Tips to getting that BIG Haulage Contract

Haulage Contract FMCG

A haulage contract with a fast moving consumer goods company (FMCG), if properly managed, guarantees a steady stream of revenue, considerable vehicle/driver utilisation and good return on investment.

Sure you would love to have one (and if you have one already, warming up for yet another one wouldn’t be a bad idea…).

The following are some of the conditions you would need to fulfill to get a highly rewarding and profitable (although these still depends on how well you manage it) contract from any FMCG company:

Scope of Work: Specified scope of Work usually includes movement of goods/products from distribution centres to:

  • Various depot locations within the country
  • Warehouse or off-loading sites of Company’s key distributors
  • Direct to clients’ major outlets such as market, supermarkets and retail stores
  • Transfer products between depots

General Requirements: Depending on the nature and configuration of company’s goods, prospective haulage companies would be required to have some or all of the following fleet of trucks including:

  • Boxed body/High Cube/Curtain Slider (Trailer) Trucks (30, 40, 50 tons loading Capacity)
  • Sided-flatbed (bucket body) Trucks
  • Flatbed Trucks (30, 40, 50 Tons Loading Capacity)
  • Single Boxed body/High Cube/Curtain slider trucks

– Sometimes, additional smaller capacity trucks and vans may be an added advantage.

NOTE: Technical Requirements covering specific trucks and trailer specification usually accompanies this fleet requirement. It is extremely important that these specifications are abided with as products/goods differ and what works with Company A might not work with Company B.

Other Requirements:

– Most would require fleet of trucks dedicated strictly to Company’s business.

– A minimum of 1-3 year(s) experience in the haulage and transport business in Nigeria.

– Literate haulage company representatives and literate drivers with at least a primary school leaving certificate.

– Duly registered with the Corporate Affairs Commission (CAC) and possession of a proper and verifiable office address.

– Company’s profile & Organization Structure (and sometimes in addition to resume of key personnel and their professional qualifications)

– Proof of financial standing (i.e. sustainability/viability) of the business

– Companies with decentralized truck parks and bases of operation around the country usually do receive preferential consideration

– Maximum age of trucks usually required to be between 5-10 years but not above

– Properly kept maintenance lots/yards owned by the haulage company for the trucks either within the company premises or elsewhere

– Experienced mechanics or technical staff on ground at truck yard.

– Maintenance records of trucks (available on demand)

– Fully insured trucks with an up-to-date comprehensive haulage insurance cover from a well-recognized insurance company – goods in transit (G .I .T) insurance of a specified amount per carriage

– In some instances, a couple of Companies require a Letter of recommendation from a Bank or reputable company or any of the FMCG’s existing registered transporters.

– VAT registration certificate or proof of VAT registration and Tax Identification Number (TIN).

– Accessible (viewable by both the haulage company and FMCG client) and robust tracking device installed on all trucks.

– Preparedness for pre-inspection of all assets and facilities prior to sign-on.

If you can meet the above stated requirements and even more, we guarantee that any FMCG company operating in Nigeria will delightfully take you on.

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