Logistics basic knowledge and logistics activities of indochina logistics trading JSC

Chapter 2: Logistics basic knowledge and logistics activities of Indochina Logistics & Trading JSC...18 2.1- Logistics basic knowledge:...18 2.2- Logistics activities of the company:...1

Chapter 1: Overview of Indochina Logistics & Trading JSC 4

1.1- Introduction: 4

1.2 - Management structure: 5

1.2.1 – Management Board: 5

1.2.2 – Sale & Marketing Department: 6

1.2.3 – Operation Department: 7

1.3 – SERVICES: 8

1.3.1- Custom clearance services: 8

1.3.2- Ser freight services: 9

1.3.3- Multimodal transport: 10

1.3.4- Ship booking and Chartering: 10

1.3.5- Customs consultancy services: 10

1.3.6- Customs brokerage services: 11

1.3.7- Air freight services: 12

1.3.8- Warehousing & Distribution services: 13

1.3.9- Fairs & Exhibition services: 13

1.3.10- Removal Relocation: 14

1.3.11- Project cargo handling: 15

1.3.12- Railway transportation: 16

1.3.13- Overland transportation: 17

Chapter 2: Logistics basic knowledge and logistics activities of

Indochina Logistics & Trading JSC 18

2.1- Logistics basic knowledge: 18

2.2- Logistics activities of the company: 19

Chapter 3: Some recommendations to services of Indochina Logistics & Trading JSC and developing logistics Market in Viet Nam at international economics integration progress 24

3.1- Services development in the Indochina Company: 24

3.2- Logistics solutions in Vietnam: 25

CONCLUSION 27

REFERENCES 28

I would like to convey my sincere thanks to Ms Phuong To Tam, Business English teacher at Foreign Trade University for her supervision and suggestions in writing of this report.

I also would like to express my special thanks to the entire teacher

at Foreign Trade University for giving me new knowledge and studying methods.

I am deeply indebted to all the seniors at Indochina Logistics & Trading JSC for their support, suggestions, and criticism during the development of this report.

I wish to extend my special thanks to my family and my friends for their assistance and encouragement in the making of this report.

Finally, because of the limitation of time and knowledge, I cannot avoid some mistakes in writing my report I wish to have more opportunities like this I also wish receive more contribution and criticism of my teachers to better my report.

Chapter 1: Overview of Indochina Logistics & Trading JSC

1.1- Introduction:

Indochina Logistics & Trading JSC was established in 2007with the head office locating in Hai Duong, Viet Nam With theaim to satisfy & protect customers, they have been developedstrongly Their team includes long-experienced management boardmembers, well-trained, aggressive & professional sales force plushighly-skilled operation staffs, especially all staffs haveCertificate of Customs Broker They are always kept up to date onreliable import, export, customs, and logistics services and arefully committed to quality management and customer satisfaction

In addition, they would like to emphasize that we are alwayscustomer-driven to follow your needs anytime, anywhere Theirgoal is to provide you an uncomplicated, worry-free, totaltransportation solution

To support their sea & air freight arms and to fully servecustomers in forwarding industry, they have our strong arm oflogistics The strong and close relationship with port authorities,

customs department, and state owned inspections has allowed theircompany to grow in a strategically sound manner and withbusiness expertise Plenty of containers and all kinds of cargoesare smoothly and efficiently imported and exported to delivercustomers punctually every year

Indochina Logistics is known for its ability to quicklyrespond to customer needs and provide knowledgeable assistancewith individual concerns

1.2- Management structure:

Management Board (Hai Duong office)

Sales &

Marketing

Department

Operation Department

Accounting &

Administration Department

Oversea Department

Overland Trucking Department

Ha Noi office Hai Phong office

Each department has its own tasks In this report, I onlyfocus you on three main departments in Indochina Company.Those are Management Board, Sales & Marketing Department andOperation Department.

1.2.1 – Management Board: owner of the company They run the

company and carry out the strategic goals, manage thecompany such as: meeting, marketing, delivering quality andservices

*Responsibility:

They have a responsibility to Support operations andadministration of board by advising and informing Boardmembers Oversees meeting with partners, marketing, delivery andquality of programs and service In addition, they recommendyearly budget for Board approval and prudently managesorganization’s resource within those budget guidelines according

to current laws and regulation Effectively manages the humanresources of the organization according to authorized personnelpolices and procedures that fully conform to current laws andregulations Assures the organization and its duty, programs andservices are consistently presented in strong, positive to thepartner

They employment and fire employees, separate of makeeffective recommendations to separate employees, makingdecision on the company’s finance, having authority to make someindependent decisions to the business

1.2.2 – Sale & Marketing Department:

In any kind of business, marketing always plays an importantrole “The purpose of marketing is not necessary to promoteconsumption, its real purpose is to identify and understandcustomers, and they can themselves consume”; in details,Indochina also its own marketing strategy, especially, marketingsales The sales executives make the needs of customers becometheir wants

To be a sales executive, the seller must understand exactlywhat their customer’s need and try them best to satisfy those.There are several ways to please customers, but the most efficientway to satisfy those needs by the most competitive price and thecomfortable services

In Indochina, sellers take an important part The market share ofthe company depends on how the sellers target customers By theirart of marketing and sales, their customers believe o their servicesand let Indochina to take care their cargoes

One important process in selling services is to makequotation The quotation is not fixed time by time but depended onsome certain issues such as schedule, transit time, fee of shippinglines (air lines, sea lines) For a certain destination, salesexecutives choose the best receiving agent following criterionssuch as good services, close relationship, quick payment It is factthat Indochina services fees can be divided into many kindsfollowing up the place of shipment and place of destination Door

to door service is the most completely service of Indochina In thisquotation, Indochina quotes their customers the freight of localexport (import) handling services charges, freight charges (airfreight, sea freight) and then local import (export) handlingcharges As per this main quotation and the order of customers,Indochina divides Door to Door services into many smaller termsthat are suitable to the terms of shipments on the business contract

of customers For example, Door to port services, port to portservices, port to door service, to door service, ect,

1.2.3– Operation Department:

Operation department starts to open file upon receiving theinstruction from Sales and Marketing department, the Operationdepartment will start open file basing on invoice, packing list fromcustomers, Indochina issues HOBL (House Original Bill of

Lading) for customers This Bill of Lading is considered as thecontract between Indochina and customers.

In the next step, Indochina makes chipping instruction andthen sends to shipping line It contains following information:container number, shipper name, consignee name, port of lading,port of discharge, weight of cargo, quantity, etc Shipping lineissues MOBL (Master Original Bill of Lading) basing on thisshipping instruction

After cargo delivered, the site staff makes shipping advise isthe notice of local or foreign buyers that shipment has occurredwith details of backing, routing, ect A copy of invoice is usuallyenclosed and sometimes a copy of bill of lading This documenthelps receiving agent receive goods quickly and actively

Bill of Lading is a very important documentation in logisticsfield Bill of Lading is a principal transportation document bywhich a carrier acknowledges receipt of the freight and sets forth acontract of carriage Bill of Lading may be negotiable or non-negotiable Every Bill of Lading must contain at least thefollowing:

1- Date of issue

2- Name of consignor

3- Place of original consignment

4- Place of delivery

5- Statement of whether goods are to be delivered to aspecific person

1.3 – SERVICES:

1.3.1- Custom clearance services:

Indochina Logistics will solve all confuse task of Customsdeclaration services for importation and exportation of movingconsignment the fast and efficient as possible:

 Filling the Customs Declared Form

 Customs Declaration and Tax Code Application

 Carrying out procedures of Commodity Control orapplying for Extra commodity control

 Dealing with parties concerned to comply with all formalities upon the requirement of Customs houseincluding: Cultural control, Geology control, Quarantine ofbotanical – animal – foodstuffs, fumigation, etc

sub- Carry out of formalities to apply for Certificate of origin(C/O) Forms A, B, C, D

1.3.2- Ser freight services:

Indochina Logistics offers its customers flexible serviceoptions for ocean freight transportation Our sea freight servicesencompass capabilities for handling less-than-container load(LCL) and full-container load (FCL) shipments, break bulkcargoes and charter services.

 FCL/LCL import/export

 Door to door transportation

 Issuance and verification of documentation

 Export and import customs clearance

 Packing and crating

 Warehousing and distribution

 Part & full vessel charter

 Conventional shipments

 Transport insurance

1.3.3- Multimodal transport:

 Inland transportation of your cargo (FCL/LCL) bytrucks from any ports of Hai Phong, Quang Ninh to Industrialprocessing Zones within Viet Nam Northern City and otherneighboring provinces.

 Domestics and Import/ Export transportation undermethod “Door to Door” and under other request of yours

 Combined transportation at your request: sea – air, air –air, rail, river and road combined whichever the mostappropriate

1.3.4- Ship booking and Chartering:

 Sale and purchase of vessels: New building/ Secondhand

 Ro-Ro and Dry bulk chartering, Deadweight rangesfrom 1000 mt to 30000 mt for transportation Agriculturalproducts, Rice, Wheat, Salt, Fertilizer, Cement, Clinkers,Coal, Steel and Truck/ Car

 Liquid bulk chartering for transportation crude oils,clean petroleum products, chemicals, acids, liquid gas andveg oils

1.3.5- Customs consultancy services:

Customs clearance of import & export shipment can beparticularly difficult, is not applicable under the same practicesand standards in every country Especially, if documentation is notprepared properly and carefully, any and all discrepancies canresult in delays, extra costs and/or penalties

Indochina Logistics can help its customer how to solve theabove problems, including guidance in customs clearance in VietNam as well as in other countries where your goods should beexported

Indochina Logistics’ Customs Consultancy Services includethe following:

 Customs formalities of all kinds of imports and exportsincluding commercial goods, aid shipment, project cargoes,transit cargoes, exhibits, temporary export/re-import,temporary import/re-export, non-commercial goods

 Consultancy on customs declaration, tax access andother relevant tax & duty policies

 Consultancy on customs formalities and clearance inother countries

1.3.6- Customs brokerage services:

Prompt and effective clearance of international cargoes iscritical to the successful supply chain As a total logisticssolutions provider, Indochina Logistics deploys one of extensivecustoms brokerage operations.

Indochina Logistics incorporates a team of professionalcustoms brokers, import and export specialists

Indochina Logistics’ Customs Clearance Services include thefollowing:

 Legal valuation of merchandise

Sensitive and valuable goods are often subject to extremetime pressures and deadlines for every one involved Therefore,our air freight department provides comprehensive air freightservices to meet our customer's specific.

Our Air Freight Services offer all types of transport option,including:

 Import and export air freight

 Packing and crating

 Door-to-door service

 Customs clearance

1.3.8- Warehousing & Distribution services:

Indochina Logistics offers storage facilities at key destination

of Viet Nam All goods are properly protected so that they canremain in our warehouse for as long as the customer deemsnecessary

Our warehousing and distribution systems will pick, pack, storeand distribute consignments anywhere in Viet Nam by efficientmode of transport

Our Warehousing and Distribution Services include the following:

 Receiving and inventory

 Sorting and segregating

 Forklifts and cranes

 Pick and pack, labeling

 Crating

 Delivery and emergency parts distributions

 Security

 Insurance

1.3.9- Fairs & Exhibition services:

Indochina Logistics offers comprehensive exhibitionforwarding services to/from international trade fairs andexhibitions

Our Fair and Exhibition Forwarding Services include thefollowing:

 Planning & preparation

 Inland freight arrangement

 Cargo consolidation

 Customs clearance

 Ocean & air freight arrangement

 On-carriage to show ground

 Unloading at show ground

 On-site assistance

 Storage arrangement

 Return & on-forwarding

1.3.10- Removal Relocation:

You need to move your personal effects and household goods

to the news location, what must be packed? Which transportationroute is the most favorable? And the price? And the security,insurance, customs clearance and a lot more - that are thequestions, but Indochina Logistics will assist you to solve theproblems Indochina Logistics will take full and completeresponsibility for the immensely important task of moving yourpersonal effects and household goods to a new home-wherever thedestination Every step of your move will be planned to meet yourwishes and no request is ever too much trouble