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Do you want to start Supply Chain Management Business?
Do you want to start a supply chain management business? Well that can be an amazing idea if you want to quickly start a business. One of the main reasons is that this supply chain business plan will not need you to have any specific technical knowledge or degree. You can start this business with just a few contacts and grit.
Even though it is relatively easier to start a career in supply chain management, it still doesn’t mean you should go in unprepared. The best thing you can do is go through a business plan for supply chain management. You can get a business chain management plan supply from anywhere on the internet. And if you want, this document is also a great place to look for help supply chain business plan.
Executive Summary
2.1 The Business
Clark’s Management will be a supply chain management startup owned by Clark Bridgers. The main objective of the supply chain business plan is to guide and assist companies in streamlining their supply chains in Oakland. It will offer versatile resources and services for the best supply chains.
2.2 Management of Supply Chain Management Company
Note
To ensure that your company is well managed, you need to develop a supply chain management business plan as the first step.
In this supply chain strategy model, we will including all the important aspects of a business for buy side due diligence.
In order to make your supply chain business plan, you can study a sample pdf of supply chain management like this one. You can also use the internet to go through a plan for supply chain management filetype pdf. These will give you a good idea of what you should include in your supply chain business plan. And this will apply even if you are developing a business plan for video production.
2.3 Customers of Supply Chain Management
Our clients will be from all industrial and professional domains since supply chain is a part of the lifecycle of any product or service. Keeping that in mind, our recurring customers will include:
- Product Businesses
- Service Businesses
- Hybrid Large/Small Businesses
- Manufacturing Units
2.4 Business Target
The primary goal of our supply chain business plan is to become the most reliable and trusted option for our clients whenever they want to improve their supply chains.
The financial targets that we aim to achieve in the first two years are shown below:
Company Summary of Supply Chain Management
3.1 Company Owner
Clark Bridgers will own Clark’s Management. Clark completed his Bachelor’s in Management about 3 years back. After his studies, he pursued a job in a corporation as a business management consultant. But he left job in pursuit of starting his own supply chain business plan.
3.2 Why the Supply Chain Management Company is being started
Clark observed that a lot of businesses are looking for ways to reduce their production costs. But there are very few businesses that offer any help in the area. He quickly realized that he could use his innovative ideas and knowledge to improve supply chain management for these companies.
3.3 How the Supply Chain Management company will be started
Step1: Plan Everything
Before you look into things like what is supply chain strategy definition, you need to consult supply chain business plan experts. They will guide you in development of supply chain organization models.
Clark decided to offer his services to both service and product based companies. So, you can use this or any related supply chain management project report pdf to get started with your own supply chain business plan. These documents will help you understand the role of supply chain management in business plan.
Step2: Define the Brand
A crucial step in starting a new supply chain business plan is to get noticed. You will have to identify and highlight your core values and market those to your potential customers to gain attention.
Step3: Establish a Web Presence
The most important part of any business in the digital age is online promotion. For this, Clark decided to establish social media presences for his supply chain business plan. He also decided to outsource a simple website through which people can book appointments and reach out.
Step4: Promote and Market
As the final step, you need to create and follow a marketing plan to promote your supply chain business plan.
| Start-up Expenses | |
| Legal | $222,200 |
| Consultants | $0 |
| Insurance | $23,000 |
| Rent | $33,000 |
| Research and Development | $10,000 |
| Expensed Equipment | $56,000 |
| Signs | $3,400 |
| TOTAL START-UP EXPENSES | $347,600 |
| Start-up Assets | $266,000 |
| Cash Required | $469,000 |
| Start-up Inventory | $39,000 |
| Other Current Assets | $240,000 |
| Long-term Assets | $287,000 |
| TOTAL ASSETS | $1,301,000 |
| Total Requirements | $1,648,600 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $347,600 |
| Start-up Assets to Fund | $1,301,000 |
| TOTAL FUNDING REQUIRED | $1,648,600 |
| Assets | |
| Non-cash Assets from Start-up | $1,606,000 |
| Cash Requirements from Start-up | $285,000 |
| Additional Cash Raised | $50,000 |
| Cash Balance on Starting Date | $35,000 |
| TOTAL ASSETS | $1,976,000 |
| Liabilities and Capital | |
| Liabilities | $18,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $48,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $66,000 |
| Capital | |
| Planned Investment | $1,648,600 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,648,600 |
| Loss at Start-up (Start-up Expenses) | $261,400 |
| TOTAL CAPITAL | $1,910,000 |
| TOTAL CAPITAL AND LIABILITIES | $1,976,000 |
| Total Funding | $1,648,600 |
Services of Supply Chain Management
When you are starting supply chain business, one of the major things you need to figure out the services you will be providing to your customer base. You can refer to a sample business plan supply chain management for an idea.
The requirements of supply chain management in a business plan is different as compared to other plans such as aerial tourism business plan.
But since Clark decided to provide a whole array of services so this example of supply chain strategy can also be used for other ventures like internet radio business plan. You can gain a lot of insight from this plan for operations and supply strategy.
- Identifying and Dealing with Logistics Problems
Our company will offer solutions to all basic problems that may occur in the supply chain. If, for instance, a customer complains about service quality, it can reflect poorly on the supply chain business plan. But our company ensures that most problems are identified beforehand through data analysis.
- Price Optimization
Many businesses offer products or services that are seasonal. Since seasonal offers are not needed throughout the year, businesses have to find a way to reduce their prices and sell them. Our company will help businesses set these marketable prices through analytical software. This will ensure that:
- Products are sold, and
- Business is still profitable
- Dynamic Resource Management
Businesses have limited resources. Our company will help businesses organize and allocate their resources such as equipment and workforce in a way that optimizes performance.
- Supply Chain Consultation
Our company will also provide consultation experts that can help businesses with supply chains reduce their costs and improve their performance.
Marketing Analysis of Supply Chain Management Company
When you are describing your company for supply chain management in a business plan, you will need to describe your customer base. Identifying your customers is one of the essential steps of starting a supply chain business plan. And you have to include this information in your plan even it is a business plan template for summer camp.
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You should have detailed information about your customer. And the best way to get these details is through a market analysis. The market analysis included in your supply chain development strategy, should have all information regarding past, present and future market trends.
The supply chain strategic management is used to analyze the market prices and to figure out the financial goals of your own supply chain reporting structure. You can use a supply chain management project pdf sample like this to see how the market analysis is presented.
5.1 Market Trends
According to ExploreWMS, the number of warehouse in US have grown by 6.8% in the last five years. This means that more and more companies need better supply chain management techniques and services. And due to the shift for efficiency, supply chain management positions are increasing faster than economic averages. So, there is no deficiency of demand in the market for a supply chain management or services.
5.2 Marketing Segmentation
The potential customers of Clark’s Management are divided into the following categories:
Business plan for investors
5.2.1 Product Businesses
Our main customers will be the product based businesses that rely on the sale of their products. Since the sale of a product is affected by a lot of factors in the supply chain so these businesses are more likely to regularly use our services.
5.2.2 Service Businesses
Our second target customers will be service providing businesses much like ours. Services are also provided as a result of a supply chain that involves ideation, planning and development as some of its parts. So service businesses are also expected to utilize our services quite often.
5.2.3 Hybrid Small/Large Businesses
Every supply chain business works for an endpoint through a series of pre-defined steps. These steps form a supply chain even in hybrid (product and service) businesses. Since these businesses are usually big corporations with their own management departments so they are likely to use our services every so often.
5.2.4 Manufacturing Units
Manufacturing units on their own also require management tips to work more smoothly. They are expected to avail our services often to streamline their operations.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Product Businesses | 40% | 34,500 | 41,400 | 49,680 | 59,616 | 71,539 | 10.00% |
| Service Busiensses | 23% | 26,500 | 31,800 | 38,160 | 45,792 | 54,950 | 10.00% |
| Hybrid Businesses | 21% | 18,000 | 21,600 | 25,920 | 31,104 | 37,325 | 10.00% |
| Manufaacturing Units | 16% | 15,400 | 18,480 | 22,176 | 26,611 | 31,933 | 11.00% |
| Total | 100% | 94,400 | 113,280 | 135,936 | 163,123 | 195,748 | 10% |
5.3 Business Target
- To become the best supply chain management company throughout Oakland
- To increase the range of our offered services over time
- To earn a net profit of around $30k per month by the end of the second year
- To achieve and maintain customer satisfaction above 90%.
5.4 Product Pricing
Our prices will be a little bit higher than the market average. But we will offer more services over a longer period of time as a compensation. This will help our customers more in the long run as compared to our competitors.
Marketing Strategy of Supply Chain Management
To gain attraction in a huge industry, you need to find areas where you have competitive advantage. For this, you need a solid marketing strategy and branding so that people can recognize your offers.
In the present supply chain management report template, we are describing the marketing strategy for Clark’s Management. You can also refer to an example such as business plan supply chain management to improve your business proposal. This is helpful even if you are just starting a paintball business.
6.1 Competitive Analysis
- We have amazing customer support available. We will deal with all customers patiently and also gain feedback for future improvement.
- Through our physical shops, website and social media, customers have different ways to contact us. And we will respond to them at the earliest.
- We will provide consultations and services in accordance with all the standard practices so that our customers can focus on their work without worry.
6.2 Sales Strategy
- We will advertise through word of mouth, Google Ads, Social Media, and billboards.
- We will provide long-term services in reasonable and market-competitive prices.
- We will also provide special discounts to first-time and long term customers.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Logistics | 835 | 885 | 938 |
| Price Optimization | 654 | 693 | 735 |
| Dynamic Resource Management | 765 | 811 | 860 |
| Supply Chain Consultation | 265 | 281 | 298 |
| TOTAL UNIT SALES | 2,519 | 2,670 | 2,830 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Logistics | $1,150.00 | $1,334.00 | $1,547.44 |
| Price Optimization | $1,200.00 | $1,392.00 | $1,614.72 |
| Dynamic Resource Management | $1,350.00 | $1,566.00 | $1,816.56 |
| Supply Chain Consultation | $1,500.00 | $1,740.00 | $2,018.40 |
| Sales | |||
| Logistics | $960,250.00 | $1,180,723.40 | $1,451,817.49 |
| Price Optimization | $784,800.00 | $964,990.08 | $1,186,551.80 |
| Dynamic Resource Management | $1,032,750.00 | $1,269,869.40 | $1,561,431.41 |
| Supply Chain Consultation | $397,500.00 | $488,766.00 | $600,986.67 |
| TOTAL SALES | $3,175,300.00 | $3,904,348.88 | $4,800,787.38 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Logistics | $840.00 | $924.00 | $970.20 |
| Price Optimization | $800.00 | $880.00 | $924.00 |
| Dynamic Resource Management | $950.00 | $1,045.00 | $1,097.25 |
| Supply Chain Consultation | $1,050.00 | $1,155.00 | $1,212.75 |
| Direct Cost of Sales | |||
| Logistics | $701,400.00 | $817,832.40 | $910,247.46 |
| Price Optimization | $523,200.00 | $610,051.20 | $678,986.99 |
| Dynamic Resource Management | $726,750.00 | $847,390.50 | $943,145.63 |
| Supply Chain Consultation | $278,250.00 | $324,439.50 | $361,101.16 |
| Subtotal Direct Cost of Sales | $2,229,600.00 | $2,599,713.60 | $2,893,481.24 |
Personnel plan of Supply Chain Management
No business can run without the diligence of its workers. The success of any business actually depends a lot on the behavior of employees. Clark knew the importance of hardworking and patience workforce and so he developed a selection criterion for employees. This criterion will be a part of business plan for supply chain management. You can also find examples of this in a sample business continuity plan supply chain management on the internet.
7.1 Company Staff
- 1 Co-Manager for overall assistance
- 2 Purchasing Agents
- 3 Logistics Analysts
- 1 Operations Manager
- 3 Planning and Expediting Clerks
- 2 Storage and Distribution Managers
- 3 Operations Consultants
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Manager | $40,000 | $44,000 | $48,400 |
| Purchase Agents | $82,000 | $90,200 | $99,220 |
| Logistics Analysts | $110,000 | $121,000 | $133,100 |
| Operation Manager | $25,000 | $27,500 | $30,250 |
| Planning and Expenditure Clerks | $75,000 | $82,500 | $90,750 |
| Storage and Distribution Managers | $25,000 | $27,500 | $30,250 |
| Operation Consultants | $30,000 | $33,000 | $36,300 |
| Total Salaries | $387,000 | $425,700 | $468,270 |
Financial Plan
You can’t become successful by just selling products or services. To be profitable, you need to carry out a detailed financial analysis. Usually, like in this supply chain business plan sample, financial analysis is included. Every good supply chain management business plan has a thorough financial plan included.
In your financial plan, you need to show how you will cover your expenses with your sales and profits. You also need to identify ways to reduce your expenses and increase your efficiency.
We have provided a comprehensive financial plan for supply chain management business. But you can also refer it for business plan movie selection.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.12% | 8.20% | 8.26% |
| Long-term Interest Rate | 8.40% | 8.44% | 8.47% |
| Tax Rate | 24.03% | 24.21% | 24.60% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5340 |
| Monthly Revenue Break-even | $132,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $231.00 |
| Average Per-Unit Variable Cost | $0.62 |
| Estimated Monthly Fixed Cost | $163,800 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $3,175,300 | $3,904,349 | $4,800,787 |
| Direct Cost of Sales | $2,229,600 | $2,599,714 | $2,893,481 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $2,229,600 | $2,599,714 | $2,893,481 |
| Gross Margin | $945,700 | $1,304,635 | $1,907,306 |
| Gross Margin % | 29.78% | 33.41% | 39.73% |
| Expenses | |||
| Payroll | $387,000 | $425,700 | $468,270 |
| Sales and Marketing and Other Expenses | $145,000 | $148,000 | $156,000 |
| Depreciation | $2,300 | $2,350 | $2,500 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $2,900 | $3,000 | $3,100 |
| Insurance | $2,100 | $2,100 | $2,100 |
| Rent | $2,900 | $3,000 | $3,200 |
| Payroll Taxes | $24,000 | $25,000 | $27,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $566,200 | $609,150 | $662,170 |
| Profit Before Interest and Taxes | $379,500 | $695,485 | $1,245,136 |
| EBITDA | $379,500 | $695,485 | $1,245,136 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $75,900 | $139,097 | $249,027 |
| Net Profit | $303,600 | $556,388 | $996,109 |
| Net Profit/Sales | 9.56% | 14.25% | 20.75% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $51,000 | $55,080 | $59,486 |
| Cash from Receivables | $22,000 | $23,760 | $25,661 |
| SUBTOTAL CASH FROM OPERATIONS | $73,000 | $79,570 | $85,936 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $74,000 | $79,000 | $85,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $42,000 | $42,000 | $45,000 |
| Bill Payments | $27,000 | $28,000 | $31,000 |
| SUBTOTAL SPENT ON OPERATIONS | $69,000 | $70,000 | $76,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $69,000 | $74,520 | $80,482 |
| Net Cash Flow | $21,000 | $23,000 | $25,000 |
| Cash Balance | $27,000 | $30,000 | $33,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $275,000 | $308,000 | $338,800 |
| Accounts Receivable | $24,000 | $26,880 | $30,213 |
| Inventory | $4,300 | $4,816 | $4,900 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $282,000 | $315,840 | $355,004 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $19,400 | $21,728 | $24,444 |
| TOTAL LONG-TERM ASSETS | $24,400 | $27,328 | $30,744 |
| TOTAL ASSETS | $294,000 | $329,280 | $370,440 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $18,700 | $20,944 | $23,541 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $19,000 | $21,280 | $23,919 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $15,000 | $16,800 | $18,883 |
| Paid-in Capital | $30,000 | $30,000 | $31,000 |
| Retained Earnings | $53,000 | $57,770 | $63,547 |
| Earnings | $193,400 | $210,806 | $231,887 |
| TOTAL CAPITAL | $285,000 | $310,650 | $341,715 |
| TOTAL LIABILITIES AND CAPITAL | $300,000 | $329,280 | $370,440 |
| Net Worth | $293,400 | $319,806 | $351,787 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.25% | 8.03% | 8.90% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.21% | 10.20% | 11.31% | 9.80% |
| Inventory | 5.39% | 5.97% | 6.62% | 9.90% |
| Other Current Assets | 2.11% | 2.34% | 2.59% | 2.40% |
| Total Current Assets | 149.80% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.55% | 11.60% | 11.64% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.90% | 4.94% | 4.98% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.59% | 7.65% | 7.72% | 7.38% |
| NET WORTH | 100.45% | 101.25% | 102.19% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 94.60% | 97.15% | 99.87% | 99.00% |
| Selling, General & Administrative Expenses | 93.56% | 96.09% | 98.78% | 97.80% |
| Advertising Expenses | 1.52% | 1.56% | 1.60% | 1.40% |
| Profit Before Interest and Taxes | 41.50% | 42.62% | 43.81% | 33.90% |
| Main Ratios | ||||
| Current | 34 | 35 | 36 | 32 |
| Quick | 33 | 33.8 | 34.645 | 33 |
| Total Debt to Total Assets | 0.18% | 0.18% | 0.17% | 0.40% |
| Pre-tax Return on Net Worth | 74.08% | 74.89% | 75.00% | 75.00% |
| Pre-tax Return on Assets | 96.30% | 101.12% | 106.17% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 33.56% | 34.60% | 35.67% | N.A. |
| Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.8 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 32.4 | 34.02 | 35 | N.A. |
| Accounts Payable Turnover | 15.6 | 16 | 16.3 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.5 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.04 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $244,000 | $257,664 | $272,093 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.85 | 0.87 | 0.89 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 29 | 29.12 | 29.16 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.2 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQ
- How do I write a business plan for supply chain management?
You can write a business plan for supply chain management by reading business plans like the one here or by consulting a business plan expert.
- What is supply chain in business plan?
Supply chain consists of processes that are involved in the production of a product or the provision of a service. And in reference to a supply chain business plan, it includes all the details needed to start a business in supply chain management.
- What are the examples of supply chain management?
Supply chain management is involved in all kinds of supply chains including product design, manufacturing, farming, packaging, and transportation etc.
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