• Fixed component (including asset and start up)cost approx – Rs. 6,80,000

• Variable cost approx – Rs. 5,25,000

• ROI – 0.17

• Break Even Point can be attained by end of first year ending of third month


MARKETING STRATEGIES ADOPTED

•Search engine optimization -to increase the amount of visitors to a website by obtaining a high-ranking placement in the search results page of a search engine - including Google, Bing, Yahoo and other search engines

•Social media marketing (SMM) -to help a company increase brand exposure and broaden customer reach.

•Business development strategies - to match marketing opportunities to the organization's resources (what it can do)and its objectives (what management wants to do), by market penetration , market development , product development and diversification


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

• Creating a compelling brochure of Timely Trucking services which will be distributed through direct mail,

• Exhibiting at stalls of business service conferences, especially for sectors of the manufacturing industry

• Advertisements in trade publications

• Public relations efforts including press releases related to the business launch

SALES STRATEGY

Our company will manage sales for the business, making appointments with and travelling to client businesses in the region when necessary to establish

relationships based on an understanding of the client's needs for freights.


SCREENSHOTS


QUOTE & TRANSITIONS


ADDITIONAL DETAILS


ADDRESS DETAILS

Even though being a relatively small market, yet prompt e logistics could still be regarded as an attractive destination for logistics investments

THANK YOU FOR YOUR ATTENTION !