Contents

EXECUTIVE SUMMARY OF THE COMPANY ....................................................................................... 1

COMPANY SUMMARY ............................................................................................................................. 1
COMPANY OWNERSHIP .......................................................................................................................... 1
Vision statement ....................................................................................................................................... 2
Mission statement .................................................................................................................................... 2
OBJECTIVES OF NAKAFWAA TRUCKING ........................................................................................... 2
Quantifiable objectives ............................................................................................................................. 2
Non-quantifiable objectives/goals include ............................................................................................... 2
LOGISTICS STRATEGIES TOWARD ACHIEVING THE OBJECTIVES OF THE COMPANY........... 3
STRATEGIES FOR QUANTIFIABLE OBJECTIVES........................................................................................... 3
BASIC STRATEGIES FOR NON- QUANTIFIABLE LOGISTICS OBJECTIVES ..................................................... 4
Keys to Success ......................................................................................................................................... 8
GENERAL SITUATIONAL ANALYSIS .................................................................................................... 8
START-UP SUMMARY ............................................................................................................................ 10
Our services............................................................................................................................................. 11
MARKET ANALYSIS SUMMARY ......................................................................................................... 11
MARKET SEGMENTATION ................................................................................................................... 12
Market analysis pie ................................................................................................................................. 13
Market analysis table .............................................................................................................................. 13
Target Market Segment Strategy ............................................................................................................ 13
Service Business Analysis ........................................................................................................................ 14
Competition and Buying Patterns ........................................................................................................... 14
WEB PLAN SUMMARY........................................................................................................................... 15
Website Marketing Strategy ................................................................................................................... 15
STRATEGY AND IMPLEMENTATION SUMMARY ............................................................................ 16
POLICIES AND PROCEDURES ................................................................................................................... 17
ROLES AND RESPONSIBILITIES ................................................................................................................ 17
COMPETITIVE EDGE .............................................................................................................................. 19
MARKETING STRATEGY ....................................................................................................................... 19
SALES STRATEGY ..................................................................................... Error! Bookmark not defined.
SALES FORECAST ...................................................................................... Error! Bookmark not defined.
MANAGEMENT SUMMARY .................................................................................................................. 20

i
 PERSONNEL PLAN.................................................................................................................................... 20
FINANCIAL PLAN...................................................................................................................................... 21
Start-up Funding ................................................................................................................................. 22
Important Assumptions ...................................................................................................................... 22
Projected Profit and Loss .................................................................................................................... 22
MONITORING AND EVALUATION OF THE STRATEGIES .............................................................. 24
MANAGING RISKS .................................................................................................................................. 24
Sources of risks in logistics activities....................................................................................................... 24
How to mitigate these risks .................................................................................................................... 24

ii
EXECUTIVE SUMMARY OF THE COMPANY
Nakafwaa trucking is a new medium- and long-haul dry van trucking business based on Njiro,
Arusha and founded by young entrepreneurs Veronica Fidelis. Nakafwaa trucking will serve
businesses in the multiple routes within the country regions and East and Central African countries
such as Kenya, Uganda, Rwanda, Burundi, Sudan and DRC Congo with freight hauling and logistics
management services. The business will develop a reputation for its on-time and accurate service as
well as sophisticated Web and software functionality, allowing clients to align their business with
Nakafwaa trucking's services and scheduling automatically. The business will be managed by
Veronica Fidelis, CEO, and a Chief Operating Officer.

Nakafwaa trucking can be launched for about Tshs 1,500,000,000, largely with the investment of
Veronica Fidelis, and with some investment by investing partners. The business will be launched
with three 18-wheeler trucks with ownership and hiring other seven trucks and will expand its
operations to utilize 25 18-wheelers by the end of its firth year, using auto loans to finance this
expansion. Gross margins will be around 60%, allowing for significant profit by the end of the firth
year as the business scales up. Beyond five years, the business will seek to expand to additional
bases of operation in the east and central African countries and to add trucks with refrigerated and
temperature-controlled trailers. The business will be positioned for sale to a national freight-hauling
service seeking to expand to, or add operations in, the south and central African countries.

COMPANY SUMMARY
Nakafwaa trucking, a startup truck company headquartered in Njiro, Arusha, will provide trucking
and logistics management solutions for business clients in the multiple routes within the country
regions and East and Central African countries such as Kenya, Uganda, Rwanda, Burundi, Sudan
and DRC Congo with freight hauling and logistics management services. The business will haul
freight from suppliers to manufacturers to distributors and retailers, operating in partnership with
distribution centers, warehouses, and wholesalers.

COMPANY OWNERSHIP
Nakafwaa trucking was founded by Veronica Fidelis, a previous owner of a warehousing business
which she successfully exited from after fifteen years of management. Nakafwaa trucking has
been established as a sole proprietorship during its pre-launch phase, but will be reclassified as a
limited liability company to take on partners. Veronica will share ownership with outside investors,
giving 40% of shares to investors

1
Vision statement

To become the most reliable logistics service provider in east and central African countries

Mission statement

Nakafwaa trucking will simplify distribution of goods for routes within the country regions and East
and Central African countries of its operation, becoming their partner in operating efficiently and
reliably. Nakafwaa trucking will use management of logistics, on-time, accurate deliveries from
destination to destination in the entire area of operations, and partnerships with distribution centers
and warehousing businesses to achieve its goals.

OBJECTIVES OF NAKAFWAA TRUCKING

Nakafwaa trucking intends to serve businesses in the East and Central Africa countries such as
Kenya, Uganda, Rwanda, and Burundi, Sudan and DRC Congo and multiple routes within the
country regions with truck-based distribution services.

Over the first five years of operations, Nakafwaa trucking will seek to meet the following objectives:

Quantifiable objectives

o Owning 10 18-wheeler trucks with dry van trailers

o Having professional drivers staff
o Achieve strong annual revenue based on 2.2 million miles of hauling in the firth year
o Holding 3 integrated storage facility

Non-quantifiable objectives/goals include

o Maximizing customer satisfaction

o Quality consciousness on timely delivery
o Establish bases in Kampala Uganda and Mombasa Kenya
o Green purchasing and environmental

2
LOGISTICS STRATEGIES TOWARD ACHIEVING THE OBJECTIVES OF THE
COMPANY

STRATEGIES FOR QUANTIFIABLE OBJECTIVES

Owning 10 18-wheeler trucks with dry van trailers

STRATEGY

 To conduct research on modern trucks that will ensure competitive edge in the market
 To develop a purchasing plan that will ensure the availability of wheeler trucks and the
purchasing will be conducted periodically
 To allocate the fund on purchasing of trucks based on quality, performance and cost

Having professional drivers staff

STRATEGY

 Hiring the professional drivers based on their certificates including legal license and
experience in performing logistics activities
 To develop the training program for drivers so as to increase the knowledge, experience and
skills in order to minimize the risk of accidents and to achieve on-time delivery
 To use advanced technology in trucking Example GPS

Achieve strong annual revenue based on 2.2 million miles of hauling in the firth year

STRATEGY

 To establish multiple routes within the country regions

 To establish routes across the country, like establish routes among East and Central Africa
countries such as Kenya, Uganda, Rwanda, Burundi , Sudan and DRC Congo
 Serving large number of customers with affordable price
 To publish advertisement in different media like Television, Radios, Newspaper and other
social medias
 To support the organization policies of operating under cost effective way

Holding 3 integrated storage facility

STRATEGY

 To make decision on facility location, the storage facilities will be located within East Arica
countries
 The facility should be rented and not build
 The facilities should start to operate within the first year of the plan

3
BASIC STRATEGIES FOR NON- QUANTIFIABLE LOGISTICS OBJECTIVES

Quality consciousness on timely delivery

STRATEGY

 Using the flexible and reliable transportation network

The company will have a group of right people planning, executing and optimizing the
transportation network,a team of transportation professionals with a mix of real world experience
and solid academic and analytical skills

Once the company has solid base of information, the data will be analyzed then optimizing the
freight. There are two levels of optimization: strategic and tactical. Strategic optimization looks at
procurement processes, mode selection and overall network design. Tactical optimization is
considering if you’re using right carriers, if deliveries and pickups on-time, etc. Shippers need to
analyze cost of service daily to see where they’re having carrier performance or other service issues.

The next step is reporting and continuous improvement. After building that solid foundation of data
accuracy and visibility and have the right team in place and made changes to optimize your freight;
then it’s time to report track and seek continuous improvement. By creating executive dashboards
and actionable reports, quarterly business reviews, and continuous ad-hoc reporting it’s possible to
examine trends over time and how you’re trending versus a prior period.

Gaining visibility and leveraging the data can help companies identify opportunities to take cost and
inefficiency out of their supply chain. Logistics should to be a resource to the entire company and
help the organization meet its strategic objectives and drive value for shareholders and customers.

 Having professional drivers

This ensures the reliability on drivers to deliver the goods on time. The NTC company will
strict adhere the qualifications and experience of the drivers of the company.
 Regular inspection and services to the vehicles
The vehicles will be inspected by the group of specialists before and after operations. This is
to say before the vehicle starts operation will be inspected and the inspection form should be
filled as well when the vehicle reaches destination will be inspected. This ensures that the
vehicles are fit and reliable to deliver the goods on time.
 Utilizing the technology as efficient as possible.

4
Company will acquire GPS on vehicles in order to make expediting on timely delivery of the goods
but also feedback in case of any interruption.

Company will utilize the "Lettuce” as an inventory management program to create instant digital
catalogs, validate credit card info on the spot (perfect for trade shows), calculate shipping charges,
sync with QuickBooks, forecast inventory needs and give wholesalers 24/7 access and ordering
capability, slashing countless hours off the back-end fulfillment process.to ensure that order
processing time is minimal and efficient as possible in order to facilitate quality and timely delivery
of the orders.

Maximizing customer satisfaction

STRATEGY

 Re engineering the accessibility via internet

Generating the efficient and reliable service accessibility via internet, this will be implemented by
disseminate the reliable Nakafwaa’s WEBSITE, and e-mail with proper description of the company
itself and scope of services to be offered including a diverse of services to customer i.e online
ordering,e-auctions, necessary information to customers including the company’s schedule,
promotions, various updates, pioneered technologies or services.

 Providing the room for feedback

This is a proper scale to measure how the Nakafwaa’s services are efficient and satisfactory.. But
here importantly is how efficiently the views, comments and feedback will be collected and worked
upon , this will be by

providing the printed Nakafwaa’s memos and cards with space to be filled with customer to whoever
is happened to receive the service directly or indirectly , they will be available at every department in
the company from the gatekeeping to the entire company, each one should make sure provide the
cards moreover they will be of two forms, open and guidedwhere by the Open will allow the
customer to express fully his opinions can even go with it and the guided one on which the customer
will have to simply answer the question prepared for example the services are good, better, best,
worse, average then customer will have just to tick to any of his choice then living the card

 Having the regular weekly board meeting

To check and pass through the performance and the customer services feedback

5
  Establishing the logistics performances scorecard
The scorecard will contain logisticsvision, objectives and strategies which will be signed by
C.E.O or Board.
 Establishing a blended team delivering logistics outcomes
The team will make follow up on the implementation and outcomes of the prior logistics
strategies set

Establish bases in Kampala Uganda and Mombasa Kenya

STRATEGY

Setting the 20% of the total logistics budget for research

This particularly is for establishment bases at Kampala Uganda and Mombasa Kenya, the
appropriated fund will be utilized on analysis of the (SWOT) Strength, Weaknesses, Opportunities
and Threat to the Nakafwaa’s company on establishing the services in Kampala and Mombasa
including proposing the best ways for conducting and winning the market in the mentioned places,
the facilities required, fundamental policies, efficient routes, capacity of facilities and utilities
availability

Conducting a complete risk and resilience assessment prior to establishing a new supply chain

While designing and building a resilient supply chain from the very beginning is much more cost-
effective than trying to change the supply chain in mid-stream, many organizations must redesign
them as they live with the results of one or more disasters or shocks.A resilient supply chain is one
that is flexible in the face of disruptive events. For example, an inbound supply chain that uses Just-
In-Time delivery of parts is lean and cost-effective in the short term, but may be easily disrupted by
events beyond the control of its managers. Resilience means having the flexibility of being able to
choose from multiple suppliers, several backup modes of transport, or keeping 24-48 hours of parts
on hand to smooth out the parts flow during disruptive events. This type of built-in resilience can
give operational managers the time to react should the event prove to be a longer-term disruption.
Although logistics systems are called supply chains, they are not linear chains as the name suggests.
Rather, supply chains are very often complex webs or networks of infrastructure, suppliers, supplies
and services. Managers can’t use linear thinking when determining the weaknesses and risks in a
complex system. Therefore, using systems thinking to map and quantify the movement of goods and
services, and the dependencies between the parts of the supply chain, is a much more effective way
to identify risks in a modern logistics network.

6
This map or model can then be used to demonstrate to company decision-makers where
vulnerabilities exist, and by extension which parts of the network are at greatest risk.

Large firms with their own planning departments run scenarios to determine the most costly and the
most vulnerable nodes in the network, and use the results of the scenarios to mitigate the risks ahead
of time.

Identifying vulnerabilities and mitigating the supply chain risks ahead of time is critical to your
survival when the disruptive event hits. This extra time can mean the difference between collapse
and the ability to save money, recover faster and with less impact on the business and, most
importantly, its customers.

A resilient supply chain is the product of thorough analysis and careful planning. Tomorrow`s
resilience is the product of the smart decisions made today.

Green purchasing and environmental Consciousness

STRATEGY

Offering priority and proper credibility to green logistics

In order to ensure that the Nakafwaa trucking company practices green logistics, it will give
priorities to matters relevant to green logistics including setting policy and give specifications that
considers green logistics when purchasing and acquiring the company facilities for instance when
purchasing vehicles, we prefer vehicles that do not cause effects to the environment such air
pollution. This is fresh approach to eco-friendly transportation

Outsourcing/hiring specialists for vehicle inspection

In order to minimize effects of the emissions to the environment that in turn affects people and the
atmosphere. Nakafwaa will hire the specialists who will carry the vehicles inspection when they are
bought before commence of operations to ascertain if the Nakafwaa vehicles do not produce
emission to the environment.

Strict adherence on vehicle disposition

Following the prior calculated depreciation time for each vehicle, Nakafwaa company will have the
vehicle terminated from the premise after full depreciation of the vehicles, this is due to the fact that

7
the vehicles that have reached depreciation time do not add value to the company rather cost and in
this case they tend to produce tense smoke and noise

Inviting the agencies, NGO’S and other stakeholders dealing with green environment

Nakafwaa company will have the program of inviting the green environment stakeholders to the
company including companies, agencies and NGO’S, in order to collaborate with them in assessing
on proper and efficient ways in conserving the environment, depending on the activities performed
in the Nakafwaa company moreover the company will set 5% of the total logistic budget to facilitate
this, but also to appoint representatives to attend to several summit concerning with environment
conservation.

Keys to Success

The keys to success in the trucking business are:

o Strong communication systems between drivers, bases, and clients

o Setting delivery schedules that can be met (i.e. setting the right expectations)
o Hiring and retaining reliable, safe drivers
o Understanding what clients are trying to achieve, and helping them find the right distribution
solution to create long-term relationships
o Collaborate and embrace the ever-changing global marketplace

GENERAL SITUATIONAL ANALYSIS

Using SWOT analysis to review the situations around our operation environment including internal
and external factors

From the view of SWOT analysis

STRENGTH

Reliable vehicles

NTC has reliable vehicles that ensure provision of services to all kind of customers,

Professional employees

Being experts and leading company in term of professionalism as the company have drivers and
logistics experts who have experience in trucking and hauling movements

8
Accessible website

Online service requisition through our website where by our customer can be able to send their
details and payment to the company for shipping their cargo to and from different location around
east and central African countries

WEAKNESS

Controlling our third part partners

Since the company hires warehouse services and vehicles so it become more difficult to assess the
total facilities management

Limited number of international drivers

Even with the installation of GPS systems in our trucks still we are limited to number of drivers who
have international driving experience especially in cross border routes example DRC and south
Sudan routes

OPPORTUNITIES

Development of industrial and agricultural sectors

We delighted to explore the development of the agricultural industry as its expansion means there
are a lot of material and agricultural products from and to different location within the boundaries
of our operations.

Contractions of industries in Tanga and other regions as government emphasizes industrials

revolution that guarantee us with nonstop operations

Reliable infrastructure

The infrastructure of all east and central African countries have been improved in a manner that give
us a smooth hauling activities

Regional and economic integrations

The presence of east African regional integration that guarantee member countries to practice free
trade movements is another great opportunity for the company to reach its strategic targets though
facilitating the flow of material across the whole zone.

THREATS

Congestion in borders

Normally there are a lot of procedures to go through for cross border activities which result into
large congestion of trucks and hence this causes delays in hauling movements

9
Climatic conditions

It is very risk and difficult to control nature of different geographical position especial to African
countries. For example earthquake threat in northern Kenya cannot be detected and as the result it
may cause damage to infrastructures and resulting delays and even damage to cargo that transported

Political instability and terrorism

The situation in Congo, Rwanda and Burundi as well as south Sudan has been instable and cause
uncertainty in hauling movements. Terrorism threats from al shabab in Kenya also challenge our
operations

START-UP SUMMARY
The start-up expenses include some of the basic set-up costs for the Nakafwaa trucking office -
stationery (business cards and letterhead), rent for the office and a large adjacent parking lot for two
month's rent and one month's security at Tshs400, 000 per month, and computer equipment.
Marketing expenses include brochures and website development. Other expenses include legal
consultation fees to ensure that all precautions are taken to limit the risk of the business and to
establish templates for client and partner agreements, insurance premiums for the first year of
operation to cover liability associated with the service, the office, and the trucks, and licenses and
permits for the business. Motor vehicle registration, VAT registration, business license and Tax on
profit

Cash required will be used to fund the months of operation before cash flow break even is achieved
and to allow for adequate cash reserves to reduce the risk of running low on cash if targets are not
met. Other current assets include office supplies, software for accounting, scheduling, and resource
management and light equipment. Long-term assets include three new 18-wheelers, estimated at
Tshs 300,000,000 each (approximately Tshs 240,000,000 for the cab and Tshs 60,000,000 for the
trailer). The business will purchase new in order to better ensure that deliveries are made on time and
that the usual risks of aging equipment are avoided. Tshs 150,000,000 is budgeted for three forklifts
estimated at Tshs 50,000,000 each, one per truck. An additional Tshs 50,000,000 is budgeted for
long-term assets including repair equipment and tools which it is cost-effective to own in-house,
satellite-tracking equipment for each truck, and office furniture.

While some trucking businesses hire owner-operators of trucks, Nakafwaa trucking will maintain
greater control over the service it offers by owning the trucks, ensuring that it always lives up to its
name.

10
Our services

Nakafwaa trucking will offer the following services for businesses in the multiple routes within the
country regions and in other countries of operations;

 Pick-up and delivery of goods with a maximum per-delivery weight of 30,000 kg from and
to locations in its geographic range by 18-wheeler trucks hauling dry van trailers. Both "less
than a truck load" and "truck load" services
 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 Nakafwaa trucking's scheduling software to allow for
seamless logistics

In the future, Nakafwaa trucking will add the following services:

 Temperature-controlled shipping especially for perishable goods to expand the range of

customers

Trucks are operated by qualified and well-trained drivers with spotless records. Drivers are safety
trained and re-tested for knowledge of laws as they change. A dedicated suite of software and
communication systems will allow for the logistical management mentioned above.

MARKET ANALYSIS SUMMARY

The Nakafwaa trucking company serves as a key link between raw material suppliers,
manufacturers, wholesalers, distributors, and retailers in most industries. The company includes dry
van, flatbed and bulk/tank trucking over short-haul (up to 100 miles), medium-haul (100 to 250
miles), and long-haul (250 miles and up).

Nakafwaa trucking will compete in the market for medium and long haul dry van trucking in the
East and Central Africa countries such as Kenya, Uganda, Rwanda, and Burundi, Sudan and DRC
Congo and multiple routes within the country regions.

This market serves businesses ranging from the packaged goods/grocery industry to the clothing
industry to high-tech equipment, as well as commercial relocations. Customers which require

11
frequent dry van shipping generally have the appropriate-sized loading dock for the standard 9' high,
8' 6" wide, and 53’ length dry van cargo area.

MARKET SEGMENTATION
The market analysis table covers likely market segments within the seven states which Nakafwaa
trucking will serve;

Raw Material Suppliers

Shipping large quantities of materials to and from large manufacturers in the East and Central
Africa countries such as Kenya, Uganda, Rwanda, Burundi, Sudan and DRC Congo and multiple
routes within the country regions. These materials generally do not require refrigeration or
temperature control. Manufacturers maintain some on-site storage for these supplies and generally
have some flexibility as to when deliveries can be received, except when projections are mistaken
and supplies drop low. Packaging supplies also must be shipped to manufacturers and are included in
this group.

Manufacturers

Often outsource the distribution of their goods to businesses that specialize in serving one the type of
retailer or business. Their packaged goods are often shipped to only one wholesaler/distributor,
creating a regular business in shipping between the two locations.

Wholesalers/Distributors

That serve large retailers assemble truckloads of goods from the many manufacturers they serve.
While they often have their own trucks or distribution means, some of these firms do not either
because they are smaller or because they attempt to limit their investment in assets.

Others may require additional trucking support when they are operating at capacity but not prepared
to expand their shipping capacity.

12
Market analysis pie

Raw material suppliers 20%

30%

Manufacturers

Wholesalers/distributers
50%

Market analysis table

Market Analysis

Year 1 Year 2 Year 3 Year 4 Year 5

Potential Customers Growth CAGR

Raw Materials Suppliers 20% 1,500 1,800 2,100 2,400 2,700 19.99%

Manufacturers 20% 2,500 3,000 3,500 4,000 4,500 20.00%

Wholesalers/Distributors 20% 1,000 1,200 1,400 1,600 1,800 19.99%

Total 20% 5,000 6,000 7,000 8,000 9,000 20.00%

These representation pie and table for market analysis show us our prospective trends of customers
throughout the five years plan and CAGR (Calculated Average Growth Rates)

Target Market Segment Strategy

Nakafwaa trucking will begin by focusing specifically on the segment of manufacturers in the East
and Central Africa countries such as Kenya, Uganda, Rwanda, Burundi, Sudan and DRC Congo and
multiple routes within the country regions.

13
By serving manufacturers, Nakafwaa trucking can provide an affordable shipping solution for new
and growing manufacturers over purchasing their own trucks.

Raw material suppliers sometimes require flatbed or bulk or tank trucking which will not be an
initial service offered by Nakafwaa trucking and wholesalers often have their own trucks. These
segments are expected to yield some customers, but by focusing first on the middle of the supply
chain with manufacturers, Nakafwaa trucking will be introduced to suppliers and distributors who
may require their services without having to engage in full marketing campaigns to these segments.

Service Business Analysis

The assumption outlines that:

 The Tanzania trucking industry includes about 110,000 for-hire carriers and 350,000
independent owner-operators
 Total industry revenue is nearly Tshs200 billion
 Major players in the industry include Mohamed trans, Azam transportation and Asas.
 The industry is fragmented, with the 50 largest companies accounting for less than 30% of
the market
 The industry includes carriers that use commercial motor vehicles and doesn't include
carriers like UPS and FedEx or private carriers (companies that transport their own products
and raw materials). The report writes that "demand is driven by consumer spending and
manufacturing output. The profitability of individual companies depends on efficient
operations

Competition and Buying Patterns

In addition to competing with other trucking companies, including national carriers, Nakafwaa
trucking will compete with rail and air cargo transportation. However, for the distances it intends to
travel, and due to the few rail lines over the countries it intend to operate, trucking is at an
advantage.

Shippers choose between trucking companies based on:

o Their track record of on-time and accurate deliveries

o Their price
o Their ability to partner with the shipper to offer logistics expertise and added services.

14
WEB PLAN SUMMARY
The Nakafwaa trucking website will serve as a source of basic information for those who find it via
Internet searches, as well as a sophisticated account management portal for clients. For potential
clients, the website will serve as a deeper explanation of the services and background of the
company than a brochure or advertisement can provide. Specific calls to action on the website will
ask users to call to speak to a salesperson or to fill in a form with their basic information and a good
time to speak with them, so that a salesperson can contact them. Even one-time clients will be able to
access up-to-date information about the NTC and current location of their deliveries. Clients who
subscribe to preferred services will have access to more advanced information and functions.

Website Marketing Strategy

Nakafwaa trucking will utilize the following means to promote its website as a marketing tool:

Re engineering the accessibility via internet

o Generating the efficient and reliable service accessibility via internet, this will be
implemented by disseminate the reliable Nakafwaa’s WEBSITE, and e-mail with proper
description of the company itself and scope of services to be offered including a diverse of
services to customer i.e. online ordering, e-auctions, necessary information to customers
including the company’s schedule, promotions, various updates, pioneered technologies or
services.
o Initial and ongoing search engine optimization by the Web developer
o Google Ad words campaign which can be reduced or defunded if organic search rankings are
high enough
o Mention of the website URL in all brochures and advertisements

Development Requirements

The website's components will have the following requirements:

Front End

o Homepage - Mirroring a basic brochure about Nakafwaa trucking

o About Us - Background on the partners, mission, and basics of the business
o Contact - Form to submit information and phone number to reach a salesperson during
business hours

15
 o Services - Deeper description of the service options along with images of the trucks and a
map of the area served.

Delivery Tracking

 Form - To enter delivery code which was designated for the delivery
 Map - Shows current location of the delivery on a map
 Statistics - Gives ETA, minutes late or ahead of schedule, status of pick-up or drop-off, other
notes about the order

Account Management

a) Login - Login form for client username and password

b) Account Profile - Basic client information, settings related to interface between client
systems and Nakafwaa trucking if direct links have been established
c) Scheduling - Calendar on which pickups and deliveries can be scheduled and rescheduled
d) Alerts - Settings for email or text alerts about deliveries which can be sent to client

Back End

Database Entry - Ability to search within and make changes and edits to the client and scheduling
information in the database

Billing Interface - Website sends billing information for completed jobs directly to accounting
software for bill creation

The website will be developed over a three month period. Many elements can be adapted from off-
the-shelf or open source software, but others must be developed from scratch to interface between
client software and the Nakafwaa trucking database.

STRATEGY AND IMPLEMENTATION SUMMARY

Nakafwaa trucking will focus its strategy on the following areas:

o Securing financial support for all activities and for the entire five years implementation
period
o Building and maintaining its on-time reputation to command revenue per mile slightly over
the industry average

16
 o Targeting manufacturers in all five major cities of united republic of Tanzania in the first
wave of marketing as the segment most in need of Nakafwaa trucking's services
o Recruiting required senior logistics personnel to manage implementation of the activities
within the strategy
o Establish a complete trucking business. The company is currently working toward becoming
a complete trucking business with a fleet of trucks which includes long-haul trucks. The
management of the company has identified a good customer base which it can tap into once
all the necessary equipment has been acquired. This will enable the company to service areas
outside its current domain and increase profit levels.
o Establishing a strong software/Web component to the business to drive adoption of our
preferred client services

POLICIES AND PROCEDURES

Cost reduction policy

 Through JIT deliver

 Hiring of trucks and drivers
 Maintaining minimum number of staffs

Green procurement policy

 Purchasing and Use green products i.e. our trucks and other handling equipments
 Reduce the use of carbon footprint products in our operations

Quality initiative policy

 Order processing mechanism i.e. the use of ERP and our website
 Ensure effective flow of information to and from our customers
 Ensuring proper handling of cargo during its movements

ROLES AND RESPONSIBILITIES

CEO is responsible for:

a) Developing and recommending the Company’s strategy, supported by yearly business plans
and budgets, to the Board for approval
b) Running the business and implementing the policies and strategies adopted by the Board
c) Consistently striving to achieve the Company’s financial and operating goals and objectives

17
COO is responsible for:

a) Coordinating and controlling efficiency operations of the company core activities

b) Scheduling and allocation of staff to duties and trucks operations
c) Monitoring the effective flow of information to both parties of the operations
d) Assess the principal risks of the Company and to ensure that these risks are being monitored
and managed

Accountant is responsible for:

a) Managing books of accounts and payrolls

b) Advising the CEO on effective allocation of funds and investment capabilities
c) Provide financial reports on time basis.
d) Control the effective operation of marketing and business practices
e) Ensure that expenditures of the Company are within the authorized annual budget of the
Company

Logistics engineer (administrator) is responsible for:

a) Operation scheduling
b) Maintenance scheduling
c) Vehicle inspection control

Drivers and w/house manager responsibilities

 Day to day operation include shipping and stores management

18
 Time frame for the NTC in implementing strategic logistics objectives

NO. STRATEGIC LOGISTICS OBJECTIVES TIME FRAME IMPLEMENTATION TOOLS

1. Owning 10 18-wheeler trucks with dry van 2 trucks @year  Initial Capital budget
trailers  Retained earnings
 Long term bank loans
2. Having professional drivers staff Within first 3  Recruitment and review of
months of each the available drivers
year in all 5years  Offer training to available
drivers
3. Achieve strong annual revenue based on 2.2 Almost 5 years  Having better and new
million miles of hauling in the firth year trucks
 Employee motivation
 Diversification
4. Holding 3 Integrated storage facilities Within 3 years at  Choose better location
least 1 storage  Proper building of those
facility @ year storage
 Retained earnings
5. Acquisition of inventory management 3 months  Initial Capital budget
program.

COMPETITIVE EDGE
Nakafwaa trucking will establish a competitive edge through its dogged focus on on-time deliveries
for its specific target market. Software systems, communication systems, operational choices and
marketing materials will all be oriented around this goal. By making customers more assured of on-
time delivery with Nakafwaa trucking than with competitors, they will be more likely to use the
business overall, as they can never be sure when a few hours can make an incredible difference to
their potential revenues or expenses.

MARKETING STRATEGY
o Nakafwaa trucking will attempt to rapidly achieve awareness in republic of Tanzania country
regions about its business in the first year, followed with awareness in big cities like
Kampala Uganda, Mombasa and Nairobi Kenya, Kigali Rwanda, and Kinshasa DRC in
future years.
o It will seek to position itself not as the most inexpensive carrier, but as a carrier with the best
on-time record coupled with advanced systems to help clients manage their logistics better.
Smaller businesses may feel more comfortable working with a smaller carrier as they fear
being lost in the shuffle by bigger carriers who also handle huge accounts.

19
 o Building a website with visibility on search engines and in databases of trucking companies
(see Web plan)
o Creating a compelling brochure of Nakafwaa trucking services which will be distributed
through direct mail, and kept in stock for networking events
o Exhibiting at Northern zone business service conferences, especially for sectors of the
manufacturing industry
o Advertisements in trade publications
o Public relations efforts including press releases related to the business launch and its unique
preferred client account management package

MANAGEMENT SUMMARY
Veronica Fidelis, CEO, will manage the strategic direction, sales and marketing of Nakafwaa
trucking. He developed experience in all of these areas through work in his previous warehousing
business, which he launched and successfully sold after fifteen years of operation.

The Chief Operating Officer (COO) position will be filled by a partner who will be granted up to
10% of shares in the business after meeting certain milestones. Additional shares will be granted if
the COO contributes capital to the business. The COO will manage operations, finances, human
resources, and procurement. The business will require additional personnel including an
administrator/dispatch center operator and a sales/marketing support associate.

These individuals will be managed by the COO and the CEO, respectively. Three part-time truck
drivers will be hired initially.

THE NTC ORGANISATIONSSTRACTURE

PERSONNEL PLAN

Truck driver salary listed here covers only wages paid which are not directly attributable to client
jobs. This includes training, repair work, returns from deliveries, and other required driving with
empty trucks. It is expected that this will be less than 20% of driver wages. Truck drivers will grow
from three part-time at launch to four full-time by the end of year 1, eight full-time by the end of
year 2 and 10 full-time by the end of year 3. There will be more full-time truck drivers than trucks as
the business will attempt to utilize the capacity of the trucks at least 60 hours per week and will limit
overtime of drivers.

20
 The sales/marketing associate will be hired in the fourth month after the CEO has directly executed
all sales and marketing operations for the first three months.

THE NTC ORGANISATIONSSTRACTURE

CEO

COO ACCOUNTANT

LOGISTICS W/HOUSE MARKETING

DRIVERS
ENGINEER MANAGER OFFICER

Personnel Plan
Year1 Year 2 Year3
monthly monthly monthly
(000) (000) (000)
CEO Tshs5,800 Tshs7,000 Tshs7,800
COO Tshs5,000 Tshs6,000 Tshs7,000
Sales/Marketing Associate Tshs2,700 Tshs4,000 Tshs4,500
Administrator Tshs3,600 Tshs4,000 Tshs4,500
Truck Drivers (Non-Job Tshs5,000 Tshs9,000 Tshs13,000
Payroll)
Total People 17 23 31
Total Payroll Tshs22,100 Tshs30,000 Tshs36,800

FINANCIAL PLAN

Nakafwaa trucking will establish its business with three trucks and a launch financed by the owner
and investor's equity. Starting debt-free will enable the business to take on debt once it has
established cash flows to purchase additional trucks over the first threeyears. Profits will swing
positive in the second year after a loss in the first year.

After the first three years, the business can sustain growth of at least three additional trucks per year,
and begin to add additional bases of operation throughout the region so that truck drivers who do not
live in the Arusha area can be hired and trucks do not have to return to this base after all jobs.

21
Dividends will not be paid out, as cash will be used in the business to prepare for expansion to
additional offices and purchase equipment on better terms going forward.

After five years of operation, the business will seek a strategic sale to a national freight trucking
operator for which Nakafwaa trucking's geographic and technological focus will be a good match.

Important Assumptions

The business assumes the cost of fuel at an average of the past two years, slightly higher than today's
fuel prices. This is considered a conservative estimate as it is possible that fuel will stay below this
number during at least part of the start-up phase. However, if fuel becomes significantly more
expensive, the gross margins of the business will drop.

Start-up Funding

Veronica Fidelis will provide the majority of start-up funding out of savings from the sale of his
previous business. Additional investment will be from investing partners who will be granted 20% of
shares in the business for their investment.

Projected Profit and Loss

Major expenses include:

Payroll: Covers the management, staff, and truck driver wages (when not directly attributed to jobs)

Marketing/Promotion: Projected higher in the first year and then dropping due to extra marketing
devoted to the launch and the weaning off of search engine marketing over time

Depreciation: Reflects the growing investment in trucks and equipment over the years. Trucks are
depreciated on a 10 year straight-line schedule. The depreciation is Tshs12,500 per month per truck
or Tshs14,580 per month including the additional equipment purchased with each truck. The
business will grow from four trucks at the end of year 1 to six at the end of year 2 to eight at the end
of year 3.

Truck Maintenance/Repair: Estimated at Tshs200000 per month per truck to start and rising to
Tshs225000 in year 3 due to aging of some of the first trucks purchased.

Rent & Utilities: Projected to rise slightly due to inflationary increases

Insurance: Will grow with the number of trucks and size of operations

22
Payroll Taxes: Applied to payroll as listed and half of the direct cost of sales (truck driver wages)

Licensing and Permitting: Include ongoing renewals of licenses and additional licenses for new
trucks as they are purchased

The business expects a net loss in the first year as operations and sales scale up appropriately. Net
profits will begin in the second year

START-UP FUNDING TABLE

Start-up Funding Tshs(000’)

Start-up Expenses to Fund 203,000
Start-up Assets to Fund 1,142,000
Total Funding Required 1,345,000
Assets
Non-cash Assets from Start-up 660,000
Cash Requirements from Start-up -
Additional Cash Raised 482,000
Cash Balance on Starting Date -
Total Assets 1,142,000
Current Borrowing 5,000
Long-term Liabilities 140,000
Total Liabilities 145,000
Capital
Planned Investment
Veronica Fidelis 800,000
Investors 218,000
Additional Investment Requirement 482,000
Total Planned Investment 1500,000
Loss at Start-up (Start-up Expenses) (203,000)
Total Capital 1,297,000
Total Capital and Liabilities 1,442,000
Total Funding 1,345,000

23
MONITORING AND EVALUATION OF THE STRATEGIES
In addition to the assessment of each strategic objective, the following key indicators will be used to
monitor progress of implementation of the logistics strategies;

 Logistics technical working group established and operational

 Implementation of project components will be monitored through quarterly professional
board meeting led by the company CEO
 Yearly update of the company logistics strategy

MANAGING RISKS

Sources of risks in logistics activities

How to mitigate these risks

The company has sets its activities in a way that it adapt to change through the following strategies

Speculative Strategy

o A company bets on a single scenario, Spectacular results if the scenario is realized

o For example The Company will always opt to bet that exchange rate benefits, rising
productivity would offset higher labor costs but the company should build bases overseas
later when this equation changed

Operation shifting

24
 o Flexible bases in Uganda, Rwanda and Kenya
o Shift operations from region to region

Information sharing

o Larger presence in many regions and markets increases availability of information

o Can be used to anticipate market changes/find new opportunities

Regional coordination

o Multiple zone facilities allows greater market leverage

o Increased leverage limited by international laws/political pressures

Political leverage

o Higher political leverage in overseas operations with global operations

Provision of escort to our delivery trucks

o Installation of GPS trucking is not enough to guarantee the cargo is safe and secured
throughout the way in some regions due to terrorism, robbery and instability of the
governments such as rebels and riots in DRC and Burundi.

25