Implementing marketing mix for logistics services of DHB logistics co , ltd

Meanwhile, tồreign companies about 25multinational companies, accounting for 70-80% market share of logistics Services in Vietnam with a range of activities in nearly 100 different count

INTRODUCTION

Logistics activities make an important contribution to the distribution ofgoods from production to consumers and also a "global commercial bridge".Today's logistics activities are not only associated with warehousing, freightforwarding, but also planning, arranging raw flow, materials from suppliers tomanufacturers, then moving goods from production stage to the final consumer,creating interconnection in the whole society according to optimization plans,reducing the cost of rotation and storage

After 7 years of Vietnam joining WTO, the market of Vietnam's logisticsServices has seen positive changes with the number of enterprises operating in theindustry growing fast and having high growth rates If we look at the pace of tradedevelopment in our country, which is also the development target of logisticsService industry, we will see import and export tumover increase by 1.86 times,the domestic retail market will increase by 20- on average 25% per year and as aresult, the logistics Service sector also increased by 20-25% per year However,according to statistics, Vietnam logistics companies only operate in domestic orsome regional countries, and mainly act as agents or undertake each stage forintemational logistics enterprises Meanwhile, tồreign companies (about 25multinational companies, accounting for 70-80% market share of logistics Services

in Vietnam) with a range of activities in nearly 100 different countries This is one

of the obstacles for Vietnamese enterprises to provide package Services tocustomers Because, in the trend of globalization, shippers tend to outsource frommany countries and territories around the world Although it may take into accountthe role of agents established by Vietnamese companies in other countries, thisrelationship is often quite loose and heterogeneous

These are the basic reasons that make the competitiveness of Vietnameselogistics enterprises far below the current tồreign enterprises, only undertakes anumber of single Services in logistics operations such as customs clearance,transportation vehicles, warehouses, etc In the context when Vietnam's importand export activities are growing, domestic trade is expanding and the demand forlogistics Services increases, this is an issue that needs special attention andovercome to limiting the loss on the domestic market for the sector considered theimportance Service sector of the economy, not only bringing great benetĩts to thecountry but also playing an important role in renovating the current growth andeconomic restructuring model.

For all of the above reasons, it is very important to develop successfully inLogistic field at Vietnam market for DHB Logistics Co., LTD, which not onlycontributes to the development and enhancement of economic performance.jointly, create a source for the company, but also create a premise for expandingthe logistics activities of the company to other markets Therefore, it is necessary

to have an overall view of the marketing environment from which to developSolutions to improve the marketing strategy, help improve the efficiency oflogistics business

That is also the reason for the research: IMPLEMENTING MARKETINGMIX FOR LOGISTICS SERVICES OF DHB LOGISTICS co., LTD

1 Research question

What factors inHuence marketing strategy of DHB Logistics Co.,Ltd?

How to develop a marketing strategy for DHB Logistics Co.,Ltd ?

2 Contribution of Research

- Researching the theory of marketing concept, mixed marketingstrategy and how to formulate marketing strategy

- Analyzing the business situation of the company in 2013 - 2018

- SWOT analysis to propose company strategies that need to beimplemented first

- Develop Marketing Mix strategy for Logistics activities

3 Methodology

Methods for Processing and analyzing data:

- For secondary data and primary data in qualitative research: Usinginductive method, synthetic analysis method, comparing collectedresults for research through SWOT matrix tool SWOT analysis method

to identify market needs and volatility to determine characteristics oftarget customers

- For primary data in quantitative research: All collected data will beprocessed with the help of the MOS EXCEL 2010 software

4 Scope of the research

- Space: Main business activities of DHB Logistics Co.,LTD: Customsclearance, Warehouse leasing, Sea transport, Air freight forwarding,Domestic Container transportation, Multilateral transport awake

- Time: analysis time from 2013 to 2018

CHAPTER 2: BACKGROUND OF DHB LOGISTICS CO.,LTD

CHAPTER 3: SOLUTIONS TO COMPLETE MARKETING STRATEGY FORLOGISTICS SERVICES

CHAPTER 1: LITERATURE REVIEW OF MARKETING MIX FOR

LOGISTICS SERVICE 1.1 Definition of Marketing mix

In the behavioral Sciences, Marketing is one of the youngest industries Theappearance of Marketing only started in the 1990s, can generalize the developmentprocess of Marketing into two periods: (1) the period from the beginning of the20th century to the early 1960s and (2) the period from the 1960s to the beginning

In the 50s and 60s Marketing was spread to Westem Europe and Japan, toEastem European countries in the 60s and 70s, to Vietnam in the 80s of thetwentieth century The intemationalization process of Marketing has grown veryfast Today, almost all countries in America, Europe, Asia, Australia, Africa havetaught and applied Marketing in production and business effectively

As Philip Kotler explains in his book Marketing Management:

“Marketing is an administrative and social process through which individuals and groups obtain what they need and desire by the generation, offering and exchange of valuable Products with their equals

Marketing research, conducted for the purpose of new product development

or product improvement, is often concemed with identiíying the consumer's unmet

needs Customer needs are Central to market segmentation which isconcemed

with dividing markets into distinct groups of buyers on the basis of "distinctneeds,

characteristics, or behaviors who might require separate Products ormarketing

mixes." Needs-based segmentation (also known as benetĩt segmentation)

of marketing decision, namely: product, price, promotion, and place Marketingpractice has been occurring for millennia, but marketing theory emerged in theearly twentieth century The contemporary marketing mix, or the 4 Ps, which hasbecome the dominant framework for marketing management decisions, was firstpublished in 1960 In Services marketing, an extended marketing mix is used,typically comprising 7 Ps, made up of the original 4 Ps extended by process,people, and physical evidence Occasionally Service marketers will refer to 8 Ps,comprising these 7 Ps plus pertbrmance

1.2 The importance of Marketing mix

1.2.1 The necessity of developing marketing MIX

• It helps in a clean mix creation

Your marketing mix should have all the P’s compatible with each other Theprice should be compatible with the placement of the product The product should

be compatible with the promotions In general, all the P’s are

to each other

As a result, when you are making a marketing mix, it becomes a Chain ofstrong bonds And these bonds then guide you forward in making the Chain longer.Whenever you are considering adding a new feature or changing existing things,you have to look at the overall picture, which helps in creating a clean marketingmix for the product

• Marketing mix helps in New product development

While designing an existing product, there are any number of ideas whichcan come up for a related product that can be designed by the company Thepricing, place and promotions might be different for such a product Nonetheless,

it can be classitĩed as a new product and hence while designing the marketing mix,the company can come up with good ideas for NPD as well

• Marketing mix helps increase the product portíồlio

Whenever you want to increase the product depth or product line and length,you have to make minor changes to the product In essence, you are making minorchanges in the marketing mix itself You are making changes to the productíeatures, to its pricing and possible to its promotions As a result, by altering themarketing mix and certain features within it, you can end up with an enlargedproduct portíồlio

• It is a guide to improve a business

Physical evidence was an important p in the Service marketing mix If arestaurant or an interior design business realises its important, then naturally theycan act on it and improve the physical evidence of their business thereby bringing

in more business

The importance of marketing mix is evident in more then a single p Peopleand process are important to the organization too and optimizing both can improvethe overall working of the organization Hence, marketing mix is an excellentguide if someone wants to improve their business and is doing gap analysis.

• It helps in differentiation

When you analyse the marketing mix of Competitors, there are manydifferent ways that you can differentiate yourself from the competitor Thecompetitor might have poor promotions and by analysing them, you can createbetter promotions of your own product

The competitor might have poor placement of Products or he might havethe wrong process or the wrong people in place All this can be improved upongiving you a better marketing mix and thereíồre a competitive advantage in themarket

• Finally, it helps you in being dynamic

A company which is well prepared is also prepared when disaster strikes.During recession or during a poor business environment, a company should beready to respond At such times, the company needs to be dynamic in nature Such

a company needs to understand its product, processes, people, promotions and allother P’s better If it understands them, it will respond with a better agility

Thus, there are many ways that marketing mix may be important to anorganization The best part is, analysing and understanding the marketing mix isnot a lengthy procedure and the ROI on the time spent is much higher

1.2.2 The role of marketing strategy

Marketing plays a very important role in business It guides, directs andcoordinates the production and business activities of businesses Thanks tomarketing activities, the decisions made in production and business have a more

solid scientiíĩc basis, the enterprise has more conditions and more

- Marketing is a method to concretize business plans at enterprises

- Help to harmonize the objectives of the enterprise, stimulate research andimprove production

• Forthemarket

Applying Marketing has the effect of stimulating the social market in andoutside the country, closely associated with the mechanism of economic life.Marketing is essential when dealing with market problems, in the relationshipbetween the company and the market

• Forplanning

As a means, a tool finds the direction and path of future operations of thecompany Marketing retlects centralized economic planning Planning andMarketing are closely related: Marketing serves first the processes ofimplementing plans and creating an objective scientihc basis for the plan; wherebythe Science and reality of the plan are enhanced On the basis of marketingresearch, draw conclusions about the ability to consume Products obtained throughthe operation of corresponding investment Capital

1.3 The process of developing marketing MIX

The Marketing mix is a set of decision that needs to be considered prior tointroducing a new product These variables are also called the P's of marketing

They help an industry in making strategic decisions required for the smoothrunning of an organization These variables are:

PLACE

Figure 1: Marketing mix 7P model

Retdil VVholesale Mail order Internet Direct Saies Peer to Peer Multt-Channel

PROMOTION

• Special Offer

Advertising Endorseménts User tnals Dirert madmg LeaHets/postẽrs Free giíts Compctibons loint ventures

are items such as consumer goods (soaps, toothpaste, and spoons) while intangiblecan be Services like tourism This is the most crucial thing in an organization.

A tangible product should have certain characteristics such as direction ofusage, warranty, Service, ingredients or contents, manufactured date and the expirydate In addition, a product should have distinguishing characteristics that is,Unique Selling Proposition (USP) This will assist you to differentiate a productfrom another Moreover, the packaging concept and the phenomena of originalityplay a very crucial role

It is as very essential to understand the nature and dynamics of the product

in question Each item that the marketing strategist considers consists of levels ofProducts There are just three levels of Products They include augmented product,actual product and core product

1.3.3 Place

This is the 3rd p that also contributes very much to the marketing mix Place

is the location where an item can be bought and it focuses more on the availability

of an item at the desired place and time This strategy becomes an obligation asthe items have to be available to the consumers when they want them These placesmight be Virtual Stores such as e-malls and e-market, Online while physical Stores12

are like departmental Stores and supermarkets This encourages the consumer topay heed to the item and this offers the place utility to the customer.

1.3.4 Promotion

This is the 4th p that involves publicizing of the product This characterizes

of all the Communications that a promoter can use in the marketplace to rai se theawareness of the product along with its benetĩts to the aimed segment Promotionhas four different elements: public relation, advertising, sales promotion andpersonal selling Another effective and cheap way of promoting a product isinternet Promotion is better started before the product is introduced in the marketsince it increases the interest of the customers and gets him eager to find out whatthe item is Promotion also determines the positioning of the item as well as thesegmentation targeting The right way of promoting affects all the above threevariables, the product, price and place If there are effective promotions thedistribution points might go up, the price might increase due to increasing brandequity of the item and get the support to introduce other Products Nevertheless,the amount of cash required for broad promotions are high

1.3.6 People

Of both target market and people directly related to the business Thorough

market that is in demand for certain types of Products and Services

their presence is in the marketplace, as they are generally market leaders and haveestablished a physical evidence as well as psychological evidence in theirmarketing They have manipulated their consumer perception so well to the pointwhere their brands appear first in line when an individual is asked to broadly

“name a brand” in their niche or industry

Hence the 7Ps explain the meaning of marketing mix in a detailed manner.They give you the overall appearance of a product

1.4 Nature of Logistics Services

1.4.1 Definition ofLogistics

Logistics - the Science of planning, controlling and managingtransportation, warehousing and other tangible and intangible operationsperformed in the process of bringing raw materials and materials to the productionenterprise , in-plant Processing of raw materials, materials and semi-finishedProducts, bringing finished Products to the consumer in accordance with theinterests and requirements of the latter, as well as transfer, storage and Processingrelated information

This definition, as follows from its content, treats logistics as a Science As

an economic activity, logistics is represented in the following definition: Logistics

is the process of managing the movement and storage of raw materials,components and finished Products in economic tumover from the moment ofpaying money to suppliers until the money is received for delivering finishedProducts to the consumer (the principle of paying money - receiving money)

A business that sells Products has to find a way to get those items tocustomers Even if the items are sold Online, they’ll still move from Point A toPoint B, usually through a shipping Service If you’re a one-person operation, youmay take each item to the post office, but over time you’ll want to upgrade to ashipping provider Grow even íurther, and things will get a little complicated sinceyou’ll deal with shipments using multiple carriers on a regular basis That’s wherelogistics Services providers come in They specialize in managing the shipmentprocess for business, coordinating things so that Products end up where they need

to be in as efficiently a manner possible

1.4.2 Customers

Demand for logistics Services is retlected in the demand for logistics

Services in the market About 40-50% of businesses in developed countries use

"outsourced logistic Services" to transfer their goods In Vietnam, largeenterprises

in consumer goods, food or technology goods, electronics such as Masan,Vinaphone, Samsung, ect have been at the forefront of this trend and are

customers of logistics companies

In Vietnam, domestic trade in goods has increased rapidly over the years,besides, import and export of goods has also grown steadily, thus, the demand forlogistics Services for production, circulation and distribution processes and importand export is also increasing, especially the demand for outsourced Services Inthe future, the demand for full-service, high-quality logistics Services across thecountry, the AEC region and the global scope will also increase

1.4.3 Competitors

In the trend of fierce competition and integration, cutting costs to increasecompetitiveness for goods is an urgent requirement for most businesses Inparticular, logistics activities are increasingly concemed by businesses to optimizeproduction costs Vietnamese businesses not only compete with each other butalso compete with large foreign enterprises

Statistics of Vietnam Logistics Business Association show that there aremore than 1,300 logistics enterprises operating in the country; 80% of which aredomestic logistics enterprises but only 20% of logistics market share in Vietnam.The remaining 80% market share belongs to íồreign-invested logistics enterprises.Many powerful logistics corporations in the world have been gradually penetratingand dominating our country markets such as APL, OOCL, Mitsui OSK Line,Maerks Logistics, NYK Logistic, ect These firms not only provide a full range ofServices from intemational transport to inland transport but also have a wideintemational network, strong finance and modern information technologySystems Meanwhile, Vietnam logistics enterprises currently only perform a very

small part of the above series of activities, or are only subcontractors

logistics investors

Vietnam logistics market is increasingly attracting domestic and tồreignenterprises to participate with exciting competition However, the number ofinefficient enterprises and withdrawing from the market is not less because thedevelopment is largely spontaneous, lack of orientation, lack of Capital, inadequatecapacity for long-term competition Moreover, the Service of these units is single,not yet highly integrated Currently, only a few large logistics companies inVietnam have a closed Chain of Services such as Vinatrans, Vinalinks, Sotran, etc.mainly small and medium enterprises, mainly doing single supply Services in thefield Vietnamese territory such as forwarding Services, packaging Services,warehousing, customs Services, etc Meanwhile, intemational intergrated,integrated Services are handled by tồreign logistics companies Vietnam logisticsenterprises operate inefficiently and increasingly feel more difficult in thecompetition for this Service

1.4.4 Marketing mix in Logistics Service

There is no universally agreed definition for logistics Services, and the rolemay be interpreted in very different ways across the region At the same time,globalization and increased use of technology are changing customer expectationsand the way Services are delivered These factors have consequences for thedevelopment of logistics policy, as the traditional ways of doing business inlogistics, and thereíồre the way the industry is regulated and promoted, may nolonger be appropriate

The detailed list of Services provided by logistics Service providers(beyond Services by carrier, warehouse provider, terminal operator, freightforwarders, NVOCC and MTO) presented in Table 2 can be grouped as follows:

Assembly There is a wide range of assembly activities that can be

carried out in the context of logistics Services, covering both low-endassembly (such as kitting) and high-end assembly (e.g assembly offinal product based on store requirements) Tahese activities can takeplace at Client premises or the warehouses of logistics Serviceproviders Kitting Services could also be included in the role offreight forwarder as they may involve basic labeling and repackagingServices

Supply Chain: Logistics Service providers increasingly offer Services

from the perspective of supply Chain rather than transport This caninclude logistics Consulting and supply Chain design, management ofsupply Chain, operation of supply Chain, operating as lead logisticsprovider, procurement responsibilities or inventory management

Quality control' Logistics Service providers may provide technical

testing, localization and quality inspection Services, either as in-plantServices or at the warehouse

Financial Services' Some providers may choose to provide collateral

management Services, and act as Insurance brokers for their clientsupon request

Customer Services' Logistics Service providers may assume

responsibility of such back-end customer Service activities as returnsand repairs, operate the call centre (particularly relating to warrantyand technical support), and provide reverse logistics Services

Table 1: Mapping of logistics Services

provider Terminal operator

Freight íonvarders

NVOCC MTO Logistics Service

providers

Management of supply Chain (including transport,

warehousing and inventory)

After market Services, e.g reverse logistics,

retums and repaứs

X

Outsourced call centre (e.g technical and

warranty enquiries)

X

* Some companies may choose to outsource some Services they offer In the context of this table, outsourced Services are also considered to be included in the role in question.

**(x) indicates that the Service is considered to be sometimes relevant to the role in question.

According to the assessment of logistics customer, logistics Services arenow provided with a variety of prices, but there is a shortage of Service quality andthe number of logistics companies can meet All stages in the Chain according touser requirements Through the assessment results, the important factors thatService providers should pay attention to improve the quality of logistics Servicesare (1) Flexibility (83.8%); (2) Price (78.4%); and (3) Quality of Service (75.7%).ovided with a variety of prices, but there is a shortage of Service quality and thenumber of Service providers can meet All stages in the Chain according to Userrequirements Through the assessment results, important factors that Serviceproviders should pay attention to improve the quality of logistics Services, thethree most important factors are (1) Flexibility (83.8%); (2) Price (78.4%); and (3)Quality of Service (75.7%).

Figure 2: Evaluate important íactors to improve the quality of logistics

Services

Unit: %

Source: Survey of Ho Chi Minh City University ofTransport and VLI team

Flexibility means the ability of businesses to change policies and Servicepackages to meet the needs of customers in each specitĩc situation Customersrequire logistics companies to be ready to provide tồreign transport Services, haveagents abroad to support customers, the ability to integrate Services Sometimes

customers also require relatively special Services such as c / o declaration(certiíĩcate of origin), transporting bulky goods or tying special goods.

Price is an important factor affecting the choice of Service users and thecompetitiveness of Service providers, so the manufacturing enterprises also want

to be able to cooperate with suppliers Services to become strategic partners(logistics companies use Products of manufacturing enterprises and manufacturingenterprises using logistics Services) to have stable and long-term contracts,minimize risks ro As a result, logistics businesses can also rely on price tools tocreate competitiveness by reducing prices for loyal customers, customers go inlarge numbers However, sometimes there are situations that arise that increasebecause of íluctuations in freight rates, which greatly affect customer satisfaction

In order to improve the quality of Service, a specitĩc issue is mentioned thatthe supply of empty containers needs to ensure the demand for containers in timeand better Container quality This is a concem for shipping lines and logisticsService enterprises Another proposal was to develop the self-printing of Bill(transport documents) at the enterprise for export goods In addition, businessesneed to have an effective grasp and update of tax policy knowledge, which is anopportunity for LSP to consult and support customers In addition, somebusinesses want to improve the coverage and delivery time of logistics companies,such as the supply of new roads, the transport time of North-South lines should beshortened

Providers are also suggested to have a long-term development plan and linkwith other suppliers to meet the diverse needs of users with a full range of Services.for example, the lack of transportation in the peak season Thereíồre, it isrecommended that transport businesses should invest in Heets or combine withother motorbikes to save costs, make use of the distance with both the departureand departure stages However, in order to do this, it is necessary to eliminate21

competition as well as use transport applications to find empty vehicles on thejoumey.

Logistics companies are advised to closely monitor each order andcontinuously review customer feedback at the smallest stages as well as invest orimprove hotlines so customers can retlect and Search for information quickly Andthe problem should be concerned and invested is the integration of applicationtracking and retrieval on the website so customers can actively check the status ofgoods in the process of transport quickly

In terms of information technology, logistics Service providers are expected

to have a uniform, tlexible, more stable logistics System and have the followingServices better met in the future: ERP applications Service management, integrateddistribution System, EDI Container management System as well as warehousemanagement, inventory management Services The proposed JIT principle applies

in transportation and order control to save costs and significantly reduce inventory

Quality of Service staff also needs to be considered and improved.Currently, when the issue of the last delivery has brought a lot of added value,sometimes the driver or delivery staff is an important íactor in direct contact withthe customer and determine the satisfaction of the customer goods about Servicequality Thereíồre, business and production enterprises also recommend logisticsenterprises to train non-professional staff to improve soft skills such as the ability

to communicate with customers, contributing to improving Service quality of thebusiness In addition, a team of planning consultants, supply Chain operationconsultants, logistics specialists and supply Chain management also need to beinvested in both quantity and quality because the team cannot respond meet thecurrent market demand

CHAPTER 2: DHB LOGISTICS CO.,LTD INSIGHTS OF MARKETING

MIX 2.1 A brieí Introduction of the company

Company name: DHB LOGISTICS COMPANY LIMITED

Company name abbreviated: DHB LOGISTICS co., LTD

Type of company Economic organization of production and Service business

Charter Capital: ONE BILLION

Year of establishment: August 9, 2012 Tax code: 0105965238

Main market: Nationwide

Head office address: No 3 Ngo 92 Nguyên Khanh Toan, Ward Quan Hoa, CauGiay District, Hanoi

Phone: 02435553558

Owner - The legal representative of the company: LE VIEN HIEU

DHB LOGISTICS co., LTD specializing in freight forwarding by sea freight andair freight, trucking land and leasing warehouses, bonded warehouses,

With seniority and experience in the field of logistics, company has beenproud that the staff active and enthusiastic, DHB are fully independent and active

in his field Especially with tồreign companies, DHB LOGISTICS providesinvestment advisory Services, import and export procedures, procedures forobtaining the c/o, customs procedures and other legal procedures company weappreciate the cooperation with customers Such cooperation is mutuallybenetĩcial trend was the top priority, clients will save a lot of time and cost andalso the credibility of they, DHB LOGISTICS will devote our best to bring aboutthe best results customers desire With 3 offices in Hai Phong, Da Nang and HoChi Minh city

Address: 05FL, No 3 Lane 92 Nguyên Khanh Toan, Quan Hoa Ward, Cau GiayDist, Ha Noi, Viet Nam

Hai Phong Office: No 388 Lot 22 Le Hong Phong, Ngo Quyen Dist, Hai PhongCity

Da Nang office: 03 Dong Da Street, Hai Chau Dist, Da Nang City

Ho Chi Minh office: 158 Dinh Bo Linh Street, Ward 26, Binh Thanh Dist, Ho ChiMinh City

DHB can serve customers at every time and it is aiming at setting up moreoffices and facilities in Vietnam next time to enhance our Services Besides, thecompany also will develop an agency network in countries and territories to meetcustomers demand for logistics Service all over the world

In a more and more developing, integrating and competing freightforwarding market, DHB always aims to a mutual benetĩt business cooperation.With its business, DHB would like to be the organizer and performer for

“connecting benetĩts” of involving parties, including clients, local andintemational partners, sub-contractors and DHB itself Therefore, our core values

- Prestige: once we made our commitment, we will never break it

- Integrity: we based our business on honesty, responsibility, andethicality

- Professional staff: we create a triendly, supportive, Creative workingenvironment with extensive training programs for our people, so that youcan enjoy their sense of Service, responsiveness, and professionalism

DHB supplies optimal logistics Solutions on demand with intemationalStandard- To become an expert in logistics that customers and partners can alwaystrust and rely on To offer unique Services, and accomplish challenging tasksentrusted by customers and partners no matter how hard the tasks may be.DHB’s commitment:

- Offering the most simple - most effective logistics Solutions

- Competitive price

- Free of charge consultancy

- Maximum saving time & money of customers

- Easy payment method

- Enthusiasm - thoughtíul style of serving

2.2 The areas of operation of the company

DHB LOGISTICS co., LTD is a solution to save import and export costs;intemational and domestic transport is safe and effective; Customs declarationexactly according to the import tariff; Strong support for the most protĩtablecustomers on taxes that are completely free DHB always offers effective costcontrol Solutions:

- Control the cost of taking goods from the customer's warehouse (termDDU- Delivery at the warehouse)

- Control transportation costs and local costs term FOB, CIF, FCA, EXM,DDU

- Control the time limit for temporary import for re-export

- Control the post-clearance consultation, avoid import and export taxincrease

DHB's strength is a large containerized cargo (FCL), providing packageServices for intemational forwarding Dealer System is spread across allcontinents, especially China, Korea, ASIAN, EU, USA

Services and areas of operation of DHB LOGISTICS:

- International freight forwarding (FCL)

- Collection of goods and intemational retail freight (LCL)

- Customs procedures

- Packing, labeling, warehousing, warehousing

- Consulting and making import and export documents and other Services

2.3 Structure of the organizational management

Figure 3: ORGANIZATIONAL STRUCTURE OF DHB LOGISTICS co.,

- Store records and vouchers

- Check import and export papers, ensure validity and law

- Check and classify goods, ensure goods are legal

- Períồrming customs declaration activities through software

- Instruct field staff to do necessary procedures to clear goods

2.3.3 Export- Import Department

- Receive and process information of shipments

- Get D/O, authorization letter at shipping company, agent

- Support and advise customers to provide optimal Solutions

- Arrange and transfer means to support transportation

- Coordinate with relevant departments to serve customers in the best way

- Track delivery progress

2.3.4 Bussiness Department

This is a very important part, playing a key role in the Company Ensureinput and output of the Company, access and market research, productintroduction and market expansion as well as attract new customers Organize theimplementation of business plans, calculate prices and make contracts withcustomers

Provide information, translate documents, translate for management.Monitor and supervise the implementation schedule of departments in time withcontracts with customers and promptly propose the most effective production andbusiness plans

- Sales staff offer prices, provide necessary information and convincecustomers to use the company's Services

- Maintain the existing customer base by keeping in touch regularly,updating policies, new incentives

- Expanding customer groups by promoting new Services and customercare

- In charge of support and supervision when problems arise to ensure thebest Service quality to customers

- Provide necessary documents for customers

- Handling customer requests quickly and effectively

- Notice of goods status on the way of transportation to customers

- Keep track of large orders, solve customer requests promptly

2.3.5 Finance Department

- Managing financial activities throughout the company

- Prepare monthly, quarterly and annual financial plans and periodicallyreport or report at the request of the Director on the tìnancial situation ofthe company

- Financial analysis, financial assessment of all business activities of thecompany

- Prepare accounting statistics, monitor financial implementation topropose effective Capital use measures Provide fast and accurateeconomic information as prescribed by the Director

2.4 Customers

Any organization, business that wants to do business, operate, survive andgrow in the market must be customer centric, identify its target customers andsatisfy the needs of those that customer Therefore, the Company needs toconstantly improve Service quality, cut costs to increase price competitiveness, tomaintain orders of old customers while attracting new customers for company.Current customers of the company are quite diverse, in which the appointed goodshave 3 big customers: Duy Minh Joint Stock Company, Kiara Garments VietnamCo., Ltd., TAV Company Limited In addition, the company has many otherpartners such as Truông Loc Company Limited, Truông Thanh Co., Ltd.,

Figure 4: Customers of DHB Logistics Co.,Ltd 2.5 Competitors

Along with the economic development and increasing intemational tradeactivities, Vietnam's logistics Services market has been explored and has beenquite active According to Vietnam Logistics Services Association, Vietnam hasmore than 1,000 enterprises providing logistics Services but the number ofbusinesses operating in the field of transport, warehousing, wholesale, retail andfast moving up to nearly 140,000 The number of domestic enterprises accountsfor 80% of the total logistics enterprises in Vietnam but only accounts for nearly25% of the market share More and more large corporations in the world appear

íívĩlhẼ DÍSMAC

▲ HYUNDAI ELEVATOR

ThyssenKrupp Elevator (Vietnam)

A company of ThỹssenKmpp Eievator

Mezario, Hapag Lloyd, Zim, Maersk Logistics, NYK Logistics, TWT, ect thathave high quality and professional human resources, strong and abundant financialresources are taking up 75% market share This poses a big challenge for thecompany in the context of VietnanTs logistics market.

However, the company can still compete well with the right steps DHB hassurpassed its rivals to win the right to transport equipment for the Hanoi - Lao Cai

Expressway project; transporting goods for Hyundai aluminum factory

to delivery, delivery, Troubleshooting, supporting manufacturer'smarketing,

transport, distribution programs, providing Solutions to optimize customerprotĩtability

DHB company determined to invest in infrastructure, improve Servicequality, the System operates according to intemational standards is the leadingcompetitive value The company invests in management System, specializes insupplying 3PL Services in strategic economic locations such as Hanoi, Hai Phong,

Da Nang, Tp Ho Chi Minh City, capable of managing and regulating goods onmany locations within the region, country and area DHB also implemented themost advanced management software, which helps reduce 50% of employees'working time in seeking vouchers, tightening relationships with partners, andresponding quickly to market changes

2.6 Situation of business activities of the company

2.6.1 Service structure of the company (2013 - 2018)

DHB Co., Ltd provides Services in freight forwarding business to meet thediverse needs of customers Below is a summary of the company's revenue andService rates from 2015 to the end of 2017