The business plan for a third party logistics company focus primarily on the service you deliver for businesses and the current state of the industries you usually work with. It includes an integrated financial pro forma, one that uses baseline assumptions pulled from market research to illustrate its goals and objectives. The assumptions table should segue into a revenue forecast and break-even analysis tied in with a profit and loss statement for each year. This financial picture will be one of the features that will help your third-party logistics business to strive in the most challenging environments.
Third-Party logistics Business Plan
Third-party logistics (3PL) companies specializes in warehousing and transportation services, as well as integrated operations which can be customized for customer’s needs based on market conditions, such as demand and delivery service requirements. The services sometimes can go beyond logistics including value-added services related to the production or procurement of goods. In this section of the plan you will find information about the business model and key components of the company.
This section gives an overview of the strategic positioning model for the third-party logistics business. In today’s dynamic 3PL market, customers are demanding more services every day. According to the surveys presented, most of the companies using third party logistics companies believe that 3PLs should provide a comprehensive set of offerings. This part of the business plan outlines the strategies you should employ to position the company in the market you intend to serve along with important research of the logistics industry.
Third-Party Logistics companies take care of certain aspects of the supply chain operations of a company. Typically, 3PL providers require warehousing and transportation procedures to be properly defined and enforced. In this section of the plan you will find all the operational aspects required to run a third-party logistics business successfully including the establishment of proper asset protection programs, schedules and staff required.
The marketing plan chapter defines the unique value proposition and market niche to be served by the third-party logistics company, resulting in more focused marketing communications targeted at prospects who offer the best fit for the business.
This section of the business plan will describe the market segmentation for the third-party logistics company as well as a research of the industry. Here you will find the differences among potential customers, their profiles and the strategy presented to attract them as loyal clients for the company.
Here, the business plan will describe the potential tactics the business can use to connect with potential clients. The promotional plan considers a range of marketing activities, including: public relations, social media outreach, consultant outreach, content marketing, print advertising, digital advertising, special events, sponsorships and traditional ads on industry-related publications.
Third party logistics outsourcing systems allow companies to cut costs and focus on their core competency. Inventory management, delivery, packaging, and cross-docking services will be bundled with 3PL services, making the 3PL platform cost-effective. The 3PL market is determined mainly by the rising preference to outsource all tasks that are not essential in the corporate sector. In this financial portion of the business plan you will picture the economic path your business should take in terms of revenues, expenses and capital requirements for the next three to five years.
The third-party logistics industry is majorly driven by the fall in shipping rates, which have allowed 3PL operators to make a profit even while allowing their clients to cut their own total expenditure. In this section of the business plan there is a description of the main sources of revenues and financial assumptions for the company that support such calculations.
In this part of the third party logistics business plan you will find a guide of the major regular expenses required to run the business and implement the strategies outlined above, along with tactics to keep those expenses in line and maintain the profitability of the company.