Company Background
Forward Transportation Delivery Services is a company that specializes in moving and delivering items that companies request. The peculiarity is that the company works without load boards. For more than 40 years, Forward has developed into a market-leading ground transportation company for accelerated LTL and airborne freight in the United States (Forward, 2023).
To satisfy the diverse shipping demands of the clients and the diversity of the logistical service portfolio, it additionally encompasses expedited full truckload, LTL, intermodal transport, LTL, brokerage, and final mile services, and the list continues to expand (Forward, 2023). The organization provides a dependable, expedited, timely, and reasonably priced solution to air transportation by disentangling the complexity of surface shipment for companies of all sizes.
The wholesale transportation industry comprises logistics firms, integrated air cargo carriers, forwarding companies, passenger and cargo air carriers, and unconventional shippers. They all view Forward as a one-source supplier capable of offering a more excellent range of ground transportation solutions (Forward, 2023). The choice of the new strategy and the business loan will assist the company in increasing the number of vehicles and improving the moving services it provides.
Strategic Objective
The company focuses on business expansion and improving its services as its strategic objectives. Forward has to attract new clients by advertising its social and traditional media services. It is necessary to allocate the budget for this promotion and hire a team of total staff employees specializing in advertising and marketing. A business loan will help the company increase the number of vehicles and ensure that old trucks are adequate to ensure the safety of moving services. In addition, Forward has international divisions working in Canada and Mexico, which means the company can extend its presence in these countries (Forward, 2023). Currently, it is limited, and Forward is not among the major logistics companies in Canada and Mexico because it has older and more reputable national rivals there. In other words, there is much work to do in the international forwarding divisions, which supposes building clients’ trust and supporting the vehicles and the team of professional employees.
SWOT
Strengths
As a business, Forward maximizes its advantages and strengths while minimizing its disadvantages and risks. The most significant strengths of the company include its location, human resources, and reputation. The transportation network services some of the most considerable population regions in the U.S. It also has benefits in size and cost, as well as strong customer loyalty and a solid reputation among national and multinational players. The company is positioned in a heavily crowded industrial and residential neighborhood in Greeneville, Tennessee, and one of the main advantages is the location (Forward, 2023).
The strength of the company’s diversified team, staff, and management is another asset. All people employed by Forward are professionals in their spheres, which ensures that clients receive high-quality services and are content with them. It created a reputation that allowed Forward to work successfully on the market for almost 40 years and to expand internationally.
Weaknesses
A weakness could be a lack of funding, debt load, an expensive cost structure, and a lack of scale compared to competitors that have already made progress in the market. As a comparatively young company that has worked only for several decades with an individual owner, it might not have the financial resources to support the level of publicity the business wants to give its brand. Due to the intense competition in the logistics industry, Forward will need to make efforts to sustain the trust of its customers (Forward, 2023). Even though Forward works on improving these issues, there is still a vital need to expand the budget to maintain vehicle expenses and support the company’s reputation.
Opportunities
As a moving and storage business operating in the United States, the company has access to prospects in the online marketplace, novel offerings, emerging technologies, and developing new markets, which are significant opportunities. Forward is well situated and has access to all the city’s opportunities. Additionally, the company’s business model has made it the go-to option in Greeneville, Tennessee. The fact is that Forward is the only standard, fully-equipped moving and storage business in the neighborhood (Forward, 2023). In other words, it cannot directly compete with anything in the market it is intended for.
Threats
Forward is likely to encounter threats such as mature markets, a poor economy or economic slump, fierce competition, unpredictable expenses, and price increases for fuel. Unfavorable governmental decisions, seasonal variations, demographic and social variables, an economic downturn in the market likely to affect consumers’ expenditure, and the appearance of new rivals in the same area where Forward is headquartered are additional threats it will likely face. The fact that Forward works internationally and provides its services in Canada and Mexico makes the company’s functioning even more challenging due to the global economic recession (Forward, 2023). Another threat related to the company’s international divisions is the difficulty of managing processes abroad and potential controversies in the diverse national environments.
Organization Type and Reasoning
Forward was founded to give customers professional moving services while maximizing company earnings. The company will ensure that every service or related service rendered meets and exceeds the customers’ expectations to compete advantageously with the top moving and storage providers in the United States. Forward will put in a lot of effort to ensure that it receives approval not just in Greeneville, Tennessee, but also in other cities throughout the United States, Mexico, and Canada. The services available include domestic and office products shipping within the client’s area and across large distances, warehouse and storage facilities, packing and shipping services, logistics, distribution, and process help in advisory and consulting (Forward, 2023). In other words, the type of the organization and its services determine the reasoning Forward adopts in evaluating its existing strategy and making decisions regarding the future.
Marketing Plan
Competitor Assessment
As was already mentioned, Forward has national competitors with a longer history. The market share structure for moving services in the United States is quite low, with the top three firms generating roughly 33.3% of the total revenue generated by the industry (Abrams, 2019). Most industry participants are small-scale businesses that work as local moving companies, agents, or subcontractors for larger enterprises (Abrams, 2019).
Due to factors related to the economy, market share has marginally decreased during the past few years. Large operators struggled during the recession, forcing these national players to scale back activities to concentrate on profitable ventures (Abrams, 2019). Consequently, the major operators’ percentage of the market has decreased, which has helped the sector’s level of competition decrease.
The competitor in the industry with a long history, good reputation, and brand name is AMJ Campbell International (AMJ Campbell). It is one of America’s most significant moving businesses, established in 1934 (AMJ Campbell, 2023). The business offers international, residential, corporate relocation, office transfers, logistics, and storage services. AMJ Campbell operates in Florida and serves domestic and foreign clients with moving services (AMJ Campbell, 2023).
The corporation has 50 locations throughout Canada and the United States and eight business units, with its headquarters in Mississauga, Ontario (AMJ Campbell, 2023). Twenty-seven places are in America, distributed among its ten states, although many are gathered in the continent’s east (AMJ Campbell, 2023). In addition, the company is anticipated to have approximately 2,800 employees by 2022 (AMJ Campbell, 2023). It states that AMJ Campbell International (AMJ Campbell) is the competitor for Forward because people often choose the most renowned and reputable company because they expect better services from it.
Customers’ Needs
Enhancing the payment policy to cater to the client’s preferences is crucial in addressing the client’s needs. Forward understands that individuals have different payment options that suit them. However, the company does not accept payments in cash due to the high volume of transactions. Its clients can make payments through various options, such as bank transfer, online bank transfer, check, bank draft, and POS (Forward, 2023). This situation might be problematic to some customers, and the company should focus on providing its clients with convenient payment options. Therefore, it seeks all possible solutions to facilitate payment for the moving services.
Another critical point is the essence of work in the moving company. Forward ensures that clients do not have to handle heavy items in the office and provides physically fit people with equipment for the customers. This detail shows that the needs of the clients and their convenience are the priority for forwarding.
Product Strategy
The value proposition of forwarding, which constitutes the core of the product strategy, is that it proposes flexible solutions to the needs of its clients. Big international corporations cannot develop individual plans for their clients. Forward combines the advantages of the international company with a personal approach to the client’s needs, which makes it different from its competitors.
Pricing Strategy
Forward’s competitors have established lease agreements with various companies, where their pricing is determined by the miles per thousand tons of goods and materials transported. However, Forward has streamlined its operations, lowering overhead costs than its competitors. To attract more customers, Forward plans to offer competitive rates that are affordable and negotiable. The company is open to catering to individuals and corporations, meaning they will have different pricing options for various client categories.
Additionally, as the business expands, Forward will reassess its pricing structure to cater to a broader range of clients. To ensure seamless payment processing for our clients, Forward has carefully selected banking platforms (Forward, 2023). For convenience, its website will feature the bank account numbers and promotional materials for those wishing to make cash deposits.
Promotion and Advertising Strategy
For any company looking to expand, it’s essential to utilize all available marketing tools – conventional and unconventional. Forward, a company aiming to grow beyond its current location in Greeneville, Tennessee, has developed a comprehensive plan to build its brand across all channels. While Forward operates in Canada and Mexico, its presence in these markets is limited. To better reach its target audience, Forward has partnered with branding and publicity consultants to map out effective advertising and publicity strategies (Abrams, 2019). With their guidance, Forward hopes to establish a stronger foothold in its desired markets.
Forward strives to become the top choice for businesses and households in Greeneville, the United States, Canada, and Mexico. As a result, the company has made arrangements for effective publicity and advertisement of their moving and storage services. There are several platforms available to promote and advertise the trucking business. They include placing ads in print (newspapers and magazines) and electronic media platforms, sponsoring relevant community-based events/programs, and leveraging social media platforms like Instagram, Facebook, Twitter, YouTube, Google+, and others to promote services.
It is also possible to start installing billboards in strategic locations in different cities, engaging in road shows in targeted neighborhoods, and distributing flyers and handbills in target areas. It might be adequate to start contacting corporate organizations and households by phone to inform them of Forward’s services, listing the company in local directories and newspapers, advertising it on the official website, and employing strategies that help increase traffic to the site (Abrams, 2019). It is also essential that all staff members wear branded shirts and that trucks and vans are well-branded with the company logo and contact information.
Place/Distribution Strategy
Sustainability is the primary distribution strategy the company plans to use in its expansion. The ongoing education and empowerment of Forward’s personnel, including full-time employees and contract workers, is a component of the company’s sustainability and growth plan. As a result, it enables the company to give them the tools they need to compete successfully in the very competitive American moving and storage market. Forward will continue to exceed its customers’ expectations and maintain our honesty and trust so that we stay in business for a very long time.
Operations Plan
The most vital requirements regarding the core processes and facilities in forwarding are connected with vehicles and their safety on the road. Ensuring all trucks receive timely repairs and control their mechanical state is critical. From the inventory perspective, the company must possess adequate safety gloves, a transport vehicle, a moving dolly, equipment sliders, blankets for transportation and padding, moving buckles, and ropes (Forward, 2023). These items are critical in the work of the employees. The company’s computer needs include the development of its official website and the mobile application for smartphones. The team of I.T. professionals should be responsible for supporting and maintaining the website and application.
H.R. Plan
Forward is the corporation that focuses on receiving client’s orders, planning the logistics, moving the products to the destination, and communicating with customers. In addition, the company has international divisions, which means hiring new employees in every country where it works is necessary. As a result, there is a need in various positions to ensure that Forward can adequately manage the tasks the company receives. Among the jobs the company needs to open the office in the city are people responsible for the preparation and packing of the items, people responsible for uploading and unloading cars, the employees responsible for the inventory, mechanics and drivers, and customer support that communicates with clients (Forward, 2023). People in these positions require professional managers to plan their work and control the quality of the services.
Although employees get regular pay, performance-based remuneration aims to reward them for exceeding the job’s demands. Although bonuses can be given at any point during the year, bonuses at the end of the year are the most typical way that based on performance remuneration is provided. This approach to the workers’ performance ensures that the staff understands that the company values their efforts and dedication (Abrams, 2019). As a result, their motivation will be stable and high, positively affecting the employee retention rate. Providing employees with training opportunities is also one of the company’s most valuable issues. It gives people the chance for professional growth and qualification improvement, which also positively affects their work. In addition, the company receives more revenue when its employees are highly skilled.
Finance Plan
Startup Funds Needed
Forward plans to open its divisions in Mexico and Canada, so there is a need for new offices and headquarters there. Due to the value of their currency, the comprehensive cost analysis for beginning a typical move could be different in other nations. Forward makes use of the usual costs associated with this kind of firm in the U.S.:
A total of $750 is required to incorporate the business.
Liability insurance, licenses, and permits will cost $5,500.
For six months, $ 150,000 is required to purchase a good office building with truck parking space.
The cost of financing the acquisition of the set of trucks is $800,000.
$5,000 is needed to outfit the office with everything it will need, including computers, printers, furniture, phones, filing cabinets, and electronics.
The combined cost of payroll, CRM, and accounting software is $3,000.
$ 1,000 is spent on other startup costs, such as stationery.
Deposits for phones and utilities (gas, sewage, water, and electric) are $3,500.
The first three months’ operational expenses (staff salary and bill payments) total $120,000. Developing the official website will cost $600 for the forward.
A further expense of $2,500 includes business cards, signs, advertisements, and promotions (Abrams, 2019).
According to the findings of the feasibility and market analysis studies, Forward will require roughly $1M to launch a moving and storage company in another city.
Sources of Existing Startup Funds
Forward is expected to launch as a private company with several stakeholders as its sole owners. They will be the only ones responsible for the company’s finances, but they may welcome more business partners if the need for expansion materializes. These are the sources from which the corporation plans to raise the initial funding for the venture. First, a portion of the startup funding could come from personal savings. The second option is to ask friends and relatives for lenient loans (Abrams, 2019). Applying for a loan from the bank for business development is the final viable option.
Projection of Sales
During the first year, the company had to pay $ 800,000 of debt to the bank, as its owners had $ 200,000 as their savings. With the interest rate of 8% and five years to pay the credit, Forward has to give $16.000 to the bank monthly. Therefore, it has to pay $ 192,000 annually (Abrams, 2019). This means that the company’s earnings should be more than the loan payment added to the expenses for supporting the business. According to the estimates, the company will earn $250,000 during the first fiscal year if nothing will prevent its development.
References
Abrams, R. (2019). Successful business plan: Secrets and strategies. Planning Shop.
AMJ Campbell. (2023). About AMJ. Web.
Forward. (2023). About us. Web.