Recommendations to improve the receiving activity of imported cargoes at CFS warehouse of hai phong 128 newport joint stock company

5 CHAPTER 2:SITUATION OF THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAI PHONG 128 NEWPORT JOINT STOCK COMPANY .... 22 2.2 Description of the receiving activity of i

Student Name and Signature

Ngo Minh Hung

ACKNOWLEDGE

Firstly, I would like to express my sincere gratitude to my advisor M.S Tran Hai Viet for the continuous support of my dissertation and related research, for his patience, motivation, and immense knowledge His guidance helped me in all the time

of research and writing of this thesis I could not have imagined having a better advisor and mentor for my study Secondly, In process of internship study, I was helped and instructed by officers, staffs of company and teachers of my university

My dissertation was completed fully and well by this help I want to give my dramatic thanks to all officers, staffs of company and teachers of my university whom helped

me in that time

Table of content

PREFACE i

ACKNOWLEDGE ii

LIST OF TABLE AND FIGURE v

INTRODUCTION 1

CHAPTER 1:LITERATURE REVIEW 4

1.1 Introduction about CFS warehouse 4

1.1.1 Definition of CFS warehouse 4

1.1.2 Function of CFS warehouse 4

1.1.3 Role of CFS warehouse 5

1.2 Introduction about the forwarding activity and receiving activity of imported cargoes 5

1.2.1 Definition of forwarding activity 5

1.2.2 The receiving activity of imported cargoes 5

CHAPTER 2:SITUATION OF THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAI PHONG 128 NEWPORT JOINT STOCK COMPANY 8

2.1 Introduction about Hai Phong 128 Newport Joint Stock Company 8

2.1.1 Overall information 8

2.1.2 History 8

2.1.3 Fields of business 9

2.1.4 Organization 10

2.1.4.1 The organization structure diagram 10

2.1.4.2 Introduction about departments 12

2.1.5 Personnel 16

2.1.6 Facility 18

2.1.7 CFS warehouse 19

2.1.8 Situation of business operation 21

2.1.8.1 Business operation of Hai Phong 128 Newport JSC in 2012, 2013 and 2014 21

2.1.8.2 Business operation of Hai Phong 128 Newport JSC in the first 6 months of 2015 22

2.2 Description of the receiving activity of imported cargoes at CFS warehouse of Hai Phong 128 Newport Joint Stock Company 23

2.2.1 Receiving document 24

2.2.2 Exchange of delivery order 25

2.2.3 Customs procedure 26

2.2.4 Transporting the container from port to CFS warehouse 27

2.2.5 Appraising container at CFS warehouse yard 28

2.2.6 Unstuffing and storage 28

2.3 Evaluation of the receiving activity of imported cargoes at CFS warehouse of Hai Phong 128 Newport Joint Stock Company 29

2.3.1 Indicator 29

2.3.2 Advantages 31

2.3.3 Disadvantages 32

CHAPTER 3:RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAI PHONG 128 NEWPORT JOINT STOCK COMPANY 36

4.1 Suggestion for problem about delay of document 36

4.1.1 Suggestion for lack of employees implementing documents after receipt and delivery

36

4.1.2 Suggestion for lack of employees implementing Customs clearance 36

4.2 Suggestion for problem about damage of cargoes 37

4.3 Suggestion for problem about untuffing time of imported cargoes 37

4.3.1 Suggestion for equipment issue 37

4.3.2 Suggestion for lack of handling workers 38

4.4 Suggestion for waiting time of containers to be operated 38

CONCLUSION 39

REFERENCE 40

LIST OF TABLE AND FIGURE

Figure 2.1: Organization structure diagram of 128 Newport company……… 11 Table 2.2: The quantity of personnel according to level of education……… …….16 Table 2.3: The quantity of personnel according to departments and gender ……….17 Table 2.4: The quantity of personnel according to gender……… ………18 Table 2.5: the quantity of cargoes are received and stored in CFS warehouse….… 20 Table 2.6: The business operation of 128 Newport from 2012 to 2014………….….21 Table 2.7: The business operation of 128 Newport in the first 6 months of 2015.….22 Figure 2.8: The receiving activity of imported cargoes at CFS

warehouse of 128 Newport company JSC………….……… ….…….…23 Table 2.9: The claim of customers about activity of CFS warehouse….……… ….29 Table 2.10 Time for unstuffing imported cargoes at CFS warehouse……… 30

INTRODUCTION

Internship is a practical journey by a group of people to a place away from their normal environment For student, the internship plays an important rule to their knowledge It is a practical activity that outside classroom

The purpose of the internship is usually observation for education, experimental research or to provide students with experiences outside their everyday activities, such as going camping, companies, enterprises with teachers and their classmates The aim of this research is to observe the subject in its natural state and possibly collect the fact experiences

non-During internship, student can collect many information, knowledge, experiences which they don’t see or learn in their school They may be different from what student study in classroom On the other hand, internship gives student opportunity to practice knowledge, theory that they learn in their class And practical activities are the best method to understand clearly what students learn from book and school In my opinion, internship is very important and necessary to every student It helps students better understand what they are learning in your university They can determine their future work And the practical knowledge will help them not crestfallen when the first day they come out to work

From 1/10/2015 to 31/10/2015, I had an internship at HaiPhong 128 Newport Joint Stock Company Specifically, I had opportunity to learn and study at CFS warehouse of company, which is one of the most important departments of HaiPhong

128 Newport JSC In there, I learned and understood a lot of knowledge of this CFS warehouse, such as duties, services, activity, procedures or processes and so on Finally, I chose the receiving activity of imported cargoes at CFS warehouse as the topic of my dissertation The first reason is that it is suitable for my knowledge and the department, where I chose to study and work at Secondly, during the process of work, study and analysis, I realized that there are some several disadvantages of this activity, beside the advantages So I want to give some of my suggestions to improve the situation of the receiving activity of imported cargoes at CFS warehouse

Necessity

CFS warehouse plays an essential part in the flow of exporting and importing goods

In the growing trend of containerized service, CFS is estimated to be an important factor in the development of maritime industry in the next years

So, in one months of internship, with a wish to study the CFS warehouse activities, I

have chosen this topic: "The receiving activity of imported cargoes at CFS

warehouse of HaiPhong 128 Newport Joint Stock Company" This research will

give an insight to the CFS activities at Green Port And from that, give proper solutions to increase the development of company

Research object

This study is conducted to study the CFS warehouse operation at Hai Phong 128 Newport JSC and find the possible ways to improve the CFS services of warehouse

Methodology of the research

For study, this dissertation is gathered information from both primary and secondary sources From primary source, information is gathered by: visiting CFS warehouse at HaiPhong 128 Newport JSC and learn information about the receiving activity of imported cargoes at CFS warehouse From secondary source, information is found and gathered in documents related to CFS warehouse operation, especially the imported goods process; dissertations, journals, books related to CFS warehouse operation, services and activities in CFS warehouse

Limitation of the research

During the process of studying this topic, there are some limitations in conducting the paper Firstly, studying and evaluating a specific activity at CFS warehouse of a particular company need an amount of time Due to the time limitation, this report is conducted with the urgency Information is gathered mostly by the process of observation and studying in the appointed time Therefore, it may lack some information Secondly, there are some problems in observing the real receiving activity of imported cargoes at CFS warehouse of HaiPhong 128 Newport JSC

Because this report is conducted in the busy time of the company, it is not easy to supervise CFS activities and collect data Besides, some information about the company is kept in secret for security

Research Findings

This dissertation provides the understanding of CFS operation, specifically the receiving activity of imported cargoes at CFS warehouse and giving out some recommendations to improve this activity of CFS warehouse

Structure of the research

Chapter 1: Literature review

Chapter 2: Situation of the receiving activity of imported cargoes at CFS warehouse of HaiPhong 128 Newport Joint Stock Company

Chapter 3: Recommendations to improve the receiving activity of imported cargoes at CFS warehouse of HaiPhong 128 Newport Joint Stock Company

CHAPTER 1

LITERATURE REVIEW 1.1 Introduction about CFS warehouse

1.1.1 Definition of CFS warehouse

- C.F.S is container freight station: Shipping term meaning that goods will be packed into container(s) at the port of origin and unpacked at the port of destination at the carrier's risk and expense Besides, CFSwarehouse is a place that concentrates, checks and consolidates exported cargos, and operates imported cargoes with same bill of lading of many shipper.(Griffin, 1998)

- Some advantages of CFS:(Olali, 2011)

 If enterprises have many bales of LCL cargo, and want to sellto many different customers in a same nation destination, CFS can help them to collect LCL goods to be an enough big bale stuffing into container fully to do export procedure, and save cost

 CFS is the place where many importing shippers use or operate the same bill of lading of imported cargo This will help to decrease cost of transportation, and make activitys easier

1.1.2 Function of CFS warehouse

- Receiving: receiving cargo from transportation system to warehouse The

driver has to deliver goods on right schedule to rise productivity Cargo is moved to delivery area and checked perishing of goods (if any) These perishing of goods will be reflected on delivery note of driver The ware house receipt is made in this stage.(Prakash, 2001)

- Put-away: moving cargo to specific positions in warehouse This stage can

implement some professional competences: identification of goods (scan of goods code), determining the position of reserve, moving cargo to position of reserve Finally, system of inventory must be updated to notify receipt of goods and their position in warehouse.(Prakash, 2001)

- Consolidation service: when cargoes or materials are imported from many

different sources, warehouse plays the role being concentrating place to combine to be a big bale This will make advantages by scale when they are continued to transport to company or market by vehicles as truck, ship, (Prakash, 2001)

- Order picking: choosing the specific groups of cargo for bill of customer

Sending information of bill to responsible employees, optimizing the move to take cargo, transferring cargo to transporting area.(Prakash, 2001)

- Handling: when vehicles come to receive goods at delivery door, cargoes must

be handled to vehicles for transportation.(Prakash, 2001)

- Reserve and store: ensuring cargo to be whole about quantity, quality during

process of work, taking full advantage of warehouse area, caring and conserving goods in warehouse.(Prakash, 2001)

1.1.3 Role of CFS warehouse

- Warehouse has the important role and position for production and circulation to serve for continuous production and normal circulation of cargo Warehouse is infrastructure of fields of production, service for economy, play role to rise the productivity of society.(Prakash, 2001)

- The operation of warehouse has a close connection with many aspects of operation of economy and society The more economy develops, the more warehouse system meets demand of the national economy.(Prakash, 2001)

- In fact, warehouse is not natural product, abstraction It is entity of matter, which is made by human to serve human So it always exist value and using value In the condition of commodity production in many sectors, warehouse is product of many sectors, need to be traded So, warehouse need to be preferential for investment and development.(Prakash, 2001)

1.2 Introduction about the forwarding activity and receiving activity of imported cargoes

1.2.1 Definition of forwarding activity

- The forwarding is the commercial activity, specifically, the people who work forwarding service receive cargoes from shipper, organize transportation, storage, open storage, implement document and other related services to deliver cargoes to consignee under the delegation of shipper, transporter, or forwarder (general name is customer) (Nguyen, 2010)

- Basically, cargo forwarding is works relating process of transportation to execute moving cargo from shipper to consignee

1.2.2 The receiving activity of imported cargoes

- The receiving activity is a part of the forwarding activity, which can help to decrease the cost of imported cargoes as well as saving the time of circulation

of cargoes.Specifically, the receiving party has responsibility to implement all

of activity, including related documents, Customs clearance, appraisement, storing imported cargoes, and so on The details of this activity have to be done carefully and strictly If the troubles are happened, the receiving party has to stop the activity and report to related partied (importer, forwarder, ) to resolve.(Katherin, 2012)

- Receiving activity of imported cargoes at CFS warehouse: in this situation,

the CFS warehouse is the receiving party In the other work, this department will implement all of works and duties relating to the receiving activity of imported cargoes.(Griffin, 1998)

- Some necessary documents in the receiving activity of imported cargoes: Arrival notice, Bill of lading, Cargo manifest, Authorization letter, Delivery order,…

Arrival notice: This notice includes voyage number, container number, seal

number, number of packages, gross weight and measurement of cargoes The CFS warehouse needs this information to plan implementing customs procedures, arranging the vehicles as truck to transport cargoes from port to warehouse and arranging the position in warehouse for storage.(Thomas, 1999)

Bill of Lading (B/L): In the commercial field, Bill of Lading is seen as the soul

of cargoes It is a legal document between the shipper of particular goods and the carrier detailing the type, quantity and destination of the goods being carried The bill of lading also serves as a receipt of shipment when the good is

delivered to the predetermined destination.(Joe, 2008)

Cargo manifest: Is the detailed summary of cargoes loaded on vessels to

transport to different ports, which is made and provided by carriers based on Bill of Lading This is necessary for customs authorities to control exported and imported goods in international trade The cargo manifest must be completed immediately after loading cargo on board of vessel and before vessel implementing procedure to leave port.(Joe, 2008)

Authorization Letter (Cover Letter): The function of this document is

confirming the party’s authority and this party will have right to implement works, which are written in the document In the case of CFS warehouse, the forwarder will give an authorization letter to document officers and CFS warehouse will have right to run and operate works relating to imported cargoes.(Thomas, 1999)

Delivery Order: This document is issued by carriers with the purpose is that

guiding or ordering port authority of departments managing cargo to transfer

the right to keep cargo for the confirmed party (example: importer, consignee) The delivery order is signed by carriers after receiver presenting bill of lading

and paying fully all fees relating to transporting cargo.(Joe, 2008)

CHAPTER 2

SITUATION OF THE RECEIVING ACTIVITY OF

IMPORTED CARGOES AT CFS WAREHOUSE OF HAI PHONG 128 NEWPORT JOINT STOCK COMPANY

2.1 Introduction about HaiPhong 128 Newport Joint Stock Company

2.1.1 Overall information

- The name of company is HaiPhong 128 New Port Joint stock company –

Branch of Saigon New Port Logistics

- Year of Establishment: 2010

- Forms of ownership: Navy High Command

- The address of HaiPhong 128 New Port Joint stock company: 128 Ha Doan street, Dong Hai II ward, Hai An urban district, HaiPhong city

- HaiPhong 128 New Port Joint stock company is one of subsidiaries of Saigon New Port Logistics, which are operating in the northern region of Vietnam HaiPhong - 128 Newport Joint Stock Company was established under Decision No: 10479 / QD-BTL-Kte, November 13, 2008 of the Navy Commander It opened on May 6, 2010 and officially went into operation from July 1, 2010 The port is located on the arterial road traffic system (National Highway 5) connecting the key industrial zones of the North such as Hanoi, QuangNinh, VinhPhuc, BacNinh .; and within countries flows into the port of Haiphong area; adjacent to the South Dinh Vu Industrial Area, linking to the area of QuangNinh port by inland waterways; This is favorable for the company to

may be willing to cooperate with business partners at home and abroad for the purpose of strong development

- In 2013 after the restructuring of the strategic shareholders, 128 Newport Joint Stock Company has created a new breakthrough in the oriented development company with business sectors including cargo handling, freight forwarding agent import and export; container handling and general merchandise; agents of trucking, waterways; business warehousing, storage of goods, lifting services, customs duty service, full-stages logistics service, and providing maximum utility to the customer

- Nearly 5 years from the date of establishment, HaiPhong 128 Newport Joint Stock Company has constantly grown It always completes the tasks of production and business, preserves capital, profits, year by year, and ensure good jobs and stable incomes for workers In addition, the company is also a destination for customers, partners, which is more firm on the path of integration and development

- In the first days of 2014, with the synchronization from infrastructure, handling equipment and modern management system, with the lively and youthful atmosphere of youth, leader group and employees of the company are willing and confident to welcome the first ships This is also the first solid step and foundation to raise the handling capacity and strive to international standards par with ports in northern country, creating a firm trust for customers, bringing the company to become the customer's destination and growing steadily on the path of integration and development

2.1.3 Fields of business

- ICD (Inland Container Depot) services: cargo handling; forwarding agent import and export goods, goods in transit, diplomatic goods, trade fair goods, worked goods (for building), personal items, donated goods, samples and documents from by the sea, river, rail, road and aviation in Vietnam to other countries and vice versa

- Warehousing business and Logistics services

- Freight business by car, by inland waterway crossing Vietnam border modal transport business

Multi Operation of ports, docks, piers

- Loading and unloading containers and other cargoes, container cargo packing services and other goods

- Customs brokerage services

- "Opened port" services: sale, sorting, storage, preservation, repair, packing, packing of goods

- Mechanical engineering services: repair, vehicle maintenance, cargo handling equipment

- Saving freight consolidation agent, dividing retail cargo agent for forwarders, shipping lines, airlines, operating container dealer, consignment agent, testing conditions, checking, inspection, and buying insurance of inport and export goods under regulations of government

- Consulting services in freight forwarding, import, export, market information at the request of organizations and individuals at home and abroad, joint ventures, investment cooperation with international organizations inside and outside countries to develop business activities in logistics, transport of company

- Ship supply services, receiving and storing goods, machinery and providing every service repair, replacement machinery and ships, the company returns the damaged equipments which are replaced or excess-demand of carriers in the process of repair and upgrade

- Rental vehicles, equipment, trailers

- Bonded warehouse services, cold storage

2.1.4 Organization

2.1.4.1 The organization structure diagram

Figure 2.1: Organization structure diagram of 128 Newport company

Board of director

Financial and administrative department

Technical and machanical department

Business planning department

Machanical and handling team

Marketing department

Security department

Labour and salary department

Container repairing and cleaning team

Planning, commercial, general department

Production watch center

Financial and accounting department

Yard operation

Gate operation

Pier

operation

Delivery department

Board of directors: Director: Trinh Van Tuyen

Deputy director: ĐoànHảiTuấn

NgôĐức Du Department manager: Operation: ĐoànHảiTuấn (concurrently )

Business Planning:NgôĐức Du (concurrently ) Financial & administrative: Nguyen XuanHuy Technical&machanical: Nguyen Viet Ngau

2.1.4.2 Introduction about departments

Board of directors:

- Board of directors includes one director and vice directors

 The director leads, manages, runs generally all of works of company and has responsibility with decisions of vice directors which relate to implementing allocated jobs from director

 The vice directors support director to run each specific fields, have responsibility to report regularly or unexpectedly to director the content of works which needs to be solved In specific situations with executive works, they are allowed to use authority of director to solve allocated jods and responsible with director The vice directors have to report works that exceed their authority to director to solve

Business planning department:

- This department is leaded, managed directly and totally by director It’s the staff for board of directors, director about below fields:

 Built and develop annual plans of production and business; plans of procduction and business that are required by board of directors

 Advise and follow operation of investment and development; business operation; make plan running and managing port, contract, trade affair, investment, train, office and legislation

 Marketing and deplomacy

 Check, supervise and support production teams to do missions of production and business under regulation of law, finish well allocated jobs from company

Marketing department

- It is a department directly under business planning deparment, leađe, managed directly and totally by board of directors, leader of business planning deparment It’s a neutral department, reflects fully, accurately, objectively happenings, arising in deploying process of services of company It has consultative function for department, board of directors about guidelines, orientation and plan of Marketing – diplomacy operations; implement works from superior

Planning – Commercial – General department

- It is a department directly under business planning deparment, leađe, managed directly and totally by board of directors, leader of business planning deparment It has consultative function and responsibility directly to operate and and implement planning production, develop market and port, collect and classify result of production and business and report to leader

Operation department

- It is leaded, managed directly and totally by Executive committee, board of directors of company; directly advises for Executive committee, board of directors solutions to run and exploit optimally all resources, equipment to increase productivity, business and competition of company Operation center leads, combines to run the production chain of company Advising methods on management, operation, business, and exploit port’s works

Production watch center

- It is junior unit, leaded, managed directly and totally by operation center It has consultative function for deparment’s leader to make solutions to run and exploit optimally all resources, current equipment to increase productivity, business It leads, combines to run the production chain of company It builts directly plans and deploy to do methods of handling, forwarding, transporting cargo and finish other tasks

Operation staff at yard

- That is the person who directly implements forwarding operations, runs loading and unloading container of import/export cargoes under right process, combines related parties to solve congestions in process of container forwarding,

Operation staff at gate

- These people are junior and leaded by captain of dispatch team, have responsibility with captain about skilled works that are allocated

Operation staff at pier

- These people are junior and leaded by captain of dispatch team, have responsibility with captain about skilled works that are allocated

Delivery department

- This department is leaded directly by production watch center, has responsibility to update fully database and accurately container number, seal number, vehicle number, under process of production

CFS warehouse

- This is directly under operation center, leaded, managed directly by senior cleck of operation center, has responsibility with senior cleck, board of directors about management and exploitation of CFS warehouse

Technical and mechanical deparment

- This is junior department, leaded, managed directly and totally by Executive committee, board of directors of company It’s the staff for board of directors, director about below fields:

 All operations relate technic, material, machine, loading and unloading, repairing and cleaning services

 Run and exploit optimally all resources, current equipments to increase productivity, business and competition of company

 It builds directly plans and deploy to do methods of handling, forwarding, transporting cargo and finish other tasks

Technical and material team

- This team is directly under technical and mechanical deparment, leaded, managed directly and totally by board of directors, senior cleck, has consultative function for senior cleck, leaders of company about ensuring technic, buying material, equipment to serve operations of production of teams

in company

-

Mechanical and handling team

- This team is directly under technical and mechanical deparment, leaded, managed directly and totally by board of directors, senior cleck, has consultative function for senior cleck, leaders of company about running, operating and exploiting optimally all resources, current equipments

Container repairing and cleaning team

- This team is directly under technical and mechanical deparment, leaded, managed directly and totally by board of directors, senior cleck, has consultative function for senior cleck, executive board of company about running, operating and exploiting effectively and increasing quality of repairing and cleaning services

Financial and administrative department

- This department is leaded, managed directly and totally by Cell, director of company, has consultative function for Cell, board of directors and directly implements skilled works to manage, conserve and develop capital of company; build a stable finance, financial – accounting operations under law and accounting system serving tasks from company

Labour and salary department

- This department is directly under Financial and administrative department, leaded, managed directly and totally by Cell, board of directors, senior cleck, has consultative function senior cleck, executive board of company about recruitment, disposing personnel, operating labour and salary, policy, contest for labours

Financial and accounting department

- This department is directly under Financial and administrative department, leaded, managed directly and totally by Cell, board of directors, senior cleck, has consultative function senior cleck, executive board of company in works relating financial management and book keeping operation

Security department

- This department is directly under Financial and administrative department, leaded, managed directly and totally by Cell, board of directors, senior cleck, has consultative function senior cleck, executive board of company about managing, operating to supervise equipments, vehicles and ensuring safety of company’s areas

2.1.5 Personnel

The total number of personnel of HaiPhong 128 New Port Joint stock company

is 144 people The three tables below show the division of the quantity of employee based on: level of education, department, and gender

Level of education Quantity University degree and

Table 2.2: The quantity of personnel according to level of education

- The above table shows the distribution of human resources of 128 Newport JSC according to level of education It is apparent from the information supplied that the number of personnel having university degree and postgraduate is highest at 67 people, followed by primary degree, with 41

people In addition, the numbers of personnel having intermediate degree and collage degree are 19 people and 17 people, respectively

Table 2.3: The quantity of personnel according to departments and gender

- The above table describes the distribution of human resources of 128 Newport JSC according to departments and gender It is apparent from the information supplied that there is no female working in board of directors and technical and mechanical department Specifically, the number of men working in board of directors and technical and mechanical department are 4 people and 43 people, respectively In addition, in business planning department and financial and administrative department, the numbers of male employees are more than female employees Particularly, there are 12 men and 8 women in business planning department; 12 men and 10 women in financial and administrative department Last but not least, operation department is the only one, in which the number of male employees is less than female employees, with 15 people for male and 40 people for female