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.

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2.2 Management of Supply Chain Management Company


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:

3 Years Profit Forecast - Supply Chain Management Business Plan
Franchise Business Planning 
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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.

Startup Cost - Supply Chain Management Business Plan
Start-up Expenses 
Research and Development$10,000
Expensed Equipment$56,000
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 Expenses to Fund$347,600
Start-up Assets to Fund$1,301,000
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 
Current Borrowing$0
Long-term Liabilities$0
Accounts Payable (Outstanding Bills)$48,000
Other Current Liabilities (interest-free)$0
Planned Investment$1,648,600
Investor 1$0
Investor 2$0
Additional Investment Requirement$0
Loss at Start-up (Start-up Expenses)$261,400
Total Funding$1,648,600
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    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:

    Marketing Segmentation - Supply Chain Management Business Plan

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    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 CustomersGrowthYear 1Year 2Year 3Year 4Year 5CAGR
    Product Businesses40%34,50041,40049,68059,61671,53910.00%
    Service Busiensses23%26,50031,80038,16045,79254,95010.00%
    Hybrid Businesses21%18,00021,60025,92031,10437,32510.00%
    Manufaacturing Units16%15,40018,48022,17626,61131,93311.00%

    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

    Sales Monthly - Supply Chain Management Business Plan
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    6.4 Sales Yearly

    Sales Yearly - Supply Chain Management Business Plan

    6.5 Sales Forecast

    Unit Sales - Supply Chain Management Business Plan
    Sales Forecast   
    Unit SalesYear 1Year 2Year 3
    Price Optimization654693735
    Dynamic Resource Management765811860
    Supply Chain Consultation265281298
    TOTAL UNIT SALES2,5192,6702,830
    Unit PricesYear 1Year 2Year 3
    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
    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 CostsYear 1Year 2Year 3
    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 1Year 2Year 3
    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 1Year 2Year 3
    Plan Month123
    Current Interest Rate8.12%8.20%8.26%
    Long-term Interest Rate8.40%8.44%8.47%
    Tax Rate24.03%24.21%24.60%

    8.2 Break-even Analysis

     Break-Even Analysis 
    Monthly Units Break-even5340
    Monthly Revenue Break-even$132,500
    Average Per-Unit Revenue$231.00
    Average Per-Unit Variable Cost$0.62
    Estimated Monthly Fixed Cost$163,800
    Unit Sales - Break-even Analysis

    8.3 Projected Profit and Loss

     Pro Forma Profit And Loss  
     Year 1Year 2Year 3
    Sales$3,175,300 $3,904,349 $4,800,787
    Direct Cost of Sales$2,229,600 $2,599,714 $2,893,481
    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%
    Sales and Marketing and Other Expenses$145,000$148,000$156,000
    Leased Equipment$0$0$0
    Payroll Taxes$24,000$25,000$27,000
    Total Operating Expenses$566,200 $609,150 $662,170
    Profit Before Interest and Taxes$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/Sales9.56%14.25%20.75%
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    8.3.1 Profit Monthly

    Profit Monthly - Supply Chain Management Business Plan

    8.3.2 Profit Yearly

    Profit Yearly - Supply Chain Management Business Plan

    8.3.3 Gross Margin Monthly

    Gross Margin Monthly - Break-even Analysis

    8.3.4 Gross Margin Yearly

    Gross Margin Yearly - Supply Chain Management Business Plan

    8.4 Projected Cash Flow

    Projected Cash Flow - Supply Chain Management Business Plan
     Pro Forma Cash Flow   
    Cash ReceivedYear 1Year 2Year 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
    ExpendituresYear 1Year 2Year 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
    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  
    AssetsYear 1Year 2Year 3
    Current Assets   
    Accounts Receivable$24,000$26,880$30,213
    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 CapitalYear 4Year 5Year 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
    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 1Year 2Year 3INDUSTRY PROFILE
    Sales Growth7.25%8.03%8.90%3.00%
    Percent of Total Assets    
    Accounts Receivable9.21%10.20%11.31%9.80%
    Other Current Assets2.11%2.34%2.59%2.40%
    Total Current Assets149.80%151.00%152.00%158.00%
    Long-term Assets11.55%11.60%11.64%12.00%
    TOTAL ASSETS100.00%100.00%100.00%100.00%
    Current Liabilities4.90%4.94%4.98%4.34%
    Long-term Liabilities0.00%0.00%0.00%0.00%
    Total Liabilities7.59%7.65%7.72%7.38%
    NET WORTH100.45%101.25%102.19%110.00%
    Percent of Sales    
    Gross Margin94.60%97.15%99.87%99.00%
    Selling, General & Administrative Expenses93.56%96.09%98.78%97.80%
    Advertising Expenses1.52%1.56%1.60%1.40%
    Profit Before Interest and Taxes41.50%42.62%43.81%33.90%
    Main Ratios    
    Total Debt to Total Assets0.18%0.18%0.17%0.40%
    Pre-tax Return on Net Worth74.08%74.89%75.00%75.00%
    Pre-tax Return on Assets96.30%101.12%106.17%111.30%
    Additional RatiosYear 1Year 2Year 3 
    Net Profit Margin33.56%34.60%35.67%N.A.
    Return on Equity55.80%57.53%59.31%N.A.
    Activity Ratios    
    Accounts Receivable Turnover7.77.87.8N.A.
    Collection Days100100100N.A.
    Inventory Turnover32.434.0235N.A.
    Accounts Payable Turnover15.61616.3N.A.
    Payment Days272727N.A.
    Total Asset Turnover2.52.52.6N.A.
    Debt Ratios    
    Debt to Net Worth-0.04-0.03-0.04N.A.
    Current Liab. to Liab.111N.A.
    Liquidity Ratios    
    Net Working Capital$244,000$257,664$272,093N.A.
    Interest Coverage000N.A.
    Additional Ratios    
    Assets to Sales0.850.870.89N.A.
    Current Debt/Total Assets1%0%0%N.A.
    Acid Test2929.1229.16N.A.
    Sales/Net Worth2.12.22.2N.A.
    Dividend Payout000N.A.


    1. 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.

    1. 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.

    1. 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.

    Download Supply Chain Management Business Plan Sample in pdf