Recommendations to improve the freight forwarding services for LCL cargoes at dong tai global logistics and trading co ,LTD

MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME:NGUYEN CONG TUAN MINH DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDA

MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME:NGUYEN CONG TUAN MINH

DISSERTATION

GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE THE FREIGHT

FORWARDING SERVICES FOR LCL CARGOES AT DONG TAI

LOGISTICS AND TRADING CO., LTD

MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME:NGUYEN CONG TUAN MINH

DISSERTATION

GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATIONS TO IMPROVE THE FREIGHT

FORWARDING SERVICES FOR LCL CARGOES AT DONG TAI

GLOBAL LOGISTICS AND TRADING CO.,LTD

Supervisors:Vu Thi Thu Hang Division: Global Studies and Maritime Affairs Faculty: Economics

PREFACE

Internship is an activity help students have the opportunity to be familiar with the actual working environment For students who are studying in the universities, the knowledge they are learned in class are heavily theoretical, not really close to reality

in which they go to work Therefore internship is the time that the students can verify their knowledge into practice from which they can discover the strengths and weaknesses So they can know what knowledge they should equip and what skills required to meet the job demand In addition, the internship also helps students to experience the real working environment, creating confidence in the job search, as well as future work, to help the students think critically and practically when participate in the labor market Besides, during the internship, the students will probably have more relationships, there is a chance which can help you accumulate more experience in the learning and it also helps a lot for your future work Be exposed to a professional working environment, the students will have the opportunity

to experience or to train skills, disciplines and attitude which is the basic background when you go to work in the future

Foreseeing the importance of training and high-quality workforce recruitment, many companies have taken an advantage of cooperation with universities, organized internship that helpgivingopportunities for students to get familiar to the real working environment Vietnam Maritime University has already applied this model every year Thanks to the help from the International School of Education, GMA students are introduced to have internship in companies specializing in maritime, logistics and warehousing Therefore they can have the opportunity to apply the knowledge learned

in the university to the real work This year I was introduced to Dong Tai logistics and trading co.,ltd- a company specializing in the field of logistics In this paper, I will present somerecommendations to improve LCL cargoesfreight forwarding service at Dong Tai global logistics and trading co., ltd

I declare that this report is my own work It has not been submitted before If violated, I am solely responsible for and bear the punishments of the Institution and University

Student Name and Signature

Nguyen Cong Tuan Minh

ACKNOWLEGEMENT

Firstly, I would like to express my sincere gratitude to my advisors Vu Le Huy and Nguyen Thi Thu Hang for the continuous support of my dissertation, for their patience, motivation, and immense knowledge Their guidance helped me in all the time of research and writing of this thesis I could not have imagined having a better advisors and mentors for my study

TABLE OF CONTENTS

Preface i

Acknowledgement ii

List of abbreviation v

List of tables vi

List of figures vii

INTRODUCTION 1

The importance of research 1

Research structure 1

Research object 2

Research scope 2

Research method 2

CHAPTER 1: LITERATURE REVIEW 3

1.1 Overview about freight forwarding services and freight forwarder 3

1.1.1 Freight forwarding services 3

1.1.2 Freight forwarder 3

1.1.3 The important of freight forwarders 4

1.1.4 Forwarder responsibilities and rights 5

1.1.5 Forwarder liability 6

1.2Freight forwarding process for LCL cargoes 7

1.2.1What is LCL cargoes? 7

1.2.2Consolidator 8

1.2.3Necessary papers in freightforwarding for LCL cargoes 8

1.2.4General process of freight forwarding services for LCL cargoes 9

1.3 Legal basis framework 11

1.4 Factors affecting freight forwarding services for LCL cargoes 12

CHAPTER 2EVALUATIONS FOR FREIGHT FORWARDING SERVICES FOR LCL CARGOES AT DONG TAI GLOBAL LOGISTICS AND TRADING

CO., LTD 14

2.1 Introduction about Dong Tai global logistics and trading co., ltd 14

2.1.1 History and background 14

2.1.2 Partners 16

2.1.3 Visions and orientations 16

2.1.4 Organizational structure 17

2.1.5 Personnel 19

2.1.6 Facility of Dong Tai global logistics and trading co., ltd 20

2.1.7 Main services and activities 21

2.1.8 Company’s business results from 2011 to 2015 24

2.2 Evaluationsforfreight forwarding services for LCL cargoes in Dong Tai global logistics and trading co., ltd 25

2.2.1The process of freight forwarding services for LCL cargoes at Dong Tai global logistics and trading co., ltd 25

2.2.2Evaluations for freight forwarding services for LCL cargoes at Dong Tai global logistics and trading co., ltd 32

CHAPTER 3: RECOMMENDATIONS TO IMPROVE THE FREIGHT FORWARDING SERVICES FOR LCL CARGOES AT DONG TAI LOGISTICS AND TRADING CO., LTD 38

3.1 Some challenges for company 38

3.2 Goals and directions 38

3.3Recommendations 39

CONCLUSION 44

Reference / Bibliography 45

Appendixes 46

LIST OF ABBREVIATIONS

CFS Container Freight Station

ICD Inland Clearance Depot

LCL Less than container loaded

FCL Full container loaded

B/L Bill of lading

D/O Delivery order

VCCI Vietnam Chamber of Commerce and Industry of Vietnam

FIATA Federation Internationale des Associations de Transitaires et Assimiles

(International Federation of Freight Forwarders Associations)

LIST OF TABLES

TABLE 1: Educational level of staff at Dong Tai global logistics and trading co., ltd from 2010 to 2014 20 TABLE 2: Business results of Dong Tai global logistics and trading co., ltd from 2011-2015 24 TABLE 3: LCL cargoes freight forwarding services business result (2011-2014) 33 TABLE 4: Number of wrong customs declarations and delay time from them 2011-

2014 35

LIST OF FIGURES

FIGURE 1: Freight forwarding process for import LCL cargoes on theory 10 FIGURE 2: Freight forwarding process for export LCL cargoes on theory 11 FIGURE 3: The organization of company 17 FIGURE 4: Revenue and profit of Dong Tai global logistics and trading co., ltd from

2011 to 2015 24 FIGURE 5: Freight forwarding process for import LCL cargoes at Dong Tai global logistics and trading co., ltd 26 FIGURE 6: Freight forwarding process for export LCL cargoes at Dong Tai global logistics and trading co., ltd 30

INTRODUCTION

The importance of research

In the process of global integration as well as trade liberations with foreign countries in all around the world, Ocean Shipping industry has developed not only in scale but also in quality Therefore, freight forwarding industry has contributed a vital role to theincrease in foreign trade by taking advantage of the efficiency ofmode of transport It creates essential conditions to make surethat import and export goods may arrive their destinations on time and helps to deliver goods appropriately from sellers to buyers Although this industry is just founded anddeveloping in Vietnam in a short period of time, it has gradually contributed to the improvement of national wealthy by supporting import/export promotion and giving assist to Vietnam’s shipping industry Realizing the high demand of the market, Dong Tai global logistics and trading Co., Ltd was founded and operated in the field ofglobal logistics and transportation services

Although Dong Tai global logistics and trading limited company offers freight forwarding services for both FCL and LCL cargoes, it is still a lack of concentration on the freight forwarding for LCL cargoes Besides, annually senior students from universities in Hai Phong, who have an internship at Dong Tai global logistics and trading co., ltd, often choose the topic related to freight forwarding services for FCL cargoes or other services for their researches Realize that situation, I would like to choose the topic: “Recommendations to improve freight forwarding services for LCL cargoes at Dong Tai global logistics and trading co., ltd for my dissertation

Research Structures

1 Introduction

2 Chapter 1: Literature review

3 Chapter 2: Evaluations for freight forwarding services for LCL cargoes at Dong Tai global logistics and trading co., ltd

4 Chapter 3: Recommendations to improves freight forwarding services for LCL cargoes at Dong Tai global logistics and trading co., ltd

5 Conclusions

Research Object

Besides giving an introduction about Dong Tai global logistics and trading co., ltd, the research object of this dissertation is to clarify the LCL cargoes freight forwarding services, the current status of freight forwarding services for LCL cargoes by sea at Dong Tai global logistics and trading co., ltd From these activities

to analyze the strengths and weak points, the challenges and limitations of the company with LCL cargoes freight forwarding services, and in the last part suggestions and recommendations to solve will be proposed

Analysis: The research’s data is collected by several ways

 Interviewforwarder staffs of the company

 Compare statistics from the company’s annual results reports

 Observedaily works or some practical cases

By these ways, comments and evaluations about the freight forwarding services for LCL cargoes of the company can be proposed

CHAPTER 1: LITERATUAL REVIEW

1.1 Overview about freight forwarding services and freight forwarder

1.1.1 Freight forwarding services

According to the rules of the FIATA form of freight forwarding service, Freight Forwarding Services means services of any kind relating to the carriage, consolidation, storage, handling, packing or distribution of the cargoes as well as ancillary and advisory services in connection therewith, including but not limited to customs and fiscal matters, declaring the cargoes for official purposes, procuring insurance of the cargoes and collecting or procuring payment or documents relating

To put it briefly, freight forwarding goods is a set of operations and procedures related to the implementation of transportation to move goods from the shipper (consignor) to your destination (consignee) Forwarders can make the service either directly or through an agent and hire the services of other third parties

1.1.2 Freight forwarder

A freight forwarder, forwarder, or forwarding agent is a person or company that organizes shipments for individuals or corporations to get goods from the manufacturer or producer to a market, customer or final point of distribution (Random House, Inc, 2012) Forwarders contract with a carrier to transport the shipments A forwarder does not transport the goods but presents as an expert in the logistics network A forwarder contracts with shipping companies to move all kinds

of goods from raw agricultural products to manufactured goods Freight can be booked on a variety of shipping providers, including ships, airplanes, trucks, and railroads It is not unusual for a single shipment to move on multiple carrier types

And according to FIATA, "forwarder is the person who endeavored to goods transported under trust contract and act for the benefit of the settler The forwarder also responsible for all the services related to forwarder contracts as storage, warehousing, customs procedures, cargo check”

Freight forwarding services are dedicated to making the shipping process a lot easier and quicker for your company A professional freight forwarder will act as an intermediary between your company and the transport companies, handling everything that is related to the shipping process

The forwarder in some cases can be the shipper (when shippers conduct all thefreight forwardingwork themselves) or ship owner (ship owners on behalf of shippers perform freight forwarding services) or any other person have business related to freight forwarding services

Some services that forwarder staff often conduct

- Preparetransportation for the shipments

- Organize cargo transportation within the port

- Organize cargo handling

- Consultcustomers about cargoes transportation

- Conduct the sending or receiving goods procedure

- Implement custom clearance services

- Pay the costs, feessuch as insurance, terminal handling charge (THC), inventory cost…

- Consolidate and pack the cargoes

- Check the validity of the documents related to cargoes transportation

1.1.3 The importance of freight forwarders

A freight forwarder will usually be an agent more often than an active carrier By this way, a forwarder staff can be considered as third party logistics provider who works to forward shipments Freight forwarding positions participate in booking and preparing space in warehouses, vehicles for shipments such as vessels, trucks and this shows the vital role of a forwarder in the relationshipwith their customers

Nowadays, forwarders play an important role in commercial as well as transportations Freight forwarders not only conduct the customs clearance procedures or contact with the shipping company, but also implement all services of transportation

1.1.4 Forwarder responsibilities and rights

The forwarders have toobey these following responsibilities and rights:

- Forwarders have the rights to get paycheck and other income

Remuneration agreed by the parties and specified in the contract Remuneration levels can be determined by the absolute amount or proportion on commodity prices Remuneration levels agreed by the parties and depends on the content, the complexity of the job freight forwarding customers entrust people do freight forwarding services performed

Beside remuneration, the logistics services customers can request payment of reasonable expenses related to the performance of the service if this is agreed by the parties in the contract

- Fulfill all obligations under the contract; perform exactly everything in the contract agreements

This is the most basic obligations of logistics services The service implementation must perform the work related to packaged goods, letters and symbols, delivery or receipt of goods in accordance with the conditions agreed with customers The conditions may be recognized in signed contract between the customer service or customer specific guidelines on the basis of the general provisions of the contract Forwarding workers have the right to refuse to comply with these instructions which is inconsistent with the conditions of contract logistics services, signed with customers or illegal guides

- In the course of performing the contract, if there is good reason for the benefit of the customer, the other can be done with the customer's instructions, but the forwarder must immediately notify the customer

- After signing the contract, if it cannot perform the client's instruction, it must notify the client to ask for further instructions

- To fulfill its obligations within a reasonable time if the contract does not agree on the duration of the obligation to the customer

1.1.5 Forwarder liability

- Basis of liability

+ The Freight Forwarder’s Duty or Care

The Freight Forwarder is liable if he fails to exercise due diligence and take reasonable measures in the performance of the Freight Forwarding Services, in which case he shall compensate the Customer for loss of or damage to the Goods as well as for direct financial loss resulting from breach of his duty of care

+ No Liability for Third Parties

The Freight Forwarder is not liable for acts and omissions by third parties, such

as, but not limited to, Carriers, warehousemen, stevedores, port authorities and other freight forwarders, unless he has failed to exercise due diligence in selecting,

instructing or supervising such third parties

- The Freight Forwarder’s liability as Carrier

The Freight Forwarder is subject to liability as principal not only when he actually performs the carriage himself by his own means of transport (performing Carrier), but also if, by issuing his own transport document or otherwise, he has made an express or implied undertaking to assume Carrier liability (contracting Carrier)

However, the Freight Forwarder shall not be deemed liable as Carrier if the Customer has received a transport document issued by a person other than the

Freight Forwarder and does not within a reasonable time maintain that the Freight Forwarder is nevertheless liable as Carrier

- The Freight Forwarder’s liability as principal for other services

With respect to services other than carriage of Goods such as, but not limited to, storage, handling, packing, or distribution of the Goods, as well as ancillary services

in connection therewith, the Freight Forwarder shall be liable as principal:

1 When such services have been performed by himself using his own facilities or employees or

2 If he has made an express or implied undertaking to assume liability as principal

- The basis of the Freight Forwarder’s liability as principal

The Freight Forwarder as principal shall be responsible for the acts and

omissions of third parties he has engaged for the performance of the contract of carriage or other services in the same manner as if such acts and omissions were his own and his rights and duties shall be subject to the provisions of the law applicable

to the mode of transport or service concerned, as well as the additional conditions expressly agreed or, failing express agreement, by the usual conditions for such

mode of transport or services

1.2 Freight forwarding process for LCL cargoes

1.2.1 What is LCL cargoes?

LCL stands for Less Container Load and LCL cargoes means the cargoes which is not large enough to be fit in a container after loading In other words, when you load a LCL cargo into a container, it still has space left to load others “If a shipper does not have enough cargoes to accommodate in a fully loaded container, they can arrange with a consolidator to book his cargo This type of shipment is called LCL shipment The said consolidator arranges a full container (FCL) with a main shipping carrier, and consoles the shipments of other shippers Means the freight forwarder who books a full container accepts goods from different shippers and consolidates all such goods in to one container as a Fully Loaded Container – FCL The freight forwarder sorts out these goods at destination or at transshipment points, meant for different consignees at different ports” (How to export import.com, 2015)

1.2.2 Consolidator

Consolidator means a firm or people which groups all the cargoes from different shipperstogether into one shipment When the shipment is fit for a container, it will be arranged, packaged and loaded in to the container Consolidator’s job is to find customerswho want to export their LCL cargoes At destination port, the consolidator representatives will unload container, break bulk the shipment intodifferent shipments of different shippers and send them to the consignee correctly

In fact, the destination of all LCL shipments in the container are not the same Many times, they are just the container transportationin the same route, then theywill reloaded before moving on The reloading process usually happen at hub ports such as Singapore, Hong Kong… At these ports, LCL cargoeswill be sorted and sent to their final destination

1.2.3 Necessary papers inforwarding LCL cargoes

 Bill of lading

A document issued by a carrier, or its agent, or forwarders, to the shipper as a contract of carriage of goods It is also a receipt for cargo accepted for

transportation, and must be presented for taking delivery at the destination

A bill of lading contains a lot of information such as: consignor's and consignee's name, names of the ports of departure and destination, name of the vessel, dates of departure and arrival, itemized list of goods being transported with number of packages and kind of packaging, marks and numbers on the packages, weight and/or volume of the cargo, freight rate and amount It serves as a proof of ownership of the cargo, and may be issued either in a negotiable or non-negotiable form In negotiable form, it is commonly used in letter of credit transactions, and may be bought, sold, or traded; or used as security for borrowing money A bill of lading is required in all claims for compensation for any damage, delay, or loss; and for the resolution of disputes regarding ownership of the cargo

Two main types of bill of lading: master bill of lading (issued by shipping lines) and house bill of lading (issued by the forwarders)

 Commercial invoice

Document required by Customs to determine true value of the imported goods, for assessment of duties and taxes A commercial invoice (in addition to other information), must identify the buyer and seller, and clearly indicate the date and terms of sale, quantity, weight and/or volume of the shipment, type of packaging, complete description of goods, unit value and total value, and insurance, shipping and other charges (as applicable)

 Delivery order

Delivery order is a document written by a carrier to the port authorities to release a shipment to the named delivery party on payment of the specified freight charges (maybe shippers or forwarders)

 Arrival notice

Notice sent by a carrier or agent to the consignee (and to the notify party, if any)

to inform about the arrival of the shipment and number of packages, description of goods, their weight, and collection charges (if any)

 Cargo manifest

A shipping document used by customs officer reviewing a particular transport vehicle's intended trip that summarizes all bills of lading that have been issued by the carrier or its representative for that particular shipment For example, a cargo manifest might be used for shipments made by sea, air or land, and will generally show the shipment's cosigner and consignee, as well as listing product details such

as number, value, origin and destination

Figure 1: Forwarding process for import LCL cargoes on theory

After signing the contract, the company will quickly implement the following procedures necessary to complete their job duties

- Sales department will receive import-related document from customer They will transfer it to documentary staffs and forwarders

- Forwarder staff will come to the shipping agent to take D/O

- Documentary staffs will prepare documents for customs clearance including customs declaration and conduct inspection if being requested

- After that, forwarder staff will pick up cargoes at port and transport to the warehouse and hand over to customer after exchanged D/O for delivery note

 Export cargoes

Figure 2: Forwarding process for export LCL cargoes on theory

- First of all, documentary staffs will prepare documents related to the shipments such as weight, amount, and name of the shipments…

- From those documents, documentary staffs of the company will conduct customs clearance procedures for the shipment

- After finished customs procedures, forwarder staffs will receive the shipments from the customers and start loading them into the container

- Then forwarder staff will ask port employees to load the container on board after they are filled up

1.3 Legal basis framework

The freight forwarding services for both export and import cargoes must be based on legal law or regulations in order to ensure the rights and responsibility of buyers and sellers

National Laws

- Vietnam Maritime Law in 1990

- Vietnam Customs Lawin 2010

- Commercial Laws of Vietnam in 2005

- Convention 2007 ND-CP about the condition of Logistics business

International Conventions

- Conventions Vienna about international trading in 1980

- Conventions Brussels unified the type Bill of Lading

- Conventions of United Nations about sea transportation in 1978

1.4 Factors affecting LCL cargoes freight forwarding services

 Weather conditions

This is the factor that people cannot master and control LCL forwarding activities also have some influence from it If weather conditions are good, then the procedures will take place smoothly, minimizing risk and costs incurred in the process of making goods and shipping goods

However, if the weather conditions are adverse, it will delay transportation, loading time and the quality of goods, especially for agricultural commodities, powder, cargoes covered by carton box or package of dangerous goods such as chemicals, paint… That would cause damage, reduce quality of cargoes and cause the unnecessary costs

 Freight rates

Facing an increasing competitive environment nowadays, freight rates are considered as one of the most important competitive advantages of Logistics Companies (the forwarding companies) In order to achieve the lowest freight rates, the company must have a good relationship with the shipping companies to obtain lower rates and also negotiate to increase the refund for each package or shipment

Since then, the contractor can take this to cover freight and charges collected from the shipper

 Agent system

Agent system is the key to create competitive position among companies The company that connect, collaborate with agents is stronger and widespread It can transport goods to remote geographical areas which are far from ports with competitive rates

 Human Resources

These are factors that influence the entire operations It impacts both the process for collecting and delivery in each different parts such as the document employees who are in charge of all kinds of documents required for the delivery, forwarder staffs are responsible for changing orders or collecting shipment Besides, human resources also affect considerably work productivity, reputation with customers (shippers) and contribute to the development of the service quality

In contrast, with a team of non-professional staffs will make the company lose a lot of opportunities and clients as well as reducing the performance of companies

CHAPTER 2: EVALUATIONS FOR FREIGHT

FORWARDING SERVICES FOR LCL CARGOES AT DONG TAI GLOBAL LOGISITICS AND TRADING CO., LTD

2.1 Introduction about Dong Tai global logistics and trading co., ltd

2.1.1 History and background

Dong Tai Global Logistics and Trading Co., LTD also referred as the Global Dong Tai established on December 21, 2009 with

- Business Registration is No 0201019508 in the Department of Planning and

Investment of Hai Phong city,

- The tax code is 0201019508

- Chartered capital of VND is 1.5 billion initially

- General Director isMr Do Viet Thanh

- Logo of company

Before 2009, the precursor Dong Tai Global was a representative office of Dongsuero in Haiphong, at the same time set up offices in the city Ho Chi Minh City

In 2009, Dong Tai Global company officially established, and became an agent of Dongsuero

In 2009, at established date, the head office of Dong Tai Global was at rooms 202-204, TASACO Building, Km104 + 200 Nguyen BinhKhiem Street, Hai An District, Hai Phong City

In 2010, Dong Tai Global became a member of Vietnam Chamber of Commerce and Industry of Vietnam (VCCI)

In 2012, Dong Tai Global registered and became a member of the Vietnam Freight Forwarders Association (VIFFAS)

In 2013, after 03 years of operation, Dong Tai Global opened an office in Hanoi in room 1601, Building Success, 57 Lang Ha Street, Ba Dinh District, Hanoi The function of the business office is handling cargo of air transport through Noi Bai International airport

In late 2013, early 2014, the official Dong Tai Global become a member of many associations Forwarder and Logistics domestic and international

In early 2014, Dong Tai Global continues to participate in associations such

as Vietnamese Logistics Association (VLA), the Association of Enterprise Logistics India (GWHAR), such as WCA Forwarder Association Inter Global, Freight Net

In 2014, with the development of a Forwarder, Dong Tai Global oriented markets toward South East Asia countries and international With global trends and correct future vision, Dong Tai Global was extended to most of the warehouses, port and depot at the Dinh Vu, Hai Phong, international gateway of Vietnam, and coordinated with partners around the world

Dong Tai Logistics is well-established freight forwarding It is diversified total logistics provider with mainstream activities in forwarding, Warehousing & Distribution, International packing & moving, International Ocean, Air freight, project cargo management, Logistics, warehousing and domestic transportation

Dong Tai Logistics is the most preferred forwarder in Vietnam, with head office located in Haiphong and branches in Hanoi, Ho Chi Minh Dong Tai Global has acquired an excellent reputation within the freight forwarding and warehousing industry for the delivery of quality professional services

Majority of Dong Tai Logistics success is a result of constant assessment and response to customer needs Our clients range in size from small, to national and high profession multinational companies and we are confident of the future and committed to provide the best value for money and quality service available to them

2.1.2 Partners

Dong Tai Global Company formerly was a representative office of Dongsue Shipping Co., LTD

Dongsue Shipping Co., ltd ( DONGSUE ) was reorganized in the year of

1987 for the purpose to produce more advanced services of high quality as a modernized transportation industry in Korea, taking it on the back the good reputation the 'old DONGSUE' enjoyed in the beginning of liner market

The main business areas of Dongsue Shipping Co., Ltd:

- International Freight Forwarders

- Consolidation

- Shipping agent

- Organizing combined transportation

- Customs procedures and packaging goods

Besides, Dong Tai Logistics Company is also member of the organization not only in Vietnam but also in the world such as: FIATA, KIFFA, ICC, WCA, GWHAR, VIFFAS, VCCI, VLA, and HaiPhong Association of Company

Business partner of Dong Tai Logistics Company

2.1.3 Visions and orientations

- Oriented to provide the comprehensive solutions about the logistics field during business processes of customers Besides that, Dong Tai Logistics can increase the competitiveness to ensuring operational, saving cost and improving the quality of services

- Become a diversified company in the logistics field, transportation and warehousing meet all the needs of customers in a more professional manner

- Complete fairly the supply chain to provide customers the most effective logistics

solutions with competitive quality services on the market

- Become a company that provides the optimal logistics solutions to have

confidence in customer to become leading enterprises in Vietnam That is premised

to support for Dong Tai Logistics on the way of development, expansion and

integration with the economy world

- Try the best to meet the increasing needs of the business with reasonable cost

- Develop professional staff and skilled qualified for logistics

(Source: retrieved

from.http://dongtaiglobal.com/tam-nhin-va-phuong-huong.html)

2.1.4 Organizational structure

Figure 3: The organization of company

(Source: retrieved from http://dongtaiglobal.com/site/cocautc )

Functions of each individual and department:

 Chief Exclusive Officer (CEO) or Director: the CEO is responsible for

operating general activities of company, constructing company’s development strategy On the other hands, CEO also monitors activities and performance, capacity of individual parts More importantly, CEO has to take care about human factors; for example: develop training plan for new employees, develop customer market and layout work for departments and individuals

 Financial Accounting Department:

- Work out financial plans, balance expenditure of each department, make weekly financial reports to the Board of management to adjust

- Make tax reports and tax return in accordance of current law

- Consult the CEO financial issues

- Report operation status of vehicles

 Sale Department

- Work on norms of inventory and supplies

- Plan for spare part expenditure for whole year

- Make reports of spare part expenditure in Month, quarter, year

- Take charge of selecting and evaluating suppliers

- Make contract with suppliers, approved by Leader Board

- Supervise operation process, guarantee adequateness of supply in quality and quantity

- Monitor the consumption of essential spare parts, supply new spare parts for replacement, and require drivers to estimate of spares for replacement on board

- Analyze the expenditure of supplies, fuel, lubricants; propose proper

solution to save cost