Sample Business Plan

ExpressX Warehousing & Distribution | Industry analysis



EXPRESSX WAREHOUSING AND DISTRIBUTION SERVICES Sample Business Plan Current Page: 11 Business plan outline Page ...10 11 12 13 14 15 16 17 18 19 20 ... » Next Page 4 INDUSTRY ANALYSIS 4.1 INDUSTRY OVERVIEW, SIZE AND GROWTH The warehousing and distribution industry is a considerably large industry with an estimated size of over 2.6 billion Rands. The growth rate is estimated at 6% per annum. In terms of trends, there is a direct correlation with the manufacturing and wholesaling sectors. South Africa features a number of commercial warehousing and distribution players. Warehouses are widely used by manufactures, wholesalers, retailers, importers, exporters and transport entities. The players in the industry are primarily engaged in operating warehousing and storage facilities for general commodities or merchandise, refrigerated goods, and other products. In most instances the parties in the industry do not sell the goods they handle. Established entities generally handle commodities in containers which are in the form of barrels, boxes or drums. This is done with the help of advanced equipment such as forklifts, racks and pallets. Well established warehousing and distribution entities in South Africa offer a full range of services. They offer advanced distribution services commonly referred to as logistics. Their services encompass labeling; breaking bulk, inventory control and management, assembly of goods, order entry, packaging and transportation arrangements. 4.2 PLAYERS The main players in the industry include: Refrigerated merchandise warehouse companies General merchandise warehouse companies Computer warehouses Data warehouses Public warehouses Makers of consumer packaged good CPG Food and beverage Aerospace and defense Pharmaceuticals Local logistics entities International logistics entities Others 4.3 KEY SUCCESS FACTORS The key success factors in the Warehousing and distribution industry are as follows: Provision of safe and secure storage facilities Trustworthiness and reputation Provision of clean and dry storage facilities Ensuring convenient and timely distribution services Selection of a strategic location Sufficient capacity and resources 4.4 BARRIERS TO ENTRY There are numerous barriers to entry in the warehousing and distribution industry. The primary barriers are listed below: High capital costs to procure assets such as motor vehicles, trucks for distribution, land and warehousing premises There is a general lack of skills, competencies and expertise in the warehousing and distribution arena The lack of capacity Advanced technologies that better aid logistics, distribution and warehousing are costly » Next \| Market analysis Previous \| Next Home \| How To write A Business Plan \| Sample Business Plans \| Concise Business Plan Template