RECOMMENDATIONS TO IMPROVE THE FREIGHT FORWARDING SERVICES FOR LCL CARGOES AT DONG TAI LOGISTICS AND TRADING CO , LTD

MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAININGVIETNAM MARITIME UNIVERSITY STUDENT NAME: NGUYEN CONG TUAN MINH DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATION

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

HAI PHONG – 2015

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

HAI PHONG – 2015

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 help giving opportunities 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 some recommendations to improve LCL cargoes freight

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

Firstly, I would like to express my sincere gratitude to my advisors Vu Le Huyand Nguyen Thi Thu Hang for the continuous support of my dissertation, for theirpatience, motivation, and immense knowledge Their guidance helped me in all thetime of research and writing of this thesis I could not have imagined having a betteradvisors 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

1.2 Freight forwarding process for LCL cargoes 7

1.2.1 What is LCL cargoes? 7

1.2.2 Consolidator 8

1.2.3 Necessary papers in freight forwarding for LCL cargoes 8

1.2.4 General 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 2 EVALUATIONS 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 Evaluations for freight forwarding services for LCL cargoes in Dong Tai global logistics and trading co., ltd 25

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

2.2.2 Evaluations 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

3.3 Recommendations 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., ltdfrom 2010 to 2014 20TABLE 2: Business results of Dong Tai global logistics and trading co., ltd from2011-2015 24TABLE 3: LCL cargoes freight forwarding services business result (2011-2014) 33TABLE 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 10FIGURE 2: Freight forwarding process for export LCL cargoes on theory 11FIGURE 3: The organization of company 17FIGURE 4: Revenue and profit of Dong Tai global logistics and trading co., ltd from

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

INTRODUCTIONThe importance of research

In the process of global integration as well as trade liberations with foreigncountries in all around the world, Ocean Shipping industry has developed not only inscale but also in quality Therefore, freight forwarding industry has contributed avital role to the increase in foreign trade by taking advantage of the efficiency ofmode of transport It creates essential conditions to make sure that import and exportgoods may arrive their destinations on time and helps to deliver goods appropriatelyfrom sellers to buyers Although this industry is just founded and developing inVietnam in a short period of time, it has gradually contributed to the improvement ofnational wealthy by supporting import/export promotion and giving assist toVietnam’s shipping industry Realizing the high demand of the market, Dong Taiglobal logistics and trading Co., Ltd was founded and operated in the field of globallogistics and transportation services

Although Dong Tai global logistics and trading limited company offersfreight forwarding services for both FCL and LCL cargoes, it is still a lack ofconcentration on the freight forwarding for LCL cargoes Besides, annually seniorstudents from universities in Hai Phong, who have an internship at Dong Tai globallogistics and trading co., ltd, often choose the topic related to freight forwardingservices for FCL cargoes or other services for their researches Realize thatsituation, I would like to choose the topic: “Recommendations to improve freightforwarding 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 atDong Tai global logistics and trading co., ltd

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

5 Conclusions

Research Object

Besides giving an introduction about Dong Tai global logistics and tradingco., ltd, the research object of this dissertation is to clarify the LCL cargoes freightforwarding services, the current status of freight forwarding services for LCLcargoes 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 thecompany with LCL cargoes freight forwarding services, and in the last partsuggestions and recommendations to solve will be proposed

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

 Interview forwarder staffs of the company

 Compare statistics from the company’s annual results reports

 Observe daily works or some practical cases

By these ways, comments and evaluations about the freight forwarding servicesfor 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 asancillary and advisory services in connection therewith, including but not limited tocustoms and fiscal matters, declaring the cargoes for official purposes, procuringinsurance of the cargoes and collecting or procuring payment or documents relating

to the goods

Freight forwarding services was first mentioned in Vietnam CommercialLaw 1997 According to the article 163 of Vietnam Commercial Law 1997, freightforwarding is commercial practices, under which the forwarders receive the goodsfrom the sender After that they organize the transportation, storage, warehousing,

do the paperwork and other services related to the delivery to the recipient under themandate of the shipper, the carrier or other forwarders

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

1.1.2 Freight forwarder

A freight forwarder, forwarder, or forwarding agent is a person or companythat organizes shipments for individuals or corporations to get goods from themanufacturer or producer to a market, customer or final point of distribution

[ CITATION Ran12 \l 1033 ] Forwarders contract with a carrier to transport theshipments A forwarder does not transport the goods but presents as an expert in thelogistics network A forwarder contracts with shipping companies to move all kinds

of goods from raw agricultural products to manufactured goods Freight can bebooked on a variety of shipping providers, including ships, airplanes, trucks, andrailroads 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 goodstransported under trust contract and act for the benefit of the settler The forwarderalso 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 alot easier and quicker for your company A professional freight forwarder will act as

an intermediary between your company and the transport companies, handlingeverything that is related to the shipping process

The forwarder in some cases can be the shipper (when shippers conduct allthe freight forwarding work themselves) or ship owner (ship owners on behalf ofshippers perform freight forwarding services) or any other person have businessrelated to freight forwarding services

Some services that forwarder staff often conduct

- Prepare transportation for the shipments

- Organize cargo transportation within the port

- Organize cargo handling

- Consult customers about cargoes transportation

- Conduct the sending or receiving goods procedure

- Implement custom clearance services

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

- Consolidate and pack the cargoes

- Check the validity of the documents related to cargoestransportation

1.1.3 The importance of freight forwarders

A freight forwarder will usually be an agent more often than an activecarrier By this way, a forwarder staff can be considered as third party logisticsprovider who works to forward shipments Freight forwarding positions participate

in booking and preparing space in warehouses, vehicles for shipments such asvessels, trucks and this shows the vital role of a forwarder in the relationship withtheir customers

Nowadays, forwarders play an important role in commercial as well astransportations Freight forwarders not only conduct the customs clearanceprocedures or contact with the shipping company, but also implement all services oftransportation

1.1.4 Forwarder responsibilities and rights

The forwarders have to obey 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 Remunerationlevels can be determined by the absolute amount or proportion on commodityprices Remuneration levels agreed by the parties and depends on the content, thecomplexity of the job freight forwarding customers entrust people do freightforwarding services performed

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

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

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

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

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

- To fulfill its obligations within a reasonable time if the contract does not agree onthe 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 otherfreight 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 cargoeswhich is not large enough to be fit in a container after loading In other words, whenyou load a LCL cargo into a container, it still has space left to load others “If ashipper 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 iscalled LCL shipment The said consolidator arranges a full container (FCL) with amain shipping carrier, and consoles the shipments of other shippers Means thefreight forwarder who books a full container accepts goods from different shippersand 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 transshipmentpoints, meant for different consignees at different ports”.[CITATION How15 \l 1033 ]

1.2.2 Consolidator

Consolidator means a firm or people which groups all the cargoes fromdifferent shippers together into one shipment When the shipment is fit for acontainer, it will be arranged, packaged and loaded in to the container.Consolidator’s job is to find customers who want to export their LCL cargoes Atdestination port, the consolidator representatives will unload container, break bulkthe shipment into different shipments of different shippers and send them to theconsignee correctly

In fact, the destination of all LCL shipments in the container are not thesame Many times, they are just the container transportation in the same route, thenthey will reloaded before moving on The reloading process usually happen at hubports such as Singapore, Hong Kong… At these ports, LCL cargoes will be sortedand sent to their final destination

1.2.3 Necessary papers in forwarding LCL cargoes

 Bill of lading

A document issued by a carrier, or its agent, or forwarders, to the shipper as acontract of carriage of goods It is also a receipt for cargo accepted fortransportation, and must be presented for taking delivery at the destination

A bill of lading contains a lot of information such as: consignor's andconsignee's name, names of the ports of departure and destination, name of thevessel, dates of departure and arrival, itemized list of goods being transported withnumber 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 ofownership of the cargo, and may be issued either in a negotiable or non-negotiableform In negotiable form, it is commonly used in letter of credit transactions, andmay be bought, sold, or traded; or used as security for borrowing money A bill oflading is required in all claims for compensation for any damage, delay, or loss; andfor 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 importedgoods, for assessment of duties and taxes A commercial invoice (in addition toother information), must identify the buyer and seller, and clearly indicate the dateand terms of sale, quantity, weight and/or volume of the shipment, type ofpackaging, 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 torelease a shipment to the named delivery party on payment of the specified freightcharges (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 ofgoods, their weight, and collection charges (if any)

 Cargo manifest

A shipping document used by customs officer reviewing a particular transportvehicle's intended trip that summarizes all bills of lading that have been issued bythe carrier or its representative for that particular shipment For example, a cargomanifest might be used for shipments made by sea, air or land, and will generallyshow 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 followingprocedures necessary to complete their job duties

- Sales department will receive import-related document from customer Theywill 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 includingcustoms declaration and conduct inspection if being requested

- After that, forwarder staff will pick up cargoes at port and transport to thewarehouse 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 theshipments such as weight, amount, and name of the shipments…

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

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

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

1.3 Legal basis framework

The freight forwarding services for both export and import cargoes must bebased on legal law or regulations in order to ensure the rights and responsibility ofbuyers and sellers.

National Laws

- Vietnam Maritime Law in 1990

- Vietnam Customs Law in 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 forwardingactivities also have some influence from it If weather conditions are good, then theprocedures will take place smoothly, minimizing risk and costs incurred in theprocess 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 aschemicals, paint… That would cause damage, reduce quality of cargoes and causethe unnecessary costs

 Freight rates

Facing an increasing competitive environment nowadays, freight rates areconsidered as one of the most important competitive advantages of LogisticsCompanies (the forwarding companies) In order to achieve the lowest freight rates,the company must have a good relationship with the shipping companies to obtainlower 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 fromthe 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 Itcan transport goods to remote geographical areas which are far from ports withcompetitive rates

 Human Resources

These are factors that influence the entire operations It impacts both theprocess for collecting and delivery in each different parts such as the documentemployees 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, reputationwith customers (shippers) and contribute to the development of the service quality

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

CHAPTER 2: EVALUATIONS FOR FREIGHT

FORWARDING SERVICES FOR LCL CARGOES AT DONG TAI GLOBAL LOGISITICS AND TRADING CO., LTD2.1 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 is Mr Do Viet Thanh

- Logo of company

Before 2009, the precursor Dong Tai Global was a representative office ofDongsuero in Haiphong, at the same time set up offices in the city Ho Chi MinhCity

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

In 2009, at established date, the head office of Dong Tai Global was at rooms202-204, TASACO Building, Km104 + 200 Nguyen Binh Khiem Street, Hai AnDistrict, Hai Phong City

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

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

In 2013, after 03 years of operation, Dong Tai Global opened an office inHanoi 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 NoiBai International airport

In late 2013, early 2014, the official Dong Tai Global become a member ofmany 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 LogisticsIndia (GWHAR), such as WCA Forwarder Association Inter Global, Freight Net

In 2014, with the development of a Forwarder, Dong Tai Global orientedmarkets toward South East Asia countries and international With global trends andcorrect 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, andcoordinated with partners around the world

Dong Tai Logistics is well-established freight forwarding It is diversifiedtotal 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 headoffice located in Haiphong and branches in Hanoi, Ho Chi Minh Dong Tai Globalhas acquired an excellent reputation within the freight forwarding and warehousingindustry for the delivery of quality professional services

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

2.1.2 Partners

Dong Tai Global Company formerly was a representative office of DongsueShipping 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 amodernized transportation industry in Korea, taking it on the back the goodreputation 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 notonly in Vietnam but also in the world such as: FIATA, KIFFA, ICC, WCA,GWHAR, VIFFAS, VCCI, VLA, and Hai Phong 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 duringbusiness processes of customers Besides that, Dong Tai Logistics can increase thecompetitiveness to ensuring operational, saving cost and improving the quality ofservices

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

- Complete fairly the supply chain to provide customers the most effective logisticssolutions with competitive quality services on the market.

- Become a company that provides the optimal logistics solutions to haveconfidence in customer to become leading enterprises in Vietnam That is premised

to support for Dong Tai Logistics on the way of development, expansion andintegration 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’sdevelopment strategy On the other hands, CEO also monitors activities andperformance, capacity of individual parts More importantly, CEO has totake care about human factors; for example: develop training plan for newemployees, develop customer market and layout work for departments andindividuals

 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 forreplacement on board

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

solution to save cost

 Logistics Department: this department takes responsible for performing the

referendum on the papers of all kinds of commodities including exports and