Implementing marketing mix for logistics services of DHB logistics CO , LTD

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

2

INTRODUCTION

Logistics activities make an important contribution to the distribution of goods from production to consumers and also a "global commercial bridge" Today's logistics activities are not only associated with warehousing, freight forwarding, but also planning, arranging raw flow, materials from suppliers to manufacturers, 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 logistics services has seen positive changes with the number of enterprises operating in the industry growing fast and having high growth rates If we look at the pace of trade development in our country, which is also the development target of logistics service industry, we will see import and export turnover increase by 1.86 times, the domestic retail market will increase by 20- on average 25% per year and as a result, the logistics service sector also increased by 20-25% per year However, according to statistics, Vietnam logistics companies only operate

in domestic or some regional countries, and mainly act as agents or undertake each stage for international logistics enterprises Meanwhile, foreign companies (about 25 multinational 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 to customers Because, in the trend of globalization, shippers tend to outsource from many countries and territories around the world Although it may take into account the role of agents established by Vietnamese companies in other countries, this relationship is often quite loose and heterogeneous

3

These are the basic reasons that make the competitiveness of Vietnamese logistics enterprises far below the current foreign enterprises, only undertakes a number of single services in logistics operations such as customs clearance, transportation vehicles, warehouses, etc In the context when Vietnam's import and export activities are growing, domestic trade is expanding and the demand for logistics services increases, this is an issue that needs special attention and overcome to limiting the loss on the domestic market for the sector considered the importance service sector of the economy, not only bringing great benefits to the country but also playing an important role in renovating the current growth and economic restructuring model

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

to have an overall view of the marketing environment from which to develop solutions to improve the marketing strategy, help improve the efficiency of logistics business

That is also the reason for the research: IMPLEMENTING MARKETING MIX FOR LOGISTICS SERVICES OF DHB LOGISTICS CO., LTD

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

- SWOT analysis to propose company strategies that need to be implemented 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: Using inductive method, synthetic analysis method, comparing collected results for research through SWOT matrix tool SWOT analysis method to identify market needs and volatility to determine characteristics of target customers

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

4 Scope of the research

- Space: Main business activities of DHB Logistics Co.,LTD: Customs clearance, 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 FOR LOGISTICS SERVICES

6

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 The appearance of Marketing only started in the 1990s, can generalize the development process of Marketing into two periods: (1) the period from the beginning of the 20th century to the early 1960s and (2) the period from the 1960s to the beginning of the 21st century

Marketing comes from an English term "market." The term "marketing" was first used in 1902 on the lecture hall of Michigan State University in the US

In 1910, all General Universities An important case in the United States began teaching Marketing, and for nearly half a century, Marketing was taught only in English-speaking countries, but only after the world economic crisis (1929 - 1932) and especially after the Second World War (1941-1945), marketing activities have made great leaps, strongly developed to really become a popular scientific field like today

In the 50s and 60s Marketing was spread to Western Europe and Japan, to Eastern European countries in the 60s and 70s, to Vietnam in the 80s of the twentieth century The internationalization process of Marketing has grown very fast Today, almost all countries in America, Europe, Asia, Australia, Africa have taught 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 concerned with identifying the

7

consumer's unmet needs Customer needs are central to market segmentation which is concerned with dividing markets into distinct groups of buyers on the basis of "distinct needs, characteristics, or behaviors who might require separate products or marketing mixes." Needs-based segmentation (also known as benefit segmentation) "places the customers' desires at the forefront of how a company designs and markets products or services." Although needs-based segmentation

is difficult to do in practice, it has been proved to be one of the most effective ways to segment a market In addition, a great deal of advertising and promotion

is designed to show how a given product's benefits meet the customer's needs, wants or expectations in a unique way

The marketing mix (also known as the 4 Ps) is a foundation model It has been defined as the "set of marketing tools that the firm uses to pursue its marketing objectives in the target market" Therefore, it refers to four broad levels of marketing decision, namely: product, price, promotion, and place Marketing practice has been occurring for millennia, but marketing theory emerged in the early twentieth century The contemporary marketing mix, or the

4 Ps, which has become the dominant framework for marketing management decisions, was first published 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 performance

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 The price should be compatible with the placement of the product The product

 Marketing mix helps in New product development

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

it can be classified 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 portfolio

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 minor changes in the marketing mix itself You are making changes to the product features, to its pricing and possible to its promotions As a result, by altering the marketing mix and certain features within it, you can end up with an enlarged product portfolio

 It is a guide to improve a business

Physical evidence was an important P in the service marketing mix If a restaurant or an interior design business realises its important, then naturally they can act on it and improve the physical evidence of their business thereby bringing in more business

9

The importance of marketing mix is evident in more then a single P People and process are important to the organization too and optimizing both can improve the overall working of the organization Hence, marketing mix is an excellent guide 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 many different ways that you can differentiate yourself from the competitor The competitor might have poor promotions and by analysing them, you can create better promotions of your own product

The competitor might have poor placement of products or he might have the wrong process or the wrong people in place All this can be improved upon giving you a better marketing mix and therefore a competitive advantage in the market

 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 be ready 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 all other 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 an organization The best part is, analysing and understanding the marketing mix is not a lengthy procedure and the ROI on the time spent is much higher

10

1.2.2 The role of marketing strategy

Marketing plays a very important role in business It guides, directs and coordinates the production and business activities of businesses Thanks to marketing activities, the decisions made in production and business have a more solid scientific basis, the enterprise has more conditions and more information to satisfy all requirements of customers The role of Marketing is shown in the following aspects:

 For production

- Helping to survey the market, production and consumption activities, to meet customers' needs in a practical way

- Marketing is a method to concretize business plans at enterprises

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

 For the market

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

 For planning

As a means, a tool finds the direction and path of future operations of the company Marketing reflects centralized economic planning Planning and Marketing are closely related: Marketing serves first the processes of implementing plans and creating an objective scientific basis for the plan; whereby the science and reality of the plan are enhanced On the basis of marketing research, draw conclusions about the ability to consume products obtained through the operation of corresponding investment capital

11

1.3 The process of developing marketing MIX

The Marketing mix is a set of decision that needs to be considered prior to introducing a new product These variables are also called the P's of marketing They help an industry in making strategic decisions required for the smooth running of an organization These variables are:

Figure 1: Marketing mix 7P model

12

1.3.1 Product

This is the 1st p which is the unit that an organization wants to supply in the market It might be a tangible object or an intangible service Tangible products are items such as consumer goods (soaps, toothpaste, and spoons) while intangible can be services like tourism This is the most crucial thing in an organization

A tangible product should have certain characteristics such as direction of usage, warranty, service, ingredients or contents, manufactured date and the expiry date In addition, a product should have distinguishing characteristics that

is, Unique Selling Proposition (USP) This will assist you to differentiate a product from another Moreover, the packaging concept and the phenomena of originality play 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 of products There are just three levels of products They include augmented product, actual product and core product

1.3.2 Price

This is the 2nd P which is simply the amount paid by a consumer for the product It is the amount that a firm will charge a customer for offering the product to him This is another very crucial step whereby if the pricing of certain item is too low, the general trend of the consumers that the item is of sub-standard quality, shows on the sale Alternatively, if the pricing of an item is too high, very few people would be interested with the product since the price tag shocks them off However, it is also hard to decide on the pricing strategy as at times some of the consumers tends to believe that if a product charges high it has

to be good

13

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 as the items have to be available to the consumers when they want them These places might be virtual stores such as e-malls and e-market, online while physical stores are like departmental stores and supermarkets This encourages the consumer to pay 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 raise the awareness of the product along with its benefits to the aimed segment Promotion has four different elements: public relation, advertising, sales promotion and personal selling Another effective and cheap way of promoting a product is internet Promotion is better started before the product is introduced in the market since it increases the interest of the customers and gets him eager to find out what the item is Promotion also determines the positioning of the item as well as the segmentation targeting The right way of promoting affects all the above three variables, the product, price and place If there are effective promotions the distribution points might go up, the price might increase due to increasing brand equity of the item and get the support to introduce other products Nevertheless, the amount of cash required for broad promotions are high

1.3.5 Process

The systems and processes of the organization affect the execution of the service So, you have to make sure that you have a well-tailored process in place

14

to minimize costs It could be your entire sales funnel, a pay system, distribution system and other systematic procedures and steps to ensure a working business that is running effectively Tweaking and enhancements can come later to

“tighten up” a business to minimize costs and maximise profits

1.3.6 People

Of both target market and people directly related to the business Thorough research is important to discover whether there are enough people in your target market that is in demand for certain types of products and services The company’s employees are important in marketing because they are the ones who deliver the service It is important to hire and train the right people to deliver superior service to the clients, whether they run a support desk, customer service, copywriters, programmers…etc When a business finds people who genuinely believe in the products or services that the particular business creates, it's is highly likely that the employees will perform the best they can Additionally, they'll be more open to honest feedback about the business and input their own thoughts and passions which can scale and grow the business This is a secret, “internal” competitive advantage a business can have over other competitors which can inherently affect a business's position in the marketplace

1.3.7 Physical Evidence

In the service industries, there should be physical evidence that the service was delivered Additionally, physical evidence pertains also to how a business and its products are perceived in the marketplace It is the physical evidence of a business' presence and establishment A concept of this is branding For example, when you think of “fast food”, you think of McDonalds.Whe n you think of sports, the names Nike and Adidas come to mind You immediately

15

know exactly what their presence is in the marketplace, as they are generally market leaders and have established a physical evidence as well as psychological evidence in their marketing They have manipulated their consumer perception

so well to the point where 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 of Logistics

Logistics - the science of planning, controlling and managing transportation, warehousing and other tangible and intangible operations performed in the process of bringing raw materials and materials to the production enterprise , in-plant processing of raw materials, materials and semi-finished products, bringing finished products to the consumer in accordance with the interests and requirements of the latter, as well as transfer, storage and processing related 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 turnover from the moment of paying money to suppliers until the money is received for delivering finished products to the consumer (the principle of paying money - receiving money)

A business that sells products has to find a way to get those items to customers Even if the items are sold online, they’ll still move from Point A to Point B, usually through a shipping service If you’re a one-person operation, you may take each item to the post office, but over time you’ll want to upgrade

16

to a shipping provider Grow even further, and things will get a little complicated since you’ll deal with shipments using multiple carriers on a regular basis That’s where logistics services providers come in They specialize in managing the shipment process for business, coordinating things so that products end up where they need to be in as efficiently a manner possible

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 for logistics services for production, circulation and distribution processes and import and export is also increasing, especially the demand for outsourced services In the future, the demand for full-service, high-quality logistics services across the country, 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 increase competitiveness for goods is an urgent requirement for most businesses In particular, logistics activities are increasingly concerned by businesses to optimize production costs Vietnamese businesses not only compete with each other but also compete with large foreign enterprises

Statistics of Vietnam Logistics Business Association show that there are more than 1,300 logistics enterprises operating in the country; 80% of which are domestic logistics enterprises but only 20% of logistics market share in Vietnam

17

The remaining 80% market share belongs to foreign-invested logistics enterprises Many powerful logistics corporations in the world have been gradually penetrating and dominating our country markets such as APL, OOCL, Mitsui OSK Line, Maerks Logistics, NYK Logistic, ect These firms not only provide a full range of services from international transport to inland transport but also have a wide international network, strong finance and modern information technology systems Meanwhile, Vietnam logistics enterprises currently only perform a very small part of the above series of activities, or are only subcontractors to foreign logistics investors

Vietnam logistics market is increasingly attracting domestic and foreign enterprises to participate with exciting competition However, the number of inefficient enterprises and withdrawing from the market is not less because the development is largely spontaneous, lack of orientation, lack of capital, inadequate capacity for long-term competition Moreover, the service of these units is single, not yet highly integrated Currently, only a few large logistics companies in Vietnam have a closed chain of services such as Vinatrans, Vinalinks, Sotran, etc mainly small and medium enterprises, mainly doing single supply services in the field Vietnamese territory such as forwarding services, packaging services, warehousing, customs services, etc Meanwhile, international intergrated, integrated services are handled by foreign logistics companies Vietnam logistics enterprises operate inefficiently and increasingly feel more difficult in the competition for this service

1.4.4 Marketing mix in Logistics service

There is no universally agreed definition for logistics services, and the role may be interpreted in very different ways across the region At the same time, globalization and increased use of technology are changing customer expectations and the way services are delivered These factors have

18

consequences for the development of logistics policy, as the traditional ways of doing business in logistics, and therefore the way the industry is regulated and promoted, may no longer be appropriate

The detailed list of services provided by logistics service providers (beyond services by carrier, warehouse provider, terminal operator, freight forwarders, 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 end assembly (such as kitting) and high-end assembly (e.g assembly of final product based on store requirements) Tahese activities can take place at client premises or the warehouses of logistics service providers Kitting services could also be included

low-in the role of freight forwarder as they may low-involve basic labellow-ing and repackaging services

 Supply chain: Logistics service providers increasingly offer

services from the perspective of supply chain rather than transport This can include logistics consulting and supply chain design, management of supply chain, operation of supply chain, operating

as lead logistics provider, procurement responsibilities or inventory management

 Quality control: Logistics service providers may provide technical

testing, localization and quality inspection services, either as plant services or at the warehouse

in- Financial services: Some providers may choose to provide

collateral management services, and act as insurance brokers for

19

their clients upon request

 Customer services: Logistics service providers may assume

responsibility of such back-end customer service activities as returns and repairs, operate the call centre (particularly relating to warranty and technical support), and provide reverse logistics services

20

Table 1: Mapping of logistics services

provider

Terminal operator

Freight forwarders

providers

Management of supply chain (including transport,

warehousing and inventory)

After market services, e.g reverse logistics,

returns and repairs

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

21

According to the assessment of logistics customer, logistics services are now provided with a variety of prices, but there is a shortage of service quality and the number of logistics companies can meet All stages in the chain according

to user requirements Through the assessment results, the important factors that service providers should pay attention to improve the quality of logistics services are (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 the number of service providers can meet All stages in the chain according

to user requirements Through the assessment results, important factors that service providers should pay attention to improve the quality of logistics services, the three most important factors are (1) Flexibility (83.8%); (2) Price (78.4%); and (3) Quality of service (75.7%)

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

services

Unit: %

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

Flexibility means the ability of businesses to change policies and service packages to meet the needs of customers in each specific situation Customers require logistics companies to be ready to provide foreign transport services, have agents abroad to support customers, the ability to integrate services

83.80% 78.40%

Price Quality of service

Time Reliability Customer support policy

Information support system

Human Reputation

22

Sometimes customers also require relatively special services such as C / O declaration (certificate of origin), transporting bulky goods or tying special goods

Price is an important factor affecting the choice of service users and the competitiveness 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 manufacturing enterprises using logistics services) to have stable and long-term contracts, minimize risks ro As a result, logistics businesses can also rely on price tools to create competitiveness by reducing prices for loyal customers, customers go in large numbers However, sometimes there are situations that arise that increase because of fluctuations in freight rates, which greatly affect customer satisfaction

In order to improve the quality of service, a specific issue is mentioned that the supply of empty containers needs to ensure the demand for containers in time and better container quality This is a concern for shipping lines and logistics service enterprises Another proposal was to develop the self-printing of Bill (transport documents) at the enterprise for export goods In addition, businesses need to have an effective grasp and update of tax policy knowledge, which is an opportunity for LSP to consult and support customers In addition, some businesses 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 be shortened

Providers are also suggested to have a long-term development plan and link with 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 Therefore, it

is recommended that transport businesses should invest in fleets or combine with

23

other motorbikes to save costs, make use of the distance with both the departure and departure stages However, in order to do this, it is necessary to eliminate competition as well as use transport applications to find empty vehicles on the journey

Logistics companies are advised to closely monitor each order and continuously review customer feedback at the smallest stages as well as invest or improve hotlines so customers can reflect and Search for information quickly And the problem should be concerned and invested is the integration of application tracking and retrieval on the website so customers can actively check the status of goods in the process of transport quickly

In terms of information technology, logistics service providers are expected to have a uniform, flexible, more stable logistics system and have the following services better met in the future: ERP applications service management, integrated distribution system, EDI container management system

as well as warehouse management, 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 factor in direct contact with the customer and determine the satisfaction of the customer goods about service quality Therefore, business and production enterprises also recommend logistics enterprises to train non-professional staff to improve soft skills such as the ability to communicate with customers, contributing to improving service quality of the business In addition, a team of planning consultants, supply chain operation consultants, logistics specialists and supply chain management also

24 need to be invested in both quantity and quality because the team cannot respond

meet the current market demand

25

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

MIX 2.1 A brief 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 Nguyen Khanh Toan, Ward Quan Hoa, Cau Giay 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 and air freight, trucking land and leasing warehouses, bonded warehouses,

Address: 05FL, No 3 Lane 92 Nguyen Khanh Toan, Quan Hoa Ward, Cau Giay Dist, Ha Noi, Viet Nam

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

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 Chi Minh City

DHB can serve customers at every time and it is aiming at setting up more offices and facilities in Vietnam next time to enhance our services Besides, the company also will develop an agency network in countries and territories to meet customers demand for logistics service all over the world

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

“connecting benefits” of involving parties, including clients, local and international partners, sub-contractors and DHB itself Therefore, our core values are:

27

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

- Integrity: we based our business on honesty, responsibility, and ethicality

- Professional staff: we create a friendly, supportive, creative working environment with extensive training programs for our people, so that you can enjoy their sense of service, responsiveness, and professionalism

DHB supplies optimal logistics solutions on demand with international standard- To become an expert in logistics that customers and partners can always trust and rely on To offer unique services, and accomplish challenging tasks entrusted 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 - thoughtful 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; international and domestic transport is safe and effective; Customs declaration exactly according to the import tariff; Strong support for the most profitable customers on taxes that are completely free DHB always offers effective cost control solutions:

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

28

- 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 tax increase

DHB's strength is a large containerized cargo (FCL), providing package services for international forwarding Dealer system is spread across all continents, especially China, Korea, ASIAN, EU, USA

Services and areas of operation of DHB LOGISTICS:

- International freight forwarding (FCL)

- Collection of goods and international retail freight (LCL)

- Customs procedures

- Packing, labeling, warehousing, warehousing

- Consulting and making import and export documents and other services

29

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

30

- Check and classify goods, ensure goods are legal

- Performing 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 Ensure input and output of the Company, access and market research, product introduction and market expansion as well as attract new customers Organize the implementation of business plans, calculate prices and make contracts with customers

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

- Sales staff offer prices, provide necessary information and convince customers to use the company's services

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

- 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 periodically report or report at the request of the Director on the financial situation

2.4 Customers

Any organization, business that wants to do business, operate, survive and grow in the market must be customer centric, identify its target customers and satisfy the needs of those that customer Therefore, the Company needs to constantly improve service quality, cut costs to increase price competitiveness, to maintain orders of old customers while attracting new customers for company Current customers of the company are quite diverse, in which the appointed goods have 3 big customers: Duy Minh Joint Stock Company, Kiara Garments

33

However, the company can still compete well with the right steps DHB has surpassed its rivals to win the right to transport equipment for the Hanoi - Lao Cai Expressway project; transporting goods for Hyundai aluminum factory project in Diem Thuy Industrial Zone, Thai Nguyen; Cargo transportation for the project Labor Safety Training Center (Son Tay Town) funded by Koica of Korea, ect In order to achieve this, DHB LOGISTICS has implemented 3PL (third party logistics) package from storage, packaging, distribution, storage, order fulfillment to delivery, delivery, Troubleshooting, supporting manufacturer's marketing, transport, distribution programs, providing solutions

to optimize customer profitability

DHB company determined to invest in infrastructure, improve service quality, the system operates according to international standards is the leading competitive value The company invests in management system, specializes in supplying 3PL services in strategic economic locations such as Hanoi, Hai Phong, Da Nang, Tp Ho Chi Minh City, capable of managing and regulating goods on many locations within the region, country and area DHB also implemented the most advanced management software, which helps reduce 50%

of employees' working time in seeking vouchers, tightening relationships with partners, and responding 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 the diverse needs of customers Below is a summary of the company's revenue and service rates from 2015 to the end of 2017