Background

You have been hired as a Commercial Manager by Ci Logistics Pte Ltd, a mid-size freight logistics provider, recently registered in Singapore. This business will be launching soon.

The main purpose of your job is to conduct research into various economics aspects of logistics services. In addition, the scope includes supporting the sales team in providing vital costing of transports, logistics, and other financial essentials.

The company operates a fleet of transports. This fleet serves a different segment of customers. The business department has furnished you with some data (Appendix A and B) that has been compiled by a personal assistant of Managing Director.

Requirements and Deliverables

1. You have been tasked by the Managing Director to appraise the logistics market that this company operates. This will involve an understanding of the overall behaviour of logistics market using the relevant economic models. An update is needed to explain the current behaviour of freight forwarding market within a macro-economic and micro-economic environment. Analyse and discuss the relationship between price, demand and supply that this company must consider. (learning outcome 1: 20/100)

2. Next task will focus on costing aspect of the business. Assume a full load and optimal resources are utilised. The company operates a fleet of transports: 2 multipurpose configurable vans and 3 normal vans. Two sets of financial data were given in Appendix A and B.

a. Identify any discrepancy.

b. Compose an annual costing to prepare for the budget approval.

c. Derive and present the following items:

• Total fixed cost
• Total variable cost
• Total fuel cost
• Total distance (in km) travel
• Total number of trips

Items should be detailed in step-by-step approach to indicate a full year total. (learning outcome 2: 30/100)

3. The MD also requires you to evaluate two investment appraisal methods, for a business expansion of its existing fleet based on Appendix A. (learning outcome 3: 20/100)

4. The MD wants to expand the business with the help from investors and banks. Describe financial management, budget, forecasting, or any mathematical tools to simulate two scenarios based on task 3 above. These scenarios could be used to judge its financial performance and/or feasibility of the business. (learning outcome 4 & 5: 30/100)

You have decided the best way to manage this project is by examining a wide range of data and statistics available at the respective web site as well as seeking consultative approach from the lecturer/tutor. Academic case studies and market research companies that assess industry sectors would be helpful in gaining an idea of the services offered by businesses involved in the transport and logistics service, market sector, such as, courier and parcel, freight-forwarding services and the road haulage industry as a whole.

1. This report should be composed in no more than 2,000 words in length.

2. Use a word processing software to compose this report; display with Table of Content, font type 12 Arial or Calibri, 2 lines of space, fully justify paragraphs, all pages numbered and appropriately formatted. Each and every chart, diagram, graphical illustration and/or table must be numbered, titled and cited.

3. Cover page is needed to indicate each team members’ name and identification number.

4. Word count must be shown on the cover page; complied with and should not include references.

5. A good report contains citations and references from a wide range of sources such as academic books, journal, electronics databases, and official websites.

6. Harvard referencing system must be used for citations and references.