VII.

Business Plan Outline for a Start-Up

Outline: Concept, People, Context, Opportunity, Strategy and Projections

Business Concept: Pharmaceutical 3PL in the MENA

In the dynamic and growing pharmaceutical industry of the Middle East and North Africa (MENA) region, a reliable and efficient third-
party logistics (3PL) provider is crucial for ensuring the timely and safe delivery of pharmaceutical products including temperature-
sensitive ones.

This startup aims to address this need by providing a comprehensive range of 3PL services tailored to the unique requirements of the
MENA pharmaceutical market. Leveraging its expertise in temperature-controlled logistics, the startup will offer a full spectrum of
services, from warehousing and storage to distribution and transportation. Its state-of-the-art facilities and advanced technologies will
ensure the integrity and safety of pharmaceutical products throughout the entire supply chain. Additionally, the startup will provide real-
time tracking and monitoring capabilities to give customers complete visibility into their shipments.

With its customer-centric approach and commitment to quality, the startup is poised to become the premier 3PL partner for
pharmaceutical companies in the MENA region, contributing to the region's growing healthcare infrastructure and ensuring that patients
have access to essential medications.

Our services will include:

 Temperature-controlled warehousing and transportation: We will utilize state-of-the-art facilities and equipment to ensure that
pharmaceutical products are stored and transported within the required temperature ranges.

 Track-and-trace capabilities: We will implement a robust track-and-trace system to provide real-time visibility into the location and
condition of pharmaceutical products throughout the supply chain.

 Customized packaging and labeling: We will provide customized packaging and labeling solutions to meet the specific requirements
of each pharmaceutical product.

 Regulatory compliance expertise: Our team of experts will provide guidance on all aspects of pharmaceutical logistics regulations.

 24/7 customer support: We will provide 24/7 customer support to ensure that our clients' needs are met promptly and efficiently.

 Cash Collection Services

This start-up business will be sustainable due to several factors and this will encourage investors to invest.
 Growing market: The MENA pharmaceutical market is expected to grow at a CAGR of 8.5% from 2023 to 2030, driven by factors
such as a rising population, increasing disposable incomes, and growing awareness about healthcare. This growth will create a
significant demand for 3PL services in the region.

 The MENA region is a relatively underserved market for 3PL pharmaceutical logistics services. This presents a significant
opportunity for the startup to establish itself as a leading player in the region.

 High barriers to entry: The 3PL pharmaceutical logistics industry requires specialized expertise and infrastructure, which makes it
difficult for new entrants to compete. This gives established players a significant competitive advantage.

 Tailored services: The startup can offer tailored services to meet the specific needs of pharmaceutical companies in the MENA
region. This could include services such as temperature-controlled storage and transportation, compliance support, and track-and-
trace solutions and cash collection

 Sustainable business model: The startup can generate revenue from a variety of sources, such as storage fees, transportation
charges, and value-added services. This diversified revenue stream will help the startup to weather economic downturns and
achieve long-term sustainability.

 Experienced team: The startup team should have a proven track record in the 3PL pharmaceutical logistics industry. This will give
investors’ confidence in the startup's ability to execute its business plan.

 The 3PL startup can partner with pharmaceutical companies to develop customized solutions that meet their specific needs. This
will help the startup to build strong relationships with its customers and ensure long-term business success.

Due to the aforementioned, there is an assurance for investors that the industry is attractive, the team is capable, the proposed business
can be scaled up or sold, the context is favorable and the project is profitable.

The People: Pharmaceutical 3PL in the MENA

The reputation of the 3PL management team is critical to the success of the business. The team will have relevant skills and experience
to manage a complex 3PL operation; most importantly the team will be chosen based on a proven track record of success in the 3PL
pharmaceutical industry.
The management team's will be chosen based on the history of working together in the past and that they have a good working
relationship with each other. The network of contacts will be a valuable asset to the business; the team will have a strong relationships
with pharmaceutical companies and other key stakeholders in the industry.
To close certain gaps in the team we will also consider hiring new employees, providing training to existing employees, or outsourcing
certain tasks to third-party providers.

The company will be a family business with a comfortable approach to share the control with investors

Context: Pharmaceutical 3PL in the MENA

Is this the right time and place for this venture?
The MENA region is a promising market for a new pharmaceutical 3PL company.
 The region has a young and growing population, which is increasing the demand for healthcare services.
 People in the MENA region are becoming more affluent, which is leading to an increase in healthcare spending.
 There is a growing awareness about healthcare in the MENA region, which is leading to an increase in the demand for preventive
care
 The MENA region has also an aging population, which is increasing the demand for chronic disease management and long-term
care.
 Governments in the MENA region are introducing new regulations to improve the quality and safety of pharmaceuticals. This is
creating a need for 3PL providers that can comply with these regulations.

However, there are also some challenges that a new pharmaceutical 3PL company would face in the MENA region:
 The infrastructure in the MENA region is not always as developed as in other regions.
 Some countries in the MENA region are politically unstable. This can make it difficult to do business in these countries.
 There are cultural differences between the countries in the MENA region.

Despite these challenges, the MENA region is a promising market for 3PL providers. The growth of the pharmaceutical industry in the
region is expected to continue in the coming years. This will create a significant demand for 3PL services.

Macroeconomic environment including sector environment

The macroeconomic environment of the MENA pharmaceutical 3PL business is complex and constantly evolving. However, there are a
number of key trends that are shaping the industry, including:
 Economic growth: The MENA region is expected to experience strong economic growth in the coming years, which will drive
demand for healthcare services and pharmaceutical products. This will create opportunities for 3PL providers to expand their
businesses and offer new services.

 Population growth: The MENA region has a young and growing population, which is also driving demand for healthcare services
and pharmaceutical products. This is particularly true in the Gulf Cooperation Council (GCC) countries, which have experienced
rapid population growth in recent years.

 Rising incomes: As incomes rise in the MENA region, people are spending more on healthcare. This is creating new opportunities
for 3PL providers to offer premium services, such as temperature-controlled transportation and storage.

 Growing Healthcare Awareness: Healthcare awareness is steadily increasing in MENA, leading to a greater focus on preventive
care and treatment options. This heightened awareness is fostering the need for efficient and timely delivery of pharmaceuticals

 Government investment: Governments in the MENA region are investing heavily in healthcare infrastructure and services. This is
creating new opportunities for 3PL providers to partner with governments to provide logistics services for public healthcare
programs.

 Regulatory changes: Governments in the MENA region are also introducing new regulations to improve the quality and safety of
pharmaceuticals. This is creating new challenges for 3PL providers, but it is also creating opportunities for those that can comply
with the new regulations.

 Infrastructure: The infrastructure and regulatory landscape in MENA vary across countries.

 The ongoing COVID-19 pandemic has disrupted supply chains and increased demand for pharmaceutical products. This has
created challenges for 3PL providers, but it has also created opportunities for those that have been able to adapt to the new
environment.

 The war in Ukraine has also disrupted supply chains and increased the cost of energy and transportation. This is impacting the
profitability of 3PL providers, but it is also creating opportunities for those that can find ways to reduce costs and improve efficiency.

 The global economic slowdown is also impacting the MENA pharmaceutical 3PL business. As economic growth slows, demand for
pharmaceutical products may also slow. However, the long-term outlook for the industry is positive, as the MENA region is
expected to experience strong population growth and rising incomes in the coming years.

 Inflation: Inflation is a major problem in many MENA countries. In some countries, inflation rates are as high as 20%. This can
erode the profitability of businesses and make it difficult to plan for the future.

 Currency fluctuations: The currencies of many MENA countries are volatile and can fluctuate significantly in value. This can make it
difficult for businesses to export and import goods and services.

 Political instability: Some MENA countries are politically unstable. This can make it difficult to do business in these countries and
can lead to disruptions in supply chains.

 Trade barriers: There are a number of trade barriers between MENA countries. These barriers can make it difficult for businesses to
trade with each other.
Despite some macroeconomic challenges, the MENA region is a growing market for 3PL businesses. The growth of the e-commerce
market in the region is driving demand for 3PL services. Additionally, the expansion of the manufacturing sector in the region is creating
a need for 3PL providers to help businesses manage their supply chains.
Political and legal environment
The political and legal environment for pharmaceutical 3PL in the MENA region is characterized by a mix of challenges and
opportunities. While the region is experiencing rapid growth in the pharmaceutical sector, there are also a number of political and legal
factors that can impact the operations of 3PL providers.

Political Factors
 Political stability: The political stability of the MENA region varies from country to country. Some countries are more stable than
others, and this can have a significant impact on the business environment. Political instability can lead to disruptions in supply
chains, increased security risks, and changes in government regulations.

 Government policies: Governments in the MENA region are increasingly playing a role in the pharmaceutical sector. This includes
setting regulations, investing in healthcare infrastructure, and providing subsidies for pharmaceuticals. Government policies can
have a significant impact on the operations of 3PL providers. For example, new regulations may require 3PL providers to make
changes to their operations or invest in new technologies.

 Trade agreements: The MENA region is a member of several trade agreements, which can facilitate the movement of goods and
services across borders. This can be beneficial for 3PL providers that operate in multiple countries. However, it is important to be
aware of the specific terms of each trade agreement in order to avoid any potential pitfalls.

Legal Factors
 Pharmaceutical regulations: The pharmaceutical industry is subject to a number of regulations, both domestically and
internationally. 3PL providers must be aware of these regulations and ensure that they are compliant. This can be a complex and
time-consuming process, but it is essential to avoid any legal problems.
 Intellectual property rights (IPR) protection: IPR protection is a major concern in the MENA region. 3PL providers must be careful to
protect the intellectual property of their customers. This includes taking steps to prevent counterfeiting and piracy.

 Data privacy laws: Data privacy laws are becoming increasingly important in the MENA region. 3PL providers must be aware of
these laws and ensure that they are collecting and storing data in a compliant manner.

Social environment
Social Factors Influencing Pharmaceutical 3PL in MENA

 Population demographics: The MENA region has a young and growing population, with higher life expectancy rates, and increased
urbanization. This demographic shift influences the demand for and patterns of pharmaceutical products, which in turn impacts
logistics operations.

 Healthcare awareness and access: Rising healthcare awareness and increasing access to medical services are driving demand for
efficient and reliable pharmaceutical distribution. 3PL providers must align their services with local healthcare needs and cultural
preferences.

 Public health priorities: Public health concerns such as infectious diseases and chronic conditions shape the demand for specific
pharmaceutical products and services. 3PL providers should understand these priorities and adapt their offerings accordingly.

 Environmental consciousness: Environmental concerns are gaining traction in the MENA region, influencing consumer preferences
and regulatory frameworks. 3PL providers should adopt sustainable practices and minimize their environmental impact.

 Cultural diversity and sensitivities: The MENA region is culturally diverse, with varying customs, languages, and communication
styles. 3PL providers should be culturally sensitive and adapt their operations to cater to local preferences.

 Local partnerships and collaborations: Building strong relationships with local pharmaceutical companies, healthcare providers, and
government entities can enhance market access, gain trust, and foster collaboration in improving healthcare supply chains.

 Social responsibility and ethical practices: Embracing social responsibility and upholding ethical practices can boost brand
reputation and attract customers in the MENA region. 3PL providers should demonstrate commitment to community well-being and
ethical business conduct.

Technological environment
Leveraging technology for efficiency and transparency: Technological advancements offer opportunities to enhance efficiency,
transparency, and real-time tracking of pharmaceutical shipments. 3PL providers can integrate these technologies to improve customer
satisfaction and gain a competitive edge.
Key Technological Trends in Pharmaceutical 3PL

 Warehouse Management Systems (WMS): WMS are essential for optimizing warehouse operations, managing inventory, tracking
shipments, and ensuring compliance with regulations. Modern WMS offer real-time visibility into warehouse operations, enabling
3PL providers to make informed decisions and optimize resource utilization.

 Transportation Management Systems (TMS): TMS are used to plan, optimize, and execute transportation routes, ensuring timely
delivery of pharmaceutical products. Advanced TMS incorporate real-time traffic data, weather forecasts, and driver performance
analytics to optimize delivery schedules and minimize transportation costs.
 Track and Trace Systems: Track and trace systems provide real-time monitoring of pharmaceutical shipments throughout the supply
chain. This enables 3PL providers to track the location, temperature, and condition of products, ensuring product integrity and
providing customers with visibility into their shipments.

 RFID and Barcoding Technologies: RFID (Radio Frequency Identification) and barcoding technologies are used to automate data
capture and track individual items throughout the supply chain. This eliminates manual data entry, reduces errors, and enhances
inventory management.

 IoT (Internet of Things) Applications: IoT sensors and devices are being embedded in warehouses and transportation vehicles to
collect real-time data on temperature, humidity, vibration, and other critical parameters. This data is used to monitor product
condition, identify potential issues, and optimize storage and transportation conditions.

 Big Data Analytics and Machine Learning: Pharmaceutical 3PL providers are increasingly using big data analytics and machine
learning to gain insights from vast amounts of data collected from various sources, including sensors, WMS, TMS, and track and
trace systems. These insights are used to improve forecasting, optimize routing, predict potential disruptions, and make data-driven
decisions.

 Blockchain Technology: Blockchain technology is being explored for its potential to enhance transparency and security in
pharmaceutical supply chains. Blockchain can provide an immutable record of transactions, ensuring product authenticity, tracking
ownership, and preventing counterfeiting.

Environmental environment
The environmental environment for pharmaceutical 3PL in the MENA region is characterized by a growing awareness of sustainability
and a need to balance environmental concerns with business objectives. Pharmaceutical 3PL providers are increasingly adopting
sustainable practices to reduce their environmental impact and align with the region's growing focus on environmental protection.

Key Environmental Challenges in Pharmaceutical 3PL

 Carbon Footprint: Pharmaceutical 3PL operations, including transportation, warehousing, and packaging, generate greenhouse gas
emissions, contributing to climate change. Reducing carbon emissions is a critical environmental challenge for the industry.

 Hazardous Waste Management: Pharmaceutical products often contain hazardous materials that require proper disposal to prevent
environmental contamination. 3PL providers must ensure safe and compliant handling and disposal of hazardous waste.

 Energy Consumption: Warehousing and transportation activities consume significant amounts of energy. Reducing energy
consumption through energy-efficient practices and renewable energy integration is essential.

 Packaging Waste: Pharmaceutical packaging generates a substantial amount of waste, posing a challenge for waste management
and contributing to landfill accumulation. Minimizing packaging waste and adopting sustainable packaging solutions are crucial.

Opportunity: Pharmaceutical 3PL in the MENA

Pharmaceutical industry will be the aim to address which is structurally attractive industry. MENA region is a promising market for a new
pharmaceutical 3PL company. The pharmaceutical industry in the region is expected to grow at a CAGR of 8.5% from 2023 to 2030.
This growth will create a significant demand for third-party logistics (3PL) services in the region.

Growing demand for pharmaceuticals: The demand for pharmaceuticals is growing rapidly in the MENA region. This is due to a number
of factors, including population growth, rising disposable incomes, and increasing healthcare awareness.

Government support: Governments in the MENA region are increasingly recognizing the importance of the pharmaceutical industry.
They are providing support in a number of ways, including investing in healthcare infrastructure, providing subsidies for pharmaceuticals,
and streamlining regulatory processes.

Regional integration: The MENA region is becoming increasingly integrated economically. This is making it easier for businesses to
operate across borders. This can be beneficial for 3PL providers that want to expand their reach into new markets.

Opportunities and Differentiation:

 The new 3PL company will be specialized in pharmaceutical logistics so that to gain a competitive edge by understanding the
unique requirements and challenges of handling temperature-sensitive and highly regulated products.

 Technology integration will be used to Leverage competitiveness through advanced technologies, such as real-time tracking and
monitoring systems, can enhance operational efficiency and provide customers with greater transparency into their shipments,
improve customer service, reduce cost and risk and gaining competitive edge

 Partnerships with local players such as collaborating with local pharmaceutical companies and healthcare providers can expand
market reach and establish strong relationships within the industry.

 Diversification of services in order to offer a comprehensive range of services, from warehousing and storage to distribution, cash
collection and transportation, can attract a wider clientele and increase revenue streams.

 Compliance with regulations to ensure strict adherence to local and international regulations governing pharmaceutical handling and
distribution to build trust and credibility among customers.
 Addressing healthcare supply chain challenges: The MENA region faces challenges in healthcare supply chains, including inefficient
distribution, temperature-sensitive product handling, and regulatory compliance. The new 3PL company will address these
challenges through specialized services and innovative solutions.

 Expanding into underserved markets: There are untapped opportunities in underserved markets within the MENA region, particularly
in rural areas and low-income communities. The new 3PL company will expand the reach by developing tailored strategies for these
markets.

 Contributing to public health initiatives: the new 3PL company will play a crucial role in supporting public health initiatives by
ensuring timely delivery of essential medicines and vaccines to combat infectious diseases and chronic conditions.

 Promoting sustainable practices: By adopting environmentally friendly practices and minimizing their carbon footprint, the new 3PL
company will enhance their social standing and attract environmentally conscious customers.

 Building trust through cultural sensitivity: Demonstrating cultural sensitivity, respecting local customs, and communicating effectively
with diverse stakeholders can foster trust and strengthen relationships with customers and partners.

 Partnering for community development: Collaborating with local organizations and initiatives to improve healthcare access,
education, and infrastructure can enhance the social impact of the new 3PL company and contribute to community development.

 Adopting Eco-Friendly Transportation: Utilizing fuel-efficient vehicles, optimizing routes, and implementing alternative fuel solutions
can significantly reduce transportation-related emissions.

 Implementing Energy-Efficient Warehousing: Optimizing lighting, heating, and cooling systems, using renewable energy sources,
and adopting smart building technologies can reduce energy consumption in warehouses.

 Minimizing Packaging Waste: Reducing packaging material usage, using recyclable and biodegradable packaging, and
implementing return programs can minimize packaging waste and promote a circular economy.

 Optimizing Inventory Management: Efficient inventory management practices, including demand forecasting and just-in-time
delivery, can reduce unnecessary transportation and minimize waste.

 Collaborating with Suppliers and Partners: Partnering with suppliers who prioritize sustainability and collaborating with industry
peers can promote best practices and accelerate the adoption of sustainable solutions.

 Raising Environmental Awareness: Educating employees, customers, and partners about environmental issues and promoting
sustainable practices can foster a culture of environmental responsibility.

 Investing in Innovation: Investing in research and development of innovative sustainable solutions, such as eco-friendly packaging
materials, alternative fuel technologies, and waste reduction strategies, can drive innovation and position the company as a leader
in environmental sustainability.

Strategy: Pharmaceutical 3PL in the MENA

The key strategies that the new pharmaceutical 3PL company in the MENA region will consider to succeed in this dynamic and growing
market will be:

 Specialize in pharmaceutical logistics including temperature-controlled and high sensitive products

 Invest in infrastructure
 Comply with regulations
 Build strong relationships with customers
 Be innovative
 Expand into underserved markets
 Embrace sustainability
 Invest in human capital
 Leverage technology
 Stay informed about industry trends

Vision To be the leading pharmaceutical 3PL provider in the MENA region, recognized for our unwavering commitment to excellence,
innovation, and sustainability in delivering pharmaceutical products that improve lives.

Mission To provide seamless, secure, and temperature-controlled pharmaceutical logistics solutions that empower our customers to
deliver normal and life-saving medications to patients across the MENA region with unparalleled efficiency, transparency, and
environmental responsibility.

Core Values
 Customer Focus
 Innovation
 Integrity
 Sustainability
 Teamwork
Business model (How the company will make money?)

By providing a comprehensive range of services, the new pharmaceutical 3PL company in the MENA can become a one-stop shop for
pharmaceutical companies, offering them the convenience and expertise they need to manage their supply chains efficiently and
effectively.
The new pharmaceutical 3PL company in the MENA will make money by providing a variety of services including:
 Warehousing and storage
 Transportation
 Packaging
 Customs clearance
 Track and trace
 Cash Collection
The company can also generate revenue from additional services, such as:
 Inventory management:
 Order fulfilment
 Return management
 Cold chain management
 Consultation services
Attracting, acquiring, and retaining customers is crucial for the success of any business, and the pharmaceutical 3PL industry is no
exception. To thrive in the competitive MENA market, the new pharmaceutical 3PL company must implement effective strategies to
attract, acquire, and retain customers such as:
 Building a strong reputation
 Develop a deep understanding of customer needs
 Offer specialized pharmaceutical logistics solutions
 Emphasize innovation and technological advancements
 Build strong relationships and partnerships
 Provide exceptional customer service
 Offer competitive pricing and value propositions
 Implement effective marketing and sales strategies
 Gather and analyze customer feedback
 Continuously innovate and adapt to the evolving market

The average time it takes to acquire a customer in the pharmaceutical 3PL industry in the MENA region can vary depending on several
factors, such as the size and complexity of the customer, the company's sales cycle, and the overall competitiveness of the market.
However, in general, it can take anywhere from a few months to a year or more to close a deal with a new pharmaceutical customer
while we will aim to acquire customers within 3-6 months based on the high level of services and differentiation.

The payment terms for pharmaceutical 3PL services typically vary depending on the specific agreement between the 3PL provider and
the customer. However, in general, customers are typically expected to pay for services within 30 to 60 days of receiving an invoice
while we will provide flexibility up to 90 days then we will pay our suppliers within 30 to 45 days after receiving payment from our
customers.
The flexibility of cash collection and payment can vary depending on the size of the customer, the complexity of the services and the
competitiveness of the market.

Based on the key strategies, internal competencies and competitor differentiation mentioned above we will be able to execute those
strategies rapidly so that the company will increase its chances of success and achieve rapid growth. The company is expected to see
significant growth in its revenue and customer base in the first two years of operation, and it can continue to grow at a healthy rate for
many years to come.

Launching and sustaining a successful new pharmaceutical 3PL business in the MENA region will require from us a combination of
strategic planning, operational excellence, and a deep understanding of the market and regulatory landscape.
 Strategic Focus and Differentiation
 Operational Excellence and Efficiency
 Regulatory Compliance and Expertise
 Market Understanding and Customer Focus
 Partnership and Collaboration
 Technology Adoption and Innovation
 Talent Acquisition and Retention
 Financial Management and Sustainability
 Corporate Social Responsibility and Environmental Awareness
 Adaptability and Agility

Marketing Strategy

Hereunder a comprehensive overview of the marketing strategy for our new pharmaceutical 3PL company in the MENA region:
Segment Focus: [All Segments]
 Large pharmaceutical companies: These companies have complex supply chains and require a high level of expertise
 Medium-sized pharmaceutical companies: These companies are looking for cost-effective and reliable 3PL solutions
 Small pharmaceutical companies: These companies may not have the in-house expertise or resources
Positioning/Differentiation:
We will position the company as a leading provider of specialized pharmaceutical logistics solutions in the MENA region differentiated in:
 Cold Chain Management
 Live-saving and sensitive medications transportation
 Regulatory compliance
 Customer focus
Product/Service:
The new pharmaceutical 3PL company will offer a comprehensive suite of pharmaceutical logistics services, including:
 Warehousing and storage
 Transportation
 Packaging and Labelling
 Customs clearance
 Track and trace
 Cash Collection
 Inventory management
 Order fulfilment
 Return management
 Cold chain management
 Consultation services
Salesforce:
The company will have a salesforce that is experienced in selling to large, medium-sized, and small pharmaceutical companies. The
salesforce will be well-versed in the company's product and service offerings and will be able to effectively communicate the company's
value proposition to potential customers. 20-50 sales force employees depending on the country size and business size
Pricing:
We will develop a pricing strategy that is competitive and attractive to its target market. The company will also consider offering a variety
of pricing options, such as fixed fees, variable fees, and tiered pricing. [-10% to -20%] vs. competition.
Promotion:
We will use a variety of promotional channels to reach to target market, including:
 Industry events
 Online marketing
 Public relations
 Direct marketing
Channel Selection and Outlets:
We will use a combination of direct and indirect channels to reach its target market. The company will sell directly to large
pharmaceutical companies and use indirect channels, such as distributors and brokers, to reach medium-sized and small
pharmaceutical companies.
We will also consider partnering with other healthcare providers and logistics companies to expand the reach and offer a wider range of
services to our customers.

Operations Strategy
Hereunder is a comprehensive overview of the operations strategy for a our new pharmaceutical 3PL in the MENA region:

Manufacturing
The company will not be directly involved in manufacturing pharmaceutical products. However, the company will need to have a strong
understanding of the manufacturing process in order to effectively manage the supply chain for its customers.
The company will need to invest in the following equipment to support its operations:
 Temperature-controlled warehousing and storage facilities
 Temperature-controlled transportation vehicles
  Packaging and labeling equipment
 Track and trace systems
At certain stage we could make decisions to manufacture certain components of the packaging materials in-house or to outsource this
function to a third-party supplier. The decision of whether to manufacture in-house or outsource will depend on a number of factors, such
as the cost of manufacturing, the availability of qualified labor, and the quality of the materials that can be sourced from third-party
suppliers.

Technology
The company will adopt a variety of technologies to support its operations. These technologies will help the company to improve
efficiency, transparency, and customer service.
 Warehouse management systems (WMS)
 Transportation management systems (TMS)
 Track and trace systems
 Data analytics
Supply Chain Management
The company will develop a robust supply chain management (SCM) strategy to ensure the efficient and effective delivery of
pharmaceutical products to its customers. This will include:
 Supplier management.
 Inventory management
 Storage management
 Distribution management
Customer Service
The company will provide its customers with high-quality customer service. This will include providing accurate and timely information,
responding to inquiries promptly, and resolving issues quickly, so we will invest in customer service operations:
 A dedicated customer service team
 A customer relationship management (CRM) system
 A self-service portal

Growth Strategy
We will prefer to have an internal growth in the first 5 years by investing in new resources and capabilities, expanding into new markets,
developing new products or services, or increasing our capacity. The internal growth will provide greater control over the growth
process, and will improve our brand recognition as well as provide a greater ability to protect intellectual property.

After 5 years of growth and developing resources and capabilities to grow we can consider acquisitions to grow faster and access to new
markets, products, or services.

Ultimately, before taking the acquisition step we will carefully consider our financial resources, strategic goals, and the availability of
attractive acquisition targets before making such a decision.

Systems and Control Strategies

Hereunder an overview of the key systems and control strategies for a new company
The company will implement a comprehensive set of systems and controls to ensure the efficient and effective operation of its business.
These systems and controls will help to ensure that the company is compliant with all applicable regulations, that its financial information
is accurate and reliable, and that its operations are safe and efficient.
 Quality Management System (QMS)
 Warehouse Management System (WMS)
 Transportation Management System (TMS)
 Financial Management System (FMS)
 Internal Control Procedures

HR Strategy
The new company will develop a comprehensive HR strategy to attract, retain, and develop a highly skilled workforce. This strategy will
address the following key areas:
 Recruitment and selection
 Training and development
 Performance management
 Compensation and benefits

Financial Strategy
The company will develop a sound financial strategy to ensure the long-term profitability and sustainability of the business. This strategy
will address the following key areas:
 Financial planning and budgeting
 Capital budgeting.
 Risk management
 Financial reporting

Working Capital Strategy

The company will develop a working capital strategy to manage its short-term cash flow. This strategy will address the following key
areas:
 Inventory management
 Accounts receivable
 Accounts payable
Distribution of Profits
The company will develop a policy for the distribution of profits to its shareholders. This policy will be fair and equitable to all
shareholders, and will take into account the company's financial performance and its long-term goals.
 Reinvest profits in the business
 Pay dividends to shareholders
 Create a reserve fund.

The company will also establish rules for the transferability of shares. These rules will protect the interests of all shareholders, and will
comply with all applicable laws and regulations.

Organization Structure
The company will develop an organization structure that is appropriate for its size and complexity. This structure will clearly define the
roles and responsibilities of all employees, and it will ensure that there is clear communication and accountability throughout the
organization.
Will prefer to have a flat organizational structure to improve communication and decision-making

Ownership, Board Members

The company will identify the family owners and establish a board of directors. The board of directors will not interfere in the day to day
business but will be responsible for overseeing the company's management and ensuring that it is operating in the best interests of its
shareholders. The matrix will be as follows:
 Shareholders who are the owners and will have the right to vote on company matters, such as the election of the board of
directors.
 Board of directors will be responsible for overseeing the management. The board of directors is elected by the shareholders.
 Key Management will responsible for the day-to-day operations of the company and appointed by the board of directors.

Exit Strategy
Some potential exit strategies that will be considered for an exit strategy are:
 Initial Public Offering (IPO)
 Strategic Acquisition
 Management Buyout (MBO)
 Secondary Sale
 Employee Stock Ownership Plan (ESOP)

The best exit strategy will depend on a number of factors, including the company's financial performance, its growth prospects, and
the availability of potential buyers. Here are some additional considerations for choosing an exit strategy:
 Timing:
 Valuation
 Taxes

Projected Financial Statements

3 years income statement

YEAR 1
Revenue Expenses
 Warehouse and storage fees $2,000,000  Salaries and wages $1,200,000
 Transportation fees $1,500,000  Rent and utilities $200,000
 Packaging and labeling fees $500,000  Depreciation and amortization $100,000
 Customs clearance fees $250,000  Insurance $50,000
 Track and trace fees $100,000  Supplies and materials $200,000
 Total revenue $4,350,000  Marketing and sales expenses $100,000
 General and administrative expenses $50,000
 Total expenses $1,900,000

Net income $2,450,000

YEAR 2
Revenue Expenses
 Warehouse and storage fees $2,500,000  Salaries and wages $1,350,000
 Transportation fees $2,000,000
 Packaging and labeling fees $600,000  Rent and utilities $220,000
 Customs clearance fees $300,000
 Track and trace fees $120,000
 Total revenue $5,520,000  Depreciation and amortization $120,000

 Insurance $55,000

 Supplies and materials $250,000

 Marketing and sales expenses $120,000

 General and administrative expenses $60,000

 Total expenses $2,175,000

 

Net income $3,345,000

YEAR 3
Revenue Expenses
 Warehouse and storage fees $3,000,000  Salaries and wages $1,500,000
 Transportation fees $2,500,000  Rent and utilities $240,000
 Packaging and labeling fees $700,000  Depreciation and amortization $140,000
 Customs clearance fees $350,000  Insurance $60,000
 Track and trace fees $140,000  Supplies and materials $300,000
 Total revenue $6,690,000  Marketing and sales expenses $140,000
 General and administrative expenses $70,000
 Total expenses $2,450,000

Net income $4,240,000

The company's revenue is expected to grow steadily over the next three years, driven by increasing demand for pharmaceutical logistics
services in the MENA region. The company's expenses are also expected to increase, but at a slower rate than revenue, resulting in an
increase in net income. The company's profitability is expected to be strong, with net margins of over 50%. This is due to the company's
high-margin business model and its focus on providing high-quality services to its customers.

3 years statement of cash flows (cumulative cash flows)

Cash from Cash from Cash from Net Cumulative

Operating Investing Financing Change in Cash Flow
Year Activities Activities Activities Cash
2024 4,350,000 1,900,000 500,000 1,950,000 1,950,000
2025 5,520,000 2,175,000 565,500 2,779,500 4,729,500
2026 6,690,000 2,450,000 637,000 3,603,000 10,282,500