keys to success in the freight industry white paper

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[1] “Safe, efficient and sustainable domestic and international transport systems are vital to Australia’s continuing prosperity.” http://www.infrastructure.gov.au/transport/ [2] http://internationaltransportforum.org/statistics/ [3] Nina Kaufman, http://www.entrepreneur.com/answer/221632 [4] http://www.abs.gov.au/ausstats/[email protected]/Products/8167.0~2011-12~Main+Features~Business+Structure+and+Arrangement s?OpenDocument [5] http://www.franchise.edu.au/home/topics/franchise-australia-topics/franchising-grows-to-$131-billion-sector [6] http://www.whichfranchise.net.au/index.cfm?event=getArticle&articleID=689 www.inxpress.com.au

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Page 1: Keys to success in the freight industry white paper

[1] “Safe, efficient and sustainable domestic and international transport systems are vital to Australia’s continuing prosperity.” http://www.infrastructure.gov.au/transport/ [2] http://internationaltransportforum.org/statistics/ [3] Nina Kaufman, http://www.entrepreneur.com/answer/221632[4] http://www.abs.gov.au/ausstats/[email protected]/Products/8167.0~2011-12~Main+Features~Business+Structure+and+Arrangements?OpenDocument[5] http://www.franchise.edu.au/home/topics/franchise-australia-topics/franchising-grows-to-$131-billion-sector[6] http://www.whichfranchise.net.au/index.cfm?event=getArticle&articleID=689

www.inxpress.com.au

Page 2: Keys to success in the freight industry white paper

www.inxpress.com.au

Advantages of Combining Small and Big Business

Keys to Success in the Freight Industry

Page 3: Keys to success in the freight industry white paper

The freight industry is a global market worth over $65 billion and is growing all of the time, with container traffic growing by 5% globally in 2013, and the amount of goods being transported growing by 3% in Australia in 20132.

While this marketplace is global, it is not out of the reach of a small business operator. Home-based companies can begin a freight brokerage business with relatively low start-up costs, securing their own piece of the ample freight industry.

Even though a freight business can be operated as a small business, starting in the freight business can be fraught with problems. Contacts and information networks are key to success in an industry that depends on knowledge of who can reliably transport what to where, and the related costs.

Another challenge is competition with the established businesses. Start-up businesses must get the sort of price that will allow competition with the established and bulk-movement freight businesses that can ship bulk orders and run low margins. When the rates of the carriers change, will new businesses adjust prices?

What affect can this have on their bottom line?

These industry-specific challenges come on top of the normal challenges that face any new business operator – establishing the business and client base, training staff, developing and shaping business procedures. Even the smallest of businesses need a solid team of advisors – for insurance, record-keeping, legal issues and banking3.

Starting from scratch and developing solutions to these problems will take time away from doing business, and so cost owners money.

Research can be an effective way of developing an effective network of carriers in the freight industry. Through researching directories and trade magazines, following up on reports, word-of-mouth and attending industry-specific gatherings a business operator can develop the sort of network that can make them competitive. But time spent developing a network from scratch is time away from the business.

Small Players in a Big Game

One of the key enablers of today’s global economy is the ability to send an item across the world in an extremely short space of time. The interconnectivity of the marketplace makes it necessary that industries and expertise from all across the world combine to create the tools and consumables we use every day; be they the imported fruit and vegetables in our freezer, to our mobiles phones and desktop computers.

The transport systems used to send materials across the world create an ongoing market that is secured not only by economic necessity, but by government policy1.

Introduction

Page 4: Keys to success in the freight industry white paper

“An express freight franchise can solve

many of the challenges of starting in the freight

industry”

InXpress, with its 15 year history of success in the global freight industry as a freight business and as a franchise operator, offers an option for those who want to take advantage of the business opportunities in the freight industry.

InXpress has developed a network of carriers that allow the franchisee to optimise the marketplace for their franchisees. Agreements with carriers across the globe to allow franchisees to provide international express, domestic express, freight and mail services from experienced and proven carriers to their customers.

Through combined buying power, InXpress assists small and medium businesses to secure international and domestic express courier rates that are normally reserved for large volume shipping businesses. The global agreements with world-class carriers allow InXpress franchisees to offer discount rates comparable to the bulk freight companies while still providing the

‘small business touch’ that delivers excellent and specialised customer service.

InXpress franchisees are provided access to a fully integrated system, with the training and support to help them develop their business and customer base. This approach answers the challenges of many new businesses of training staff, developing procedures, and negotiating the hurdles of financial advice and legal support.

In this way the business operator is saved time, effort and money by being provided with unique solutions for express, freight and mail services through world-class carriers with a solid market reputation. Their business model provides solutions to the challenges of starting up a business in the freight industry thereby allowing the franchisee to be independent and set their own level of prosperity.

Find Your Place in Freight with InXpress

Small businesses will rarely get a fair share of trade in big business. Big business will undercut in price to help remove competitors from the market. The only real advantage a small business has is that it can adapt, and can provide personal service. While superior service helps a small business compete, the advantage big business has in obtaining saving through bulk purchases will always be hard to beat.

Just as franchising offers the twin benefits of working independently and being a part of a larger support network, an express freight franchise can solve many of the challenges of starting in the freight industry.

More than 5% of businesses in Australia are franchise systems4, employing over 400,000 people5 and generating $131bn revenue generated from franchising, which is 14% of the GDP6. Franchises are a significant part of the economy and a reliable way of doing business.

Finding Your Edge