LUL RIEK TRANSPORT SERVICE

COMPANY PROFILE
Table of Contents
1.1 EXCUTIVE SUMMARY........................................................................................................2
1.2 INTRODUCTION................................................................................................................3
1.3 VISION, MISSION AND VALUES....................................................................................3
1.4 Vision of Transport Service Business.................................................................................3
1.5 Vision of transport service business....................................................................................3
1.6 Objective of the Business.....................................................................................................3
1.7 The key success factors of the land transport business.....................................................4
1.10 SWOT Analysis...................................................................................................................5
1.10.1 Strength.........................................................................................................................5
1.10.2 Weakness.......................................................................................................................5
1.10.3 Threats..........................................................................................................................5
1.10.4 Opportunities................................................................................................................5
1.11 Sales forecast assumptions.................................................................................................6
1.12 Service Plan.........................................................................................................................6
1.13 Cost and price of the Service.............................................................................................6
1.14 Their workforce..................................................................................................................6
1.15 Delivery methods of product to the customers................................................................7
2. ORGANIZATION AND MANAGEMENT.........................................................................8
2.1 Organizational Management...............................................................................................8
2.1 Management structure.........................................................................................................8
2.3 Procurement and management input.................................................................................9
2.4 Training Requirements......................................................................................................10
2.7 Property Plant and Equipment of firm............................................................................10
2.8 Fixed Asset..........................................................................................................................10
2.9 Depreciation Schedule of Fixed Asset...............................................................................10
2.10 Business firm of Achievements........................................................................................10
LUL RIEK TRANSPORT SERVICE ORGANIZATIONAL STRUCTURE

1.1 EXCUTIVE SUMMARY

Company name LUL RIEK TRANSPORT SERVICE
Type of Establishment Transport service by road and Dry Freight
Nationality Ethiopian
Legal form Sole proprietorships
Full Address Gambela national regional state Gambela
woreda
Phone: 0911136165
Email:
Business Location Gambela Region
Capital 300,000.00
Taxpayers Registration Certificate No. 0024235528
Financial viability The project is highly attractive with positive
cash flow.
1.2 INTRODUCTION
LUL RIEK TRANSPORT SERVICE was established to engage in dry freight transport business
and the entity has received Commercial registration number: GB/GT/12/13457/3536210/2014,
Gambela Region, Gambela City Administration Gambela Woreda 05 kebele as at 2014 E.C and
with paid up capital of birr 300,000,000 and registered by the concerned government organ to
undertake domestic business in Ethiopia. It is registered in Gambela City and House No New It
also received Taxpayers Registration Certificate No. 0024235528.

The Business is the ambitious and major stockholder LUL RIEK, an experienced entrepreneur
with a proven track record in the dry freight transport business. The promoter of the company
brings a wealth of knowledge in operational management and customer service. The business is
structured as a privately held entity, with LUL RIEK, as the primary owner. The transport
service business will be strategically located in Gambela Region, Gambela City Administration
Gambela Woreda 05 kebele ensuring easy accessibility for non- Governmental and commercial
clients. This prime location will enhance visibility and convenience for customers, contributing
to increased foot traffic and service uptake.
1.3 VISION, MISSION AND VALUES
1.4 Vision of Transport Service Business
The company of vision is to become the leading Dry freight transport company brand in the
region and to favourably compete with a service leading brand in Gambela.
1.5 Vision of transport service business
The company of mission statement is that the company has Provide transport service along with
transit, logistics and port handling services on a sustainable basis and at a reasonable price.
1.6 Objective of the Business
The main objective of his company is to achieve service, delivery and net profit forecasts for the
coming years, as outlines in this business plan. Specifically, we will strive to achieve the
following objectives
 Long-lasting relationship with diverse customers and suppliers in different countries,
both at a domestic and regional level.
 Forming a valid and enforcing contractual agreement
 Effective utilization of state-of-the-art machinery, and information and communication
technology for quality and speedy operation.
 Visionary and committed management.
  Skilled, experienced and motivated work force and lastly, modern strategic management,
marketing and operational management system.
1.7 The key success factors of the land transport business
There are some key success factors for land transport and dry freight includes:
 Fuel efficiency: Improving fuel efficiency can lead to cost and time improvements, as
well as increased capacity and efficiency.
 Road maintenance: Regular Road maintenance is essential to increase the useful life of
roads and manage resources effectively.
 Sustainability: Reducing resource consumption and waste can lead to operational wins
and corporate marketability.
 Fuel costs: Changing fuel prices can affect transportation investment and general
logistics costs.
 Speed and flexibility: Land transport is flexible and can adapt to timetables and
volumes. It's also the fastest option for short and medium-distance transport.
 Door-to-door service: Land transport, such as trucking, offers door-to-door service and is
essential for last-mile delivery.
 Reasonable and competitive charges, positioned against competitors.
 On time delivery of service can leave a good impression on the customers.
 Technical and efficient labor.
 There should be advertisements on websites, local cable and banners.
1.9 Their Target of Market
There are a lot of Dry freight Transport Company in Ethiopia that serve their customers, but they
are unable to meet what they want and need in terms of both number and quality. The company
have decided to grow and broaden their current company in Gambela in order to maximize client
satisfaction.
The company's target customer includes particularly: -
 world food program (WFP)
 Construction Company’s
 Individuals
 Logistic Company’s
 And others non-government organization
1.10 SWOT Analysis

1.10.1 Strength
 Huge Service Line with variations.
 Business will have longer hours and better prices as compared to competitors.
 Discounts are available for customers.
 Expertise in getting new service to the market quickly.
 Expertise in providing good customer service.
 Customization is available for individual customers.
 Good Competent management
 Clear Business Strategy of Company
 Strategic Marketing and quality of work
 Strong Financial systems

1.10.2 Weakness
 Huge capital is required to run the business as credit is not easily available from
suppliers.
 Marketing expenses will be huge, to establish a brand name requires lot of
advertising.

1.10.3 Threats
 The threats we are likely to face in this business are likely to come from a change
in government policies, current situation of Peace and security in the country,
slowing demand, or entry of new competitors into the industry and political
instability. However, as a business with a vision in sight, we will be able to handle
any threats that might crop up during running the business.
 Inflation of our country
 Political Situation

1.10.4 Opportunities
 Conducive government policy in construction sector
 Country development construction sectors
 Bank loan Availability
 Customization available for individual customers
 We have been able to conduct thorough feasibility studies and market survey, and
we know what his potential clients will be looking for when they visit his
 company outlets; we are well positioned to take on the opportunities that will
come his way.

1.11 Sales forecast assumptions

Service revenue forecast assumption is based on internal factors including things like sales
history, service delivery, marketing strategy, and service delivery team in addition External
factors include things like the overall economy, industry trends, and competitor activity. It is also
important to be realistic when making assumptions forecast.
1.12 Service Plan
The company usually provides dry freight transport to customers using their own truck vehicles,
and it is known that the demand for transport has increased significantly. However, recently the
company competed with different customers. The company wants to diversify and expand
existing business, so it is necessary to provide service devil very for his customers which with
his partners in order to deliver the dry freight transport to the customers in a safe, secure and
timely manner.
Before this, the company worked with different freight transport company, and now, due to the
increase in the demand for freight transport in the Gambela, it will increase its service capacity
and destinations significantly to modern service delivery.
1.13 Cost and price of the Service
The cost and price of the service of his transport service is determined by the market. In this
regard the price by category of services will be given in current value of transport service in the
Ethiopian market. So, this price will vary in time. Furthermore, when this new IVECO Truck is
used to its maximum capacity, it could generate an average of 30.000 to 50,000 birr per day, or
9,360,000 to 15,600,000 birr yearly, which is the amount the company plans to generate in
additional revenue. The brand-new vehicle has the capacity to operate for 26 days continuously
in a month. Operating costs include fuel, maintenance and repair costs, insurance, salary, and
tour administrative expenses in addition to the cost of running the business.
1.14 Their workforce
In establishing his transport service in the region, the workforce plays a pivotal role in ensuring
the success and efficiency of his operations. Availability of skilled labor is a key consideration,
and we are committed to hiring locally to contribute to the community's economic growth.
Skilled requirements include expertise in customer care, quality control, and customer service.
Projected wages are competitive, reflecting his commitment to fair employment practices, and he
offers opportunities for career growth within the organization. Supervision is crucial for
maintaining high standards, and his management team will provide ongoing support and
guidance to foster a collaborative and productive work environment. Comprehensive training
programs will be implemented to equip his workforce with the necessary skills and knowledge in
the industry, ensuring a skilled and customer-oriented team that aligns with his commitment to
excellence.
1.15 Delivery methods of product to the customers
His service in the region offers convenient and reliable delivery methods to ensure seamless
experience for his customers. Embracing a customer-centric approach, we provide door-to-door
delivery, allowing clients to schedule pick-ups and drop-offs at their preferred locations. His
delivery service employs a fleet of vehicles equipped with security. Real-time tracking options
through his website or mobile app keep customers informed about the status of their orders,
ensuring transparency and peace of mind.
2. ORGANIZATION AND MANAGEMENT

2.1 Organizational Management

The implementation of planned business; organization is as essential aspect. It is necessary that
all human resources are well organized in order to achieve the best result. Therefore, the business
will be its own organization structure that will indicate clearly the line of authority in the
arrangement structure and define responsibility for every job. Since the business organization
will be considered. It is evident that for the proper and continuous profitability of the business,
due consideration has to be given to the organization and management.
The Management of the company, being accountable to the business, will manage all activity of
the business, market information and customer needs and wants as well as providing new and
quality service that satisfy customer needs. The Management will manage all financial and
operational aspects the business.
The framework of jobs and departments that make up any organization must be directed
toward achieving the organization’s objectives. In other words, the structure of the retail
business must be consistent with its strategy. Managers give structure to a service business
through job specialization, organization, and establishment of patterns of authority and span
of control.
2.1 Management structure
The most important input in a business is human resources because only human beings have the
capacity to transform all the tour input into the desired output. How this transformation is done
depends on the management. This is defined as the capacity of a person or a group to lead the rest
of the people involved in the business in order to achieve the stated goal. To this end it is planned
that the project overall management will be handled by an external company who will take the
management on a contract basis.
 LUL RIEK TRANSPORT SERVICE STRUCTURES

General Manager: directs the overall activities of the business and looks for market in
collaboration with the owner.

Accountant: collects cash, generates financial reports, file reports to the government etc. in
general the accountant handles the financial activities of the business.

Operational Manager Typically provides guidance, oversee daily operations, and follow up.
Driver: the driver with his assistance carries out the operation which is provision of the
transportation service.

2.3 Procurement and management input

Procurement of the necessary inputs listed in this business document will be done by the contract
management body according to the established procurement procedure and manual guideline. All
procurement will follow clear, written and fair procedure. As much as possible the process of
procurement will begin in time to get the inputs when required and for a convenient price.
Human resource Requirement for lading transportation service
The Following table shows all management and Employee staff description Lul Riek Transport
Service.
 No Job Description Quantity Basic Salary Year of Annual Salary
Experience
1 General Manger 1 12,000 10 144,000.00
2 Finance and admin 1 8,500 10 102,000.00
3 Operation manger 1 8,500 8 102,000.00
4 Senior Driver 8 7,000 10 672,000.00
5 Driver 5 10,000 9 600,000.00
6 Technician 4 6,500 6 312,000.00
Total 20 52,500.00 1,932,000.00
2.4 Training Requirements
Training Requirement to be successful in providing the proposed business services trained
manpower is available in the market with high and middle skills. But most observation entail is
that, the skill and unskilled labor force in the market suffers from skills in practical situation of
the business environment and real-world problem-solving mechanisms. Hence up on operation
the business is intended to give brief and continuous training programs for employees on the
following subject matters which include: -
 Practical mechanical and servicing skills and
 Customers handling service, employee safety and health and
 Business management skills.
2.7 Property Plant and Equipment of firm
Lul Riek Transport Service business service has established by land transport and service on
starting 2014 engaged on business work of transport service, so the business firm have different
property and equipment on officer and the firm property like to residential building, and vehicles
and etc.
2.8 Fixed Asset
No Description Total Cost in birr
1 Residential Building 7,543,007.26
2 Motor vehicles 12,000,000.00
Total 19,543,007.26
2.9 Depreciation Schedule of Fixed Asset
No Description Original cost Depreciation rate Depreciation per
in % year in Birr
1 Residential Building 7,543,007.26 5% 377,150.36
2 Motor vehicles 12,000,000.00 15% 1,800,000.00
Total 19,543,007.26 2,177,150.36
2.10 Business firm of Achievements
The business firm will contribute revenue generating from transport and related service to during
the five years period.
 The business firm will create an employment opportunity for citizens.
 The business firm will be participated on land transport sectors and related work.
 The business firm growth revenue generates annually more than15,000,000 million
service
 The business firm will has diversified his business on different location, especially on
transport sectors