HOW TO START AND MANAGE A LOGISTICS COMPANY

Logistics simply is the branch of business that deals with the management of procurement, distribution, inventory, maintenance and replacement of personnel, materials, information to achieve an organization’s goal. It deals with all the actors and activities involved in getting products and services from a supplier to the consumer.

The logistics business has a lot of other businesses depending on it because without transportation a lot of other businesses cannot survive therefore it is in high demand at all times.

That been said, let’s look at how to start a logistics business in Nigeria

Before you can start a logistic business in Nigeria, you have to first consider the following:

• Funding
• License
• Business Plan/Strategy
• Space
• Website
• Employees
• Sourcing for Customers
• Vehicle
• Risk Management

FUNDING

Sufficient capital and funding is required to get efficient man power, equipments and office space, think of legal ways to source for capital and day to day funding of the business before you start making profit.

LICENSE

Logistic companies in Nigeria are vital in the chain of ecommerce and business delivery in the country; hence to stand out, it is necessary to register with the appropriate regulatory bodies, which would give your business the sense of trust and reliability with partners and customers. Register your business name with the Corporate Affair Commission, Nigerian Postal Service which is the regulatory agency for courier and logistics businesses in Nigeria.

BUSINESS PLAN/STRATEGY

It is important for you to determine from the onset the type of transport and logistic company you will like to run, you will need to decide of what type of goods your company will be operating with and the distance you would like to cover during operation. Once this is determined you will be able to decide on what your rates will be compared to the rate of other competitors, how much you will be charging and the types of vehicles needed.

SPACE

There is a need for physical office for your company. It will give your clients enough confidence in your company. Some customers will prefer to visit your office to send their deliveries. So, you need to get an office space where you can also park your vehicles and bikes. Also, brand your office and vehicles to create awareness and attract your target market, the office space must be spacious and the compound large enough to accommodate your vehicles and goods.

WEBSITE

Before you kick off the business it is important to create a website for your logistics company, it’ll help in acquiring more customers, and you can start by just creating a simple website and share to family and friends. You can also use this website as a means of attending to customers that need your service by creating a page in the website that has your contact details and where customers can place their delivery orders and make complaints.

EMPLOYEES

Starting a logistic business needs employees because one person can’t handle everything alone.

• A driver or a motor cycle rider. One has to be really careful in picking a driver for your logistic company. You have to be absolutely sure that the individual can drive, has a drivers license and also 2 standard guarantors.
• A computer/telephone operator. He/she takes orders and keeps in touch with customers.
• A store manager. He/she ensures goods to be ferried are kept in good condition to avoid damage.

SOURCING FOR CUSTOMERS

Competition in the business may be a source of worry, but creating a unique selling point is necessary to stay afloat the competition. Your unique selling point distinguishes you from the other companies and helps grow your business.

Some examples of unique selling points in the business may be

• Very fast deliveries
• Insurance on goods in transit
• Money back guarantee, especially in cases of damage
• Good customer service

VEHICLES

The type of vehicles you use strictly depends on your business plan and strategy. Cars, bikes, buses and trucks are all used for logistic businesses. Your vehicles must be in place before business can start.

RISK MANAGEMENT

Starting or owning a logistic company is not bereft of challenges and its own risks.

One major challenge amongst others is the maintenance of vehicle assets and management of drivers.

Challenges would surely come but it’s important to know how to overcome them, the risk that comes with managing drivers and vehicles can easily be curbed by using the GPS tracking system on all your logistics vehicles. This can help to manage the activities of the drivers and maintenance of vehicles.

Ciska Telematics provides state of-the-art and responsive GPS Car Tracking and Fleet management Services for logistic companies giving our clients absolute control to monitor and manage their vehicular assets in real time.

The features below are available on Ciska Telematics tracking system:

• Live Tracking of all Vehicles
• Historical Tracking of all vehicles up to 90 days back
• Location Management ( entry, duration and exit of location of
• interest)
• Instant notifications when assets move from its designated location.
• Daily or weekly report of current location of all vehicles
• Route setting and notifications on diversions
• Driver Behavior(Overspeed, powercut)
• Organizational grouping (Sub Accounts with different privileges)
• Custom grouping of Vehicles (bikes, cars, buses and trucks)
• Fuel management via vehicle Consumption rate.
• Vehicle Maintenance / Service Schedule (Automated Reminder)
• Tasks (Daily work schedule and locations to cover)
• Expenses
• Instant notifications and reports(Tampering alerts, Device disconnection notifications, Trip Reports, Idle reports and Mileage reports)

The tracking platform can be accessed via any internet enabled phone or through the mobile app which can be downloaded on smart phones.

Other features include road life tracking situation to help ease the journey and also Google street view.