Trucking and Control
the missing link.
Trucking and Control Concept
Š 2011 VDH vormgeving
“Think Big, Act Small” Geert Vos - managing director
Content page 3 page 3
01. Preface 02. Introduction
02.01 General company description
02.02 Mission
02.03 Vision
02.04 Core values
03. External analysis 03.01 The market 03.02 Profitability 03.03 The customer 03.04 Competition 03.05 Threats 03.06 Opportunities 04. Internal analysis 04.01 Organization
04.02 Market share and positioning
04.03 Marketing
04.04 Sales
04.05 Strengths
04.06 Weaknesses
05. Operational 05.01 Facilities 05.02 Drivers
05.03 Financial administration
05.04 Communication and administration
05.05 Management information system
05.06 Stock management
06.06 Licenses and certificates
06. Strategy
06.01 Short-term goals
06.02 Long-term goals
06.03 Future opportunities
06.04 Timeline
06.05 Future organization
07. Budget
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Transport by truck Transport by boat Transport by train
Liverpool
Immingham
Rotterdam
Novara
EXAMPLE of an intermodal transport chain
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Brescia
Preface.
Preface 01.01
This document has been prepared as a business plan for Trucking and Control bv, as a supporting document for the Trucking and Control presentation. It will provide insight into Trucking and Control activities for others such as the government, transport organizations and financial institutions.
Introduction
General company description.
02.01
Trucking and Control bv is a transport company that focuses on the missing link in the intermodal transport chain. When goods are transported intermodal, the goods travel from, for example, X in the UK to Y in Italy. This means the container is loaded in X, travels to a nearby port, for example XX. Then, the container is put on a ship and transported to a port in the Benelux (XXX). There, it is loaded onto a train on which it travels to a railway station in Italy (YY). From the train station to the recipient (Y) of the container the transport is once again handled per truck. These two trucking parts are the missing links. The intermodal transport companies do well with arranging the train and ship transports, but the trucking is an issue. There are a limited amount of train stations and ports, but an unlimited amount of loading and discharging locations, since the customers can be located anywhere. Because the intermodal logistics companies cannot cover every region with their own trucks and because the demand for transport fluctuates heavily, they often employ third parties for the trucking. These companies are mostly not specialized, not well equipped and not able to keep control over the missing link.
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THE VOLVO FH reliably takes your cargo anywhere
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Introduction
The problem with these third party companies, often driver/ owners, is that they have to handle some key aspects of intermodal transport:
02.01
01. Direct customer contact. The truck drivers directly communicate with the customers at both ends of the chain. There are no guarantees that the truck driver will behave as the intermodal supplier desires, or that he in any way represents the hiring company.
02. These drivers are not specialized in handling tankcontainers. They deal with regular boxcontainers and some of them also handle loose freight. With tankcontainers proper control is more important than it normally is, because handling a tankcontainer requires more knowledge and mishandling can lead to high costs. For example, damages, rest loads, ullage problems or cleaning.
03. The drivers control the most important parts of the chain: loading, discharging and cleaning. This is a big responsibility to leave in the hands of not state of the art drivers. To solve this issue, we are providing intermodal transport companies with an alternative: Trucking and Control. We have our own drivers and trucks that are specialized in handling tankcontainers and specific procedures like the interchange. Our specialists are trained to look and act professional when dealing with customers. They have also received training in dealing with food and chemical safety standards. We provide professional and reliable trucking solutions for intermodal transport companies. In addition, this means that our customers no longer have to worry about dealing with these driver/ owners, they simply call us. In addition, we can also arrange their planning. All the companies have to do is let us know what needs to be picked up where and its destination. This allows for two major advantages: the companies do not require a big staff for the trucking part. In addition, Trucking and Control is able to keep control over the tankcontainer, the cargo and the administrative aspects; we control our customers’ costs.
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“ Everyone loves progress, as long as it does not require change” Randy Vos - executive secretary
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Mission.
Introduction 02.02
Trucking and Control aims to grow to a fleet of 75 vehicles in the first 3 years while servicing to customers in the EU.
Year 1 25 trucks
Year 2 45 trucks
Year 3 75 trucks
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BRAND NEW VOLVOS with EURO 5 engines are environmentally friendly and economical
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Vision.
Introduction 02.03
We want to be the missing link for the intermodal transport sector.
Core values.
Introduction 02.04
The core values of Trucking and Control are quality, reliability and modernity. We aim to breathe these values in everything we do.
Parking sign Our core values come back in everything we do. Even our parking signs!
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External analysis 03.01
The market. The market consists of intermodal transport companies. The transport market is highly susceptible to fluctuations in the economy because a change in the economy directly means that there is a huge alteration in the volume to be transported. Consequently, when the economic crisis struck the transport sector was greatly affected and many companies took severe hits. Many driver/ owners had a rough patch and companies had to reduce their fleet size and their traffic managers. Now that the economy is getting better, companies need to expand their fleet and hire new staff. This is a giant opportunity for Trucking and Control.
THE MARKET IS RECOVERING
Units
Percentage
30,000
+60 %
Truck sales are shooting back up after the crisis +40 %
+20 %
15,000
+0%
-20%
-40%
0
-60% JAN 09-10
FEB 09-10
MAR 09-10
APR 09-10
MAY 09-10
JUN 09-10
JUL 09-10
AUG 09-10
% change year-on-year Commercial Vehicle Registrations > 3.5t in 2009 Commercial Vehicle Registrations > 3.5t in 2010 Commercial Vehicle Registrations > 3.5t in 2011
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SEP 09-10
OCT 09-10
NOV 09-10
DEC 09-10
JAN 10-11
Profitability.
External analysis 03.02
In the transport sector, 15% of companies earn well, 60% of companies barely manages to get by and the remaining 25% is fighting for survival. The difference between these companies is their core business, their organization and their cost control. Our core business is professionalizing the missing link in the intermodal transport chain. We have one office to cover the entire EU, supported by superb information and communication systems to keep full control over our operations, fleet and costs as well as over our customer’s cargo. Because of this we will achieve high profitability and be part of the aforementioned 15% of well-earning companies.
IN THE TRANSPORT SECTOR
Earn Well
only the most efficient earn well
15%
Barely manages to get by
60%
25%
Fighting for survival
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External analysis 03.03
The customer. Our customers are intermodal transport companies with a focus on the ones that transport liquids, such as Itco members. These companies would like nothing better than to not work with unprofessional partners anymore because they could cause them big amounts of stress and work.
TANKCONTAINERS This is what our trucks will be hauling around Europe
External analysis 03.04
Competition. Our direct competitors are tiny companies, often even owner/ drivers. As these small and mostly unprofessional businesses are creating the problem in the transport chain that our concept is designed to solve, we do not expect difficulties or fights for market position.
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Threats and opportunities.
External analysis 03.05
Threats Customer competition scare The main threat is that our customers might be afraid that we will become a competitor for them and steal their customers. This is not our goal in any way, but we will have to convince our prospects of this. We are willing to give them written guarantees that we will not enter their line of work. Customer aversion to change Prospects are used to working in a certain way. Our concept changes the way of working which will invoke resistance internally. Scarceness of skilled and professional drivers Currently there is a shortage of good drivers which will only increase in the future as drivers get older and retire. Less and less young western Europeans adapt the profession because laws made it less popular and harder to make good money.
External analysis 03.06
Opportunities Lack of professionalism in intermodal tankcontainer trucking Transport sector growth The world is currently recovering from the crisis. This greatly increases the demand for transport. ‘Green’ trend Intermodal transport is better for the environment than classic transport, because a boat or train is less polluting than a truck. As such, there are currently some companies willing to pay a premium for intermodal transport as they are putting effort into being green. While this premium does not directly affect us because our customers receive it, the green trend does increase demand for intermodal transport.
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GEERT VOS managing director
RANDY VOS executive secretary
ROB SMIT fleet manager
ANTOINE HOL planner
DRIVERS
OUR ORGANIZATION is small and thus efficient
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Organization.
Internal analysis 04.01
The trucking and control organization is ran by a handful of employees in the startup phase. Geert Vos is our managing director and an experienced businessman in the transport sector. Randy Vos is a process and system design specialist with a management BBA. He will be our executive secretary. Rob Smit is an experienced fleet manager perfectly suited for the same role in Trucking and Control. Antoine Hol will be our planner. Antoine and Rob will together manage our drivers.
Market share and positioning.
Internal analysis 04.02
Since we are professionalizing a niche market, our competition consists of mostly smaller companies and owner/ drivers. As such, we will be able to take a leading position in the first years of business.
Marketing.
Internal analysis 04.03
The intermodal transport sector is a small niche, where every company knows all others. As such, there is no need for us to advertize in any way. The name Geert Vos and to a lesser extent Rob Smit will open any door. To illustrate that we do not need marketing: before our website was online, before our office was opened, before we contacted any suppliers, rumors spread across the sector about Geert Vos entering the transport sector once again. No amount of marketing can realistically compete with this kind of buzz.
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Internal analysis 04.04
Sales. We want to build long-term relationships with our customers. To sell our product we will visit prospects with a business pitch book, very similar to this document. This book will then be used to present our concept to a prospect and he can keep the book for review later on. In addition we are looking at the possibilities for the development of a tablet app that can assist in our concept presentation. This would be like an interactive presentation, built similar to our website.
PROFESSIONALITY is extremely important to us, especially in sales
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Strengths.
Internal analysis 04.05
Experience Our staff is very experienced in the field of intermodal transport. This allows for easier lead generation based on the name Geert Vos and the acquaintances of Rob Smit. Their reputation also allows us to attract many experienced and skilled drivers. This is great because of the expected decrease in supply, as it allows us to deal with the threat of the upcoming driver scarcity. Polish drivers through Ambacht Plus. Ambacht Plus is a certified temporary employment agency specialized in Polish people. Ambacht Plus is not only our neighbor, but the shares are owned by Geert Vos. Our connection to Ambacht Plus allows us to select the best Polish drivers from a large pool of potential drivers. Because of their knowledge of the agency business combined with their experience with Polish staff it is possible to employ temporary Polish drivers through them at low but legal rates. Central organization Trucking and Control is a compact, centralized organization. Modern communication and automation tools enable us to exert great control over our fleet, drivers and costs in most European countries.
Internal analysis
Weaknesses.
04.06
Start up Because we are a startup company, we will suffer from startup losses. We need the capital to instantly reach critical mass.
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OUR OFFICE These few well equipped workstations keep our operation running and our overhead low
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Facilities.
Operational 05.01
The Trucking and Control office is located in Oss, Noord Brabant, The Netherlands. This location is convenient because it is close to the main supplier of drivers, our strategic partner Ambacht Plus. This will allow us to communicate directly with the Ambacht Plus employees and management team. In addition, in the case that any translation issues might arise, Ambacht Plus employs several Polish secretaries that can provide assistance. The facilities are an office and a meeting room. The office is suitable for up to five working stations. If we want to expand our facilities there is ample space readily available.
Drivers.
Operational 05.02
Our drivers will be selected on experience and training level so they can handle tankcontainers properly. Every driver will have to be ADR certified so they can all transport dangerous cargo. Developing a proper training structure will guarantee the quality of our drivers; we will select the best drivers to mentor inexperienced drivers and we will use their expert opinions to improve our communication procedures or other quality improvements. New drivers will only be allowed to drive alone after their mentors have deemed them skilled enough. There will be regular meetings between the fleet managers and the mentor drivers. The driving time laws will be respected, to keep our drivers happy, healthy and rested, keeping damage risks at a minimum and reducing absence due to illness. We believe that being a good, social employer increases driver motivation and consequently productivity and efficiency.
Financial administration.
Operational 05.03
Our financial administration will be controlled by FLYNTH accounting.
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Office
DYNAFLEET
â‚Ź
allows us to control our whole fleet from one central office
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Communication and Administration.
Operational 05.04
We will use Dynafleet to communicate remotely with our trucks and to keep control over our fleet. Dynafleet allows us to look at exact fuel usage, driving times, vehicle positioning and instant messaging. It displays exact fuel consumption, allows us to compare and thus optimize driving styles, signals discrepancies in fuel levels and shows in which way fuel consumption can be reduced per vehicle. The positioning shows location, speed, cargo type and allows our planners to immediately see the closest vehicle when an order comes in. It offers instant messaging at a set cost, allowing us to cheaply communicate with our vehicles anytime, anywhere. Their driver times module will allow us to monitor driver times meticulously. Their driver times module also allows us to use DynaWatch, a wage extension for Dynafleet, developed by Logicway. This module gives us exact information on the time spent on any action and combines that with the Dutch laws on transport sector wages (CAO), providing us with excellent insight into personnel costs and allowing us to correct driver wages when necessary. It also allows us to compare driver efficiency for loading and unloading, cleaning, etcetera.
Management information system.
Operational 05.05
Dynafleet gives us all the information we need, allowing us to analyze our vehicle and driver movement in great depth. We will analyze this data biweekly.
THE ONBOARD COMPUTERS of Dynafleet give us expert insight into performance and costs from a distance
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Operational 05.06
Stock management. Trucking and Control has contacts at BAS. We will lease our trucks from BAS and they will provide for us in case of any unexpected in- or decrease in the required amount of leases. This allows us to marginalize the effects of demand fluctuations.
TRUCKS will be provided for by our strategic partner BAS
Operational 05.07
Licenses and certificates. To be successful and emphasize our core value quality we will obtain the following certificates: • ISO 9001-2008 • HACCP-2006 • SQAS • GMP B4.1 • SCOPA Our trucks and drivers will be ADR certified, allowing them to transport dangerous cargo.
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Short-term goals.
Strategy 06.01
We aim to reach 75 vehicles in 3 years.
Long-term goals.
Strategy 06.02
We want to keep good control over our fleet, drivers and costs so we can stay centrally organized in one location. Instead of growing in one location, we want to expand by starting up a new unit which is set up identically in another part of Europe, for example the north of Spain, for the Mediterranean area and later on Eastern Europe or Turkey with another unit.
Future opportunities.
Strategy 06.03
When we are satisfied with our systems, organization
Guaranteed
Quality
and profitability, we may look into providing interchange guarantees for our customers. For a price, of course. We can offer this guarantee at a good price because our drivers are specifically trained in handling tankcontainers keeping damages low.
Tankcontainers allow us to expand in other areas of business as well. We could, for example, start renting out containers or refurbish them.
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GLOBETROTTER CABINS provide our drivers with a comfortable working environment
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Timeline.
Strategy 06.03
With our goal of increasing our fleet to 75 vehicles in 3 years, our turnover increases rapidly.
Driver costs Office costs
Vehicle costs
Fuel costs
Turnover
Timeline 2011 2012 2013
Consequently our fuel costs, driver costs and vehicle costs increase rapidly as well. Because of our efficient and centralized approach, our office costs stay low.
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“ If you treat a person like an idiot he will act like one” Rob Smit- fleet manager
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THE BIGGER THE COMPANY GETS the less efficient it becomes
Future organization.
Strategy 06.05
We aim to keep our organization small. This allows for short communication lines and low overhead costs per driven kilometer, increasing profitability. Good communication and planning systems allow for efficient control over our fleet where others waste time and money.
KEEPING OUR ORGANIZATION SMALL
Organization growth
Fleet growth
keeps us efficient
First year Second year Third year
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Budget 07.01
Budget 2011. For privacy reasons the data on this page are fictitious.
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Driver costs
Turnover
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Budget 07.01
Budget 2013. For privacy reasons the data on this page are fictitious.
Tabel Porum eaquam, quis vent nonseque oditati.
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Chart Porum eaquam, quis vent nonseque oditati.
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Driver costs 2011
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Liquidity 07.01
For privacy reasons the data on this page are fictitious.
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Porum eaquam, quis vent nonseque oditati.
Chart Porum eaquam, quis vent nonseque oditati.
Invest
Driver costs 2011
Turnover 2012
Office costs
Fuel 2013
Tires 2014
“ Graphic design is about visualizing information� Stefan van der Heijden - VDH graphic design
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