SUBJECT NAME

BLG 20203
LOGISTICS MANAGEMENT

FINAL PROJECT

Prepared for
KHAZIZUL MAULOD BIN PAHIM

Deadline
7TH DECEMBER 2020

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Table of Content
Content Page
Introduction 3-5
Business Plan 6
Executive Summary 6
Company Description 6-7
Market Analysis 7-11
Operational Plan 13
Operational workflow as company 13-17
Marketing and Sales 17
Funding Plan 18
Financial Projection 19-21
Operational workflow on dept. level 22
Supply Management 23-28
Challenges faced by company 28-30
Conclusion 30-31

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1.0 Introduction

1. CEO

The normal duties, roles, and job description of a CEO include: engaging on behalf of the
company with customers, elected officials, and the media. Driving the execution of the
company's short and long-term agenda. Creating and implementing the company or
association's vision and intent.

2. Chief Financial Officer

Responsible for handling a company's financial actions. The responsibilities of the CFO
include managing cash management and strategic planning and assessing the financial
successes and limitations of the organisation and recommending corrective measures. As
they are responsible for overseeing the finance and accounting departments and ensuring
that the financial records of the business are correct and performed in a timely manner, the
position of a CFO is similar to a treasurer or controller.

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3. Chief Operating Officer

Tasked with overseeing a business's day-to-day logistical and organisational activities.

Usually, the COO reports directly to the Chief Executive Officer (CEO) and is known as
second in the command chain. "executive vice president of operations,"executive vice
president of operations,"chief operations officer,"chief operations officer,"operations
director."operations director.

4. Chief Commercial Officer

The Chief Marketing Officer of an organisation is accountable for overseeing the aims and
execution of all commercial initiatives. Next, they take the lead in detailing the concept of
strategies adopted at a national commercial level by the organisation and need to ensure
that they meet the annual budget of the company. They are also responsible for establishing
and executing priorities and strategies and determining the workforce's planned success
expectations.

5. Human Resources Manager

Managers in human resources prepare, guide, and organise an organization's administrative

functions. They oversee the training, recruiting and hiring of new hires; collaborate on
strategic planning with top executives; and act as a liaison between the administration of a
company and its employee

Company backgroud

Rhino Express strongly believes in providing quick, precise, reliable service to meet the
requirements of our customers and strive to surpass their standards in order to achieve
business productivity. In order to enhance our performance to achieve customer loyalty, we
are fully committed to continuously improving our quality management system (QMS). In
both major and small cities, we offer next-day delivery, our core business, to our customers.
Via our network system, thousands of documents and parcels travel daily and arrive at the
receiver the very next day.

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Company Logo

Vision: To be an express carrier of choice

Mission: To be a powerful logistics tool to make the customer life easier and give them
more time to focus on what really matters and enhance our effectiveness to achieve
customer satisfaction.

Abstract: The main aim of this report is to understand how we operate the logistics
outsourcing business and to learn their process of what kind of efficient transfer and storage
of goods is planned and carried out in the specified region from the point of origin to the
point of consumption. The company's goal is to meet customer expectations with our service
in a cost-effective and timely manner.

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2.0 BUSINESS PLAN
2.1 EXECUTIVE SUMMARY
Rhino Express 3rd party logistics (Transportation) Services was formally registered to provide
logistic shipment transportation services. It was conceptualized by an ambitious
entrepreneur Muhammad Aziq Aqil bin Ibrahim who is currently our Chief Executive Officer
(CEO). He intends to work with other committed, dedicated and passionate partners who are
interested about the logistic business. This exciting start up business will be located at
Bandar Puncak Alam, Shah Alam. Rhino Express intends to provide convenient, safe,
secure and cost-effective distribution solutions. Our business is optimized to cater towards
transportation services for any Small and Medium Enterprises companies who wish to
engage in manufacturing, retailing and as well as distribution. The business will also offer its
services to individuals as well as other corporate clients.
Our company will take care of certain aspects of the supply chain operations of a company.
Typically, we will provide require transportation procedures to be properly defined and
enforced. In this section of the plan, we will find all the operational aspects required to run a
third-party logistics business successfully including the establishment of proper asset
protection programs, schedules and staff required.
Other than that we also have operational plan which is show the picture of how a team,
section or department will contribute to the achievement of the organization’s goals. The
operational plan maps out the day-to-day tasks required to run a business and cover.

COMPANY DESCRIPTION
Rhino Express plans, implements, and controls the movement and storage of goods,
services or information within a supply chain and between the points of origin and
consumption. We also handle some or all of these supply chain functions, depending on a
client's logistical needs such as normal delivery and emergency delivery.
Rhino Express typically specialized in transportation services which can be scaled and
customized to customers’ needs based on market condition, such as demands and delivery
services requirements for client’s products and materials. These services go beyond logistics
and include value added service related to the production or procurement of goods.
Our fulfillment at Rhino Express as more than the logistics of shipping and delivery. To
ensure our customer receives their product quickly and in perfect condition, we truly partner
with

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clients. We are proud of achieving both needs and those of our clients. Our unique approach
has proven to be a huge advantage for our customers, who benefit from our experience to
meet any fulfillment service need.

2.2 Market analysis

Demand
Porter Five Forces Analysis

2.2 Rivalry among existing competition

2.2.1 Number of competitors
There will be a large number of rivals divided into two categories of existing businesses and
new start-up companies that have recently entered the logistics industry For example, for
existing businesses, J&T Express and Tiong Nam. The newly entered businesses such as
Ninja Van and Lalamove.
2.2.2 Quality Differences
There are few aspects related to service and customer loyalty in terms of quality. Current
businesses have a higher quality service offered by the company since they are well
experienced in transport logistics.
2.2.3 Customer Loyalty
This is where the supplier and the consumers want to trust the same businesses that are
already in the market because of the company's safety and security. Customers tend to
repeat the order or service from the same company as they trust the company and their
service given.

2.3 Threats of New Threats

2.3.1 Time & Cost of Entry
It would take a long period of time to start a logistics business. Here is where we need to
determine the cost of the vehicles, trucks and other specifications required to start the
company. Startups such as our company need to build a financial projection or financial
forecast to identify the cost needed to start the company.
2.3.2 Specialist Knowledge
Without a proper understanding of the market, new startup needs the amount of information
about the essence of the business and the company's operating strategy requires that the

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startup tends to make mistakes before starting the business. Build new connections or
broaden the business interest by meeting people and learning more about the process of
starting the business.
2.3.3 Barriers to entry
There will be obstacles to the new startup here is where the warehouse, supplier and
consumers have already agreed in their business not to take the new startup this is due to
the previous event with the recommendation that fails. There will be trust issues on the
company as we are freshly on the market with no company experience and where we work
before.

2.4 The Bargaining Power of Suppliers

2.4.1 Number of suppliers
There is a wide group of manufacturers needing products to be shipped out of states where
their business does not have enough trucks and workers to accommodate all their
customers' ordered goods.
2.4.2 Cost changing
If they capture much of the value for themselves by acts such as increasing prices or
reducing services, suppliers are big. Powerful suppliers in the transport industry use their
negotiating power to obtain higher prices from companies in the transport sector. The net
effect of higher supplier bargaining power is that it decreases the transportation company's
overall profitability.
2.4.3 Able to substitute
As a result of getting a comparable service at a lower price and the same quality, suppliers
would be able to modify or replace the transport company. This helps to terminate the
contract with the sub-contractors and give the company the cheapest service offered by the
other company.

2.5 The Bargaining Power of Buyer

2.5.1 Number of customers
Because of the cheaper price we offer to customers, a significant number of customers
choose to use our service, which tends to add customer loyalty and attraction to our service
offered by the company.
2.5.2 Differences between competitors
In terms of price, the company's service and confidence earns the customers' purchasing
power. Customers often choose low rates and good service as they are able to save

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transport services costs.

2.5.3 Cost changing

When the suppliers modify or raise the cost of the goods or services, it tends to make
consumers find a better price for another transport and the same quality service offered by
the business for another transport. This tends to make customers dissatisfied as before the
price varied from the current price that affects the transport company.

2.6 Threat of Subsitution

2.6.1 Changes in Perfomance
If our company's service is not reliable, it appears to lose performance and eventually affects
the reputation of businesses in the logistics industry. This is when consumers or suppliers
prefer to avoid doing business with us. Lost faith is demanded in the company that
completed the service.
2.6.2 Less influence in new strategy or ideas
As a young start-up business with little expertise and presence in the logistics sector,
consumers or suppliers tend not to use our services and choose companies with better plans
and concepts to complete the services required to perform. Customers and suppliers would
have little trust in continuing the company with us.
2.6.3 Cost of changes
Customers want a lower transportation price and the manufacturers want to gain money
from the company. There will be increases in transportation prices as the suppliers need to
cover the cost of the items or supplies sold to the customers. This tends to make customers
unsatisfied and other suppliers seeking other alternatives.

2.7 Rhino Express SWOT analysis

2.7 Strengths
2.7.1 Specialist marketing expertise

Rhino Express Specialist provides and produces the right ads to draw buyers and suppliers
to our product we offer in the logistics industry. Various forms of marketing for the business
and services are developed to build and increase visibility in the market when we are a
young start-up company. This is one of our strengths to attract customers and suppliers to
our company and all desires.
2.7.2 Location of our business

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Rhino Express is located at Shah Alam is well served by an excellent road network.The
suburb is linked to Kuala Lumpur,Petaling Jaya,Shah Alam, Klang and other population
centres in the Klang Valley.Most of our suppliers are from Klang Valley areas which makes
us easier for loading the goods right in time.

2.7.3 Secure transportation for suppliers and customers

Rhino Express ensures a reliable delivery of merchandise from point A, which is the factory
to point B, which is the store lots. We ensure that the goods are delivered safely to the
destination and minimise harm to the products. This generates satisfaction with our service
offered by consumers and suppliers.

2.8 Weaknesses
2.8.1 More dependence on local supplier

As a young start-up company and joining the logistics industry, we are more likely to rely on
the local supplier on contracts needed to operate the company. We will have to submit our
business proposal to suppliers to attract them to start our business with our services.
2.8.2 Lack of funds to do research and development

In order to get us a right picture in the logistics business, we are more focused on trucks and
headquarters. Most definitely, our organisation continues to fall behind in terms of research
and growth, which impacts the efficiency of the company and could lead the company to
difficulties in the growing market to survive.
2.8.3 Trust issues (Services)

Customers and vendors appear to doubt our businesses when we are a young start-up
company. This may also lead to cancellations of contracts. This is where our company
needs to fight back and show to the public that we are worthy of this industry and trusted
transportation business. Customers and suppliers are more likely to be inefficient relative to
the other local rivals.

2.9 Opportunities
2.9.1 Expansion of local transportation
Our company will have the potential to broaden global shipping networks and also widen our
business services to different types of vehicles for different types of services that we will
offer to customers.
2.9.2 Local competitors with poor service

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There are also rivals with a lack of investment in their research and development, which
gives them the benefit of overtaking competitors in terms of revenue and business branding.
2.9.3 Continuos improvement to increase awareness of our company
In order to raise the brand value of the logistics industry, our company will invest in research
and growth. This is to advertise our company to the national through social media to promote
our business services in the country. We are able to build a stronger reputation for our
company.

2.10 Threats
2.10.1 Competitor has a new innovative substitute
There are many rivals and many innovation techniques that could cause a challenge to our
industry where consumers or vendors are drawn to their services or goods supplied by their
firm.
2.10.2 New competitors in market
As logistics is a never dying industry, there will be many more start-ups. This is where we
are able to see many kinds of different businesses with their services linked to demand and
supply for the current scenario or climate.
2.10.3 Price war
In this market, there are multiple rivals where firms aim to offer inexpensive shipping prices
to draw consumers and vendors to ensure that their consumer interest is not lost. This would
be a challenge to our business as we need to provide the other competitors with a better
price to fight the price war.

SERVICE LINE
Rhino Express manages inventory shipments between distributors and factories or between
retailers and customers, concentrating on logistics facilities. These consist of shipping
services who also move big packages from one state to another and small package
shippers. Our main services are where we receive goods from vendors' warehouses and
deliver them to the point where the goods need to be delivered. Then, the part of refunds are
part of the buying process and an important part of the consumer service as returns are
made, whether the item is purchased by accident, broken during the delivery process or
other different factors. One thing is for certain that we would like to hear positive reviews
from clients when we perform a business deal with consumers. Strong feedback reflects
good quality, pleased buyers, and they will act as our brand reputation in the long run and
boost our revenues. And by using the best courier at the right time, the most successful way
to accomplish this outcome is. The explanation that choosing the best courier affects

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consumer input is that consumers want goods to be shipped in decent shape in a shorter
period. Hence, we have equipment to collect faulty product and return them to our
warehouse. The most complex and costly part of the delivery process could be shipment.
Also, Rhino Express's route range is available in both eastern and western Malaysia.
Secondly, we provide which is the e-commerce service that enables the recipient to
pay cash on arrival is what makes Rhino Express courier unique (COD). Furthermore, the
most difficult and delicate part of the delivery process could be shipment. Fulfillment is the
method of storing inventory, sorting and packaging items, and sending consumers online

orders. An e-commerce business can complete this task in-house or outsource it to a

third-party logistics (3PL) provider. Thus, we provided consolidated shipping. Because of the
effect is the combination of several LTL shipments from separate shippers into one complete
container shipment (multi-stop truckload). Consolidated shipping enables shippers to receive
preferred prices which by saving time and minimizing costs, helps maximize supply chain
logistics. Therefore, we decided to provide clarification around the word and its association
with the shipment industry to help break down consolidated shipping and why it is so
relevant. We have listed a couple of the opportunities and future obstacles in order to do so.
The advantage of it being cost-effective. Most shippers find this is the most significant
advantage of consolidation. Usually, if we use just half or two-thirds of a trailer, we would still
have to pay for the whole room. And the probability of injury reduces. Damaged shipping is
also a lingering concern, even with all the developments in freight transport.
Finally, we have to Business to business (B2B) or Business to retailer (B2R) are
linked to our core business model. For example, we take products or any goods from the
SENHENG company and sell them to another shopping complex or any malls. The B2R
fulfilment process is similar to B2C, although on a bigger scale. The order is requested by
the manufacturer and the 3PL picks, bags, and ships the order. The orders are also
delivered to hundreds or thousands of the retailer's stores in stock on large pallets. For the
distribution firms, labor and suppliers, these orders need a lot of teamwork.

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OPERATIONAL PLAN - OPERATION WORKFLOW AS A COMPANY

1. THE WAREHOUSE (HQ)

The only thing left before it reaches the warehouse is to optimize the product to
be delivered after the customer has already taken the order from their customer,
packaged and packed. This solution involves not only the distribution facilities but
a strong view of what fulfilment requirements occur at any given time. A
technique like this may be heavily dependent on changes in seasonal
requirements. We must determine if we want to deliver our goods to consumers
and how much to charge them for delivery before we first order. In order to cover
all of our goods and distribution sites, we will mix many shipment methods in our
shop. Hence, a warehouse coordinator should be automatically notified until all
orders are loaded and ready to go and a warehouse associate should be directed
to load the order on to a trailer.

2. SELECT A DELIVERY FORM

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 Now that we have measured the shipping costs for our product line, we will need
to set it up to determine if the shipping expenses will be charged by us to the
customer, or a mixture. To cover all of our goods and destination areas, we will
add as many delivery methods as we need. Many companies outsource whole or
part of their products to 3PL suppliers. This is where customers can use the
services of our business to help them transport their goods to their clients.

3. CALL CENTER HQ
The call center is a main focus from which all communications with consumers
are handled. Valuable business information is filtered by contact centers to
suitable persons, connections to be registered, and details to be obtained. It is
usually part of the company's infrastructure for customer relationship
management. As a way of handling their client experiences, most big
corporations employ call centers. This is where the bond for transportation
between our customers and us as 3PL logistics starts. For examples of strong
customer support include recognizing and appreciating frequent clients, creating
a local bond with shoppers, making good use of the product information, and
more.

4. THE MANAGER
Our Manager HQ will be updated accordingly after approval of customers wishing
to use our services. An definition of a manager is the person in charge of
customer service, dealing with customer disputes and supervising and managing
customer service officers.

5. ORGANIZE AND SCHEDULLING THE TRANSPORTATION

Not every organization has big transportation requirements, while others focus on
transportation as the basis for meeting corporate targets and distribution of
goods. In order to deliver goods to the place offered by our client to the customer,
our Rhino Express is under 3PL logistics company transportation includes
options for short and long-distance trucking. There will be occasions where many
different transport options are used in transport strategies. Scheduling of
transportation facilities and operations to be undertaken according to the
corresponding collection assignments

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 6. SHOWING UP AT THE WAREHOUSE TO LOAD SUPPLIES INTO OUR
TRUCK The receiving process is imperative when we speak about operating a
successful warehouse project. It is necessary to bear in mind that the aim is to
obtain the right product at the right moment, in the right quantity, in the correct
condition, weight, and measurements. So, when our truck arrived at our
customer's warehouse, these were the steps.
- Pre-receiving: We would need to establish and enforce receiving criteria for
manufacturers, shippers, and/or carriers for the warehouse receiving process

- to operate effectively. Where appropriate, make the warehouse manager

organise packaging requirements while dealing with suppliers, such as:
Label position
Label information
Palletized or loose cargo
Number of packages per pallet
Items per carton
Acceptable package size and weight
- Labour and Booking: Allocating the correct number of man hours is another
critical aspect of optimising the warehouse receiving process. Failure to
adequately plan for the amount and form of freight passing through the gates
results in human resources being under- or over-allocated. Considering that
labour is among the highest operating costs for warehouses, it is important to
balance workload demand with workforce availability. Warehouse managers
are able to balance workload demand with workforce availability by
understanding what freight is coming in and at what time.
- Unloading: The goal during the unloading process is in general, to safely and
efficiently unload product. Checking seals, recording temperature data (in the
case of perishable goods) and validating the reference for the booking are
part of this process. Assign a bay once this is done and start the unloading
process. In order for the unloading process to be successful, we need to
ensure that the working hours are correctly allocated and that the right
equipment is available for the job.
- Verification: The final step in the receiving process is to perform a standard
inspection process that involves verification of the quantity obtained, product
description, product code, and product condition, whether or not harmed.

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 For shippers or consumers who do not have control over packaging, they are
expected to provide simple, accurate details and to notify the warehouse of new
shipments that have arrived. And, warehouse operations must begin with a
coordinated receiving process to operate efficiently. They must ensure that they
showing up at the our warehouse to load the supplies into our truck and to
perform at least the usual activities (pre-receiving, labour and reservation,
unloading, verification) when receiving, and implement some of the best practises
and warehouse technologies mentioned in this post.

7. DELIVER DELIVERY NOTES TO BE DELIVERED WITH ALL THE ITEMS

Our customer's warehouse must supply our truck driver with delivery notes to
transport the goods from the delivery notes delivered to the destination. While
notes obtained are discretionary, each of them should always adopt a certain
format, regardless of whether we use the programmed for delivery notes or build
our word prototype for delivery notes. Communication between both the sender
and the receiver must be direct. Therefore, the delivery note has to show:
The seller's name and contacts information.
The customer's name and contacts
information. Day since the issue.
Delivery date of the products.
A summary of the items in the order
included. The sum of each form of product.

8. FOCUS ON PROVIDING MERCHANDISE TO THE GIVEN LOCATION

From one retailer to another the activity of freight to the given location which is
handling differ. The size of the delivery, the variety of goods, the place of
reception and the manner of marking each play a crucial role in the handling of
goods. They may be in plastic bags, cardboard cartons, wooden boxes, or other
packages before the goods arrive. There may be some goods on hangers and
others are on pallets. Each phase in freight handling can be performed quickly
and efficiently. The next step in handling shipping is to examine the goods until
the shipment has been approved at the given location. Separately from the
shipment, some suppliers can mail an invoice.

9. CUSTOMER REVIEW & SIGN THE ORDER OF DELIVERY

A evidence of delivery must be provided to show that the delivery of merchandise
has been completed and arrived at the given location and can also be placed in

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 ours database. The retailer is responsible for the entire shipment, as-is, once the
receipt for goods is signed.

(REVERSE LOGISTICS)
If the materials are affected in some way. Within 3 or 5 working days of
obtaining their item at our warehouse HQ, the return/refund request will be

processed and they will be informed of the result via in-app push notification
and email.

10. PROCEED BACK TO HQ

Our truck driver must return to our headquarters after delivering the goods to the
given location to deliver all the information about proof of delivery to our servers.

MARKETING AND SALES

To begin with, in terms of marketing and sales, our company Rhino Express will
utilize multiple platforms to market our newfound logistic company. Our marketing strategy
are very simple yet complex. We will be using online platform as well as offline platform.
These are the simplest yet effective ways for a startup company to market their products.
Nowadays, the power of technology does not only reside in a small part of our lives.
Technology are becoming more and more apparent and some individuals relies on online
platform such as social media to receive information. We brainstorm as a company to find
the best and most-suitable way to market our product, and the answer is through social
media. The main reason why social media works well as a marketing platform is because the
number of consumers in the database are increasing more than ever. Rhino Express can
compile relevant information that are eye-catching and then market the info into various
high-traffic social media platforms. The average consumers in Malaysia spends 2-3 hours on
platforms such as Instagram, Facebook and Twitter each and every day. Our company might
as well capture the opportunity to increase our sales, hence generating more revenue as
well as making our company known to the public.
In terms of our other strategy which is offline platform, we will be using the classic
old-school marketing method in order to market our brand. Our offline marketing and sales
strategy include cold calls, print advertising and publication as well as general face to face
engagement and networking. To shed some light into our strategy, cold calls is a strategy

17
where our companies salesman contacts people who have not recently expressed interest in
our offered services. Cold calls regularly allude to requesting by telephone or selling, yet can
likewise include face to face visits, for example, with entryway to-entryway sales reps. That
is why our company is called Rhino Express because we not only ship our customers items
swiftly but also to try and to have a more personal connection in expressing with our end
users.
We believe that by applying the various strategies as mentioned above, we can not
only market our product and increase our revenue but to also have a better overall brand

image. We want to satisfy our customers but at the same time put their trust in our company
and in achieving so, we have to be better than our competitors.

FUNDING PLAN
In terms of our funding plan, Rhino Express business capital and shares are divided to a
9:1 ratio which is equivalent to a total amount of RM4,500,000. The amount is consisting of
roughly 90% capital and 10% shares. Our company’s capital is roughly RM4,050,000 and
our shares accumulate to RM450,000. The amount of contribution in our shares are divided
into the 5 of us. A contribution of RM90,000 from each of our founding members. In addition,
currently we need a funding of RM4,050,000 for our business capital which our Chief
Financial Officer (CFO) will try to apply through Menara Maybank that is located at Jalan Tun
Perak, Kuala Lumpur. The initial loan deal that we are looking forward to comes with a 5%
interest rate in the span of 10 years. The interest rate and payment duration were set based
on our initial cash flow.

To add things into context, it is possible for us to not buy the landed property for our
warehouse which accumulates to over half of our capital, however we as a team believe that
buying a landed property is an investment for our company. The warehouse not only acts as
a port but also as our headquarters. We are currently looking forward to open our first
warehouse that is located at Bandar Puncak Alam.

The main reason as to why we need to apply for this funding is because we need a bigger
capital for our new company. The total amount of business capital will cover our initial
expenses that includes vehicles and etc. Our sales logistic company requires the funding to
aid our expenses in the future. By providing the loan, we hope that we are able to
successfully rum our company in the near future.

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FINANCIAL PROJECTIONS

RM RM
TOTAL CAPITAL 4500000

EXPENSES
1) LORRY (3 TON TRUCK) 115000 X 5 575000
2) VAN 100000 X 3 300000
3) MOTORCYCLE 5000 X 2 10000
2) LAND / RENTAL 3200000

3)OFFICE EQUIPMENT
COMPUTER (8 UNITS) 2200 X 8 11000
PRINTER (5 UNITS) 560X5 2800
TELEPHONE (6 UNITS) 120X6 600
DESKS (8 UNITS) 450X8 2250
CHAIRS (8 UNITS) 190X8 950
AIR CONDITIONER (6 UNITS) 1200 X 6 6000
TROLLEY (7 UNITS) 130X7 910
4109510

4) UTILITIES
ELECTRIC BILL 2800
WATER BILL 1300
TELEPHONE & UNIFI 1000
5100

5) WORKFORCE
EXECUTIVE OFFICER (5 PERSON) 5000 X 5 25000

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CUSTOMER SERVICE ( 3 PERSON ) 4000 X 3 12000
LORRY DRIVER (3 PERSON) 3500 X 3 10500
VAN DRIVER ( 3 PERSON ) 3000 X 3 9000
MOTORCYCLE DRIVER (2PERSON) 2000 X 2 4000
ASSISTANT (4 PERSON) 1500 X 4 6000
66500

6) MAINTENANCE (3 TON TRUCK)

SERVICE (3 LORRY) 2000 X 3 6000
ROADTAX 1500 X 3 4500
INSURANCE 300X3 900
SERVICE ( 3 VAN ) 1500 X 3 4500
ROADTAX 900X3 2700
INSURANCE 200X3 600
SERVICE ( 2 MOTORCYCLE ) 100X2 200
ROADTAX 200X2 400
INSURANCE 100X2 200
20000
TOTAL EXPENSES 4201110

(4500000 – 4201110)
= 298890

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MONTHLY EXPENSES RM

LAND 13200 MONTHLY

TOTAL UTILITIES 5100

TOTAL WORKFORCE 66500

TOTAL 84800

MONTHLY REVENUE RM

CONTRACT ( PER ) 50 000

TOTAL CONTRACT ( PER MONTH ) 3

150 000
TOTAL

PROFIT
TOTAL PER MONTHLY REVENUE - TOTAL PER MONTHLY
EXPENSES RM150 000 – RM 84 800 = RM 65 200

OPERATIONAL WORKFLOW DEPARTMENTAL LEVEL

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 SALES/
CUSTOER
SERVICES

PURSHASING/ FINANCIAL/
MANUFACTU
RING CEO ACCOUNTIN
G

TRANSPORTATIO
N/ LOGISTICS

CUSTOMERS

REVERSE INVENTORY ORDER

LOGISTICS MANAGEMENT MANAGEMENT
SYSTEM

WAREHOUSE
MANAGEMEN 3PL

TRANSPORT CARRIERS FREIGHT

PLANING MANAGEMENT

TRANSPORT
FLEET
MANAGEMENT
MANAGEMENT
SYSTEM

REPORT & BI DELIVERY

22
2.17 SUPPLY MANAGEMENT

23
In terms of transportation, Rhino Express is Third Party Logistics company that focus on
transportation which move product efficiently and safely from one point to another point at the
least cost and best service. Our purpose is to maintain product safety throughout the delivery
process.

Roles in Operations
In terms of roles in operations, transportation is the main fundamental activities that we will be
handling. Our company will assist manufacturing companies around this area to deliver their
orders or perishable goods by providing our 3PL logistics services. Our company will deliver
products that assigned to us by several companies around Selangor to other neighbor state
according to the contract given.
Types
In terms of types, our company will use full road transportation by using our own assets to
accommodate the demands such models, color, design features from customers. The main
reason that our company choose road transportation because we believe that we can manage
handling goods by road as a method of transportation by possessing necessary number of
lorries, vans and motorcycles to carry out our services.
Supplier
Our company's transport product consists of 5 units of 3-ton lorries. The lorries are from Isuzu.
There are also 3 units of vans and 2 units of motorcycles in terms of transportation. We have
completed some surveys in Malaysia for which the lorry brand is known for its performance, and
not to mention, it is well in our means of budget which is why we prefer to use Isuzu to satisfy
our logistic company needs.

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 Example of our lorry

▪ Fleet details
As far as truck specifics are concerned, our fleet will consist of 5 units of 3-ton lorry
units. The fleet will use the new 2019 Isuzu NPR PRO platform with model number
NPR8UKH-2E and 4HL1-TC engine type, 4-Cylinder In-line, 4Cycle, Water-Cooled
OHC, Turbo with Intercooler engine type for the engine model. The MYY-6S / 6-Speed
Manual is the transmission type. This design is known as a type of box van with a load
weight of up to 7500 kilograms.
▪ Internal
Our business will internally have all the assets for transportation. Our company has 5
units of 3-ton lorries, 3 units of van and 2 units of motorcycle. We also concentrated on
consumer value and loyalty by using both of these. We are committed to bring
satisfaction to our potential customers who uses our service. Our company also offer
multiple unique services on the market such as emergency delivery and weekend
shipping.

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INFRASTRUCTURE AND NETWORK

THE WAREHOUSE: So, for the network infrastructure refers to all of a network's
resources that support network or internet access, management, business and
communication operations. So, the network infrastructure enables users, software,
facilities, devices and so on to connect and serve very effectively.

a) Data Flow (LAN & WAN)

Mapping our data flows will contribute to a strong understanding of what our
network might look like and part of this is to see where the information flows
from and to.
b) Understand the physical environment
At this point, we still want to consider our company's future and what it means to
our network. If costs are to be held to a minimum and efficiencies are to be kept
high, the scalability of networks during periods of growth is important.
c) Mobile Device Selection
The required handheld scanning/computing devices can be selected based
on an in-depth understanding of what you expect to achieve from your
automated warehouse investment. For example, choosing the data capture
technologies for a company that ships small products, such as bags of
screws or nuts and bolts, would therefore be substantially different from one
shipment for the automobile industry of white goods or parts.
d) Network Security
Security should be 'baked-in' to the entire process at all stages, in our view,
and indeed experience, and putting it fourth in our checklist should in no way
suggest a lack of importance.
e) Support
By doing some basic of math’s is the best way to approach a network support
contract and to evaluate its probable monetary value to our company.

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 Roles in operation
Logistics strategy and management, warehouse, transport and consumer care. Total
order cycle guidance, optimization and teamwork. Liaising with vendors, distributors,
dealers and customers and negotiating with them. In the positions in this role in
operation, we each have a position. By the way, we haven't had warehouse contracting
facilities in our logistics business so far. Accordingly, we do not have enough expertise
and resources to supply ourselves with warehousing facilities. Since we do not care
much about it and we do not think about spending more money in the logistics of the 3rd
party yet it is sufficient for us to have very little information and experience in this area,
so outsourcing in the field might not be reasonable or not too deep. Besides, we
acknowledged that this outsourcing has certain benefits, but still has some risks. It is
critical to keep partnerships with third parties that take over the outsourcing role. This
involves negotiating and signing contracts that include the time and participation of the
legal advisers of the company, as well as day-to-day contact with and monitoring of
outsourcing work. And, the working group then discussed the problems of transportation,
transport of supplies of goods, choice of premises and technology, and machinery at one
point. So, for now each of us have a position every task that were given. At the same
order to achieve a balance between the aspects listed, takeovers are required. So, when
a working party achieves thorough preparation steps, it works by highlighting the
following steps, according to the process will be started in logic such as selection of
place for warehouse, internal and external territorial planning, study of the premises
inside, equipment needs inventory, capacity forecast staff warehouse and individual
operational planning. We did not think much about it, though. But in outsourcing, safety
is an important factor. The arrangement eventually requires access to sensitive business
data, trade secrets and other classified information required for the execution of contract
services by third-party entities. We learned that as outsourcing results in the elimination
of many jobs, there are often detrimental consequences of negative partnerships with
firms.

Numbers and Location

We've got one warehouse right now which is our one and only HQ. The location of our
HQ warehouse is in the Bandar Puncak Alam area.

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 Type of warehouse
The warehouse has 1.5 semi-D-FACTORY floors. The square-feet of our warehouse is
4963. The warehouse was purchased by our owner for RM 3,232,000. The land size is
10875 square-feet. The land area 10,875sf (75’x145’). The warehouse was built up for
4,963sf, the ceiling height is up around 8m. The floor loading which is 10kN/m2 which is
GROUND FLOOR. Hence, for the power supply we have 3 phase 150 Amp and the
mezzanine floor is 20’x41’.

CHALLENGES AND ISSUES COMPANY MAY FACE AT BEGINNING

-TECHNOLOGY ADVANCEMENT
It has become imperative for logistics companies to implement modern and innovative
technology solutions. Since labour is scarce, competition is intense and consumers have
become more demanding, technical advances will increase productivity by reducing time, cost
and error.
Automation systems/data-driven software solutions such as advanced packaging labelling and
warehouse sorting have become daily requirements. Shipping tracking systems allow
businesses to track their shipments around the clock, receive alerts and updates, and set up
personalized reporting. Data Analytics can help enhance customer service, operational
performance and protection. A variety of key players in the logistics industry have embraced
robotics and autonomous machinery. This aid in dramatically reducing the time taken to
complete and produce orders.
The Internet of Things or better known as IOT can play a key role in mitigating risks and
ensuring the safe distribution of goods. The best fleet management system connects to
advanced sensors installed into new generation trucks. This programmed offers real-time in-
transit visibility for vehicles, on-board shipments and main vehicle parameters. Thanks to cloud
computing, many of the tech solutions are relatively inexpensive. Many organizations, however,
lack skilled manpower tools to genuinely gain knowledge from them.
-SUSTAINABILITY

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There is a significant emphasis on reducing pollution, mostly due to anti-idling and emission
reduction legislation by governments. However, not only that, this is also due to public
expectations and cost savings. Companies may comply by optimizing route and load,
monitoring and reporting emissions, updating engines and selecting alternative fuels. Also, not
to mention the new truck models come with the best engine efficiency, emissions enforcement
and much better mileage. They deliver significant savings in the long run, but need high upfront
costs which may be a challenge for a new logistic company to maintain.

-IMPROVING CUSTOMER SERVICE

Nowadays, markets are competitive, supply chains have become longer and more complicated,
and consumer preferences have shifted, both in terms of delivery times and quality of service.
Customers now also expect their logistics partners to solve challenges and help them thrive in a
competitive world
This means that logistics partners must recruit the best people with the right skills and attitude.
They must also concentrate on strengthening and standardizing customer service in all
geographies, platforms and touch-points, be they in-person encounters, phones, online
conversations, emails or social media. It is without a doubt, the most important part for any
company to get right.
-DRIVER DEFICIT
In every part of the world, truck drivers have challenging and demanding jobs. With increased
government controls, businesses tend to be more selective in recruiting. It may be an issue for
any new logistic company to recruit a new driver. However, with the proper candidate, company
should not take their employees for granted especially truck drivers. It is a job that requires an
enormous amount of skill and also a legitimately hard license to obtain especially here in
Malaysia.
-IMPACT OF THE ECONOMY
Political uncertainty, decline in manufacturing output, rise in consumer price index, inflation and
etc. These are the negatively impact demand for goods and services, which also affects freight
demand. Government spending in infrastructure projects, on the other hand, raises incomes and
demand for goods.

HOW TO MINIMIZE THOSE ISSUES

-TECHNOLOGY ADVANCEMENT

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In terms of technology advancement, logistic companies should invest in multiple technology or
software that enables them to ease their day to day workload. Technology such as advance
package labelling and warehouse package sorting should be mandatory for any logistic
company that requires the use of any of these machines. It may be expensive at first, but in the
long run, it will definitely be worth it.

-SUSTAINABILITY
Sustainability has been a serious topic for the past few years and companies these days often
focus on delivering or providing a service and product that contributes less to the carbon
footprint. For a logistic company that requires transportation, they can opt for vehicles that are
eco-friendlier to the environment. As for production company, they can focus on using

technology that requires less energy. It is crucial that we understand that it is important to take
care of our planet and let us work together in doing so.
-IMPROVING CUSTOMER SERVICE
The key to improving customer service is to communicate quickly and thoroughly to build trust
with the customer. In any types of business, customers want to feel wanted and treated with
respect. Whether it’s a new business inquiry or a question about an existing order, the
customers want one thing when they reach out to you and that is answers.

-DRIVER DEFICIT
The best and most effective way to overcome this challenge is to make sure the HR department
advertise any job position all across multiple platform like social media for example. The main
reason companies need to advertise on multiple platform is so that they can attract multiple
future employees for different background and skills.
-IMPACT OF THE ECONOMY
Logistic company can play a big role in impacting the economy. It is obvious that often times,
political uncertainty are the root cause however, logistic company can also provide a shed of
light into this autonomous topic. The best way for companies to overcome the impact of
economy is to try their best to maintain and improve their business. It may seem illogical
however, they need to sacrifice their general income and focus on playing a bigger role not only
to the consumer but also to the world economy.

CONCLUSION

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In conclusion with proven facts and points, we have completed our business plan as well as our
operation plan. We will try our best to follow through our initial plan in order for us to start our
business. After countless hours of analysis in composing this business plan during the entire
project, we learned about many specifics topics regarding starting a logistic company. Not to
mention, by doing various research and studies, many business proposals have been explored
and brainstorming has been undertaken, but we have settled with an undertaking we consider to
be achievable and sustainable.
We have thought thoroughly and written details like the market analysis, service line,
operational plan, marketing strategies and also the financing plan in the report. We believe that
our business idea is good and will be a success if we apply both the knowledge that we learned
from our classroom as well as the ideas generated from past experience working in a logistic
company. This has given us an initial idea regarding how to start a logistic business as well as
what goes behind it.

Not to mention, we understand that a new start-up logistics company will face numerous
challenges and we have identified the solutions in order to minimize the impact of those
problems. There are however multiple various factors that we cannot control easily hence, if our
initial solution is not in favor then it might be better to have a contingency plan for the company.
Fund and costs must be monitored carefully to ensure we can do business easily and
continuously as well as competitively in the next few years. These days, company's activities
are increasingly competitive and that is why we as a company should be aware of the quality of
services that we offer to the consumer.
Eventually, our company’s business plan and operating plan will be strengthened overtime as
we perform our business, because we know that continuous improvement will certainly be
required in order to remain competitive on the market. In today’s day and age, the business
environment is very rapid and constantly changing which is why we should always be reliable
source of logistics to consumers. It has been a great pleasure for us to train ourselves for the
real world rather than just learning about theory. We look forward to the potential relevance of
our expertise in the near future.

REFERENCES

1.) https://fleetroot.com/blog/top-10-challenges-facing-logistics-companies-in-2019/
2.) https://www.porteranalysis.com/porters-five-forces-model-of-logistics-industry/

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 3.) https://isuzu.net.my/truck/elf-nprnqr.php
4.) https://zipordering.com/logistics-management.html
5.) https://searcherp.techtarget.com/definition/3PL-third-party-logistics

EXAMPLE PURCHASE ORDER

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 EVIDENCE OF INTERVIEW

33
 INTERVIEW SESSION WITH NINJA VAN EMPLOYEE
Discussion about general output of logistic as well as ideas and workflow for a newfound
company

Criteria \ Weight 1 0.75 0.50 0.25 Score

Source of Source of Source of Source of Source of
Information information is information is information is just information is not
highest quality, acceptable, included enough, but still sufficient and many
sufficient in number primary and lacking quality. is in relevant.
and relevancy. secondary data /5

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Introduction Introductory Introductory Introductory Introductory
paragraph is clearly paragraph is clearly paragraph is vague paragraph is not
stated, has a sharp, stated with a focus apparent /10
distinct focus and
enhances the impact
of the report
Quality of content Supporting details Some details don’t
Details are somewhat Unable to find
are specific to topic support the report
sketchy specific details, & /30
and provide the topic No company
necessary acknowledgement of
information the visit
Challenges & Unique and Logical and standard does touch on the is very weak/general
recommendation innovative solution ways of solving issue issues /10
Unrelated with
Related with Related with Somewhere related company challenges
company challenges company challenges with company
challenges
Conclusion Concluding Concluding Concluding Concluding
paragraph paragraph follows paragraph is only paragraph is not
summarizes and and summarizes remotely related to apparent /5
draw a clear, report discussion, the report topic
effective conclusion and draw a
and enhances the conclusion.
impact of the report
/
Total Report Marks 60
*example:
weight 1 x 5 = score of 5/5
weight 0.5 x 5 = score of 2.5/5
weight 0.25 x 10 = score of 2.5/10

Trait (Weight) 1 0.75 0.5 0.25

(A) KNOWLEDGE Total understanding of the Acceptable level of Modest understanding of Poor understanding of the
& topic presented understanding of the topic the topic presented topic presented
APPLICATION Very convincing and presented Unable or lack of quality in Unable or lack of quality in
(30) confident in answering Able to answer the answering question answering question
questions question but lack of
conviction
(B) SLIDES Very clear, readable with Very clear, readable with Wordy, inappropriate colors Very wordy, small font,

35
 QUALITY appropriate colors and appropriate colors and and less attractive. modest inappropriate colors, poor
(10) attractive. smooth flow and less attractive. accepted information quality information quality
good quality of information information quality

TOTAL (40 marks)

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