business plan for transport and logistics in south africa pdf

• Starting a Business
• Growing a Business
• Small Business Guide
• Business News
• Science & Technology
• Money & Finance
• For Subscribers
• Write for Entrepreneur
• Tips White Papers
• Entrepreneur Store
• United States
• Asia Pacific
• Middle East
• United Kingdom
• South Africa

Copyright © 2024 Entrepreneur Media, LLC All rights reserved. Entrepreneur® and its related marks are registered trademarks of Entrepreneur Media LLC

7 Steps To Starting A Transport And Logistics Business Logistics is a big game both locally and internationally, because everything we use daily has been shipped and delivered across various destinations before it's sold and put to use. This is where you can cash in.

By Diana Albertyn Jul 22, 2019

You're reading Entrepreneur South Africa, an international franchise of Entrepreneur Media.

Thinking of starting your own transport and logistics company? While getting into the industry is not difficult, staying successful as a trucking company can be challenging if your business plan, finances and recruitment strategy aren't solid from day one.

Whether you're starting off with a bakkie or a minibus, you need to ensure you're prepared for high competition because of the transport and logistics industry's low barrier to entry.

Why should I start a transport and logistics company?

Aside from the ease of access into the industry, you don't need much capital to start off with – but you will need to do your homework. This is the only way you'll build a sustainable business.

"In many instances the entrepreneur starts these businesses with little to no capital, relying instead on revenue derived from the business to cover all overheads from day one," according to BizConnect . "Seek out customers and contracts before you start the business because transport contracts don't magically appear later on."

Related: Driving Profits In Transport

Now that you've established the kind of market you'll be entering into, how do you go about starting your own logistics company? These are some of the top questions you should be asking before starting a freight company:

1. What costs do I need to consider when starting a transport company?

You don't need to be a numbers genius, but a basic understanding of finances is helpful when launching any kind of start-up.

• First, you'll need to establish where you're going to source capital to get your transport business started. There are multiple options including the bank, investors and bootstrapping.
• Next, you need to consider the specific expenses associated with the logistics industry, for example the licence and toll expenses, aside from maintenance, fuel and driver skills development training costs.
• Although you haven't started running your transport and logistics company yet, you need to consider operating costs and maintenance expenses when drawing up your budget. The latter is crucial for providing reliable service to customers as you must deliver the excellence you will market to them. While marketing may not seem important at this stage, it's important to budget for this expense as your company grows.
• Remember that besides all the above costs, you'll require money to keep your vehicles safe when they aren't in use and when they are on the road. Invest in a secure location and other security features, such as trackers.
• Lastly, you're going to need to pay your drivers and other staff salaries on a monthly basis, so factor in that expense when budgeting for your transport and logistics business.

2. What should I look out for when buying my first fleet of trucks?

Choosing the right vehicles for your transport and logistics company means your drivers will have the right vehicle for the job. This leads to efficiency and speed of service.

Related: Benji Coetzee Never Worked In Logistics, Find Out How She Launched Empty Trips A Successful Logistics Marketplace

"Seeing someone driving a small van to deliver a huge load will make your company look unprofessional, as will using large bus trailers to carry minimal cargo," say experts in the truck and trailer industry.

Establishing what vehicles you need now will help you have a clearer idea of how much truck finance to apply for when you approach banks for transport financing options . This information helps structure your repayment plan and set your interest rate more accurately. You will be able to budget your finance accordingly.

Experts recommend investing in a long-haul truck for larger cargo and longer trips. Babcock International , for example, has vehicles that will meet this need, although the cost is slightly higher than an average-sized truck.

If you're already considering new vehicles instead of preowned trucks for your business, you'll benefit from a full warranty and service plans.

Related: 10 South African Entrepreneurs Who Landed Funding – And How They Did It

Once you've established how much you're able to spend on your fleet, start considering the available models for your business's specific needs.

"An important aspect to consider is what the vehicle will be used for. Now, this might sound simple, but it is an aspect that is often overlooked by many fleet owners. You need to have an idea in mind about what the vehicle will be used for before you can go to a dealership." – Truck & Freight

There vital aspects to consider when choosing your logistics vehicles are:

• What types of supplies you will be carrying
• The volume of supplies you will be carrying
• The types of terrains you will be driving over.

Courier companies will require different vehicles from moving companies, for example. Your idea of the ideal vehicle for your type of transport and logistics company may have to be adjusted based on the amount of finance you qualify for or how much capital you have managed to allocate to purchasing of vehicles for your fleet.

Related: How To Keep The Wheels Turning For Your Transport Business

You may need consider viable alternatives to find the right vehicle. So, list features like safety, comfort and condition instead of looking for brand names and the latest models. "Being open to different vehicles is the key to a successful fleet vehicle purchase," experts advise.

3. How can I get truck finance for my transport and logistics company?

Regardless of how vehicles are paid for, the cost of financing a transport and logistics business is the biggest expense you will have to manage.

Make sure you do your homework and understand the different options available when it comes to paying for vehicles. You can consider the following options:

• Financial lease and extended rental agreements, where the use of vehicles is funded from revenue, no upfront payment is required, but the ownership remains with the lessor;
• Instalment sale where a small amount relative to the total purchase price is paid as a deposit, your instalments are fixed, and you own the vehicle at the end of the term.

Related: How To Service Customers Through Reverse Logistics

Remember to factor in the running costs of operating a logistics company, such as maintenance and wear-and-tear. These expenses should be included when considering the amount of finance needed to launch and sustain your transport and logistics company.

Before approaching a financial institution for financing, devise a budget and calculate your affordability.

4. Where can I find training to help me start a transport and logistics business?

The Road Traffic Management Corporation provides regulated, professional training courses such as a National Certificate in Freight Handling. Contact TETA for a list of accredited training institutions.

The Department of Public Transport , Roads and Works is responsible for the issuing of operating licenses.

Related: A Free Business Plan Example to Launch Your South African Business

A National Certificate in Professional Driving is a valuable qualification that equips owners and managers with a variety of capabilities. It's advisable to look for a qualification that has been accredited by the Transportation and Training Authority.

Remember that according to South African law, any vehicle on public roads needs to be deemed roadworthy by an official testing station. The roadworthiness test checks the following aspects of the vehicle:

• Identification and documentation
• Electrical systems
• Fittings and equipment (including mirrors, safety belts etc)
• Braking system
• Wheels (including tyre condition)
• Suspension and undercarriage
• The steering mechanism is in order
• Exhaust system
• Transmission
• Instruments
• Vehicle dimensions.

5. How do I employ drivers to work for my transport business?

The key components of your business, besides your vehicles, are your drivers. Your drivers need to obtain the relevant licenses before they can be considered legal to operate vehicles in your transport and logistics business.

Related: 5 Different Types Of South African Business Structures

Avoid issues later on, with the law and your customers, by ensuring you're recruiting qualified and experienced drivers at launch and as your business needs grow. Not only do quality drivers boost productivity, but your reputation is elevated when your clients know they can rely on your staff.

Invest in excellent employees and avoid setting the bar as low as the ability to drive and follow directions. Your drivers will need the relevant driver's licences for different trucks and require training to handle driving in hazardous situations, like storms and heatwaves.

"Know how to deal with staff, and understand all of the shortcuts in the areas they'll be delivering to," advises Business South Africa . "They will also require excellent communication skills to relay messages about their whereabouts."

6. Where do I find customers for my logistics company?

As mentioned earlier, everything around us needs to be delivered from point A, to point B. So, while it may seem that jobs are scarce and getting business is difficult in the beginning, avoid grabbing the first opportunity to get your first client.

Related: Seed Capital Funding For South African Start-Up Businesses

It may sound counterintuitive to let chances at getting the wheels turning pass by, but, it's important to assess whether it's worth your while or not. Proper planning is essential so it's advisable to avoid ad-hoc business.

Remember that all you need to get customers' attention is a computer, a smartphone and an Internet connection.

"Technology centred around cargo has advanced dramatically over the years, and as have the expectations of customers. Most large companies allow clients to book and track all of their parcels or deliveries online." – Business South Africa

The best part is that, not only is getting word about your transport and logistics coming out there inexpensive, it's also relatively easy and quick.

Related: Your Free Business Idea Evaluation SWOT Analysis Template

Embracing technology doesn't mean setting up an elaborate website, but you do need to ensure that your customers can track their deliveries and reach you quickly if they need to. Perhaps you should implement an SMS notification system so clients can track their orders at the touch of a button.

Ensure your system is accurate when it comes to ETA for deliveries and any delays on delivery, giving clients peace of mind about using your service and the confidence to recommend you to others.

Your service needs to be as simple and convenient to use as possible.

7. How do I get suppliers to add my logistics company to their books?

The best way to get noticed and acquire regular business is by being reliable from day one. People like that. They notice and appreciate good service and when you start your transport business, it's a good reputation to have.

Related: 2 Simple Ways to Keep Your Startup Growing

When a business decides to make use of your transport services, they need to be sure that you won't let them down . Satisfied customers value trustworthy service and it's easier to retain existing clients when you offer quality service. It also helps that good customers can encourage new business through recommendations.

Despite the many challenges that come with running a successful transport and logistics business, customers like to know that you're giving of your best and consistency is key to build loyalty from these companies.

It's advisable to start out with logistics you're best qualified to handle and work your way from there.

If you have experience with smaller items, start there, but if you intend to eventually expand your portfolio to include other specialised services, acquire as much comprehensive knowledge as you can, while building a strong set of connections in relevant regions across the industry, and possibly the country as well.

Related: Treat Yourself as a Client for Startup Success

Entrepreneur Staff

Sales Enablement: Content Developer

Most Popular Red Arrow

The side hustle she started in a high school locker room hit multimillion-dollar revenue — and taylor swift is a fan: 'invest in yourself'.

Elena Bonvicini, now 25, was inspired to start her side hustle during a 2016 visit to her grandparents in Wisconsin.

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

What Makes a Successful Entrepreneur? Perseverance.

Entrepreneurship is about being the last man standing. It's about having the determination, the discipline, and the cash to see it through.

10 Must-Have Traits for All Successful Entrepreneurs

I've helped thousands of business owners -- here's what I learned.

26 Of The Richest People in South Africa

Here are 26 of South Africa's richest people, but how did they achieve this level of wealth? Find out here.

7 Ways to Scale a Startup Into a Billion-Dollar Business

Here are seven key insights to guide your journey to becoming the next unicorn.

Successfully copied link

• Sample Business Plans
• Transportation, Logistics & Travel

Trucking Business Plan

With the boom in online ordering and cross-border transactions, the demand for trucking is on the rise, and there is no stoppage in the near future. Thus, if you are planning to start your business right now, the timings are perfect.

Now your idea is validated, but have you thought about planning your idea thoroughly before actually executing it? Whether you want external investment or not, a trucking business plan will help you in each step of your journey as a guide.

Here the catch is how to write a business plan because it seems like a boring lengthy procedure, right? Worry not, our trucking business plan template with various examples will help you write yours.

Key Takeaways

• The executive summary is one of the most important parts readers will go through first, so keep it simple and engaging.
• Conduct a thorough industry analysis to get a better understanding of your business positioning.
• To ensure daily smooth operations, provide a detailed operations plan that includes who will work on what.
• Create realistic financial projections for your financial plan, you can even base your assumptions by looking at the competitor’s response.

Things to Consider Before Writing a Trucking Business Plan

The trucking business is the wheels of the economy, without it the world might close. As a long-distance trucking business transports a variety of goods that is necessary for living.

This industry generally includes trucking companies that operate between major metropolitan regions and cross-borders. The main services of the industry include:

• Truckload carriers
• Less-than-truckload carriers
• Other transportation services

According to American Trucking Association data , 11.46 billion tons of freight was transported by trucks only, accounting for 72.6% of domestic total tonnage shipped.

Thus, trucking was one of the most important sectors and will continue to be the one in the future too. Even, the revenue of trucking was $940.8 billion , which accounted for 80.7% of the total revenue of the industry of the nation.

As we now know the importance of the industry, let us get started with the trucking business plan outline along with various examples and guidance.

How to Create a Trucking Business Plan: A Detailed Guide

1. executive summary.

The executive summary should be the most engaging part for readers, summarizing the entire business plan.

It is generally the part business owners prefer to write at the last because till then they can get the full knowledge of the trucking company business plan.

Start your summary with a brief introduction of your business, as shown in the below example with the help of Upmetrics:

After the introduction, include information like

• Products Served
• Customer Focus
• Mission Statement
• Vision Statement
• Success Factors
• Financial Summary
• Call to action

Tip: Executive summary is a quick overview for your readers. They might not read the whole business plan and only read this section. Thus, make sure to keep it clear, precise, and crisp enough to grab their attention.

Say goodbye to boring templates

Build your business plan faster and easier with AI

Plans starting from $7/month

2. Company Overview

Provide a detailed company description in this section. It includes the name of your own trucking business, the location of your office, the legal structure of your business, and other such information.

Also, do not forget to mention the type of your business, for example, your trucking company will be one from below:

• Freight trucking
• Intermodal trucking
• Specialized hauling
• Courier and delivery services
• Bulk commodity trucking
• Dump trucking

After that, mention the history of your company if your business is already in existence. Here is an illustration of the company’s history with the help of Upmetrics:

Also, describe the vision & mission statement of your trucking business along with your future goals. Add the names of the owners along with their qualifications and specifications.

In short, this section should provide an in-depth understanding of your business and business owners.

3. Industry Analysis

This analysis gives all the details about the trucking industry. It will support you in a better understanding of your business.

Here are some questions to ask while conducting industry analysis :

• What is the current size of the trucking industry in the USA?
• What are the major trends in the transportation industry?
• Who are the huge players in the industry and what is their market share?
• How is technology affecting the trucking industry?
• How are fuel prices affecting the operating costs of the businesses?

Conduction this industry analysis will educate you about the market and help you prepare marketing strategies according to the market trends.

In short, industry analysis will help you have a better understanding of the market and support you in making informed decisions.

4. Competitive Analysis

Competitive analysis will help you know your unique selling propositions (USPs) along with your market positioning. You will also be able to know your direct and indirect competitors & other trucking companies.

Start by listing out all your competitors along with their strengths, weaknesses, opportunities, and threats.

Focus more on your direct competitors and ask certain questions like:

• Who do they serve?
• What is their market share?
• What are their USPs?
• What is their pricing strategy?
• What do they need to work on according to their customers?

After conducting competitor analysis, understand your strengths, weaknesses, opportunities, and threats like below to better get your strong points.

This way you can get to know the USP of a trucking company. Once you get the USP, flaunt it in your own business plan.

5. Market Analysis

In the market analysis section, begin with market research and deep dive into the market where your trucking business will operate. Start the section by providing the details of your target market.

Your target market will depend on the trucking services you provide and on the location of your business.

Once you are clear about the target customers, discuss the market trends of the trucking industry. Mention what your customers prefer and what new they want.

For instance, here is the market trends section with the help of Upmetrics:

At the end of the market analysis, do mention the regulatory environment trucking companies need to follow in the particular location.

6. Product and Services

After knowing the market trends and conducting market analysis, give details about the services you will provide. Your trucking services might be one of these:

• Hazardous material transportation
• Freight transportation services
• Specialized transportation
• Intermodal transportation
• Last-mile transportation
• Reefer services
• Container drayage

Mention your time duration of the services in this section, to let your readers know the efficiency and capacity of your trucks. You can also add the images of trucks in this section along with their capacity.

Keep the language of this section understandable and simple to give knowledge about your services to the readers.

7. Sales and Marketing Plan

There are around 750,000 trucking companies in the USA that own at least 1-2 trucks. Therefore, being noticed in this much competition is necessary, which is why you need a proper sales and marketing plan.

Developing a marketing plan means writing down strategies to acquire potential customers and retain them.

Some of the marketing strategies for trucking companies are:

Having a professional website

Having a professional website will spread your reach to a wider audience.  On the website, you can showcase all your services and the images of the trucks directly to potential customers.

Content marketing

Write blog posts, infographics, and articles for the logistics industry in which you can promote your own business. This way you can establish your expertise too in the same niche.

Social media engagement

For a successful trucking company, staying active on social media is a necessity. Share industry trends, news, and other events on social media to engage with your customers.

Email marketing

Build an email list of potential and existing clients and send them newsletters or updates about your services, industry insights, and special promotions.

Once you have noted down how you will acquire customers, then mention the following things:

• Customer acquisition cost
• Your monthly marketing budget

8. Management Team

Letting your readers or investors know who is behind your trucking company will increase the appeal of your business plan.

The management team section tells about the people in charge of the trucking business and their experience of the work. If you have a new trucking company, then showcasing all your experienced managers will make your business look stronger.

Here is an example of a management team:

Management team of Maxwell Truck service

John Maxwell – CEO and Founder

John is the visionary leader who founded Maxwell Truck Service. With over 20 years of experience in the transportation and logistics industry, he sets the company’s strategic direction and oversees overall operations.

Sarah Adams – Chief Operations Officer (COO)

As the COO, Sarah is responsible for the day-to-day operations of the company. She manages dispatch, fleet maintenance, and driver scheduling to ensure efficient and timely delivery of goods.

Michael Turner – Chief Financial Officer (CFO)

Michael is responsible for the financial health of the company. He manages budgets, and financial planning, and oversees financial reporting, ensuring the company’s financial stability and growth.

Karen Simmons – Director of Sales and Marketing

Karen leads the company’s sales and marketing efforts. She develops strategies to attract new clients and maintain strong relationships with existing ones, helping to grow the customer base.

9. Operations Plan

In the whole above plan, we have discussed mentioning your goals, now it is time to write the strategies of daily activities on how to achieve the above-mentioned goals. You can divide these goals into two parts:

Everyday goals

They’re the heart and soul of your trucking business’s daily life, from buying the most appropriate trucks to delivering the goods timely is a tricky thing. These are the everyday heroes that keep your business running smoothly.

Long-term goals

It’s all about milestones: the moments that make you pop the champagne. Picture celebrating your 10,000th timely delivery, hitting that milestone sales figure you’ve dreamt of, or expanding your team.

10. Financial Plan

For a successful trucking business, you will need a proper financial plan with practical financial projections. In the plan, you have to include the income statement, cash flow statement, and balance sheet for 3-5 years.

Income statement

An income statement also known as a profit and loss statement, describes the gross profitability of your business by deducting costs of goods sold from revenue.

For this, you don’t need to be greedy and make practical assumptions so that you can know the actual profitability range of your business. Here is a projected profit and loss statement for 3 years:

Balance sheet

Balance sheets display your assets and liabilities. Although they can contain a lot of details, like equity, goodwill, other intangible assets, etc. Here is an example of a balance sheet for 3 years with the help of Upmetrics:

Cash flow statement

Your cash flow statement helps you see how much money you need to start or grow your business and avoid running out of money. This cash flow should be maintained even for certain months after launch that is before you start making profits.

Surprisingly, you can make a profit but still face financial problems that could lead to bankruptcy. Therefore, you will need proper cash flow planning to avoid such circumstances.

Funding Sources For Trucking Business

Funding a trucking business might be difficult because of the high investments in the truck, various sources to get funding from are:

• Bootstrapping
• Truck financing companies
• Venture capital & angel investors
• Crowdfunding
• Family and friends

Download a Trucking business plan template

Ready to kick-start your business plan writing process? And not sure where to start? Here you go, download our free trucking business plan pdf , and start writing.

This intuitive, modern, and investment-ready template is designed specifically for trucking businesses. It includes step-by-step instructions & examples to help in creating your own trucking business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Write Your Business Plan with Upmetrics

Finally! Now you know how to write a business plan for your business with the help of our trucking business plan example. Thus, you are a step closer to beginning or growing your business.

No doubt, writing a business plan with accurate financial projections is daunting, but it is a lot smoother with the help of business plan software . Therefore, take a deep breath, calm down, and get started with writing your business plan.

Related Posts

Dump Truck Business Plan

Tow Truck Business Plan

How to Strat Trucking Business

Cost to Start a Trucking Company

Frequently Asked Questions

Should i hire a professional to write my trucking business plan.

Hiring a professional for your business plan is a great option: it will make things easier for you. But no one knows your business better than yourself.

So, try writing your trucking company business plan with the help of business plan software. That way you will get guidance as well as professionalism in your plan.

How often should you update your trucking business plan?

Remember, your trucking business plan is a living document which means it is flexible and open for changes whenever you want. Ideally, at least updating your business plan once a month as per the current situation is advised.

Should I include photos of trucks and equipment in a plan?

Including photos of your trucks and other equipment is a good option to showcase the service range of your trucking business. Do not overuse them, and just include them in your products and services section.

What legal and regulatory aspects should be covered in a trucking business plan?

A trucking company business plan should include various regulatory aspects:

• Business structure
• Licenses and permits
• Vehicle rules compliance
• Driver compliance
• Record keeping

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

Turn your business idea into a solid business plan

Explore Plan Builder

Plan your business in the shortest time possible

No Risk – Cancel at Any Time – 15 Day Money Back Guarantee

Create a great Business Plan with great price.

• 400+ Business plan templates & examples
• AI Assistance & step by step guidance
• 4.8 Star rating on Trustpilot

Streamline your business planning process with Upmetrics .

Business Plan Pro®

021 834 9799

Transport and Logistics Business Plan

Need a Transport and Logistics   Business Plan for your  Transport and Logistics Business ?  We write Professional  Transport and Logistics  Business Plans.

Our  Transport and Logistics  Business Plan is for Start-Ups looking to apply for basic Funding , Tenders and Industry Regulators .

Our Transport and Logistics  Business Plan is focused on the  Transport and Logistics  Industry in South Africa. Included in this option is a Professional Business Plan layout and a 5-Year Financial Projection.

Business Plan Pro® Accreditations

Business Plan Pro® is a Subsidiary Brand of My SME™, and an IMCSA Accredited Business Coaching institute (My SME™ Accreditation Number: 073PIMC ).

We focus on Business Plan and Feasibility Study services to assist Businesses to grow through Funding . Business Plan Pro® is the first South African Business to create Custom Business Plan Software for South Africans.

Our Transport and Logistics Business Plan is focused on the Transport and Logistics Industry in South Africa. Included in this option is a Professional Business Plan layout and a 5-Year Financial Projection.

(7 Working Days)

Our  Transport and Logistics Business Plan  is focused on the  Transport and Logistics  Industry in South Africa. Included in this option is a Professional Business Plan layout and a 5-Year Financial Projection.

Service Includes: 

• 40 – 60 Pages.
• Professional Business Plan Layout.
• 5-Year Financial Projection.
• Basic Transport and Logistics Market Research.
• Basic Transport and Logistics Industry Research.

NOTE that  with the Transport and Logistics Business Plan the market and industry research is very basic . If you need in-depth market & industry research from the Business Plan Pro® team, please select either the  Comprehensive Business Plan  or  Specialised Business Plan .

Start-Up Business Package

(21 Working Days)

Our Start-Up Business Package is for Start-Up’s looking to start their Business on the right foot with a  Transport and Logistics Business Plan and a Professional Brand .

Package Includes: 

• Transport and Logistics Business Plan (Valued at R4,490).
• Entry Level Brand Package (Valued at R3,490).
• Entry Level 1-Pager Website (Valued at R3,990).

NOTE  that with this package you complete a  brand questionnaire  that tells us all we need to know about your business to create a professional logo. The logo concepts presented are  standard options  that you are required to choose from. No custom amendments are allowed, but  one basic amendment  is allowed.

Some Client Reviews

What an awesome company and experience. Prompt, on time, flexible, yet sooooo professional…..  Even my wife does not know how my mind works. Yet Business Plan Pro® could put my vision into paper in an amazing way….. Looking good. Thanks Kayleen and Nicole. Looking forward to the rest of our journey together.

Louis Lubbe Managing Director of Lubbe Projects & Company (Pty) Ltd.

Business Plan Pro® will give you the best Business Plan, with that said I can stand on the edge of a cliff on a windy day for you to prove me wrong, I had a very close deadline when I gave them my information, in fact with my little knowledge on business planning I thought they would fumble so I panicked and gave them every single bit of information I had and I couldn’t sleep worrying about whether I won’t find them the next day 😂😭🤣, well they are legit & you can sleep peacefully, they truly exceeded my expectations. BEST BUSINESS PLAN IN SA so far. Braaaaaah The level of research I saw in that business plan I realized I didn’t know my business 😩🤣

Success Ngcobo

From day one of contacting Business Plan Pro® I received five star service. I was even happier with their delivery. There’s no doubt I will be using Business Plan Pro® again in future. Anyone who needs their service should not hesitate. Business Plan Pro® is simply the best. Thank you once again!

Boitumelo Ralenala

Thanks Business Plan Pro® for Quality, Prompt and Professional service and uber presentation of the Business Plan. Keep it up!

Ashraf Patel  Managing Director of Baobab Green Tech (Pty) Ltd.

Get Started

Learn more about our service.

Please let us know if you have a question, want to leave a comment, or would like further information.

Our Track Record

Our services will empower you to apply for funding, a lease agreement or at an industry regulator, see how business plan pro® assisted coco vogue (pty) ltd. to get funding and secure a lease agreement..

Learn more about our Business Plan Services!

Academia.edu no longer supports Internet Explorer.

To browse Academia.edu and the wider internet faster and more securely, please take a few seconds to  upgrade your browser .

Enter the email address you signed up with and we'll email you a reset link.

• We're Hiring!
• Help Center

SAMPLE LOGISTICS PLAN

the paper represent a five years plan for a trucking company wishes to commence it business in East and central africa

Related Papers

Roberta Weisbrod , Peter Plumeau

Abstract: This report presents information and suggestions for improving public decisions affecting urban commercial motor vehicle movements for goods delivery. While many aspects of urban goods movement have been thoroughly documented, no single report ...

Chris Spahr

"This project, funded by SSTI with a matching grant from the Center for Freight Infrastructure Research and Education (CFIRE), identifies and evaluates freight transportation demand management (TDM) strategies to improve transportation efficiency by reducing the social costs associated with goods movement in urban areas. Information about various freight transportation demand management (TDM) strategies was gathered through a review of literature, an online survey, and interviews with implementers. Strategies are compared based on their costs, benefits, and implementation difficulty. Case studies of six US cities using innovative freight TDM strategies are also included."

Mengistu Alehegn

Dick Nelson

We begin by reviewing literature describing the characteristics and policy issues bearing on freight. We extract from that literature a structure for describing those policy issues, and then go on to design a series of map displays and quantitative measures that provide a linkage between the characteristics of local delivery trucking and the public policy issues that stem from and

Analytica Chimica Acta

Nikita Sinha

A large data set pertaining to water quality of an alluvial river was analyzed using multi-way data analysis methods with a view to extract the hidden information, spatial and temporal variation trends in the river water quality. Four-way data (8 monitoring sites × 22 water quality variables × 10 monitoring years × 12 sampling months) analysis was performed using PARAFAC and Tucker3 models. A two component PARAFAC model, although explained 35.1% of the data variance, could not fit to the data set. Tucker3 model of optimum complexity (2,3,1,3) explaining 39.7% of the data variance, allowed interpretation of the data information in four modes. The model explained spatial and temporal variation trends in terms of water quality variables during the study period and revealed that sampling sites in mid-stretch of the river were dominated mainly by the variables of anthropogenic origin. The results delineated the mid stretch of the river as critical from pollution point of view and also identified summer months as having high influence on river water quality in this stretch. The information regarding spatial and temporal variations in water quality generated by the four-way modeling of data would be useful in developing long-term water resources management strategies in the river basin.

Sergio Finardi

Pablo Ibarra

alpha manjera

Mark Kazarosian

Loading Preview

Sorry, preview is currently unavailable. You can download the paper by clicking the button above.

RELATED PAPERS

Silvia Estrada-Flores

Improving Transnational Transport Corridors in the OIC Member States: Concept and Cases

Joel van der Beek , Fadiah Achmadi

Amelia Regan

Adam V Diamond , James Barham

Caroline Wagner

Research in Transportation Economics

Emine Zehra Akgün

Alexis Fillone , Gilberto Llanto , Epictetus Patalinghug , Noriel Tiglao

Lidiya Tesfaye

Gehad Hadidi , Cary Fukui , Emily Rhodes

Journal of Labor Research

Michael Belzer

Marcia Scott

Randolph Hall

eshetu ejara

Annette Hübschle

ENOCH SURIANO DE LEON

Brian Cooksey

Ivan Sanchez-Diaz , Miguel Jaller

Nora Dihel , Axel Mangelsdorf , John Keyser , Robert Kirk

UBC Master Thesis

Simon L'Allier

In the course of globalization, the pressure on today's …

Lorena Sales

MESUT AKDAG

Giedrius Makrickas

Cathy Macharis , Sandra Melo

Maritime Policy & Management

Victor Gekara

Tien Hoang Thuy

Nikita Goel

Trihan Syahril

RELATED TOPICS

•   We're Hiring!
•   Help Center
• Find new research papers in:
• Health Sciences
• Earth Sciences
• Cognitive Science
• Mathematics
• Computer Science
• Academia ©2024

• Business Plans
• Business Ideas
• Business News
• Business Tips
• Testimonials
• Terms And Conditions
• REFUND POLICY
• DELIVERY POLICY
• PRIVACY POLICY
• WHATSAPP SUBSCRIPTION

Select Page

PRE-WRITTEN BUSINESS PLANS FOR SOUTH AFRICA (PDF, WORD AND EXCEL): COMPREHENSIVE VERSION, SHORT FUNDING/BANK LOAN VERSION AND AUTOMATED FINANCIAL STATEMENTS

Posted by BizBolts | All Articles , Business Plans

We have several payment methods which you can use to buy the business plans.

Payment Method 1 (Visa card, Mastercard, Credit card, Debit Card) – R500

To purchase the business plans using Visa Card/Master Card click here: Business Plans Store . After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Click the button below to purchase business plans using Visa Card/ Mastercard.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

Payment Method  2 – (Instant EFT – FNB, Absa, Standard Bank, Nedbank, CapitecBank, Investec, TymeBank and African Bank. )

Other Payment Methods

• Cash deposit into our FNB Company Bank Account
• EFT Transfer to our FNB Company Bank Account

Call/Whatsapp us on +27606334830 for the other payment methods. (Whatsapp us by clicking the link https://wa.me/27606334830 ). Email: [email protected] .

Testimonial 4

The business plan was very helpful, you did a great job of taking ideas and putting them into words as well as pointing out other aspects of the business plan I wouldn’t have thought of. I got funding using your business plan and it’s now 4 months since I started my poultry business, and everything is going well.

Testimonial 1

Many thanks to the BizBolts team for putting together a fantastic business plan, I could not have done this business plan on my own. I managed to get funding from investors to start my butchery business using your business plan.

Testimonial 5

The BizBolts poultry business plan led us down the path from start to finish. Contact details of suppliers of key requirements were included in the business plan. It helped us crystallize our strategy, and the business plan was well received by the bank.

Testimonial 3

The business plan has a highly professional look and feel. The research really helps me look deep into the market that I am targeting, it’s well suited for the South African market. The business plan clearly outlined everything I need to start the business and the costs. It’s now easier to budget and plan. Thank you very much.

Testimonial 7

Thank you BizBolts for the business plan. I received the business plan immediately after payment, it was money well spent ! I was able to easily edit the business plan. After using the BizBolts business plan, I can wholeheartedly recommend their products and skills.

Testimonial 2

I am extremely pleased with the business plan and financial statements. The business plan is very detailed & it meets my requirements. I feel better equipped with tools that can help me secure funding.  I would have no hesitation of recommending your business plans to other people.

Testimonial 6

It is with excitement and pleasure to inform you that I have been successful in securing a loan from my bank. This would not have been possible if not for the BizBolts Business Plan. Thank you for your help, my dreams are now coming true.

About the Business Plans

We decided to introduce the South African business plans after noting that many South Africans were venturing into businesses without a full understanding of the industry, market, how to run the businesses, the risks involved, profitability of the businesses and the costs involved, leading to a high failure rate of the start-ups.

Our business plans will make it easier for you to launch and run a business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the business plans will lay out all the costs involved in setting up and running the business. They are designed uniquely for the South African market.

USES OF THE BUSINESS PLANS (PDF, WORD AND EXCEL)

These business plans can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your business
• As a project proposal
• Assessing profitability of the business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

CONTENTS OF THE SOUTH AFRICAN BUSINESS PLANS (PDF, WORD AND EXCEL)

All our pre-written plans include, but not limited to:

• Market Analysis
• Industry Analysis
• 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
• Marketing Strategy
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some South Africans in that type of business fail, so that you can avoid their mistakes
• Ways to raise capital to start your business in South Africa

All our agriculture pre-written business plans include technical aspects of how to keep and rear the animals / farm the crops. They also include a mini-directory with contacts which will prove to be helpful in launching and running the business. E.g. for broiler poultry we will provide the contact details for South African suppliers of feeds, equipment, day old chicks, abattoirs, training companies etc)

The Business plan package consist of 4 files

• Business Plan – PDF file (Comprehensive – Between 70-105 pages)
• Business Plan – Editable Word File (Comprehensive – Between 70-105 pages)
• Business Plan Funding Version – Editable Word File (Short version for applying for a loan – between 35-50 pages)
• Business Plan Automated Financial Statements – (Editable Excel file)

The financial statements are automated. This implies that you can change an item eg unit price, and all the other financial statements will automatically adjust to reflect the change.

About The Author

BizBolts (Pty) Ltd is a business research company based in Johannesburg, South Africa. We sell prewritten business plans for various industries including livestock production, crop farming and retail businesses. BizBolts also publishes articles on business ideas, business news, business tips, personal finance, and entrepreneur profiles.

Related Posts

Starting Free Range Chicken Farming Business in South Africa – Business Plan (PDF, Word & Excel)

December 21, 2022

Starting A Rental Property Business in South Africa – Business Plan (PDF, Word & Excel)

April 28, 2023

Basetsana Kumalo Entrepreneur profile

July 31, 2019

Starting A Cattle Farming Business in South Africa – Business Plan (PDF, Word & Excel)

January 12, 2024

Follow Us On Facebook

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!

Skip to main content

• Imperial Logistics Integrated Annual Report 2019
• Print this page
• E-mail this page
• Feedback form

Currently viewing: Logistics South Africa | Next: Logistics African Regions

Operational review – South Africa

Logistics South Africa

Market position.

• Leading logistics provider in South Africa, with end-to-end capabilities
• Reach and scale make us resilient to economic weakness
• Efficiency, customisation and innovation support our growth potential

Our reach and scale support our resilience, and our end-to-end capabilities enable us to customise and integrate solutions for clients that support their competitiveness and relevance. Our efforts to unlock value have included renewing our client profitability models to improve our insight into and retention of clients, and a more competitive pricing strategy to drive growth in our chosen industries. To support greater efficiency, we have also exited unprofitable contracts, consolidated operations and properties, and reduced fleets and overheads. We are positioned to retain our market leadership and maximise our growth potential in our chosen industry verticals.

1 Continuing operations, excluding businesses held for sale.

* Restated due to the reallocation of results relating to our infrastructure solutions business from Logistics South Africa to Logistics African Regions.

Note: Continuing operations; excluding businesses held for sale, head office and eliminations.

Operating context

• Material macroeconomic factors affecting our South African operations included persistently poor economic conditions and low consumer spending – translated into exceptionally low volumes across most sectors.
• Load shedding during the year impacted production activity in many sectors, which also negatively affected our volumes.
• Government's growth plan is unlikely to stimulate growth in the short term and high unemployment continued to plague the country.
• We continued to face margin pressures from clients.
• The impact of this lacklustre trading environment has been reduced volumes, and ongoing competitive and client pressures, particularly in the consumer-facing, healthcare and manufacturing client base.

Performance highlights

• Excluding CPG and businesses held for sale, we maintained revenue and reduced operating profit by 4%.
• This was due primarily to depressed consumer demand and exceptionally low volumes across all industries, particularly in the consumer-facing, manufacturing and healthcare client base.
• New contract gains, a good performances from the supply chain management and consulting business (Resolve), fuel and gas, and commodities businesses. Ongoing improvements in efficiencies in the supply chain significantly reduced costs which further supported performance.
• Excluding the CPG business, the division has grown operating profit by 5% per annum over the last three years, achieving ROIC of 16%.
• New contract gains added R2,2 billion of annualised revenue.
• Client retention rates remained high at around 95%.
• Net capital expenditure increased to R569 million (2018: R388 million) due to the replacement of the transport fleet and fleet expansion to accommodate new contracts.
• The CPG business, classified as a discontinued operation, recorded a R503 million operating loss for the year.
• The ROIC of 13,0% reduced from 13,8% in the prior year mainly due to lower operating profit.

An unpredictable operating environment and increasingly pressured market made for a difficult 2019. Weak economic conditions, low consumer spending and volatile fuel prices significantly impacted our businesses and profitability.

In the CPG business, contract losses, volume and margin pressures deepened in line with the unexpected pace and extent of economic decline, which accelerated structural changes in the market – specifically as retailers centralised their distribution facilities and disintermediated supply chain providers to protect their margins. Despite numerous turnaround and cost cutting initiatives, the CPG business model (providing multi-principal distribution capability) had become uncompetitive and unsustainable, and a return to profitability was unlikely.

This made the decision to exit the business unavoidable, at which we immediately turned our focus to minimising the impact on our people, clients and suppliers. Roadshows were undertaken to communicate the decision to our employees and involved constructive, ongoing engagement with the relevant unions and other key stakeholders, facilitated by a commissioner appointed by the Commission for Conciliation, Mediation and Arbitration (CCMA). Key contracts are being accommodated in other business units under a different commercial model and CPG operations will be fully terminated by the end of calendar year 2019. It is important to note that this decision does not represent our exit from the consumer industry vertical in South Africa, but only the rationalisation of the multi-principal distribution capability that had become unviable.

Excluding CPG, the South African division has shown its resilience. It has lifted operating profit by 5% over the last three years and achieved an excellent ROIC of 16% in a market of no real economic growth. This has demonstrated our ability to adapt our asset utilisation models to the changes in specific industries and our progress in rationalising and consolidating businesses and facilities, and reducing costs. The South African division removed c.R140 million (excluding CPG) of fixed overhead costs per annum which resulted in a once-off cost impact of c.R25 million in this financial year.

More importantly, we have retained 95% of our client contracts and secured new contract revenue of R2,2 billion in the last year. This is testament to the dedication of our teams who have continued to deliver differentiated services to our clients, consolidating our position as their partner of choice. To drive growth, we will leverage the advantages to our clients of our depth of experience and industry insight through our renewed operating model – which will ensure a dedicated commercial sales focus supported by operational excellence within our chosen industry verticals. This will be underpinned by our ONE Imperial – "one business, one brand" approach, which emphasises an ethical, collaborative, innovative, client and delivery-driven culture.

Our people are the critical enablers of our commitment to improve the delivery of our short-term financial and operational targets, without diluting our attention on our longer-term strategic objectives. We continue to invest significantly in the development of our people, with a specific emphasis on accelerating transformation both within our organisation and through our business partnerships. This is fundamental to deepening our competitive advantage and protecting our legitimacy in South Africa. During the year we appointed a number of black and female employees to key executive and management positions. We also concluded a B-BBEE transaction with the Afropulse Group, a wholly black women-owned business, to form Imperial Logistics Advance, a 51% black-owned and more than 30% black women-owned business that focuses on the energy, mining and chemicals industries.

Technology and innovation are important themes in protecting our market leadership position. Our short-term approach is to develop pockets of practical innovation that will add significant value in the short term while ongoing investment will provide a foundation for longer-term growth opportunities.

Our people had to deal with deep uncertainty in the last year, as an inevitable consequence of the difficult strategic decisions we made, quite besides the worrying economic and socio-political conditions in which we live and work. During the year, 3 014 of our employees in South Africa were impacted by organisational restructuring. This resulted in the transfer of 2 764 employment contracts and, regrettably, the retrenchment of 250 employees after due process. As we move forward, we will rely on the resilience and resourcefulness of our people to compete more effectively. Without the drain on management time and divisional performance of a significant underperforming business, we are confident in our ability to deliver on our strategy, which is focused on protecting our market leadership and deepening our competitiveness and relevance to our clients in our chosen industries.

We also continue to invest in environmental initiatives that reduce our operating costs and reliance on unstable municipal supply, with particular focus on fuel, electricity and water. We continue to explore the business case for investing in specialised assets on behalf of our clients, for instance Euro 5 emissions standard trucks and gas-powered vehicles, where possible, and multipurpose vehicles able to transport multiple products at different temperatures. This is in addition to route optimisation software and vehicle management systems that also contribute to fuel efficiency. Pleasingly, we achieved an 18% reduction in water consumed due to the increased use of recycled water and obtaining water from alternative sources. Road fuel and electricity consumption decreased 9% and 4% respectively compared to prior year and is mostly due to reduced fleet utilisation and the consolidation of facilities.

As we replace our fleet we ensure that our vehicles are fitted with the latest safety specifications, to support the highest standards of driver health and safety. This is supported by annual driver training to support our focus on instilling a culture of health and safety in all of our operations. While road accidents and road injuries per million kilometres decreased 24% and 45% respectively for the year, we also recorded two employee fatalities. We convey our sincere condolences to the families, friends and colleagues of Sibusiso Mhlongo and Patrick Ratyela.

The people of Imperial Logistics South Africa are smart, passionate and tenacious. I have every confidence that we have what it takes to meet our performance targets and progress our strategic objectives in a market that will remain difficult for the foreseeable future. We firmly believe that we have more opportunity in tough times to demonstrate the benefits to our clients of the scale and reach of our specialist capabilities, and the competitive pricing that our high efficiency enables.

Strategic objectives

Support client centricity

Simplifying our operating model will support our client-centric approach and remove duplication. Re-organising our business by priority industry will improve engagement, giving our clients a single point of contact through which to access the industry teams. Their specialist expertise in these industries will improve the development of customised solutions, deepening client dependence on our services. Our priority industries are those in which we believe we can compete most effectively and generate targeted returns. They include consumer, healthcare, mining and manufacturing, chemicals and energy. We will continue to participate in automotive, public sector, hospitality and tourism.

Past performance has been measured mainly by financial indicators. While this was also the case for the year under review, we are developing measures appropriate to our strategy and culture, and the behaviours we want to encourage. We will continue to develop and embed the relevant measures for disclosure in the medium term, including:

• Revenue growth per industry.
• Client satisfaction, based on net promoter score.
• Client-focused solutions and innovation.

We are implementing a new operating model, where centralised commercial teams will take responsibility for business development and sales, and operations teams will be responsible for the delivery of capabilities and solutions to clients. This will reduce internal competition for contracts, duplication of effort and simplify how we engage with clients, without centralising the accountability for operational growth within our business units.

Work to consolidate relevant functions into the structure and appoint the right people with the appropriate skills, and to migrate clients to industry teams, is ongoing. A new chief commercial officer has been appointed, along with senior executives to head up each key industry team, and business plans are being developed in each case. Reward and recognition practices will be aligned to the relevant responsibilities in the new structure.

Longstanding strategic relationships, competitive cost structures after further rationalisation and our ability to customise solutions saw the division retain 95% of its contracts. A strong pipeline of new business – of R2,2 billion – was likewise forged on the back of these differentiators.

Leverage asset flexibility to deliver organic growth

To drive growth, we need to remain flexible in the way we apply traditional (in which we own specialised assets) and non-traditional (in which we manage third-party assets) models to deliver services to clients that make the most commercial sense to them. Asset intensive growth opportunities are carefully assessed using measures that include target market share and acceptable returns with new and existing clients and in new industries and capabilities. Our objective here is to entrench our client relationships and mitigate the risk of disintermediation. In combination, we are expanding our asset light services and solutions to diversify our business and entrench our services with clients. These solutions depend more on people, processes and technology and less on asset ownership to add value to clients. Establishing these new services still requires investment in team set-up, systems implementation, technology and business development.

Measures for success include:

• Revenue and operating profit growth.
• ROIC of 3% above WACC.

During the year, net capital expenditure increased from R388 million to R569 million, primarily due to the replacement of the transport fleet and fleet expansion to accommodate new clients. We continually assess our asset flexibility to ensure that we have the right balance of assets to deliver competitive services to our clients.

Our focus on expanding our range of services and capabilities included designing specialised high cube capacity trailers to improve our offering to our clients in the packaging industry. We will continue to assess our asset needs to be able to grow our existing client base in South Africa, focusing on expanding our service offering and to enter new market sectors. We will balance asset investments with other opportunities to deliver organic growth in the longer term, including investing in strategic partnerships, technology and innovation, and other business development opportunities.

Accelerate transformation

Transformation is fundamental to deepening our competitiveness, relevance and legitimacy in South Africa. As a moral and commercial imperative, we strive to continually improve our B-BBEE performance. Our approach to transformation is collaborative and we work with our clients, partners, suppliers and the public sector to drive progress. Our clients demand that we meet minimum transformation criteria to participate in tenders. These include black ownership of over 50%, black women ownership greater than 30% and a minimum B-BBEE rating of Level 3. Achieving this is fundamental to winning new business and retaining existing clients.

• Progress from Level 3 to Level 2 B-BBEE rating according to the revised dti Codes by 2022.
• Achieve employment equity targets.
• Growth and client retention, particularly in the energy and mining sectors.

Our 2019 B-BBEE scorecard is expected to achieve a Level 3 rating against the dti Codes and a Level 2 rating against the Road Freight Sector Codes. It will be available at the end of September 2019. Black representation at top management level was 47% (target: 33%), senior management at 28% (target: 20%), middle management at 43% (target 39%) and junior management at 76% (target 77%). Some 89% of appointments made in the year went to black candidates and 92% of our training spend was directed at the development of black employees. Meeting our employment equity targets in an environment in which we had to reduce headcount and with low staff turnover at all management levels is a challenge. However, we have done an analysis of staff close to retirement to identify positions for the accelerated succession of black talent. Through facilitated job-shadowing, this initiative will enable institutional knowledge and skills transfer, and smooth transitions into these roles for the identified successors.

Diversity workshops and climate surveys are regularly conducted to foster an organisational climate that values diversity and encourages inclusion. In addition, 98 leaders attended change management training to help them embed employment equity practices and policies. We also launched the Imperial Logistics Women's Forum, comprising representatives across all employment levels, to identify and address issues encountered by women in the workplace.

Looking forward we will focus on building an external talent pipeline for business critical positions, focusing on African male and female candidates to supplement the internal talent pool. We will also look for opportunities to centralise certain procurement categories to increase our spend with black companies and develop structured engagement interventions to assist our sub-contractors and suppliers improve their B-BBEE ratings.

More information is available online: support relevant social imperatives within our operating regions.

Optimise core capabilities

Optimising our core capabilities includes assessing the strategic alignment of business units, possibilities for further consolidation of our businesses and the development of industry specific capabilities. As we continue to enhance the depth of our capabilities in core industries, we will leverage our networks to become a leading distributor in both formal and informal markets. We will maintain market relevance through our ability to offer highly specialised services to clients that are unmatched by competitors in the South African market.

Success will be assessed through:

• Reduced operational complexity.
• Improved returns, cost reductions and revenue growth.

During the year, we continued to assess our capabilities and to identify areas for optimisation.

Examples of this include:

• Optimising our control tower capabilities.
• Being the only accredited cyanide transporter in South Africa and having the only accredited phenyl wash bay in the country.
• Developing performance-based vehicles capable of carrying heavier loads of larger volumes.

We are investigating the opportunity to leverage our existing networks and capabilities to distribute specific products to remote and informal markets. We are currently investigating the feasibility of participating in the fast growing e-commerce market and are subsequently identifying strategic partners with fulfilment capability.

People, processes and systems

Human capital

In line with the strategic decisions taken during the year, our people priorities were to limit the impact of the CPG closure on our employees in the business and the implementation of the new operating model, including aligning reward and recognition structures to support the new model and a client-centric approach. Pleasingly, the progress made in core data and the talent management process assisted the redeployment of people impacted by the organisational restructuring.

To support the group's people strategy to embed best people management practices and position Imperial Logistics as an employer of choice, we are focused on transforming the workforce (as discussed above), improving our talent and performance management processes, and progressing the implementation of a human capital management system.

• Enhanced the talent management process, enabling us to identify the appropriate talent for each job profile and understand where we can potentially promote employees in the talent pipeline. This has enhanced transparency around career paths for the operational levels (unskilled and semi-skilled). Going forward, our focus will be to develop clear career paths for roles beyond these levels and equip line managers to hold effective talent conversations with their teams.
• Launched the Executive Development and Women's Development programmes, which develop leadership capability and resilience in the face of change.
• Our Graduate programme builds our talent pipeline for specialist and management roles. 63% of this year's 38 graduates are black and in 2020 we will increase our intake, with 67% of graduates being women.
• In total, R5 million was invested in the Thabang Fund since 2017 to develop black semi-skilled and unskilled employees in various fields.
• Training spend amounted to R160 million (2018: R135 million).
• Rebuilt and rebranded the talent recruitment strategy in line with being an employer of choice. This included the launch of a LinkedIn profile, helping us to reach more black candidates, and increased engagement at universities to support the intake to the Graduate programme.
• Developing a framework to standardised talent acquisition, which will include the necessary expertise to manage talent sourcing.
• Aligned our people processes, policies and practices across group companies to support the implementation of a people management and payroll system. Implementation will take place over the next two years.
• Started implementing the new performance management practice, with a balanced scorecard of KPIs to ensure employee effort aligns to strategic objectives.
• Successfully concluded industry wage negotiations, securing a three-year wage settlement with the National Bargaining Council for the Road and Freight Logistics Industry (NBCRFLI).

Going forward, we will continue to enhance transparency around career paths at all levels and equip line managers to hold effective talent conversations with their teams.

More information is available online: Effective human capital management .

Information technology and innovation

We have developed a South African IT roadmap which details specific priorities and requirements to support our existing operations and future business development plans, which includes client-focused innovation.

This year, our IT strategy focused on:

• Streamlining our IT operating model by adopting a fit-for-service delivery model.
• Ensuring the appropriate blend of IT architecture and business skills needed to offer contemporary, innovative business solutions.
• Standardising and consolidating decentralised legacy systems into stable and robust fit-for-purpose solutions built on reliable platforms, thereby reducing the risks related to running these systems.
• Upgrading our IT architecture to cloud-based platforms, strengthening our data recovery and availability and reducing our current server footprint.
• Proactively supporting our ability to deliver innovative, value-added and differentiating technology solutions, including the use of blockchain for smart contracts, serialisation and digital freight exchange.
• Providing a data repository for quality information that can be used for predictive analytics to enhance decision making.

More information on the group approach to innovation is available in the Innovation report .

• customise • collaborate • compete