Logistics basic knowledge and logistics activities of indochina logistics trading JSC

marketing and sales, their customers believe o their services and letIndochina to take care their cargoes.One important process in selling services is to make quotation.. In this quotati

Chapter 1: Overview of Indochina Logistics & Trading JSC 4

1.1- Introduction: 4

1.2 - Management structure: 5

1.2.1 – Management Board: Management Board: 5

1.2.2 – Management Board: Sale & Marketing Department: 6

1.2.3 – Management Board: Operation Department: 7

1.3 – Management Board: SERVICES: 8

1.3.1- Custom clearance services: 8

1.3.2- Ser freight services: 9

1.3.3- Multimodal transport: 10

1.3.4- Ship booking and Chartering: 10

1.3.5- Customs consultancy services: 10

1.3.6- Customs brokerage services: 11

1.3.7- Air freight services: 12

1.3.8- Warehousing & Distribution services: 13

1.3.9- Fairs & Exhibition services: 13

1.3.10- Removal Relocation: 14

1.3.11- Project cargo handling: 15

1.3.12- Railway transportation: 16

1.3.13- Overland transportation: 17

Chapter 2: Logistics basic knowledge and logistics activities of Indochina Logistics & Trading JSC 18

2.1- Logistics basic knowledge: 18

2.2- Logistics activities of the company: 19

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

3.1- Services development in the Indochina Company: 24

3.2- Logistics solutions in Vietnam: 25

CONCLUSION 27

REFERENCES 28

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

I also would like to express my special thanks to the entire teacher at Foreign Trade University for giving me new knowledge and studying methods.

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

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

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

Chapter 1: Overview of Indochina Logistics & Trading JSC

1.1- Introduction:

Indochina Logistics & Trading JSC was established in 2007 with thehead office locating in Hai Duong, Viet Nam With the aim to satisfy &protect customers, they have been developed strongly Their team includeslong-experienced management board members, well-trained, aggressive &professional sales force plus highly-skilled operation staffs, especially allstaffs have Certificate of Customs Broker They are always kept up to date

on reliable import, export, customs, and logistics services and are fullycommitted to quality management and customer satisfaction In addition,they would like to emphasize that we are always customer-driven to followyour needs anytime, anywhere Their goal is to provide you anuncomplicated, worry-free, total transportation solution

To support their sea & air freight arms and to fully serve customers

in forwarding industry, they have our strong arm of logistics The strongand close relationship with port authorities, customs department, and stateowned inspections has allowed their company to grow in a strategicallysound manner and with business expertise Plenty of containers and allkinds of cargoes are smoothly and efficiently imported and exported todeliver customers punctually every year

Indochina Logistics is known for its ability to quickly respond tocustomer needs and provide knowledgeable assistance with individualconcerns

1.2- Management structure:

Each department has its own tasks In this report, I only focus you onthree main departments in Indochina Company Those are ManagementBoard, Sales & Marketing Department and Operation Department

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

company and carry out the strategic goals, manage the company suchas: meeting, marketing, delivering quality and services

*Responsibility:

They have a responsibility to Support operations and administration

of board by advising and informing Board members Oversees meetingwith partners, marketing, delivery and quality of programs and service In

Management Board (Hai Duong office)

Sales &

Marketing

Department

Operation Department

Accounting &

Administration Department

Oversea Department

Overland Trucking Department

Ha Noi office Hai Phong office

addition, they recommend yearly budget for Board approval and prudentlymanages organization’s resource within those budget guidelines according

to current laws and regulation Effectively manages the human resources ofthe organization according to authorized personnel polices and proceduresthat fully conform to current laws and regulations Assures theorganization and its duty, programs and services are consistently presented

in strong, positive to the partner

*Authority:

They employment and fire employees, separate of make effectiverecommendations to separate employees, making decision on thecompany’s finance, having authority to make some independent decisions

to the business

1.2.2 – Sale & Marketing Department:

In any kind of business, marketing always plays an important role

“The purpose of marketing is not necessary to promote consumption, itsreal purpose is to identify and understand customers, and they canthemselves consume”; in details, Indochina also its own marketingstrategy, especially, marketing sales The sales executives make the needs

of customers become their wants

To be a sales executive, the seller must understand exactly what theircustomer’s need and try them best to satisfy those There are several ways

to please customers, but the most efficient way to satisfy those needs bythe most competitive price and the comfortable services

In Indochina, sellers take an important part The market share of thecompany depends on how the sellers target customers By their art of

marketing and sales, their customers believe o their services and letIndochina to take care their cargoes.

One important process in selling services is to make quotation Thequotation is not fixed time by time but depended on some certain issuessuch as schedule, transit time, fee of shipping lines (air lines, sea lines).For a certain destination, sales executives choose the best receiving agentfollowing criterions such as good services, close relationship, quickpayment It is fact that Indochina services fees can be divided into manykinds following up the place of shipment and place of destination Door todoor service is the most completely service of Indochina In this quotation,Indochina quotes their customers the freight of local export (import)handling services charges, freight charges (air freight, sea freight) and thenlocal import (export) handling charges As per this main quotation and theorder of customers, Indochina divides Door to Door services into manysmaller terms that are suitable to the terms of shipments on the businesscontract of customers For example, Door to port services, port to portservices, port to door service, to door service, ect,

1.2.3 – Operation Department:

Operation department starts to open file upon receiving theinstruction from Sales and Marketing department, the Operationdepartment will start open file basing on invoice, packing list fromcustomers, Indochina issues HOBL (House Original Bill of Lading) forcustomers This Bill of Lading is considered as the contract betweenIndochina and customers

In the next step, Indochina makes chipping instruction and then sends

to shipping line It contains following information: container number,

shipper name, consignee name, port of lading, port of discharge, weight ofcargo, quantity, etc Shipping line issues MOBL (Master Original Bill ofLading) basing on this shipping instruction.

After cargo delivered, the site staff makes shipping advise is thenotice of local or foreign buyers that shipment has occurred with details ofbacking, routing, ect A copy of invoice is usually enclosed and sometimes

a copy of bill of lading This document helps receiving agent receive goodsquickly and actively

Bill of Lading is a very important documentation in logistics field.Bill of Lading is a principal transportation document by which a carrieracknowledges receipt of the freight and sets forth a contract of carriage.Bill of Lading may be negotiable or non-negotiable Every Bill of Ladingmust contain at least the following:

1.3.1- Custom clearance services:

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

 Filling the Customs Declared Form

 Customs Declaration and Tax Code Application

 Carrying out procedures of Commodity Control or applying forExtra commodity control.

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

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

1.3.2- Ser freight services:

Indochina Logistics offers its customers flexible service options forocean freight transportation Our sea freight services encompasscapabilities for handling less-than-container load (LCL) and full-containerload (FCL) shipments, break bulk cargoes and charter services.

 FCL/LCL import/export

 Door to door transportation

 Issuance and verification of documentation

 Export and import customs clearance

 Packing and crating

 Warehousing and distribution

 Part & full vessel charter

 Conventional shipments

 Transport insurance

1.3.3- Multimodal transport:

 Inland transportation of your cargo (FCL/LCL) by trucks fromany ports of Hai Phong, Quang Ninh to Industrial processing Zoneswithin Viet Nam Northern City and other neighboring provinces

 Domestics and Import/ Export transportation under method

“Door to Door” and under other request of yours

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

1.3.4- Ship booking and Chartering:

 Sale and purchase of vessels: New building/ Second hand

 Ro-Ro and Dry bulk chartering, Deadweight ranges from 1000

mt to 30000 mt for transportation Agricultural products, Rice, Wheat,Salt, Fertilizer, Cement, Clinkers, Coal, Steel and Truck/ Car

 Liquid bulk chartering for transportation crude oils, cleanpetroleum products, chemicals, acids, liquid gas and veg oils

1.3.5- Customs consultancy services:

Customs clearance of import & export shipment can be particularlydifficult, is not applicable under the same practices and standards in every

country Especially, if documentation is not prepared properly andcarefully, any and all discrepancies can result in delays, extra costs and/orpenalties

Indochina Logistics can help its customer how to solve the aboveproblems, including guidance in customs clearance in Viet Nam as well as

in other countries where your goods should be exported

Indochina Logistics’ Customs Consultancy Services include thefollowing:

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

 Consultancy on customs declaration, tax access and otherrelevant tax & duty policies

 Consultancy on customs formalities and clearance in othercountries.

1.3.6- Customs brokerage services:

Prompt and effective clearance of international cargoes is critical tothe successful supply chain As a total logistics solutions provider,Indochina Logistics deploys one of extensive customs brokerageoperations

Indochina Logistics incorporates a team of professional customsbrokers, import and export specialists

Indochina Logistics’ Customs Clearance Services include the following:

 Legal valuation of merchandise

1.3.7- Air freight services:

Sensitive and valuable goods are often subject to extreme timepressures and deadlines for every one involved Therefore, our air freightdepartment provides comprehensive air freight services to meet ourcustomer's specific

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

 Import and export air freight

 Packing and crating

 Door-to-door service

 Customs clearance

1.3.8- Warehousing & Distribution services:

Indochina Logistics offers storage facilities at key destination of VietNam All goods are properly protected so that they can remain in ourwarehouse for as long as the customer deems necessary.Our warehousing and distribution systems will pick, pack, store anddistribute consignments anywhere in Viet Nam by efficient mode oftransport

Our Warehousing and Distribution Services include the following:

 Receiving and inventory

 Sorting and segregating

 Forklifts and cranes

 Pick and pack, labeling

Indochina Logistics offers comprehensive exhibition forwardingservices to/from international trade fairs and exhibitions.

Our Fair and Exhibition Forwarding Services include the following:

 Planning & preparation

 Inland freight arrangement

 Cargo consolidation

 Customs clearance

 Ocean & air freight arrangement

 On-carriage to show ground

 Unloading at show ground

personal effects and household goods to a new home-wherever thedestination Every step of your move will be planned to meet your wishesand no request is ever too much trouble

Our Removal Relocation Services include:

 Free surveying

 Packing and crating consultancy

 Transportation consultancy

 Packing & transportation planning

 Packing & crating

 Documentation

 Warehousing and trucking

 Customs clearance

 Air and sea freight Insurance

1.3.11- Project cargo handling:

Indochina Logistics offers project management, all associatedplanning and implementation services, whether you are moving anindividual heavy lift or complete industrial plant from various origins toremote construction sites

Our Project Services include the following: