Are you thinking about how to start logistics business in Pakistan? In this article, we have covered seven steps for how to start a transport business in Pakistan. Logistics is a big game both internationally and locally. This industry has so much work to do! You see, all things we use daily in our lives are somehow shipped to some places or companies to help us buy later from markets. But have you ever wondered who actually carries these shipments?

Starting a logistics and transport business is a good decision, to begin with, but you must have the know-how of the transport industry before getting into the game. No matter how much capital you have to start with your freight business, the main challenge is becoming sustainable and successful among the top 10 Logistics companies in Pakistan.

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The list of logistics companies in Karachi is huge; however, with these mentioned principles, startups in Pakistan can seek vast customers and contracts to become high-end logistics companies in Pakistan in the coming years. Let get into How To Start Logistics Business In Pakistan

How to Start Logistics Business in Pakistan | A Guide for Beginners

Before getting started, ask yourself these six questions to help yourself get prepare to enter into this high-competitive industry:

1) How much money do I need to start a logistics company?

Before starting up any business, you must have a basic understanding of the finances a logistics company incur during and at the time of establishment:

  • First, think about the source of the capital, from where you will get the cost of everything to get your transport business started. There are several options, such as bank loans, investors, or bootstrapping.
  • Then you need to consider the expenses associated with the logistics and transport, including the license and toll expenses, fuel, and driver skills development training costs.
  • An essential aspect while drawing up your budget is the inclusion of operating costs and maintenance expenses. You must consider this key aspect before running your transport company as it will affect the excellence of your logistics services.
  • Lastly, you must have some expenses for the safety of your vehicles. So investing in security features like the trackers is a good choice.
  • Not to mention that as the company grows, you would pay your drivers, staff members, and security monthly. So don’t forget these factors before you budget the cost to run a logistics and transport company.

2) What should I look out for when buying my first fleet of trucks?

You need to consider a few critical factors before buying your first fleet of a truck to start your business. However, these factors might sound simple but are often overlooked by many fleet owners

my first fleet of trucks

So choosing the right vehicle for the job is crucial. And to find the right option, consider these basic questions:

  • What is your vehicle used for?
  • What type of supply would your vehicle carry?
  • How much volume of the supplies would your vehicle carry?

However, you may also need to look over the types of terrains your vehicle would be driving over and the amount of capital allocated for the fleet.

3) How can I get truck finance for my transport and logistics company?

When paying for the right vehicle, you must devise your budget and calculate your affordability because financing a logistics company is challenging.

Several options can be available for getting truck finance. Make sure you understand each option clearly and approach the right one. Here are the options:

  • Financial lease and extended rental agreements: The use of vehicles does not require an upfront payment as it is generated through revenue. However, the ownership is of the lessor.
  • Installment Sale – Deposit a small amount relative to the total purchase price: Pay the fixed installments and own the vehicle once the term ends.

4) Where can I find training to help me start a transport and logistics business?

The Road Traffic Management Corporation provides professional and valuable certificates to equip the drivers and managers with different capabilities. These professional training courses, such as a certificate in Freight Handling, is the national certificate. These certificates are accredited with a list of various training institutes.

transport and logistics business

However, the issuance of an operating license is the responsibility of the Department of Public Transport.

5) How do I employ drivers to work for my transport business?

Consider the following key factors before you employ drivers:

  • Invest in an excellent and qualified staff so that your customers can rely upon your staff and services.
  • Ensure that the drivers must have relevant licenses, qualified, and experience in driving
  • They must require excellent communication skills and know-how of all the shortcuts in the areas they will be delivering.
  • Drivers must be appropriately trained to handle driving in any hazardous situations.
  • As the recruiter, you must know that maintaining the low bar for drivers could later result in any property damage or low customer feedback.

6) Where do I find customers for my logistics company?

Attracting customers online is the best use of technology. To find long-term customers, remember not to go with any first opportunity that comes across. As your company is a beginner in the industry, this advice might seem counterintuitive however it may work for the long run in businesses. Do not welcome ad hoc customers.

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  • The best way to find customers is to make a portal where the customers can reach for your services online.
  • Ensure that the online services are smooth, quick, and easy to use.
  • Integrate your customer portal with tracking features to help customers track their goods.
  • A 24/7 Customer Service helpline and allowing clients to book and track all their deliveries online makes the logistics company stand out.

Conclusion

To conclude, logistic services in Pakistan is a future-oriented industry. It’s easy to start a logistics and transport business; however, sustaining the quality and reliability with managing the logistics cost is difficult for new businesses in Pakistan logistics cell. So if you want to get noticed by the suppliers and want them to add your logistics company to their books, make sure your company provides reliable services.