courier service plan

8/3/2019 Courier Service Plan

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UNIVERSITY TECNOLOGY MALAYSIA

FACULTY OF CIVIL ENGINNERING

SESSION 2010 /2011

Business Plan

SHD3412ENTREPRENEURSHIP


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CONTENT

1. INTRODUCTION 1-13

2. PURPOSE 13

3. COMPANY BACKGROUND 13-14

4. OWNER AND PARTNER BACKGROUND 15

5. ADMINISTRATIVE PLAN 16-186. MARKETING PLAN 19-20

7. OPERATING PLAN 21-23

8. FINANCIAL AND CASH FLOW SCHEME 23-26


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Package Forwarding Service Plan

1.0 Introduction

Name of the Company : Os Package Forwarding Service Sdn. Bhd.

Business Registration : Owner

Nature of the Business:

Online shopping

The background of our business started with the idea of online shopping. According

to Malaysia eCommerce Domain, www.lot.my, there are more and more people

have started to buy online. There are various products which can be bought onlinehere in Malaysia, apparels, electronic products and even branded goods. Data below

shows the trend of buying online among Malaysian.
http://www.lot.my/http://www.lot.my/http://www.lot.my/


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The average age of the Malaysian population is young at 25.8 years old and average

life expectancy stands at over 70 years.


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Malaysia is classified as an upper-middle income country and considered as one of

the most developed of the developing countries. The proportion of middle-income

household, defined as those earning between RM1, 200 and RM3, 499 per month,

has increased from 47.7% in 1999 to 47.9% in 2002. Mean monthly gross income per

household increased from RM2, 472 in 1999 to RM3, 011 in 2002, denoting an

average monthly income growth of 6.8% per annum. Malaysia has continued toexperience steady progress in the standard of living and, with it, its purchasing

power (per capita income exceeds RM14, 600 or USD3, 840). On average,

households living in urban areas spent 1.5 times more than households living in rural

areas. Average consumer spending stands at RM1, 943 per month in the urban areas

and RM1, 270 per month in the rural areas.

The buoyant growth of private consumption registering 11.1% year-on-year in 2004,

underpinned by improved consumer confidence reflects growing incomes of

consumers. The propensity to consume is likely to be further enhanced by firm


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Malaysians spend a high percentage of their household income on food, groceries

and personal care items, ranking third out of the ten major economies in the Asia-

Pacific region (excluding Japan). According to ACNielsen, Malaysians on averagespent RM505 per month on food and groceries, with just under half of that on fresh

food like meat, fruits and vegetables.


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mass media have also played a hand in shaping consumer-buying behavior.

Malaysians are becoming more affluent, sophisticated and cosmopolitan. They have

moved on from the simple need for sustenance to key leisure themes like health,

beauty, lifestyle and fitness. Malaysians also have an open demand for foreign

brands> it is easy to find products marketed by Procter & Gamble, Unilever and

Nestle on the retail scene. Preference is not only limited to consumer goods, but also

to durable goods, such as electrical and electronics aside from motor vehicles.

Since the emergence of foreign-owned hypermarkets, Malaysians who live in urbanareas have become accustomed to shopping for groceries at hypermarkets and

supermarkets. Meanwhile rural people continue to purchase from traditional grocers,

convenience stores and mini-marts.

As far as eating out is concerned, Malaysia is one of the few countries in the world

where a family can afford to eat out almost every day of the week. Depending on

budget, the choice can range from posh hotels and chic sidewalk cafes to fast-food

joints and hawker stalls. The variety of international and local cuisines available in

almost all major commercial centers has influenced consumers desires, tastes and

preferences.

Malaysians also have a strong shopping fetish, especially during the weekends and

on public holidays. However, the consumers comes in three categories: those whose

purchasing power is high enough to go on periodic shopping sprees, people who

shop for necessities, and bargain hunters. High and middle income household spend

t f th i t h k t f ll d b k t d t diti l


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However, shopping online is only available for citizen in United States of America and

European Country.

In conclusion, our business is to provide shipment back to Malaysia after consumers

have purchased goods through foreign country online store, which shipment from

those online stores only limited in United States and European Regional.

There are some online shopping websites from China which is unable to provide

shipment to Malaysia and we are here now as a solution to them.


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Industry Profile

The courier industry has long held an important place in global commerce and been

involved in pivotal moment globally, such as United States of Americas westward

migration and the gold rush. History brought us way back to 1852 when Wells-Fargo

was founded and rapidly became the preeminent package delivery company. Not

long from that, the Pony Express of America was established to move packages more

quickly than the traditional method, which followed the stagecoach routes at that

time. In Americas history, the success of efficient deliveries on the Pony Expressroute has been credited with keeping California in the Union during the Civil War. It

also illustrated the demand for timely deliveries across the nation, a concept that

continued to evolve with the railroads, automobiles and interstate highways and

that has emerged into todays courier industry.

Courier businesses are small businesses and have a long history of positive influence

in their communities. Firms typically employ about 25 individuals, who receive good

salaries and benefits, and utilize up to three times that many independent owner-

operator drivers annually. There are more than seven thousand small businesses

that make up the multi-billion dollar same-day courier according to a research done

by a America-based company.

Couriers pick up and deliver important business documents or packages that need tobe sent or received quickly either locally, regionally, or nationally. Couriers also

deliver items that the customer is unwilling to entrust to other means of delivery


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become dependent on last minute delivery and supply. There are very few industry

segments that can wait until tomorrow for vital parts and supplies.

There are various of businesses which will use the courier service, certain industry

critically depend on couriers for expedited same-day or less than 24 hours delivery

on a daily basis. Biomedical labs and analysis centers use couriers to retrieve and

deliver samples for testing and evaluation. The manufacturing industry relies on

couriers to distribute parts to keep their plants operating smoothly. Financial

institutions must transfer multiple documents everyday between branches andprocessing centers. Law firms must deliver confidential documents on very strict

deadlines and use courier to ensure rapid delivery. Pharmaceutical distributors

utilize courier to transport medications to hospitals and nursing home daily. There

are just a few examples of primary customer market, each courier company,

dependent on their expertise and regional needs, has a unique customer market

profile. In our case, it is customer-based service which allow customer to buy online

from other country but having a problem bringing the goods back to their home

country.

However, same day delivery is crucial for time-sensitive materials, such as important

electronic parts or medical samples. Due to the critical need, fragility, confidentiality

or bulky size of items, these packages cannot be slotted into the existing POS

Malaysia which delivery times for next day or two days delivery; they must bedelivered according to the customers schedule and specifications. For these types of

goods, courier service is the only form of delivery that does not jeopardize the item


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Due to the nature of many of the services the courier industry provides, such as

transporting controlled narcotics, publicly traded companies pre-published financial

data and blood and organ movements, most independent owner-operator couriers

obtain the proper training and abide by chain of custody requirements that ensure

the safety and security of every shipment channeled through the same-day pipeline.

Industry survey indicates that 99 percent of owner-operator drivers are professional

drivers. These drivers are also vetted prior to being offered a position. Often times

this includes safety, geography and even logistics questionnaires to ensure safepractices and compliance with government guidelines. Drivers must have a valid

operators license in good standing with the state of issuance, and comprehensive

insurance that is up-to-date. Also, most countries require that couriers take training

courses prior to becoming commercial vehicle operator, which means only qualified,

safe and committed professionals make the final cut to become contract couriers.

The business model works as a self-policing mechanism, where only safe drivers

become career employee drivers or contracted owner-operator drivers.

While our industry is not regulated, by the normal standards of government-

instituted institution regulations, we do meet increasingly rigorous training and

safety demands. The industry primarily accepts billed payments and does 99 percent

of their business with shippers that are known to them, both of which drastically

reduce the ability for an individual to use a courier service to deliver explosives orbiochemical agents, since there is a traceable record set by the transaction. Our

customers entrust us with the delivery of extremely fragile and sensitive items and


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locations for their transactions. This further reduces risk and adds a layer of security

in the courier delivery supply chain.

Location of the warehouse :

United States4778 Lake Road

Trenton, NJ 08608

United kingdom16 Broomfield Place

STOUR ROW

SP7 4XW

China:17-19B804()

: 510440

:

:

:


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2.0 PurposeThe primary purpose of setting up the business is to provide a simple service to the

online consumers who buy online but unable to ship the goods back to Malaysia.

3.0 Company BackgroundName of the Business : Package Forwarding Service

Business Address : Lengkok Kikik 1, Taman Inderawasih, Prai, Penang

Correspondence Address : Lengkok Kikik 1, Taman Inderawasih, Prai, Penang

Telephone Number : +604-555-3388

Form of Business : Package Forwarding Service

Date of Commencement : 15/12/2011

Name of Bank : Citibank

Account No ; 5698-2356748-46-8

Main Activity of the Business :

Bring the goods back to Malaysia after Customers have bought online by


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4.0 Owner and Partner BackgroundName : LAU JIA JIAN

I/C No : 891202085527

Age : 22

Citizen : MALAYSIA

Address : 49, PERSIARAN BEKOR 25, TAMAN PERTAMA, 30100 IPOH

PERAK

Name : WONG CHEE YIK

I/C No : 890907086007

Age : 22

Citizen : Malaysia

Address : 28, JLN SEMBILANG, TMN SRI TENGGARA, 34200 PARITBUNTAR, PERAK


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5.0 ADMINISTRATIVE PLANORGANISATION CHART

`GENERAL MANAGER

CUSTOMERSERVICE

(INCLUDING WEB-

VICE-GENERAL

MANAGER

SALES

MARKETING

STORE

DEPARTMENT


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MANPOWER PLANNING

POSITION NUMBER OF STAFFGENERAL MANAGER 1

VICE-GENERAL MANAGER 1

MANAGER 2

SUPERVISOR 1

WORKER 7

SCHEDULE OF TASK AND RESPONSIBILITY

POSITION TASK AND RESPONSIBILITYGENERAL MANAGER Plan and control the organization

Involvement in every department jobs Think conceptually, look at a problem from

wider view and find out the solution.

Confirm every progression of departmentsunder an effective condition.

Assume responsible and become accountablefor subordinate action.

VICE-GENERAL MANAGER Assist the general manager


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SECURITY GUARD Patrolling around to ensure security ofwarehouse

SCHEDULE AND REMUNERATION

POSITION SALARY

(RM)

EPF (11%) SOCSO (2%) NO OF STAFF TOTAL

(RM)

GENERAL

MANAGER

2500 275 50 1 2825

VICE-GENERAL

MANAGER

2000 220 40 1 2260

MANAGER 1800 198 36 2 4068

SUPERVISOR 1600 176 32 1 1808

CLERK 1150 126.5 23 4 5198

WORKER 1000 110 20 2 2260

SECURITYGUARD

900 99 18 1 1017

LIST OF OFFICE EQUIPMENT

TOTAL SALARY PAYMENT 19436


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6.0 Marketing PlanWe intend to maintain an extensive marketing campaign that will ensure maximum

visibility for the business in its targeted market. Below is an overview of the

marketing strategies and objectives of the Company.

Marketing Objectives

Establish ongoing relationships with local business and corporations withinthe target market.

Implement a local campaign with the Companys targeted market via the useof flyers, local newspaper advertisement, and word of mouth advertising.

Develop an online presence by developing a website and placing theCompanys name and contact information with online directories.

Marketing strategies

We intend on using a number of marketing strategies that will allow the package

forwarding service easily targeted individuals and businesses within a target market.

These strategies include traditional print advertisements and ads placed on search

engines on the internet. Below is a description of how the business intends to

market its service to the general public. We will also use an internet based strategy.

This is very important as many people seeking local service, now that Internet toconduct their preliminary searches. We will register with online portals so that

potential customers can easily reach the business. The Company will also develop its


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As far as we concern, there is still no competitor in the market of Malaysia. After

research being done, we found out that there are two companies having the same

idea with ours, which is

This is all based in the United States. Therefore we can consider that we monopoly

the market in Malaysia.

Pricing Strategy

For your information, our business is selling off service or we are service provider. All

charges of shipment with our business partner are to be paid by our customers.

Therefore we are charging customers for service and the renting of our warehouses

locally and in the foreign country. The charges are as below:

15% of the Goods purchased and RM15 per Kg for shipping fee

Example:

Price of the Goods sold online: RM 100

Weight: 1 Kg


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7.0 Operating Plan

Process Flow Chart

For Customers

Customers buy online

Customers submit shopping

cart to our website

Customers transact with us

through online banking


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For Management Team

Customers submitted

shopping cart through online

services

Once Management Team

received transaction,

Management Team will proceed

with online buying


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Manpower Requirement

POSITION NUMBER OF STAFFGENERAL MANAGER 1

VICE-GENERAL MANAGER 1

MANAGER 2

SUPERVISOR 1

WORKER 7

Facilities required running the Business

Warehouse Office

8.0 Financial and Cash Flow SchemeOur funding of the Company comes mainly from the investment of our business

partner, DHL Courier Service.

Investment from DHL: RM 50, 000

Funding from Business Partner

LAU JIA JIAN : RM 12, 500


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Cash Flow (12 months) Cash Flow Begins: Dec-12Pre-Startup

ESTDec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13

Total Item

EST

Cash on Hand (beginning of

month)100,000 94,350 103,814 99,178 101,572 106,676 93,590 84,554 90,418 85,382 82,346 88,310 105,274 105,274

CASH RECEIPTS

Gross Income 0 2 5,000 1 0,000 1 8,500 2 0,000 15,000 20,000 30,000 18,000 20,000 30,000 40,000 35,000

Collections fm CR accounts

Seed Investment 10,000 10,000 10,000 10,000 10,000 0 0 0 1,000 0 0 2,000 0

Series A Funding 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL CASH RECEIPTS 10,000 35,000 20,000 28,500 30,000 15,000 20,000 30,000 19,000 20,000 30,000 42,000 35,000 0

Total Cash Available (before

cash out)110,000 129,350 123,814 127,678 131,572 121,676 113,590 114,554 109,418 105,382 112,346 130,310 140,274 105,274

CASH PAID OUT

Payroll

Gross wages (exact withdrawal) 1,000 1,000 2,000 1,000 5,000 5,000 1,000 1,000 0 1,000 2,000 200

Pa yroll exp enses (sala ry, etc.) 19,436 19 ,436 19 ,436 19 ,436 19,436 1 9,436 19,436 19,436 1 9,436 19,4 36 19,43 6 1 9,436

Payroll Bonus 50 50 50 50 50 50 50 50 50 50 50 50

Accounting & legal 200 200 200 200 200 200 200 200 200 200 200 200 200

Retail, Office

Rent 2,000 2 ,000 2 ,000 2 ,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000

Utilities (Electricity) 150 150 150 150 150 150 150 150 150 150 150 150 150

Insurance 0 0 0 0 0 0 0 0 0 0 0 0 0

Telephone 500 500 500 500 500 500 500 500 500 500 500 500 500

Supplies (computers, office &

oper.)4,800 0 0 0 0 0 0 0 0 0 0 0 0

Office Setup, Repairs &

Maintenance4,000 0 100 70 60 50 0 100 0 0 0 0 0

Marketing, Advertising, PR 1,000 1,000 500 1,000 800 0 1,000 0 0 0 0 0 1,000

SEO Marketing 500 500 500 500 500 500 500 500 500 500 500 500

Site Design & Development

Design & Development & Maint. 2,500

Server 200 200 200 200 200 200 200 200 200 200 200 200

CRM Software 500 0 0 0 0 0 0 0 0 0 0 0

Miscellaneous 500 0 0 0 0 0 0 0 0 0 0 0 0

SUBTOTAL 15,650 25,536 24,636 26,106 24,896 28,086 29,036 24,136 24,036 23,036 24,036 25,036 24,236 0

Owners' Withdrawal 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL CASH PAID OUT 15,650 25,536 24,636 26,106 24,896 28,086 29,036 24,136 24,036 23,036 24,036 25,036 24,236 0

Cash Position (end of month) 94,350 103,814 99,178 101,572 106,676 93,590 84,554 90,418 85,382 82,346 88,310 105,274 116,038 105,274

Os Package Forwarding Service Sdn. Bhd.


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Total Item

EST


month)105,274 89,624 89,638 95,002 98,896 94,000 90,914 111,878 127,742 128,706 200,670 221,634 256,598 256,598

CASH RECEIPTS

Gross Income 0 2 5,550 3 0,000 2 0,000 2 0,000 25,000 35,000 40,000 25,000 45,000 45,000 40,000 60,000


Seed Investment 10,000 15,000 50,000 20,000

Series A Funding 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL CASH RECEIPTS 0 25,550 30,000 30,000 20,000 25,000 50,000 40,000 25,000 95,000 45,000 60,000 60,000 0


cash out)105,274 115,174 119,638 125,002 118,896 119,000 140,914 151,878 152,742 223,706 245,670 281,634 316,598 256,598

CASH PAID OUT

Payroll



Payroll Bonus 50 50 50 50 50 50 50 50 50 50 50 50


Retail, Office

Rent 2,000 2 ,000 2 ,000 2 ,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000


Insurance 0 0 0 0 0 0 0 0 0 0 0 0 0

Telephone 500 500 500 500 500 500 500 500 500 500 500 500 500


oper.)4,800 0 0 0 0 0 0 0 0 0 0 0 0


Maintenance4,000 0 100 70 60 50 0 100 0 0 0 0 0


SEO Marketing 500 500 500 500 500 500 500 500 500 500 500 500



Server 200 200 200 200 200 200 200 200 200 200 200 200

CRM Software 500 0 0 0 0 0 0 0 0 0 0 0

Miscellaneous 500 0 0 0 0 0 0 0 0 0 0 0 0

SUBTOTAL 15,650 25,536 24,636 26,106 24,896 28,086 29,036 24,136 24,036 23,036 24,036 25,036 24,236 0






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Total Item

EST


month)256,598 240,948 265,412 320,776 314,670 309,774 331,688 368,652 384,516 410,480 432,444 478,408 503,372 503,372

CASH RECEIPTS

Gross Income 0 5 0,000 8 0,000 2 0,000 2 0,000 50,000 56,000 40,000 50,000 45,000 70,000 50,000 60,000


Seed Investment 10,000

Series A Funding 0 0 0 0 0 0 0 0 0 0 0 0 0

TOTAL CASH RECEIPTS 0 50,000 80,000 20,000 20,000 50,000 66,000 40,000 50,000 45,000 70,000 50,000 60,000 0


cash out)256,598 290,948 345,412 340,776 334,670 359,774 397,688 408,652 434,516 455,480 502,444 528,408 563,372 503,372

CASH PAID OUT

Payroll



Payroll Bonus 50 50 50 50 50 50 50 50 50 50 50 50


Retail, Office

Rent 2,000 2 ,000 2 ,000 2 ,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000 2,000


Insurance 0 0 0 0 0 0 0 0 0 0 0 0 0

Telephone 500 500 500 500 500 500 500 500 500 500 500 500 500


oper.)4,800 0 0 0 0 0 0 0 0 0 0 0 0


Maintenance4,000 0 100 70 60 50 0 100 0 0 0 0 0


SEO Marketing 500 500 500 500 500 500 500 500 500 500 500 500



Server 200 200 200 200 200 200 200 200 200 200 200 200

CRM Software 500 0 0 0 0 0 0 0 0 0 0 0

Miscellaneous 500 0 0 0 0 0 0 0 0 0 0 0 0

SUBTOTAL 15,650 25,536 24,636 26,106 24,896 28,086 29,036 24,136 24,036 23,036 24,036 25,036 24,236 0





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