(Luận văn) solutions to improve transportation service quality by door to door method of tico logistics

Topic structure: The topic is divided into four chapters with the following content: Chapter 1: Rationale for logistics service quality Chapter 2: Introduction about Tico Logistics Cha

FOREWORD

The reason to choose a topic

Freight forwarding is an inseparable factor from international trade Business is increasingly abundant with many components and many services provided, meeting the needs set out in the transportation of society, especially import and export goods However, the fact that freight forwarding activities in Vietnam are still inadequate is the quality of operations Development of diversified and abundant services provided but ineffective, the main reason is the inappropriate business method, which has not met the needs of customers Therefore, the practice requires business methods to improve service quality and save costs Logistics services are very diverse and bring high profits to the field of Logistics, especially according to the Door to Door method, which is the business method that needs to be researched, applied and developed

Tico logistics - one of the leading enterprises in Vietnam in the field of freight forwarding Founded in 2005, with a worldwide transportation network, relatively good infrastructure and transportation facilities Tico Logistics is fully confident in undertaking complex work, involving high value, fragile or even priceless goods

Facing the context and the development trend of the world, Tico logistics as well as countless other businesses, need to equip themselves with knowledge, professionalism, and quality of service From that, the question was asked: “How

to maintain existing customers, attract potential customers, high profits? How to improve the quality of service, provided with the shortest cost and execution time?

Specifically for this issue, I decided to choose the topic "Solutions to improve

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

Research objectives: Learn the process of forwarding import and export goods under Door to Door conditions of Tico logistics company Business situation of the company, business activities of the sales department in recent years Contact with other companies in the industry, learn, learn from experience Since then there are measures to improve, improve service quality, as well as meet customer needs,

increase sales and profits

Research scope:

+ Business activities: Logistics

+ Research area: Hanoi city

+ Research subject: Tico International Corporation

Research Methods:

+ Qualitative research: refer to previous studies of the company, discuss with the senior staff in the company about service quality, or discuss with friends in Logistics group led by Dr Pham Hoang Cuong guide, as well as find out how satisfied customers are with the company's services

+ Quantitative research: Analyzing through the table the results of revenue, costs, profits of the company

Topic structure: The topic is divided into four chapters with the following

content:

Chapter 1: Rationale for logistics service quality

Chapter 2: Introduction about Tico Logistics

Chapter 3: Operation process of Door to Door forwarding

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

Chapter 4: Solutions to improve the quality of the company's import-export forwarding service by the Door to Door method

CHAPTER 1: THEORETICAL BASIS ON QUALITY OF LOGISTICS 1.1 Quality

According to J.M.Juran said that the quality is consistent with purpose or history use

According to Philip B Crosby (1979) in "Quality is free" Quality description is conformance to requirements

And according to A Feigenbaum, quality is the aggregate characteristics of production products and services that, when used, will make products and services meet expectations waiting of customers

According to ISO 8402: 1999, quality is a set of characteristics

of an entity (object) capable of meeting the stated needs or implicit Vietnam is now also using this concept to consider about the quality of your product or service

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

From the above concepts despite different expressions but the main content

of

It's about quality is still "demand satisfaction" Thus we can conclude that any product or service is durable no matter how beautiful they are, they do not satisfy their needs and are considered to be of poor quality This is an important awareness

to help businesses plan for quality of its products and services

1.1.2 Quality forming process

From perceived quality as conformity to needs, we see that to satisfy needs, businesses must ensure quality in all process of manufacturing and distributing products and services Just guests the product is not satisfied with the product warranty, the attitude is also damaged previous stages So when it comes to quality people consider to overall product or service In other words, the quality is the synthesis, it formed through many stages and influenced by many other factors together Quality is created at all stages of the product process

1.1.3 Importance of quality

Quality plays an important role in economic strategy planning business It is the point that makes a difference for our products their business compared to competitors, helping businesses create advantages sustainable competition and trust with customers Because quality is "satisfaction demand satisfaction ”, if customers are not satisfied then they will not use continue product or service Like John Young, chairman of Hewlett-Packard once said that: In today's competitive environment, neglect the matter of substance

Quality is also synonymous with suicide (Pham Thi Minh Ha, 2009) From there can be seen Be the importance of quality And its importance is Jack GE's Welch condenses: Quality is the surest insurance for loyalty into the customer's; is luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

the strongest barrier against foreign rivals, and is the only way to sustain our growth and profits

According to ISO 8402: 1999, services are the results produced to meet requirements of customers by contact activities between suppliers - customers and supplier's internal operations

In a nutshell: the service is a "special product", it includes all support that customers expect, beyond basic services, consistent with price, picture and

related reputation

1.2.2 Service characteristics

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

Services are a "special product", mostly invisible, not leading to ownership

of something Therefore, the service has many other characteristics

For common goods:

► Invisibility of services: unlike material products, translation service cannot be held, held, heard, or seen before purchase Guest the goods only receive the product or service as soon as it is delivered and therefore, to reduce uncertainty, buyers will look for signs or material evidence of service quality such as people, information, location points, device icons, prices they see For the reason being invisible businesses and customers find it difficult to perceive about service and service quality assessment

► Inseparability: this feature assumes a service delivery process

a continuous occurrence, that is, the process of providing and receiving services begins at the same time, at the same time with the client's presence throughout the time manufacturing Therefore, the quality of service will be very unpredictable and will be based on subjective judgment of the customer and of course, we cannot accumulate, service reserves as well as pre-testing

► Heterogeneity, instability: The quality of the service depends performers, times and locations provided Therefore, you can rely on the last test to assess the quality

of your service provided This is an important trait that suppliers should keep in mind if want to improve the quality of its services Organization can overcome by how to invest in recruitment and training, staff training; at the same time standardize implementation processes, and monitor and measure satisfaction regular customers

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

► Fragility, not keeping: Because invisible, service is given is very fragile, neither the provider nor the receiver can save retain, cannot be sold or sold for a later period

1.3 Quality of service

1.3.1 Definition of service quality

From the perspective of service, we find it difficult to fully define quality of

service because it is also intangible Guest goods received this product through communication activities, receiving information and feel The salient feature is that customers can only rate the whole thing quality of the service after purchasing and using them Customer reviews

Service quality is based on attitude, subjectivity, and perceived ability As Zeithaml (1987) explains service quality as customer appreciation about the transcendence and the general excellence of an entity That is one the form of attitude and the consequences of a comparison between what is expected and awareness of what we receive

Lewis and Booms (1983) think that service is a measure of service level delivered to customers is as good as our expectations are Creating a quality service means meeting customer expectations consistently

According to Parasurman, Zeithaml and Berry (1985, 1988), the service quality is viewed as the gap between service expectations and customer luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

goods when using the service

And ISO 9000: 2000 considers service quality as the level of a set inherent characteristics of the service to meet the needs and expectations of the guests and stakeholders (Ta Thi Kieu An et al., 2010)

Because of the quality of service related to the expectations of the customers

as well like their perceptions of service Therefore the quality of service is difficult

to assess

There are usually three basic levels of assessment of service quality:

► Good service quality when customers feel that the service exceeds their expectations

► Satisfied service quality when customers feel in accordance with their expectations

► Poor service quality is when customers feel below their expectations for the service

Therefore, in order to retain customers, businesses must make sure their services are always well evaluated There is such a new business exists and sustainable development

1.3.2 Characteristics of service quality

Service quality has the following characteristics:

► The first characteristic, according to professor Noriaki Kano (1984), is the attribute of

A service is divided into three levels:

● Level 1 is the basic expectations that a service must have These are

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

attributes that customers do not mention but they take for granted must have Failure to meet these properties will result in the service being denied and denied excluded from the market because customers are frustrated

● Level 2 are specific requirements or one-way attributes

These properties are often referred to as a function desired customer The higher the level of responsiveness, the more customers feel satisfied

● Level 3 is the attractive element of a product or service This is factors create surprises, make a difference compared to the same type of service prime However, this element is not constant, over time it will become basic expectations that a service must meet From this it can be seen that want to meet the needs of customers and organizations It is important to define attributes at each level to support effective investment more efficiently, resources are more focused and satisfying daily customer needs the better Besides, when you understand the three levels of attributes mentioned above, organizations will limit the misinterpretation

of customer needs survey results

► The second characteristic of service quality is specific market conditions Any business process, what kind of product must be attached with a definite market A highly regarded service in the school it meets the existing market needs as well as requirements by stakeholders

► The third characteristic is also a key element of that service quality is to measure customer satisfaction Service quality is measured by customer satisfaction Therefore, the most important thing of any which business process is listening to the real user voice? Understanding the characteristics of service quality will help organizations respond better and better to customer needs

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

1.4.1 Concept and characteristics of logistics

Logistics is a very broad term and in fact there are many different definitions

of logistics and it is hard to say which is the best one But summarizing those remarks, please provide a definition that is considered to be the most complete and most widely used is the definition of the United States Logistics Management Council (LCM-Council of Logistics Management)

“Logistics is the process of planning, organizing, implementing and controlling the process of movement, storage of goods and services and related information from the first departure point to the final consumption place in an effective manner and in line with customer requirements ”

In Vietnam, according to the provisions of the commercial law, in section

23, Article 233 provides: Logistics is a commercial activity, thereby performing tasks including receiving goods, transporting, warehousing, warehousing , do customs procedures, other documents, customer advice, packaging, symbols, delivery and other services related to goods as agreed with customers to enjoy remuneration

1.4.2 Characteristics of Logistics

From the perspective of logistics, it can be seen that logistics has the following basic characteristics:

+ Logistics is an integrated process

Logistics is not a single activity but a process that consists of a series of continuous, closely related and interrelated activities, carried out scientifically and systematically through stages: research, planning, organization, management, control, adjustment Logistics is a system of transferring material and luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

information elements from the starting point to the ending point The structure of a logistics system consists of points and routes Point structures are fixed points of space where physical elements such as materials or goods do not flow; This is usually a place where processing / processing of inputs, material storage, semi-finished or finished products storage is delivered to customers Line structures include transportation networks and connection point structures throughout the logistics system

+ Logistics supports the operation of businesses

Logistics supports the entire operation process of the business, even if the product has been off the production line of the business and reached the consumer

An enterprise can combine any element of logistics together or all logistics elements depending on the requirements of its business Logistics also supports the operation of businesses through management of movement and storage of raw materials into business and semi-finished products moving within the enterprise + Logistics is the high and complete development of freight forwarding and forwarding services

Logistics is not only related to the movement of material factors (raw materials, input goods, output products .) but also related to other factors and resources of the economic process business such as human resources, services, information, technology Along with its development process, logisitcs has diversified Traditional freight forwarding concept From only on behalf of customers to perform discrete stages such as chartering, storage, preparation, packaging, recycling, clearance, to provide full service from arrival when (Door-to-Door) From acting as an agent, the trustee becomes a key actors in freight forwarding activities with customers, responsible before the law to regulate luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

Today, to be able to perform their business, the forwarder must manage a synchronous system from forwarding to transport, supplying raw materials for production, business, storage of goods in the warehouse, distribution of goods at the right place, at the right time, using electronic information to track, check Thus, the freight forwarder becomes a provider of logistics services

+ Logistics is the complete development of multi-modal transportation services

In the past, goods went in the form of retail cargoes from the exporting country to the importing country and went through many different means of transport, so the probability of loss risk for goods is very high, and the shipper Must sign multiple contracts with different carriers that their liability is limited to the route or service they undertake By the 60s - 70s of the twentieth century, the container revolution

in the transport industry had ensured safety and reliability in cargo transport, which was the premise and basis for the establishment and development of multilateral transport awake When the multimodal transport was born, the shippers had to sign a single contract with the multimodal transport dealer (MTO - Multimodal Transport Operator) MTO will be responsible for organizing the entire transport of goods from receipt of goods to delivery by a single transport document even though he is not an actual carrier Thus, MTO here is the provider of logistics services

The goal of logistics is to serve the specific purpose of customers with the right 7 criteria: "right customer, right product, right quality, right place, right delivery conditions, right cost"

Logistics is a process: it means that logistics is not a single activity but a series of continuous activities, closely related and interacting with each other, done scientifically and systematically through steps: research, planning, organization, luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

management, implementation, testing, control and completion Therefore logistics throughout every stage, from the input stage to the final product consumption stage

Logistics relates to all of the resources the inputs needed to create a product or service that meet consumer requirements Resources include not only materials and manpower but also services, information and technological know-how

Logistics exists at both levels: planning and organization At the first level, the question is where to get raw materials, semi-finished products or services where? On when? And transport them to where? The second level is concerned with how to bring resources, inputs from the beginning to the end of the supply chain From here arise transport and storage problems

- Third party logistics (3PL): is the person who manages and implements Logistics services for each department 3PL integrates various services, combining the rotation, storage of goods, information processing, in the supply chain of customers

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

- Fourth-party logistics (4PL): service providers are integrators who combine their resources, potential and scientific and technical facilities with other organizations

to design , building and operating Logistics and 4PL chain solutions towards managing the logistics process

- Fifth-party logistics (5PL): mentioned in the field of e-commerce, logistics service providers provide services on the basis of e-commerce

It is also possible to classify logistics services by process:

- Input logistics (inbound logistics) are services that ensure the optimal supply of inputs in terms of value, time and cost for the production process

- Output logistics (outbound logistics): is a service that ensures the supply of components to consumers in an optimal way in terms of location, time and cost in order to bring maximum profit to the business

- Reverse logistics (reverse logistics): is the service to ensure supply to ensure the recovery of waste products, scrap, factors affecting the environment arising from the process of production, distribution and consumption Used to return to recycling or processing, Logistics consists of four main flows, the flow of goods, raw materials, information flow, financial flow and document flow, logistics documents have now advanced to a The new stage of development is the supply chain However, in Vietnam, these service providers only focus on level 2PL, 3PL

at large enterprises, and often do the tasks of the forwarder (Forwarder, Freight Forwarder)

1.4.4 Basic content of Logistics

The basic content of Logistics

1 / Customer service

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

In logistics activities, customer service is understood as all outputs, a measure of the quality of the entire system Therefore, logistics development must have proper attention to customer service In this view, customer service is a process that takes place between the buyer and the seller and the third party is the subcontractor The result of this process creates added value for the product or service being exchanged, which is measured by the difference in the output value and the input value of a series of economic activities that are correlated with each other and expressed through customer satisfaction As a measure of the quality of the entire logistics system of the business, customer service has a great influence

on market share, to the total cost and ultimately to the profits of the business Depending on each field and business product, the value added to products and services provided by logistics is not the same The data shows significant differences in the value added created by logistics across a number of different commodities and businesses

2 / Information system

For successful logistics management, it requires businesses to manage complex information systems Includes information within each organization (business, suppliers, customers), information in each functional part of the business, information between the stages in the supply chain (warehouses, yards) , transportation .) and the information coordination between the organizations, parts and stage above In particular, the focus is on customer order processing information, this activity is considered the nerve center of the logistics system In current conditions, the achievements of information technology with the help of computers will help to quickly, accurately and timely manage information As a result, businesses can make the right decisions at the most sensitive time This luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

3 / Planning supplies and purchasing goods

If customer service is the output of a logistics system, supplies and goods are the inputs to this process Although not directly affecting customers, the management of goods and materials plays a crucial role in the quality of the entire system This activity includes: Identifying supplies and goods needs, sourcing and selecting suppliers; conducting procurement; organize transportation, receiving and storage, storage and supply for users

4 / Planning production

Before proceeding with production, businesses often need to forecast the market demand for the products they produce, thereby creating an optimal production plan

5 / Reserve

The basic content above shows that logistics of solving both output and input optimization in logistics enterprises can help to change input resources or optimize the process material, goods and services transfer thus creating the ability

to reduce costs, increase competitiveness for businesses

1.5 Overview of Freight Forwarding (Freight Forward Service)

shipping, loading onto ships, transshipment goods along the way, taking goods out

of the ships and delivering them to the recipients

According to the FIATA model rules (Federation of International Freight Forwarders Association) the delivery service is defined as any service related to consolidation, storage, loading, unloading, packaging or distribution goods as well

as consulting services or related to the above services, including customs matters, insurance, payment, income and documents related to the goods

Under Vietnamese commercial law, freight forwarding is a commercial act whereby a freight forwarder receives goods from a shipper, organizes transportation, warehousing, paperwork and services other related services for delivery to the consignee at the discretion of the shipper, the carrier or other forwarder (collectively referred to as the customer)

1.5.2 Enterprises engaged in freight forwarding services

According to the Government's decree on conditions for trading in maritime services, issued on March 19, 2001 (taking effect after 15 days from the date of signing), enterprises with the following business lines registered: can participate in freight forwarding services:

- Agency services for sea transport

- Commodity brokerage service

- Goods tallying service

- Cargo handling services at seaports

- Sea transport agency service is a service that performs the following jobs as mandated by goods owners:

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

- Organize and carry out works in service of the process of transporting, forwarding and transporting passengers and luggage on the basis of a contract of carriage by sea or a multimodal transport contract

- Leasing, receiving on behalf of maritime transport means, loading and unloading equipment, warehouses, wharves, wharves and other specialized marine equipment

- Container agency

- Settling other tasks as authorized

- Maritime brokerage service is a service that performs the following jobs:

- Acting as intermediary in signing maritime insurance contracts

- Acting as intermediary in signing ship chartering contracts, ship purchase and sale contracts, towage contracts, crew hiring contracts

- Acting as an intermediary in concluding other contracts related to maritime activities, as mandated by the mandatory for each specific contract

- Cargo counting service is a service that tally the actual quantity of goods upon delivery or with the ship or other means entrusted by the shipper, consignee or carrier

- Cargo handling services at seaports are services that perform good tasks of loading and unloading goods at ports according to the technological process of loading and unloading each type of goods

1.5.3 Scope of freight forwarding service

a) Representing the exporter

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

Forwarders with specific agreements will help their customers (exporters) with the following:

- Selecting transport routes

- Order / rent a place to pack goods at the request of the carrier

- Delivery of goods and issuance of relevant documents (such as Receipt of receipt

- The Forwarder Certificate of Transport)

- Studying the conditions of the letter of credit (L / C) and the government's legal documents related to the transport of goods of the exporting country, the importing country, including the countries that transfer goods, as well as prepare the necessary documents

- Packing of goods (unless the goods have been packed before being delivered to people)

- Advise the exporter of the importance of cargo insurance (if required)

- Prepare storage warehouses, weighing (if necessary)

- Transport goods to the port, carry out the procedures for fees in the customs supervision area, the port authorities, then deliver the goods to the exporter

- Track the process of transporting goods to the destination by contacting the carrier or forwarding agent abroad

- Notes on loss and damage to the goods (if any)

- Helping exporters to complain about damage, loss or damage of goods

b) Represents the person who entered

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

Forwarders with specific agreements will help their customers (importers) with the following tasks:

- Track the process of transporting goods in case the importer is responsible for shipping costs

- Receive and check all documents related to the shipping process

- Receive goods from the carrier

- Prepare documents and pay customs supervision fees, as well as other related fees

- Prepare transshipment warehouse if necessary

- Delivery of goods to importers

- Help the importer to complain about the loss or damage of the goods

c) Other services

In addition to the aforementioned services, the forwarder also provides other services at the request of customers such as consolidation services, advising customers on new markets, competitive situations, export strategies, package delivery conditions

- Seasonal: forwarding depends on import and export activities Since import and export activities are seasonal, logistics activities are seasonal

- Bring the characteristics of transport services, by delivery services including transport services

- Depending on facilities and qualifications of the forwarder

1.5.5 The role of forwarding service

- Logistics is an indispensable condition for the existence and development of international trade

- Forwarding facilitates goods circulation quickly, safely and saving without the participation of the sender as well as the operational recipient

- Help the carrier accelerate the rotation speed of vehicles

- Contributing to reduce the cost of import and export goods

- Help importers and exporters reduce unnecessary expenses such as: expenses travel costs, labor training costs, opportunity costs In the globalization of trade trends along with the development of many new forms of transportation in recent decades Today, freight forwarders play an important role in international transport and trade These forwarder services are not only stop at the basic communication tasks such as ordering, packing place, inspection of goods, freight forwarding but also performing larger professional services such as transportation route consulting, selecting transport ships, packaging goods

1.6 Overview of door to door service

1.6.1 Concept

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

Door to Door transportation is a service of transporting goods from hand to hand,

to the recipient and the whole package of Customs procedures (if goods go across the border) without incurring any other costs This is a service that the forwarding company organizes transportation through forms such as sea, air, road, to meet customer requirements

For this service, the customer obligations are at a minimum and the forwarder bears all responsibilities and risks during the time from the time of delivery at the place of the shipper to delivery to the recipient line

1.6.2 Classification

Door to door transportation is divided into two specific types:

- Inland transport service is a service that transports goods from the sender to the recipient

- International shipping service is a transport service from the sender to the recipient, different from inland in that this service package covers customs procedures

1.6.3 Process of use

Process of using Door to Door service Each type and service will have certain processes to ensure consistency and continuity, rigor in the process of working and serving services

As for the door to door transportation service, the service also carries its own usage procedures as follows:

- Contact the desired shipping unit for advice on orders

- The two sides agreed to choose shipping options, location, time and costs

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

- Confirmation of cooperation agreement by contract

- Shipping unit to receive goods

- Commercial packaging

- Shipping and warehousing

- Implement customs procedures (international door to door service)

- Loading and unloading, delivery

- Warehousing

- Delivery to the recipient

Specific benefits of using the service are:

• Consignees only need to pick up the goods at their desired home or place, without any further action

• There is no limit on where the delivery date or delivery location will be This content is a matter agreed upon between the customer and the company delivering the product

• The goods are absolutely safe, if any problem occurs, the shipper agrees to allow you to refuse to receive the goods or to compensate

• Extremely fast delivery time, depending on customer needs

• Adequate policies to deal with unexpected events

• Save a lot of time and effort of customers with cost savings, consistent with diverse classes

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

CHAPTER II ABOUT TICO LOGISTICS COMPANY

2.1 Introduction about Logistics company

2.1.1 History of establishment and development of the company

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

Tico logistics is a freight forwarding and shipping company based in Vietnam Established in 2005 Currently, they are one of the major international logistics providers in Vietnam with more than 80 friendly and professional employees working in 4 offices together with a network of partners Strong and reliable in the world All offices are located at the main ports of Vietnam such as

Ho Chi Minh City Port, Hai Phong City Port, Danang City Port, as well as the head office is located in Hanoi - the capital of Vietnam Our offices handle all transactions relating to transit goods to and from all airports and seaports around the world

The company has 100% domestic capital business with powers such as:

- Being an independent accounting unit

- Having full legal status

- Use your own seal

- Actively conduct business activities, finance, independent human resources organization

2.1.1.1 Introduce the company

- Company name: Tico logistics - Tico Group

- Transaction name: Tico International Corporation

The company's services based on the chain of management cover most areas

of the transport and logistics industry, such as:

* Sea transport

* Air transport

* Custom brokers and trucking

* Service across borders

- Since 2010, Tico's logistics service has grown continuously, surprisingly contributing to the overall development of the network worldwide TICO Logistics luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

has now developed strongly in many countries around the world such as China, USA, Europe, Japan and Asian countries

- In 2012, Tico established branches in Ho Chi Minh City, Da Nang and Hai Phong, together with professional staff, all giving Tico huge annual revenue

- Up to now, the company has gradually gained a firm foothold in the market, this

is a significant success of the company

2.1.2 Current functions and tasks

2.1.2.1 Function

Tico logistics is a company specializing in international services of forwarding, transporting domestic and foreign enterprises operating in the field of shipping, forwarding and importing and exporting goods The company performs the following functions:

+ Organizing and coordinating with other domestic and foreign organizations to organize the transportation and delivery of import and export goods, transit goods, documents, vouchers,

+ Receive entrusted import-export or direct import-export business of goods

+ International freight forwarding by sea, air, multimodal with service packages: door to door, door to C / Y, C / Y to C / Y

2.1.2.2 Tasks

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

- Strictly implement the policies and policies that the State has issued on delivery, import and export Actively participating in state policies such as environmental

protection, state-oriented assets

- Creating economic efficiency, good use of capital and financial security Contribute to the Vietnamese industrialization and modernization strategy

- Develop a plan and carry out business services of the company in accordance with the current regulations in order to implement the stated purpose and functions

to effectively carry out the business plans

- Through domestic and foreign joint ventures and partners to deliver and deliver goods in safe and advanced ways on transport channels and routes, improve transportation and transshipment, storage, warehousing, freight forwarding

2.1.3 Organization and human resources

Some characteristics of personnel:

- Currently the company has more than 80 officials and employees including managers This year compared to the previous year the company has a change in number and personnel Young people who have just graduated from school are employed by the company In particular, the proportion of university graduates is increasing Most people know at least one foreign language, especially Chinese or Japanese The staff is dynamic and highly specialized, with extensive professional knowledge corresponding to each assigned job title, quickly adapting to the job, meeting customer requirements Everyone from director to employee has a good working spirit, creativity, enthusiasm in every job that contributes to the success of the company today

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

- Of the more than 80 employees working at Tico logistics, 80% of them are university graduates and some have over 10 years of experience

- Tico logistics has realized that employees are an important asset contributing to the success of customers, the company and its partners All employees in the company are always conscious of supporting each other, taking care of each other

in all aspects, always standing out to protect the interests of the company, always putting the interests, prestige and image of the company first

- The company's operating system is quite good, from employees to management Managers with high professional qualifications always support and train junior staff, especially new ones

- Currently, the company has recruited more internships with the purpose of finding and screening elite students to keep for the company to develop more human resources for the company

- The company attaches great importance to training employees and management

in both professional and soft skills

- Employees in the company are entitled to the prescribed labor regime, insurance, reward, leave, and pay in accordance with each person's work

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

Organizational chart of Tico logistics

- Board of manager

+ Decide the company's annual business and development plans and strategies

+ Decide whether the company or any of its subsidiaries or branches sign a

transaction contract

+ Decision on market development, marketing and technology solutions

+ Decision on organizational structure, internal management regulations of the

company

Board of management

Comme rcial and service depart ment

Sales depart ment

Docu ent depart ment

Branch

in Ho Chi Mi

nh

Branch

in Hai Phong

Branch

in Da Nang

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

- Director

+ Decide on issues related to the company's daily work

+ Decision salary and allowances for employees

+ Decision on business cooperation

+ Recruitment and employment placement

+ Manage the entire assets of the company

+ Find a job for the company

Trade and service department

+ Research domestic and foreign markets, capture transactions

Export, temporary import for re-export

+ Developing import and export strategies, business strategies and

market strategy, customer policies with the Company

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

Sales department:

+ Sales for domestic and foreign agents, agents want to buy freight, customs services, transportation, warehousing with the goal of promoting customers to join the company's services

+ Search agents, expand the network

+ Visit, get acquainted, regularly update prices and keep relationships with them

- Document department:

+ Performing activities related to vouchers of import and export goods transported

on board operated by the company

+ Ensure the accuracy of the documents on export and import goods on board before submitting to the customs

+ Ensuring the delivery / delivery of customers to comply with legal procedures and procedures

+ Coordinate with other parts of the company: agents, accountants to operate ships / goods quickly, conveniently, ensuring the general work of the company

- Branches in Hai Phong, Ho Chi Minh, Da Nang

+ Direct management, administration, business exploitation

+ Planning to mobilize the production, organization, management and effective use

of means of lifting, loading and transporting to serve exploitation

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

2.2 Business performance of the company in recent years

2.2.1 Service structure

With a small initial charter capital, but due to the efforts of Tico logistics,

we have always strived to create a reputable and reliable brand in the market, after more than many years of obtaining domestic stability, the company has bravely invested capital and human resources to expand operations to Asian countries and international markets

- Service structure includes:

+ Shipping FCL, LCL

+ Forwarding services for domestic and foreign goods, document services

+ Shipping agency services, shipping agents, loading and unloading goods at seaports

+ Packaging, packaging, ring stickers, barcode symbols

+ Warehouse leasing services and means of transport, consignment agent

In order to see the business results of the company in recent years, in turn analyze the situation of revenue performance, the situation of cost performance and then summarize business results in 10 years

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

2.2.2 Analysis of the business situation of Tico logistics company in the period of

2012 - 2019

2.2.2.1 Revenue over the years

Table 2.4: Business revenue over years Million VND

Source: Summary report of Tico logistics company in 2019

The total amount of money the company earns in its business operations is the company's revenue Turnover includes the following items: transportation,

forwarding agents, import and export services, warehousing services and other

revenues From 2012 to 2019, the overall revenue of the items increases However,

revenue dropped sharply in 2015, then tended to increase slightly from 2017 and

reached the highest revenue in 2019 From there, we can analyze the business

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

model of the company to find the cause why revenue increases and decreases, and identifies the factors that affect total revenue, the extent to which factors affect the finding of solutions to increase total revenue

Figure: Revenue from business activities in 2010-2019 period

Unit: million VND

0 10000

Revenue from transport services:

Transporting goods of Tico logistics company means buying freight from shipping lines and carriers and then reselling it to exporters The common shipping lines that the company usually buys are COSCO, ZIM, MSK, SAF, EMC, OOCL, YML, WHL, MCC, HPL, MSC, APL, , QY, QR, BR, JL , depending on the route, the competitive price that the company chooses In 2012, revenue in this field was VND 20,587.2 million, accounting for 43.37% of the total revenue From then to 2015, the growth rate was steady However, in 2016, revenue decreased slightly to 24 233.2, down 3.5% compared to 2012 The cause of this reduction is due to the need for trading, exchanging goods less and the time That the company focused on many other areas but was inefficient From 2017 - 2019, revenue increased significantly, reaching VND 29215.6 million in 2019, accounting for 48% of total revenue The significant increase in revenue ratio in 2019 is due to the understanding of market demand, the company has signed contracts with co-loaders for LCL cargo, signed contracts with shipping lines for FCL in order to reduce rates and serve customers better

After being a member of WTO, JC Trans, IATA, FMC, Tico Logistics have many opportunities and potential to create prestige in the international market known by many international agents Therefore the company can increase sales at a higher rate in the future if there are measures and business strategies

Received revenue from forwarding agency activities

Freight forwarding service is to monitor goods from the exporting country to the importing country The turnover of the forwarding service of the company mainly consists of sea and air freight With door to door service, customers contact and confirm with logistics service providers, customers can be completely assured luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

to wait for delivery instead of having to monitor each stage of purchase, transportation, paperwork , customs, unloading of a shipment For imported goods, Tico Logistics implements the delivery procedure at the address of the consignee from abroad or the receipt of goods from the partner and delivery to the customer For export cargo, Tico logistics agents proceed with customs clearance, customs clearance, unloading, and deliver goods to consignee's address

According to the chart, the revenue from forwarding agency services increased sharply from 2012 to 2019 In 2012, forwarding agency services gained VND 24,263.7 million, accounting for the majority of total revenue However, the revenue from forwarding agency decreased from 2014-2017, only reached 21893.2 million VND in 2017 After that time until 2019, the company's revenue recovered and increased rapidly to 27,578, 2 million VND, an increase of 6.29% compared to

2018

Although agency activity has increased year by year, more investment is needed as one of the key areas In order to increase revenue from agency activities, the company must expand its network of forwarding agents, transport many routes, many different locations, keep a good relationship

Revenue from warehousing services

Revenue from warehousing services of Tico logistics is a company that has signed contracts with customers who need long-term warehousing and shipments that do not go through customs procedures, must be moved into storage pending completion of procedures Besides, it is also related to handling of damaged goods such as defective shipments during production or when transportation is scratched

or torn, then it will take time for warehouse staff to combine with professional staff luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

fix those errors It is also common for customers to request the company to print a label and to affix labels to ensure proper printing and labeling

The graph shows that revenue from warehousing services accounts for the least proportion of total revenue In 2012, it reached VND 1628.3 million, accounting for only 3.43% of total revenue In 2013, it reached VND 1691.1 million, accounting for 3.19% of total revenue Especially, in 2014, this revenue contributed to the company's total revenue of VND 1,381.65 million In 2014, due

to the increase in new customers and the increase in LCL exports From then to

2019, it continued to increase to VND 1960.8 million, which responded well to the company's performance in the field of warehousing services

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

2.2.2.2 Costs over the years

The expenses that the company must pay during operation

9 945,5 10 378 11 023,5 11

245,2

11 887,1

9,6

18 151 18 167 19 242,7 19

456,4

20 706,9

21 732,8 27

735,4

Source: Company summary report 2019

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si

Tico logistics is a freight forwarding company, so the total cost includes business management costs, outsourcing costs, office leasing costs, repair costs, salary costs and social insurance + health insurance costs for Staff

In general, the total cost increases gradually over years The total cost in

2017 was 20 706.9 million VND, in 2018 increased by 1 025.9 million VND, up 4.95% compared to 2017 to 21 732.8 million VND By 2019, the total amount that the company has to spend significantly increases to 27 735.4 million, an increase

of 27.66% compared to 2018 The total cost of each year increases due to the company expanding its market operations, hiring more and more employees thus spending more on items Total revenue increase year by year is always higher than cost growth rate Thus, although the cost increases, the amount of money the company raises also increases This shows that the company's operating results are very good

luan van tot nghiep download luanvanfull moi nhat z z @gmail.com Luan van thac si