Entering the Logistics Business: What you need to know!

Ever wonder how your favorite ice cream, cookies, chicken, veggies, documents, things or almost everything gets delivered from factory to factory, warehouses to stores or even to your doorsteps? It’s called Logistics.

Logistics is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations. meaning by Wikipedia

Logistics is used more broadly to refer to the process of coordinating and moving resources – people, materials, inventory, and equipment – from one location to storage at the desired destination. – Business Encyclopedia

It is simply the business of moving things. In moving things we need transport – ship, air cargo, trucks, vans, and riders.

Since October of 2017, I as part of ROAD RENT A CAR TSC, we experienced the world of Logistic transport via partnering with Lazada Courier delivery. It is a warehouse (hub) to customers (last mile) and merchants to warehouse (first mile) delivery transactions. It was a challenge to handle almost 500 riders/drivers during the December Sale. And it is an experience noteworthy of learning.

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Earlier this 2018, we partnered again to another Logistics company type which caters Nestle, Selecta, Rebisco and other big accounts. This Logistics deployment is something really new to us. Having been in the field of “people transport” via VIP car rental services to a world of deliveries was a total twist. Though, I have been in the Logistics industry (Shipping Transport). for almost 14 years doing Export and Import Documentation and handling teams, this Land Logistics transport is a challenge.

Here are some of the challenges we faced;

1. Challenges to look for truckers (almost all truckers are already engaged in trucking contract);

2. Challenges to convince van owners with lower year models to convert from people transport to deliveries *van rentals sometimes pay higher rentals but the frequency is only seasonal*
3. Challenges of maintaining driver – helper to continue service despite of the sometimes difficult situations during delivery.
To address these challenges, some of our members took the time to check the potential of the Logistics business and bought utility vehicles fitted for deliveries, some are already in the process of gaining approval from their banks waiting for release. To address challenge #3, we insist that drivers and helpers be invited for the membership and training seminars for them to feel being part of the company, in this case the Cooperative.

Potential Income in this industry

Earn as much as minimum of P50K per month, toll fees and parking fees are re-reimbursable as long as you submit original copies upon billing. We will give incentives to those couriers who will complete at least a minimum of 20 days per month.

RATES

Selecta – Daily rate for subcons is P2,000/all-in for those vehicles with 10 styro capacity. For vehicles that can accommodate 14 styro, earn an additional P200/day as incentive for a successful 5 day weekly attendance. Toll and parking fees are reimbursable.
Logistikus – Rates varies P2000 up to P3500 depending on drop off location.
Rebisco – Rates varies P2000 up to P3500 depending on drop off location. Toll and parking fees are reimbursable.
You may e-mail us at applicant.roadracc@gmail.com for a complete info on the rate matrix.

Billing Process
Trips are billed on a weekly basis, with Monday – Saturday cut-off. 1st payment will be received after 60 days from successful billing date. Waybill and Trip Tickets (delivery tickets) are very important documents in order to bill for payments. Delivery charges like melted ice cream, and other damages will be deducted based on the applicable billing date. A withholding tax of 2% is also deducted from the drivers payroll.
Delivery/Job Schedule
Delivery schedules are usually from Monday to Sundays on some account coding days are included in the schedule, they will give you a trip area with no coding scheme. Usually only a maximum of 2 to 3 drops will be given per trip. Reporting time usually is 11pm or 3am depending on the account your assigned in. We need to seek approval before you will be assigned on a particular Account.

Warehouse area
You must be willing to pick up goods from Pasig warehouse (Manggahan or Luis 1). We also have an account at Valenzuela warehouse but we encourage only 4-Wheeler aluminum van to join. For L300/H100 types in Valenzuela, rates may differ depending on the volume of the cargo (L300 or CD Rates).

Contract Terms
Long term contract is being offered, usually a minimum of 6 months, depending on the performance of the courier.

How to be our Logistics transport partner:

  1. Check your vehicle – Your unit must be approved by the Logistics partner , here are some examples of the accepted units, year model must be at least 2008 and up to be applied for Truck for hire PA. Newly acquired model have 25 years of TH validity.
Foton-Tornado-2-MPV-PV
L300, H100, FOTON TORNADO and the like
2018-foton-tornado-front-5aaa43a603e2f
4 or 6 wheeler aluminum van (Valenzuela Warehouse)
Style
VANS EX. NV350, HI ACE COMMUTER, GL GRANDIA, ETC

Must be a MEMBER of ROAD RENT A CAR Transport Service Cooperative
In accordance with RA 9520, the Cooperative Law, operators or drivers who enjoy the benefits of the Coop business must be a member.
How to be a member? Please click this link how to become a member

3. Attend Fleet Meeting to know moreVisit the Main Office or attend any upcoming seminar (please check out the schedules before going at the office, contact Ms. Jenny 0916-2584161). Like their fb page for updates fb page: roadractsc

Apply for Truck for Hire Franchise – in order to be apprehended by LTFRB, you must submit Truck for hire franchise application and requirements plus the initial payment. (Please contact Ms. Jenny for more details)
TRUCK FOR HIRE Franchise requirements

Please prepare 3 sets of documents placed in an orange folder:

1) Use ORANGE COLORED folder and secure photocopies/CTC of all required documents, (Please NOTE that original copies of the same should be presented during hearing if needed).

2). Management Agreement

3). Member Data Sheet (Secure format to ROADRACTSC)
4). Original and Clear copy of any 2 valid Government-issued Identification Card with photograph of Applicant (i.e. Driver’s License, SSS, PAG-IBIG, PHIL HEALTH, BIR, POSTAL ID, Voter’s ID, or Philippine Passport) –

5). Recent 2×2 photograph of applicant

6) Evidence of Filipino Citizenship – Authenticated Birth Certificate from NSO issued within the past three (3) months prior to submission of application or valid Phil. passport.

7). Certificate of Registration (CR) and Official Receipt (OR) of authorized units with year model duly issued by the Land Transportation Office ( LTO) , TH, SHS or STS; sales invoice or proof invoice for services requiring brand new units.

8) Scanned or printed copies of the vehicle unit (External and Internal – front, rear, and 2 sides of the vehicle/s), no need for 5R copies.

9) Brgy. Clearance

10) Stencil of chassis number (secure from LTO)

Other info:

justify;”>1. OR/CR is not under the Members name

A= Secure SPA, DEED OF SALE or any proof of authorization,

Management Agreement must be accomplished in 2 copies (Member and The Real Owner of the Vehicle)

True Owner (OR/CR) must also complete the above requirements (identification)

2. NBI OR POLICE CLEARANCE as proof of Good moral character (Coop member requirements), can submit upon availability

3. Must attend mandatory seminar PMES/CETOS once scheduled

4. Please also e-mail soft copies to fleet.roadracc@gmail.com
5) Other Logistics requirements:

1. Push Cart

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2. Winter Jacket for ice cream accounts

mens-winter-jacket-500x500
winter jacket

3. Safety shoes – you can buy at Divisoria or Baclaran for just P300
download (1)

4. Uniform (P250 each), for starters you may wear blue t-shirt while your uniform is being ordered

5. 1x 1 ID picture – you will provide the name of the driver and helper plus ids for their proper identification cards (No ID No entry to warehouse)

6. Styro box (for Nestle account) maximum styro requirement for L300 types and van are 10pcs.

You’re almost there, once your vehicle is approved and Provisional authority released (PA) and you are ready to start, our Logistics Partner will find an Account and will book your trip schedule. We will also guide you of the do’s and don’ts while you’re on board our Logistics project and provide you an online hand-out.

For more information and inquiries, please send a message to roadractsc!

See you on the ROAD!

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