List of figures Figure 1.1: Process of FCL shipment Figure 1.2: Process of LCL shipment Figure 2.1: Organizational structure of the company Figure 2.2: Revenue and Profit from 2008 to 20
Problem statement
Globalization has become an essential trend shaping the international business landscape, significantly impacting Vietnam's economy Since Vietnam's accession to the World Trade Organization, its integration into the global economy has accelerated, creating vast opportunities for development As international trade grows, logistics companies in Vietnam have expanded both in size and service quality, especially in freight forwarding Despite these advancements, Vietnamese sea freight forwarding remains relatively young, with many companies still lacking the professionalism seen in global logistics providers Ensuring the delivery of quality services that meet the increasing demands of import and export activities continues to be a critical challenge for Vietnamese freight forwarding firms.
The freight forwarding industry has expanded to approximately 600 companies; however, these firms currently account for only about 25% of the market share The sector is characterized by diverse business activities, particularly in collaborations between foreign companies, joint ventures with domestic firms, and operations across various regions Leading global players such as Kuehne + Nagel, Expeditors, DHL Danzas, Safi, Excel, Vinatrans, Nippon Express, and Damco dominate the market, controlling a significant portion of the freight forwarding services.
E.I Freight Forwarding Co., Ltd must focus on gradually improving and strengthening its business operations to ensure long-term growth and sustainability To remain competitive and thrive in the industry, the company needs to analyze its current situation and implement effective solutions that enhance overall performance Continuous evaluation and strategic improvements are essential for the company's long-term success and market development.
After completing a three-month internship at E.I Freight Forwarding Co Ltd., under the guidance of the Order Management Department staff, I observed the sector's growth and potential Recognizing the need for enhancements in freight forwarding services for cargo export, I chose the topic "Solutions to Improve Freight Forwarding Service of Cargo Export at E.I Freight Forwarding Co Ltd." This thesis thoroughly explores the current freight forwarding processes for exported commodities at the company, identifying key areas for improvement and proposing effective solutions to optimize export logistics.
Objective and significance of the study
The thesis aims to learning and analyzing sea freight forwarding process of exported commodities at E.I freight forwarding Co., Ltd From the study of
The company's practical operational freight forwarding activities are essential for identifying key factors that impact the export process By analyzing these activities, the company can pinpoint the root causes affecting export efficiency Based on these insights, targeted solutions are recommended to enhance the overall export performance Implementing these improvements will streamline export operations, increase reliability, and support sustainable growth in international trade.
This thesis examines the key factors influencing export activities, highlighting the strengths and weaknesses of E.I Company in the freight forwarding sector It provides an in-depth analysis of how these factors impact cargo export via sea, identifying areas for improvement The study offers strategic solutions aimed at enhancing E.I Company's sea freight forwarding services, ultimately boosting its competitiveness in international markets.
Scope and object of the study
About location: the thesis is researched at E.I freight forwarding Co., Ltd
About time: the research is about the sea freight forwarding activities of the company from 2008 to 2011 The analyzed figures are used mainly from 2008 to
About object: the thesis researches the sea freight forwarding of exporting commodities by containers at E.I freight forwarding Co., Ltd.
Methodology
The research mainly focus on analyzing, evaluating the practical situation of export activities at the company
The observation method involves analyzing transportation and freight forwarding documents, researching academic literature, and gathering online information about freight forwarding services Additionally, it includes reviewing company reports to understand E.I’s workflow and observing the company's sequencing processes to gain comprehensive insights into operational efficiency.
Data source
This research utilizes secondary data sourced from the company's internal system and publicly available media outlets Additionally, valuable insights are gathered from international journals, articles, books, newspapers, and other public media, making these sources essential for a comprehensive analysis.
Structure of the thesis
The thesis is divided into three chapters
This chapter provides a comprehensive overview of freight forwarders and freight forwarding, including their definitions, scope, roles, and functions It offers readers insights into the freight forwarding market in Vietnam and highlights key factors influencing this industry Understanding these elements is essential for grasping the dynamics of the freight forwarding sector in Vietnam and its opportunities for growth.
Chapter 2: Analyzing and evaluating sea freight forwarding activities at E.I freight forwarding Co., Ltd
At first, an overview of E.I freight forwarding Co., Ltd will be shown Readers will be introduced about E.I company in general such as the developing
3 and formative process of company, human resources, organizational structure and some information about the operation of E.I freight forwarding Co., Ltd from 2008 to 2011
Secondly, this chapter also focuses on evaluating and analyzing the process of exporting commodities in container by ocean at E.I freight forwarding company
Chapter 3: Solutions and some recommendations to improve freight forwarding service of cargo export by sea at E.I freight forwarding Co Ltd
This chapter utilizes the SWOT matrix to identify key challenges in the company's sea freight forwarding operations Based on the analysis, strategic recommendations are provided to enhance the efficiency and reliability of the company's sea freight services These insights aim to improve overall export cargo handling and strengthen competitive advantage in the maritime logistics industry.
LITERATURE REVIEW
Overview of freight forwarding
1.1.1 The concept of freight forwarding and freight forwarder
There are several definitions for freight forwarding
Freight forwarding services, as defined by FIATA model rules, encompass a wide range of activities related to the carriage, consolidation, storage, handling, packing, and distribution of goods These services also include ancillary and advisory support such as customs and fiscal matters, official declaration of goods, procurement of insurance, and the collection or procurement of payments and related documents.
Under Vietnam Commercial Law 1997, Article 163 defines freight forwarding as a commercial activity where a forwarder receives cargo from the shipper, organizes transportation, storage, demurrage, and manages related procedures It involves providing various services to ensure the cargo is delivered to the consignee according to the shipper’s entrusted instructions, acting on behalf of the carrier or other forwarders.
Freight forwarding is a vital service for companies involved in international and multi-national import and export activities It simplifies complex logistics by managing the transportation of goods across multiple carriers, handling legal requirements, and coordinating international shipping processes By outsourcing these responsibilities to a freight forwarding service, businesses can efficiently navigate the intricate legalities and logistical challenges, ensuring seamless delivery of products worldwide.
(Source: http://www.wisegeek.com)
In general, freight forwarding can be understood as the process of moving cargo from one place to a destination, according to the demand of customers
When preparing to ship a product overseas, exporters must carefully consider packing, labeling, documentation, and insurance requirements to ensure compliance and smooth logistics Due to the complexity of the physical export process, most exporters—whether new or experienced—depend on international freight forwarders to handle these essential services Although the term "freight forwarder" has various definitions, there is no single universally accepted definition, highlighting the diverse roles these professionals play in international shipping.
According to FIATA model rules: “freight forwarder means the person concluding a contract of freight forwarding service with a customer”
The international freight forwarder acts as an agent for the exporter in moving cargo to the overseas destination These agents are familiar with the import rules
5 and regulations of foreign countries, methods of shipping, government export regulations, and the documents connected with foreign trade
Freight forwarders play a vital role in the shipping process by providing exporters with detailed cost estimates, including freight charges, port fees, consular expenses, special documentation costs, insurance, and handling fees, which are essential for accurate price quotations They also recommend optimal packing solutions to ensure merchandise safety during transit and can arrange for packing or containerization at the port, adding value to the shipping process The fees charged by freight forwarders are legitimate export costs that should be included in the final price charged to the customer, ensuring comprehensive and transparent cost management.
On behalf of the consignor (exporter), the forwarder in accordance with his shipping instructions would:
Choose the route, mode of transport and a suitable carrier
Book space with the selected carrier
Take delivery of the goods and issue relevant documents such as the Forwarders’ Certificate of Receipt, Forwarders’ Certificate of Transport, etc
To ensure a smooth shipment process, it is essential to thoroughly study the provisions of the letter of credit and all relevant government regulations governing the export, import, and transit countries Additionally, preparing the necessary documents in compliance with these regulations is crucial for successful international trade transactions.
Ensure goods are properly packed, either by the consignor before handing them to the forwarder or by the forwarder if necessary Consider the route, mode of transport, the nature of the goods, and any applicable regulations in the export, transit, and destination countries to ensure safe and compliant shipment Proper packaging is essential for smooth transit and to prevent damage or customs issues.
Arrange warehousing of the goods, if necessary
Weigh and measure the goods
Draw the consignor’s attention to the need for insurance and arrange for the insurance of goods, if required by the consignor
Arrange for custom clearance, transport the goods to the port, attend all documentation formalities, and deliver the goods to the carrier
Attend to foreign exchange transactions, if any
Pay fees and other charges including freight
Obtain the signed “Bill of Lading” from the carrier
Arrange for transshipment en route if any
Monitor the movement of goods all the way to the consignee through contacts with the carrier and forwarder’s agent abroad
Note damages or losses if any to the goods
Assist the consignor in pursuing claims, if any, against the carrier for loss of the goods or for damage to them
On behalf of the consignee (importer), the forwarder, in accordance with his shipping instructions would:
Monitor the movement of the goods on behalf of the consignee when the consignee controls freight, that is, the cargo
Receive and check all relevant documents relating to the movement of the goods
Take delivery of the goods from the carrier and, if necessary, pay freight costs
Arrange customs clearance and pay duties, fees and other charges to the customs and other public authorities
Arrange transit warehousing, if necessary
Deliver the cleared goods to the consignee
Assist the consignee, if necessary in pursuing claims, if any, against the carrier for the loss of goods or any damage to them
Assist the consignee, if necessary, in warehousing and distribution
Freight forwarders offer a range of additional services based on customer needs, including handling unforeseen transit requirements and providing specialized solutions such as consolidation, groupage, and project cargo management They also assist clients with turnkey projects by coordinating equipment and plant readiness for operation Moreover, forwarders provide valuable market insights, consumer trend analysis, competitive intelligence, export strategy advice, and guidance on suitable trade terms to optimize international shipping operations.
With the growth of container and multimodal transport, freight forwarders have expanded their roles beyond traditional agency functions to also act as consignees, providers of transport services, and carriers Their key responsibilities include coordinating logistics, offering comprehensive transportation solutions, and ensuring seamless freight movement across multiple modes of transport This evolution has positioned freight forwarders as essential partners in global supply chains, capable of serving as principals or carriers to optimize cargo delivery.
An agent in logistics acts as a representative of the carrier, serving as a vital link between the shipper and the carrier Their duties include managing various activities such as receiving goods, handling shipments, preparing necessary documentation, facilitating customs procedures, and storing cargo This comprehensive role ensures smooth coordination and efficient transportation processes within the supply chain.
Custom brokerage: the forwarder is on the behalf of exporter or importer will take care of custom procedures as a custom broker
In many instances, the freight forwarder acts as the carrier, meaning they sign contracts directly with shippers and assume responsibility for transporting goods from origin to destination.
Consolidators play a crucial role during transportation by acting as carriers or agents, especially in containerized freight They are essential in converting Less than Container Load (LCL) shipments into Full Container Load (FCL) to maximize container capacity and reduce shipping costs Using a consolidator ensures efficient cargo consolidation, leading to cost savings and optimized supply chain operations.
A multimodal transport operator, also known as a "door-to-door" transporter, manages the complete logistics process by coordinating multiple modes of transportation to deliver goods directly to the consignee's location Forwarders acting as multimodal transport operators assume full responsibility for the cargo throughout the entire journey, ensuring seamless delivery and minimizing risks This integrated approach enhances supply chain efficiency, providing businesses with reliable and cost-effective shipping solutions from origin to destination.
1.1.4 Rights, duties and responsibilities of forwarder
Rights and duties of freight forwarder
Fulfilling its obligation under the contract
During contract performance, if there is a good reason for customer’s benefit, it can be done differently from customer’s instructions but the customer must be notified about this
Once a contract is signed, if an event arises that prevents the freight forwarder from fully or partially fulfilling the customer's instructions, the freight forwarder must promptly notify the customer to seek further guidance.
In case, the contract does not mention about specific time limit with the customer, freight forwarder must implement their obligations within a reasonable time limit
The forwarder can refuse to transport dangerous goods that can cause damage to means of transportation The forwarder has the right to use any means for transporting goods
When a freight forwarder acts as an agent, they are responsible for any mistakes or omissions on their part However, the forwarder is not liable for the actions of third parties, such as carriers or other freight forwarders.
Trend development of freight forwarding service
1.2.1 Trend development of freight forwarding service in Vietnam
Vietnam is a developing country with an expanding economy, driven by its agricultural sector Since joining the World Trade Organization, Vietnam has experienced significant economic growth, making it an attractive destination for international business partners seeking cost-effective markets The country's growing economy has also drawn increasing foreign investments, positioning Vietnam as a promising emerging market in Southeast Asia.
Between 2001 and 2005, the freight forwarding industry, particularly international freight forwarding, underwent significant transformations in Vietnam During this period, state-owned enterprises primarily dominated the sector, serving as agents for foreign logistics companies As a relatively new and challenging industry, Vietnamese logistics was protected and encouraged to develop by the government to foster growth and competitiveness.
In 2006-2010, there was a development and strong change in logistics market with 1200 logistics companies However, those companies were lack of capital and experiences, and could not compete with multinational companies
Despite Vietnam's growing economy, the country remains in the early stages of developing its logistics infrastructure The lack of sufficient infrastructure and an efficient traffic system is a significant concern for both the government and foreign investors This deficiency in logistics infrastructure results in higher freight forwarding costs in Vietnam compared to other countries, hindering the nation's competitiveness in global trade.
Many modern enterprises engaged in exporting goods are increasingly opting for outsourcing to optimize their supply chain operations Outsourcing allows companies to focus on their core competencies while partnering with specialists for warehousing, inventory management, and distribution, ensuring professional handling of goods When entering new markets, outsourcing provides crucial regional expertise and simplifies navigating local documentation and procedures, which can be complex and resource-intensive if managed internally Additionally, outsourcing expands global reach, enabling firms to quickly seize external market opportunities without the burden of managing intricate regional logistics on their own.
The freight forwarding market in Vietnam holds significant growth potential To strengthen the industry and enhance its competitiveness against foreign freight forwarding companies, providers must improve service quality and develop tailored strategies Focusing on service excellence and strategic innovation will position Vietnamese freight forwarding services for sustainable success in the global market.
1.2.2 Trend development of freight forwarding service in the world
The freight forwarding and logistics industry plays a crucial role in shaping a country's economy and international reputation, as it directly supports trade, imports, and exports Recognizing its strategic importance, nearly every nation invests heavily in this sector to enhance trade efficiency and boost economic growth Strengthening logistics infrastructure not only facilitates smoother international commerce but also positions countries competitively in the global market.
13 introducing favourable trade laws, lucrative import-export taxes and encouraging new transport trends and innovations
The freight forwarding industry has experienced significant growth due to emerging trends, leading to an increase in the number of global freight forwarding companies and overall sector improvements This development enables exporters to send cargo worldwide at competitive costs and faster transit times As a result, consumers now benefit from a wider selection of reliable freight services, emphasizing the growing importance of efficiency and quality in freight forwarding.
Supply chains comprise multiple trading partners, with logistics serving as the crucial link that ensures seamless coordination and efficiency Logistics involves planning, executing, and managing the smooth flow and storage of goods and related data, vital for optimizing supply chain operations As global logistics become increasingly complex and companies seek cost savings through supply chain efficiencies, outsourcing procurement, distribution, and return logistics has become a widespread strategy.
As the economy declines, the freight forwarding industry is increasingly adopting cost-effective transportation solutions Multimodal transport has become the standard, enabling traders to optimize routes and improve transportation efficiency This shift helps reduce shipping timelines and cut costs, making logistics more streamlined and competitive in challenging economic conditions.
One emerging trend in the freight forwarding industry is the development of advanced identification systems for products, which enhance tracking and shipping efficiency These innovative systems ensure that even the smallest consignments are accurately monitored and safely reach their destinations Embracing these technologies improves supply chain management and customer satisfaction, making freight logistics more reliable and transparent.
A growing trend is the development of a universal freight code to streamline documentation and tracking of international freight transport This standardization enhances efficiency and accuracy across global logistics networks Additionally, significant advancements in packaging methods have been implemented to minimize risks of breakage, pest contamination, and spillage, ensuring safer and more reliable freight handling worldwide.
ANALYZING AND EVALUATING SEA FREIGHT
Overview of E.I Freight Forwarding Co., Ltd
2.1.1.1 The developing and history of Expeditors
Expeditor is a leading global logistics company headquartered in Seattle, Washington, with a strong international presence As a Fortune 500 company, Expeditor operates in over 180 countries through more than 200 offices worldwide Since its founding in 1979, when its first office was registered in Seattle under the name Expeditors International of Washington, Inc., the company has established itself as a trusted leader in the logistics industry.
In 1981, Peter J.Rose, James L.K.Wang and Glenn M.Alger joined in the company Expeditors became one of the largest U.S based airfreight of goods and opened seven offices around the world
In 1985, Expeditors expanded into the ocean freight industry by acquiring Pac Bridge, a leading non-vessel operating common carrier (NVOCC) By 1988, the company had grown to operate twenty-four offices worldwide, and Peter J Rose was appointed President and CEO, steering Expeditors' global expansion and growth in logistics services.
In 1991, EXCEL program (Expeditors Commitment to Excellence and Leadership) was built The purpose of this program was to make customer when got 100% of satisfaction when using Expeditors’s services
In 1993, Expeditors’ Cargo Management System (E.CMS) was built With this program, data of cargo consolidation was transmitted automatically
In 1995, with an increasingly large scale – 96 offices, Expedtiors launched a Cargo Insurance division and set up website www.expeditors.com
In 2004, a number of milestones mark Expeditors’s 25th year: it was the first year with more than $3 billion in gross revenues ($3,317,499,000); the number of employees tops 9,000; and net earnings reach $156,126,000
In 2005, Expeditors was recognized by Forbes as the Best Managed Transportation Company, highlighting its industry excellence Additionally, The Wall Street Journal ranked Expeditors #1 in their shareholder scorecard for Delivery Services, outperforming major competitors like UPS and FedEx.
In 2006, entering the Fortune 500 list for the first time with $4.6 billion in revenue, Expeditors also stood out as Fortune's #1 Most Admired Company in our industry
In 2010, Expeditors achieved a record-breaking revenue of nearly six billion dollars, marking it as the company's best year ever The key driver behind this success was the company's no-layoff policy, which prioritized protecting its most valuable assets—its dedicated employees By maintaining a stable workforce, Expeditors ensured consistent delivery of world-class customer service, highlighting that its people are fundamental to its continued growth and success.
Expeditor, with a global network of over 250 locations across six continents, employs more than 13,000 trained professionals to meet the complex demands of international trade We provide customized logistics solutions and seamless integrated information systems to ensure efficient freight management Our comprehensive services include air and ocean freight consolidation, vendor consolidation, customs clearance, cargo insurance, distribution, and other value-added logistics services, enabling businesses to optimize their international supply chains.
“To set the standard for excellence in global logistics through total commitment to quality in people and customer service, with superior financial results.”
Expeditors’ promise, “You’d be surprised how far we’ll go for you,” reflects their genuine commitment to exceeding client expectations as a leading global logistics provider Focused on organic growth rather than acquisitions, the company ensures stability and reliability, allowing clients and employees to operate with peace of mind, knowing that their daily operations won’t be disrupted by merger pains.
Our company’s culture focuses on exceeding customer expectations and creating a supportive environment for employees to build their careers Our dedicated team members prioritize exceptional care, working faster, harder, and earning better rewards than competitors Expeditors’ offices are consistently neat, organized, and aligned with our high-quality standards, reflecting our simple yet effective philosophy: we are committed to protecting and nurturing our strong company culture.
Customer service has always been company’s focus and Expeditors takes great pride in ensuring that customers receive the same level of consistent service
16 everywhere in the world The company does this by staying true to its core assets: people, systems, culture and customers
- Expeditors was ranked as one of 100 3PL service provider
- Expeditors is placed into one of 25 logistics service provider by the magazine Global Logistics and Supply Chain Strategies
- Expeditors was on the first place of popular transportation and logistics company list that was voted by Fortune Magazine
- Expeditors entered the Fortune 500 list of U.S.A
- Expeditors was awarded Quest for Quality prize for freight forwarders and Third-Party Logistics by Logistics Management
2.1.2 General introduction to E.I branch in Vietnam
EI Freight Forwarding Co., Ltd is a trusted agent of Expeditors International in Vietnam, recognizing the vital role of international trade Since its inception, EI has strategically developed its presence across Vietnam to facilitate global commerce, establishing its main office in Ho Chi Minh City in 2000, a branch in Hanoi in March 2001, and another branch in Da Nang in August 2004.
E.I’s head office was originally located at 211 Nguyen Van Troi, Ward 11, Phu Nhuan District, Ho Chi Minh City The company then relocated to the 5th floor of the E.Town building at 346 Cong Hoa, Ward 13, Tan Binh District, where a new office was established on the 4th floor To support its expansion and business development, E.I is now situated on the 8th floor of the Flemington building at 182 Le Dai Hanh, Ward 15, District 11.
More information about EI Freight Forwarding Co., Ltd
Company name: E.I freight forwarding Co., Ltd
Address: Floor 8, Flemington building, 182 Le Dai Hanh, Ward 15, Dist 11
Establishment license No 4102000170 was issued on 02.02.2000 by the Department of Planning and Investment of Ho Chi Minh City
Type of company: Limited Liability Company
Over 10 years of operation in Vietnam counting from the time of its establishment, the company has had a great rapid and stable development The company today is regarded to be one of the top companies in the field of delivery of goods.
Functions, missions, and business’s scope of enterprise
EI is allowed to do the operations of delivering imported- exported goods by the function as follows:
- To be agent: it works as an agent of the carrier or the consigner, the consignee
- Arrange to deliver or send goods during transport or transit into third countries E.I will organize to transfer goods by one means of transport to other or hand to consignors
Storage solutions are provided when goods need to be stored before or after importation EI, on behalf of the consignee, manages the delivery process by utilizing its vehicles or hiring third-party services, tailored to customer requirements.
- Cargo consolidator: With the role of collector, EI will collect into raw, and fill the container to reduce freight charges
- Carrier: E.I directly sign contracts of transport with consigner and take the responsibility about goods
- Multi-modal transportation business: in case EI supply door to door service, EI serves as the associated transporter, is in charge of transportation and responsible for the goods
- E.I supplies best products to customer by the effective, immediate, and rapid forwarding services
E.I plays a role of a trade mandatory so it has the responsibility for arranging and taking essential procedures before and after delivering
Closely coordinate with other agents around the world, friendly units, organizations related to enhance working effect, make deeply expression with customers in and out of nation
Create its own business funding, be self-equipped and innovate equipment, invest building, enhance as well as extent infrastructure, ensure adequate accounts and fulfill the duty with national budget
Fulfill completely policy, regulations concerning the management of finance, labor, and salary of nation Keep safety at work, protect environment, and actively participate in social work
Being a role as a freight forwarder, E.I will be on the behalf of consigner doing these following works:
- On behalf of consigner, being as an exporter
- Find an appropriate route, mode of transport and carrier
- Book with the selected shipping company
- Receiving and storing the necessary documents: a certificate of goods and transport document of deliver
- Study the terms of letters of credit and government regulations applied to the shipment of the exporting country, importing country as well as in any country of transit does
- Balance, measure, and pack (if consignee requires)
- Organize the storage of the goods if necessary
- Take out insurance for goods (if consignee requires)
- Transport goods into harbor, arrange for customs declaration, manage procedures, related document, and delivery to the carrier
- Get signed bill of lading of carrier and transfer to consignee
- Arrange for transportation on the way forward if necessary
- Supervise the transport of goods on the way through shipping company and forwarding agents of overseas
- Record losses and damage of goods
- Help the consigners conduct their complaint with the carrier for loss or damage of goods (if any)
- On behalf of the consignee (importer)
- Receive and check all of documents related to discharge
- Receive from carrier, pay freight
- Arrange customs declaration and pay taxes, fees
- Arrange storage of transit (if any)
- Help the consigners conduct their complaint with the carrier for loss of (if any)
- Help the consigners in storing and distributing goods
- Other services: depending on customer’s requirement, deliverer can list other potential services during transport.
Organizational structure of E.I Freight Forwarding Co., Ltd
2.3.1 Organization chart of the enterprise
Through sustained practical efforts, the company has successfully improved and transformed its organizational structure, selecting an approach that clearly defines roles, responsibilities, and authority levels This well-designed structure delineates the distinction between the board of directors and other departments, ensuring transparent communication and effective governance The optimized organizational framework enhances operational efficiency and supports the company's long-term growth objectives.
Figure 2.1: Organizational structure of the company
Expeditors SGN Board Of Director
Regional Director: Ms Gina Hsieh
Board of director includes the director, chief accountant, and manager of each department
2.3.2 Functions and duties of departments
As a leader, I hold the ultimate authority to make final decisions on implementation, overseeing all company activities including organizational management, personnel arrangements, work planning, management accounting strategies, and financial operations.
- District Manager is also responsible for the highest performance in business; manage staff training program as well as other matters of the company
- Research and recommend organizational structure in accordance with the functions and duties to achieve the highest efficiency to the board of director
- Manage, preserve, and store personal information of employees and organizations to build a suitable system for salary and bonus
- Preserve asset, security and store the written papers
- IS department has a function of creating personal account for employees to access to system; manage networked global computer system
- Searching customers, setting up and organizing sale promotion program
- Planning and implementing marketing program for the company
- Take responsibility for set up expenditure plan that is suitable with the finance statement of company Strictly implement the statistics, accounting in accordance with law of the State
- Analyzing the financial ratios to reflect the financial situation of the company in order to serving better for board of director in making decision
- Ocean export: specialize in order of exporting commodities by ocean
- Ocean Import: take responsibility for order of exporting commodities that are nominated by foreign customer by ocean
- Air Export: specialize in importing cargo by air
- Air Import: specialize in exporting cargo by air
- Order Management: be responsible for checking document’s cargo, arrange schedules for goods, avoid accumulation, and warehouse cost
- Customs Brokerage: execute documents, customs procedures and customs clearance of exports and imports
This department plays a crucial role in the company by managing key customer relationships and developing comprehensive customer care programs They are responsible for setting sales policies aimed at enhancing customer satisfaction and ensuring the company's services meet client expectations.
- Specialize in warehouse storage service to distribute goods by the request of foreign customer or domestic customer
2.3.3 Overview of human resource situation of the enterprise
Table 2.1: Personnel allocation of the company
Bachelor’s degree College Male Female 30
Source: human resource department of E.I Company
The company's personnel allocation highlights a predominantly female workforce, accounting for 66.1%, with a youthful staff demographic where 64.41% are under 30 years old Notably, 71.19% of employees hold postgraduate qualifications, reflecting a highly educated team All sales staff possess a Bachelor's degree, although only 6.78% hold master's degrees, indicating a strong emphasis on professional qualifications These qualities demonstrate that the company's human resources are highly educated, professional, young, dynamic, and dedicated, possessing a high sense of responsibility, enthusiasm, a strong desire to learn, and the ability to adapt quickly—key attributes contributing to the company's success.
For most enterprises, the workforce is an invaluable asset At Expeditors in general and E.I Vietnam in particular, human resources play an important role in today’s achievement of the company
Our company carefully selects employees from prestigious universities, focusing on degrees in business administration and foreign trade The recruitment process is rigorous and standardized, requiring candidates to complete multiple-choice tests and participate in three interview rounds with the human resources manager, department manager, and district director All assessments and communications are conducted in English to ensure clarity and consistency.
Our company continuously enhances employee skills through comprehensive training programs, diverse courses across various fields, and leadership-led classes designed to increase knowledge, enabling staff to serve their roles more effectively and improve overall work performance.
In addition, the board of director often interested in material life as well as employee morale To help employees relieve stress after working hours, a picnic is often celebrated
The company offers internship programs for senior students, providing valuable opportunities to gain practical work experience and prepare for their future careers This initiative not only benefits students by enhancing their skills but also serves as a recruitment channel for the company to identify and hire potential new staff.
Business operation result of E.I Freight Forwarding Co., Ltd
Table 2.2: The business result of company in the period 2008-2010
Source: Accounting department of E.I company
Figure 2.2: Revenue and Profit from 2008 to 2010
Since its founding, our company has faced numerous challenges in its business activities In the past, Vietnam’s underdeveloped logistics industry put our business at a disadvantage However, with Vietnam’s accession to WTO and ongoing economic reforms, both the national economy and logistics services have experienced significant growth These open and innovative policies have created favorable conditions for integrating into the Asian and global economies As the logistics sector rapidly develops, our company benefits from this growth, gaining competitive advantages and new business opportunities.
Between 2008 and 2010, the company's service revenue experienced significant fluctuations due to the global financial crisis The 2008 recession impacted the worldwide economy, including Vietnam's financial landscape, which directly affected the company's business performance during this period.
In 2009, the company's revenue declined by 6,143,855,863 VND (20%) compared to 2008, resulting in an 8,445,298,572 VND (46.26%) decrease in profit Despite specializing in manufacturing and having import-export capabilities, the company continues to face stiff market competition.
25 promote and overcome difficulty getting through the economic crisis The revenue and profit fell in 2009 due to cost price increased by 18% and overhead costs up 17% compared to 2008
After 2010, the company recovered from the economic crisis, demonstrating strong financial performance Despite a 20% increase in prime costs (1,988,617,768 VND) and indirect overhead costs (673,456,509 VND), revenue surged by 50% (12,287,711,726 VND) compared to the crisis period Moreover, the company's profit significantly grew by 93.66% (9,189,791,051 VND), reflecting its steady progress in maintaining and expanding its market share in Vietnam's logistics industry.
Sea freight forwarding activity at E.I freight forwarding company
2.5.1 The process of exporting cargo by sea
Figure 2.3: The process of exporting cargo in container by sea at E.I freight forwarding Ltd., Co
(1) Making a service contract with customer
(3) Preparing for means of transportation
2.5.1.1 Making a service contract with customer
Sales staff are responsible for identifying potential customers and introducing the company's services through email, fax, or phone They negotiate pricing and terms to secure a contract between the shipper and E.I Freight Forwarding Once agreed, E.I acts on behalf of the shipper to handle packing, transportation, and document preparation for ocean cargo export.
- Providing necessary documents relate to the cargo that will be exported for E.I company
- Signing declaration certification and other necessary documents
- Full pay fee of forwarding service for E.I
- Making necessary export procedures after receiving instructions from shipper
- Providing full of bills and vouchers to be paid
- Paying in advance for shipping
- On behalf of shipper pays all expenses involved arising in the export shipment
Pros: Expeditors is a big company with a long history of development in the world
Expeditors' renowned reputation and prestige have helped E.I Vietnam build a loyal customer base, with many clients being recommended by the parent company, providing a significant competitive advantage Additionally, E.I Vietnam maintains a strict recruitment process, ensuring that their sales staff are not only professionally skilled but also highly experienced, which enhances service quality and customer satisfaction.
The forwarding market is characterized by a mix of small-scale and large-scale companies, posing significant challenges for E.I to maintain strong relationships with existing customers while actively seeking new clients Additionally, E.I.'s pricing strategy results in higher rates compared to other competitors in the market, which can impact its competitiveness and market share.
Shipper sends documents through fax for staff at Order Management Department This documents include Sale contract, Commercial Invoice, Packing list and other relevant documents
After receiving documents from the shipper, our staff will thoroughly review all materials to ensure accuracy If any errors or incorrect information are identified, we will promptly notify the shipper to facilitate immediate corrections This meticulous document verification process helps ensure smooth shipping operations and compliance with regulations.
27 are appropriate and accurate, the E.I staff will prepare necessary documents for customs clearance for export goods
Pros: E.I company has a modern information system and is networked globally
Streamlining the process of sending and receiving documents significantly reduces processing time and improves communication with the shipper Each document staff member is assigned a dedicated account, typically the consignee, fostering specialization and expertise in managing specific documents and procedures This structured approach ensures that work progresses smoothly and in an organized manner, leading to increased employee efficiency and maintaining a consistent workflow.
Cons: In peak hour, company has many patch of goods to solve, it leads to the system is overloaded
2.5.1.3 Preparing for means of transportation
Shipping companies offer unique sailing schedules and routes, requiring E.I staff to coordinate with them to obtain accurate schedules and pricing tailored to the cargo Selecting the right shipping partner depends on multiple factors, including competitive rates, quality of service, specific routes, delivery time preferences, and established relationships between E.I and the shipping provider.
E.I staff will base on the offered price of shipping company, calculate costs Then they will offer price and sailing schedule for shipper Beside, E.I staff also gives advice for shipper in choosing routes, mode of transportation that suit L/C rules (cargo that is allowed or not transferring), make procedures for shipment prior to cargo is loading on board The sailing schedules are provide usually and monthly by the carrier
The shipper provides an cargo list to E.I staff, indicating readiness for export and detailing the goods to be shipped E.I staff reviews the cargo information and communicates it to the carrier to facilitate the shipping process Additionally, E.I staff and the shipper coordinate on delivery requirements and conditions, including warehousing options, door-to-door service, charges, and shipping procedures, ensuring a smooth export operation.
Once the shipper agrees to the charges and sailing schedules, they submit a booking request to E.I This request confirms crucial details such as the shipper and consignee information, cargo weight, container type, destination port, and scheduled sailing date, ensuring smooth and efficient cargo transportation.
E.I staff will send the booking request to the carrier, who will confirm successful booking by returning a confirmation Simultaneously, the carrier will issue a note for picking up empty containers, ensuring smooth logistics coordination.
E.I staff will send a booking confirmation to the shipper, who will then arrange to pack the cargo either at the warehouse or the container yard (CY), depending on their preferred packing method.
According to international standards, the shipper is responsible for containerizing, sealing the container, and affixing the lead seal The shipper bears all costs and expenses related to these processes, except when using Less than Container Load (LCL) shipments Carriers, upon receiving the container from the shipper, cannot verify the contents inside, as they lack visibility into the cargo arrangement Therefore, carriers are not liable for any damages or losses resulting from incorrect packing or handling techniques that may compromise the safety of the goods or the container.
Pros: Thanks to E.I company has long time relation with some carriers and its prestige, E.I always gets reasonable price and flexible sailing schedules from the carriers
The company's transportation capabilities are limited, as it currently only owns small and medium trucks suitable for LCL shipments This restricts its ability to handle full container loads (FCL), forcing the company to outsource such logistics, which increases transportation costs and poses safety risks to goods Consequently, this limitation hampers the company's operational initiative and growth potential, highlighting the need for expanding transportation resources to ensure more efficient and secure freight management.
Documents for customs procedure include:
- Business license (1 copy enclosed with original for comparison if it is the first time export of company)
If goods that are exported is food, it must register for Phytosanitary Certificate Documents for this register as follow:
- 2 licenses quarantine registration form of the central registry quarantine
- Sample for quarantine (if any)
The full document will send to quarantine agency for register Phytosanitary Certificate Staff at quarantine agency will check documents, if it complete, staff
Upon registration, a signature and stamp will be provided When goods are delivered to the port, quarantine staff will conduct inspections at the container location A certificate is issued after the inspection, certifying the condition of the goods and ensuring hygiene and food safety standards are met This process guarantees that the products comply with relevant regulations and are safe for consumption.
Based on the documents provided by the shipper, the document staff will verify the paperwork and proceed with the e-customs declaration for exporting goods The e-customs declaration is conducted using ECUS software, developed by Thai Son company, which is Vietnam’s first official e-customs declaration software Widely adopted by thousands of businesses, ECUS streamlines the export documentation process and ensures compliance with national customs regulations.