Solution for the completion of logistics support services at logistics sao viet company limited

Integration into the world economy has generated and significantly increased the volume of goods traded domestically and abroad, so freight logistics play an important role and becoming

ACADEMY OF POLICY AND DEVELOPMENT

INTERNATIONAL SCHOOL OF ECONOMICS AND FINANCE

ACKNOWLEDGEMENTS

After 4 years of studying and practicing at the Academy of Policy and Development, I have received the enthusiastic guidance and teaching from lecturers, especially lecturers from International School of Economics and Finance in term of theoretical and practical knowledge And during my internship at Vietnam Logistics Sao Viet company limited, I had the opportunity to apply the knowledge in school to work in the company, and at the same time, I also learned a lot of practical experience from senior employees With my own efforts, I have completed my internship report From these results, I would like to sincerely thank

Firstly, I would like to express my appreciation to all lecturers of Academy of Policy and Development who taught me a lot of valuable knowledge and created favorable conditions for me to take my internship

In addition, I would like to express my sincere gratitude to my supervisor, PhD Nguyen The Vinh, who gave me useful guidance and advice that help me to finish my internship as well as complete my report It was a pleasure working with her

Finally, I am thoroughly grateful to Mrs Nguyen Thi Chuyen, the Director of Business Development Division, Vietnam Logistics Sao Viet Company limited She not only offered me an opportunity to complete my internship course, get information about the company but also gave me professional guidance and insightful comments that considerably help me gain a lot of experience in analyzing and evaluating the potential and risk of stocks and derivatives

Due to the limited knowledge, it is unavoidable to make mistakes in interpretation and presentation I am look forward to receiving your comments and suggestions so that the internship report will achieve better results

TABLE OF CONTENT

LIST OF ACRONYMS

LIST OF TABLES

LIST OF FIGURES AND PICTURES

PREFACE

After more than 30 years of implementing the renovation process, the Vietnamese economy has gained many remarkable achievements In the political report of the National Party Congress of the 12th Party, the Communist Party of Vietnam made comments and assessments “Overall, over 30 years of innovation, our country has achieved tremendous achievements and historical significance on the path of building socialism and protecting the socialist country” With great contributions, we recognize from the government in the opening of the national economy, deeper and wider integration into the world economy This is a strategic work that takes a very important role Which in particular the position of export is irreplaceable Exports from domestic individuals and private economic organizations constitute a potential internal force to bring the country to sustainable development

In order for import-export goods to be exchanged smoothly, the means of transport have a huge role The shipping process includes systems that support goods from delivery to the destination, ensuring adequate supply of the requirements of the process

of buying-selling at the lowest cost through the method of freight forwarding, air, road… Nowadays, Vietnam is in the process of global integration, opening the economy Integration into the world economy has generated and significantly increased the volume of goods traded domestically and abroad, so freight logistics play an important role and becoming an indispensable stage in the process of import and export However, this means that Vietnam must compete with foreign Logistics enterprises with financial strengths, experience and a professional business network across the globe In fact 70% of revenues are currently falling into the pockets of foreign businesses In Vietnam, there are thousands of businesses in the domestic Logistics service but currently only grasp about 10% of the market Therefore, reducing foreign dependencies and aiming to export Logistic services is the goal to be achieved in Vietnam, thereby enhancing the position in the International Business Network To achieve that goal, the investment in development to enhance

competitiveness for every Vietnamese company is the necessary job to best meet the needs of customers Understanding the situation, the Vietnam Logistics Sao Viet Company Limited has become one of the contributing enterprises to support Vietnam's delivery network with considerable recognition However, to be able to reach further in the harsh competitive environment, it is necessary to have practical, more responsive solutions that can reach the market and drive business

After a 2-month internship here, I had a certain amount of experience and understanding with the desire to contribute a small part to the development of the company, I chose the topic "Solution for the completion of Logistics support services

at Logistics Sao Viet Company Limited"

CHAPTER 1: OVERVIEW OF LOGISTIC SERVICES

1.1 Overview of Logistics

1.1.1 The definition of Logistics

Logistics is one of the few most difficult terms to translate, like the word "marketing" and even other languages Because the meaning of the word is so broad, no word can convey its significance

Logistics have concepts derived from military demands in providing for themselves during the movement of the troop from the base zone to the frontline During the ancient Greek period, the Roman Empire and the Byzantine Empire, there were officers with the label "logistikas" who were responsible for financial matters as well

as supply and distribution In the military, logistics is managed by experts to know how and when to move resources to the locations they need In military science, maintaining supply while disrupting an enemy's supply is a critical element of military strategy Logistics has a business-related concept derived from the years 1950 This is mainly due to the increase in supply, transportation in a globalization world that requires specialists in the field In business, logistics can understand the focus of both internal and external forces including the cycle process from the manufacturer to the end consumer The main function of logistics includes management of transportation, warehousing and organizational activities as well as planning for such activities The logistics manager combines the combined knowledge of each function and coordinates the resources within the organization to operate

In the 1970s and 1980s, logistics service companies became more and more popular with the Just in time model Which was invented by the Japanese In the 1990s, logistics

has marked in the commercial market through the application of QR models (Quick Respone) and ECR (Efficient Consumer Respone) to meet consumer performance

According to the United Nations Economic and Social Council (ECOSOC), the

development of Logistics in recent years has been divided into three phases

 Phase 1: Physical Distribution

This period began in the 1960-1970s of the twentieth century In this period, people were interested in systematic management of interrelated activities to ensure efficient delivery of finished and semi-finished products to customers These are the activities

of transporting, preserving goods, managing inventory, packaging, these activities are called product distribution

 Phase 2: Logistics system

This period took place in the 1980s and 1990s of the twentieth century with the main highlight that companies combine two sides: input (supply of materials) with output (distribution of products), in order to Cost savings, increase the efficiency of this process This combination is the Logistics system

 Phase 3: Supply chain management

The period took place in the last years of the twentieth century until now a strategic issue is the continuity of the chain of operations from the supplier - the producer and the consumer of the final product with added value such as the creation and delivery of relevant documents, tracking system, testing to increase product value We can easily see that this definition focuses on partnerships, partner development, it combines business manufacturing businesses with customer suppliers as well as those related to management systems such as transportation companies, warehousing and information technology providers

There are many different concepts of Logistics in the world which are built based on many different industries and research purposes of Logistics services, however, some key concepts can be mentioned below:

According to the Economic and Social Commission for Asia and the Pacific

(UNESCAP), the Logistics definitions is explained as follows: Logistics is understood

as the management of the flows of transport and storage of raw materials, production process, finished products and handling of relevant information from the place of

origin to the place of final consumption according to customer requirements

According to the Council of Supply Chain Management Professionals – CSCMP, Logistics is a part of the supply chain that conducts the planning and control of the transport, cargo storage, information processing, along with related services from the place of origin to the place of consumption in an effective and effective way to meet customer requirements

Logistics is the process of planning, provision and manage the flow and storage efficient goods, services and related information from the origin to point of consumption for the purpose of meeting demand of customers (World maritime University, D.Lambert 1998)

According to Coyle, Bardi & Langley, Logistics is part of the supply chain process that plays a role in planning, implementing and effectively controlling the flow and storage

of goods, services and related information from the source point to the point of sale with the goal of satisfying customers' needs

There are also other concepts of Logistics Through the above concepts, however, we can see Logistics not a single operation but a series of activities covering all elements that make up the product, the process of warehousing, product production and distribution to the consumer

1.1.2 Features of Logistics

Logistics can be considered as a combination of business activities on the main aspects

of survival logistics, operational logistics and system logistics

Logistic survival is related to the basic needs of life Survival logistics are a basic activity of early societies and an essential component of an industrialized society Survival Logistics provides the platform for Logistics operation

Logistics works to expand basic needs by linking the production systems of products Logistics links the raw materials that businesses need in the production process, the tools that use that material in the process production and distribution of products

resulting from that manufacturing process Thus Logistics operations only involve the movement and storage of raw materials in, through and out of the business and are the foundation for the Logistics system

Logistics system links resources should be in keeping the system functioning These resources include equipment, spare parts, human resources and training, technical documentation, testing equipment, support and factories These elements are indispensable and must be closely associated if they want to maintain the operation of a production or circulation system

Survival Logistics, operational logistics and logistics systems are not separated from each other, closely related to each other, as a foundation for each other and form the logistics chain

Logistics function to support business activities

The Logistics has a support function that shows where it exists to provide support for other parts of the business Logistics supports the production process and supports the product after being moved ownership from the manufacturer to the consumer

Logistics also supports the activities of the business, showing: Manufacturing is supported by Logistics through managing the movement and storage of raw materials going into the business and semi-finished products moving within the enterprise

A business in normal operating conditions will require support from Logistics elements A specific Logistics element is provided from a professional rather than from within the business But the responsibility for the quality of this support service is the responsibility of Logistics in the business

Logistics is the high development, complete of logistics transportation, freight transfer attached to the logistic service

Logistic is the development of high-level and complete logistics transport service Through the stages of development, Logistics has made the concept of traditional freight logistics increasingly diversified and richer From the client's behalf to perform

the monotonous work such as: Renting vessel, storing freight, preparing goods, packing, customs clearance To offer to provide a transportation service from warehouse to warehouse (door to door) in the right time to serve customers ' needs From the place of acting as an agent, the trustee becomes a principal in the freight logistics activities with the customer, responsible to the sources of adjustment laws for his or her conduct Today, the service request that is offered to customers must have diversity and abundance Therefore, the service provider must organize management of

a synchronization system from the delivery process to transportation, supply of materials for production and business, preservation of goods in the warehouse, distribute the goods in the right place and at the right time, using electronic information

to check… Apparently the freight logistics service is not as simple as before but is developed at a high level with full of complexity The freight carrier become the Logistics Service Provider

Logistics is the complete development of multi-modal transportation services

Previously, goods went in the form of retail goods from the exporting country to the importing country and experienced many different means of transport, so the probability of loss risk for goods was very high, and the shipper had to sign multiple contracts with different carriers while their liabilities were limited to the route or service they undertake By the 60-70s of the twentieth century, the container revolution

in the transport industry had ensured safety and reliability in cargo transportation, which was the premise and basis for the establishment and development of multi-transportation method When the multimodal transport was born, the shippers had to sign a single contract with the Multimodal Transport Operator (MTO) The multimodal transport operator will be responsible for organizing the entire carriage of goods until delivery by a multimodal transport documents even though he may not be the actual carrier The main cargo owner is the organizer of the Logistics service The Logistics service will help the owners save cost and time, thereby improving business efficiency

In summary, Logistics is a synchronous coordination of activities, a service to support

activities, a high and complete development of freight forwarding services and an ingenious development of the multimodal transport service This is the fundamental characteristics of Logistics

1.1.3 Logistics classification

1.1.3.1 Classification in the form of Logistics

Based on the allocation of labor and the professionalism of enterprises we have models

of Logistics service provider (LSP) as follows

1PL – First party logistics

The owner of the goods must organize and implement logistics activities to meet his needs Accordingly, cargo owners must invest in transport means, warehouses, information systems, and labor to manage and operate logistics activities First Party Logistics enlarges the size of businesses and often reduces business efficiency, because businesses do not have the necessary scale, experiences and professional skills to manage and operate logistics activities

2PL – Second Party Logistics

A second-party logistics service provider who provides services for a single operation

in the chain of logistics activities (transportation, warehousing, customs clearance, payment ) to meet the needs of the owner, not yet integrated logistics activities This category includes shipping companies by road, air and warehousing companies, customs declarations, intermediate payments

3PL – Third Party Logistics

3rd party Logistics is the person who manages the goods and performs logistics services for each functional department on behalf of the owner Therefore, 3PL includes many customer services that incorporate the rotation, storage of goods, information processing and integrated into the customer's supply chain

4PL – Forth Party Logistics

4th-party logistics are integrators who help link their resources, potential and scientific and technical facilities with other organizations to design, build, and operate solutions logistics chain 4PL aims to manage the logistics process, such as taking goods from the manufacturing site, completing import and export procedures, and delivering goods

to the final destination

5PL – Fifth Party Logistics

The fifth party Logistics provider is also known as a logistics aggregator They will synthesize the needs of 3PL and other types into large volumes to get better prices with different airlines and shipping companies This type of logistics is not based on assets

In recent years, 5PL is regarded as the most popular and developed logistics service for e-commerce today 5PL manages and coordinates the activities of 3PL and 4PL through information solutions relating to supply and demand in the e-commerce delivery market 5PL features are systems Order management systems (OMS), Warehouse Management systems (WM), and transport management systems (TMS) These three systems are closely related to each other in a unified information technology system

1.1.3.2 Classification by process

Inbound Logistics: is an activity to ensure supply of input resources (raw materials, information, capital, ) for the business activities of enterprises in an optimal way both

in position, time and cost

Outbound Logistics: Activities that ensure the supply of components to consumers in a good way both in terms of location, time and cost to meet the goals of the business Reverse Logistics: The process of recovering by-products, scraps, waste products, and other factors that affect the environment arising from the process of production, distribution and consumption back for recycling or processing

1.1.3.3 Classification by goods object

 Business Logistics

Each business field, the specific commodity object will have different ways of preserving, transporting and managing goods Therefore, the logistics chain of each one has its own characteristics

FMCG – Fast Moving Consumer Goods: In this commodity, the most important requirement is to ensure the delivery time, the time from the goods produced until the end consumer

Automotive Logistic: This sector requires the combined rhythmic coordination between factories, the production division of individual spare parts, ensuring the end time of this stage is the first time of the following stage, avoiding the waiting time It is especially important to reserve and distribute spare parts

There are also types such as: Chemical Logistics, Pharmaceutical Logistics, Petroleum Logistic

 Military Logistics

Logistics plays a role of planning, integrating all aspects of the support for military combat capability (in the deployment of troops or troops) and military equipment to ensure availability, reliability and efficiency Many documents refer to the operation

of the Ho Chi Minh Trail as a typical example of logistics in the war against the US to save the country of Vietnam, which is called the Vietnam War

 Event Logistics

Logistics acts as a network of activities, facilities and people necessary to organize, plan and deploy these resources for an effective and successful event

 Service Logistics

Logistics helps Supply, plan and manage vehicles / capital, human resources and

supplies to support or secure a service or business operation (Langley, Coyle, Gibson,

Novack & Bardi, 2008 )

1.2 Overview of Logistics services

1.2.1 Definition of Logistics services

Other than the term "logistics", the term "Logistics services" has not been mentioned much in the world's documents In contrast, in Vietnam, the concept of Logistics is not reached, Vietnam commercial Law 2005 (article 233) only gives the concept of

"Logistics services" as follows:

Logistics service is a commercial operation in which the trader performs one or more stages including receiving, and transportation, warehousing, storage, customs clearance, other paperwork, customer advice, packaging, code registration, delivery or other services related to the goods under the agreement with the customer to enjoy remuneration

This definition is not much different from the person who provides the multimodal transport Service (MTO) by the way this definition of Logistics is in essence an active set of factors supporting the process of transporting products from production to place

of consumption

In this view, the logistics services associated both the process of importing raw materials and materials as inputs to the production process, produce the goods and put into circulation and distribution channels to reach the end consumer This definition of logistics services contributes to a clear separation between the individual service providers such as transportation services, freight forwarding, customs clearance, distribution, manufacturing support services, management consulting and a professional logistics service provider, who will undertake all stages of the process of forming and delivering goods to end consumers Thus, the professional logistics service provider requires specialized, firm business to provide the service "package" for manufacturers This is a highly specialized work

1.2.2 Role of logistics services

 Logistics services contribute to improving management efficiency, reducing

costs in the manufacturing process, increasing competitiveness for businesses

According to one study, logistics activities in the Chinese market grew at an average rate of 33% per year and in Brazil 20% per year Besides, from the statistics of some research organizations on logistics services, the cost of logistics services accounts for 10-13% of GDP in developed countries, in developing countries higher about 15-20% This shows that the cost of logistics services is very large, so the formation and development of logistics services will help firms as well as the entire national economy reduce costs in the logistics chain, refine simpler and more efficient in the process of production and business Reducing the cost of production and the streamlining of production and business processes are enhanced contribution increase competitiveness

of the enterprise market In fact, in recent years in European countries, logistics costs have greatly decreased and are likely to decrease further in the coming years

 Logistics services have the effect of saving and reducing costs in distribution

and distribution activities

Commodity prices on the main market are equal to the prices at the production site plus the cost of circulation The cost of goods circulation is mainly the transportation fee, which accounts for a large proportion and constitutes a part of the price of goods in the market, especially goods in international trade Transport is an important element of circulation Karl Marx once said "Significant circulation means the actual journey of goods in space is solved by transportation." Transport is responsible for bringing the goods to the place of consumption and creating the ability to implement the value and use value of the goods In international trade, transportation costs account for a large proportion

According to UNCTAD statistics, the cost of sea transport accounts for an average of 10-15% of the FOB price, or 8-9% of the CIF price That transport is the most important factor in the logistics system so that the increasingly complete and modern logistics will save on transportation fees and other costs incurred in the process of circulation leading to saving and reducing circulation costs The cost of transportation

is calculated, total logistics costs (including packaging, warehousing, transportation, management, ) are estimated to account for up to 20% of the total production costs in developed countries, whereas only freight costs can constitute up to 40% of the export value of some countries without the coastline

 Logistics contributes to increased business value of freight logistics enterprises

Logistics service is a type of service with a larger scale and more complicated than pure forwarding In the past, freight forwarders only provided customers with simple, pure and single services Nowadays, due to the development of production and circulation, the details of a product can be attributed to many countries and a product type of business that can be consumed in many countries and many different markets,

so the service that customers require from the business of freight logistics must be diversified and abundant

 Developing logistics services contribute to expanding the market in

international trade

The purpose of production is for consumption Market problems are always important and are always interested by producers and business in production Businesses who want to dominate and expand the market for their products need the support of logistics services Logistics services act as a bridge in moving goods on new routes to new markets in accordance with the time and place set Development logistics services have

a great effect in exploiting and expanding business markets for businesses

 Logistics development contributes to reducing costs, finishing and standardize

documents in international business

In fact, a transaction in international trade often requires consuming papers and documents According to United Nations – UN estimates, the annual cost of paperwork for all aspects of world trade has exceeded $ 420 billion According to the calculations

of experts, particularly the types of documents and cumbersome documents annually it consumes more than 10% of international trade turnover, which greatly affects the

activities in international trade Logistics has provided diversified services that have had the effect of reducing the cost of papers and vouchers in international trade Multi-modal transport services provided by business logistics services have eliminated a lot

of costs for paperwork, upgrading and standardize vouchers as well as reducing office workload in commodity circulation, thereby enhancing the efficiency of international trade

In addition, the development of electronic logistics will create the revolution in transportation and logistics services, the cost of documents and vouchers in commodity circulation is reduced to the maximum, the more advanced logistics service quality will narrow further obstructing in terms of space and time in the flow of materials and cargo The countries will be closer together in manufacturing and circulation activities

1.2.3 Classification of Logistics services

1.2.3.1 Classification by World Trade Organization – WTO

Core Logistics Service: is an essential service in logistics activities It needs to be liberalized to promote the movement of services including: cargo handling services, warehousing services, transport agency services and other support services

Transportation-related services: services related to transportation supply provide an environment favorable to the operation of 3rd party logistics development including cargo transport (sea, inland waterway, air, railway, road and vehicle rental without operators) and other services related to logistics services including analytical services and technical testing, shipping services, Commission agency services, wholesale and retail services

Non-core Logistics Service: Including computer and computer-related services, packaging services and management consulting services

1.2.3.2 Classification by the provisions of the Commercial Law

According to Vietnam commercial Law 2005, article 233 specifies the following logistics services:

- Logistics services mainly include:

+ Cargo loading and unloading services which include container handling activities + Warehousing services, storage of goods including warehousing and warehousing operations, materials and equipment

+ Transportation Agency services, including agent activities for customs formalities, and for planning cargo handling

+ Other supplementary services, including activities for the reception, storage and management of information relating to transportation and storage of goods throughout the logistics chain, re-processing of goods, goods inventory, returned goods, fad and redistribution, rental operations and container rentals

- Logistics services related to transport include:

+ Shipping services

+ Inland waterway transport services

+ Air transport services

+ Railway transport services

+ Road transport services

+ Pipeline transportation services

- Other related logistics services

+ Technical inspection and analysis services

+ Post service

+ Wholesale trade services

+ Retail services include warehouse management, collection, collection, sorting, distribution and delivery

+ Other transport support services

These categories are consistent with the WTO's commitment to transportation services, but have not yet been able to show modern services in the current conditions

1.2.3.3 Classification according to service content

Designing/Planning: Providing logistics services to design the customer supply chain

restructuring plan to achieve optimal results and maximize the advantages in competition The company that provides logistics services will be based on the status

of the customer's production organization to build a suitable supply chain, build a reasonable production process, ensure a minimum reduction of time and unnecessary costs

+ Sequencing: Arranging parts and supplies for a production line in specific order for convenience in production and packaging

+ Milk Runs: optimizing cargo lines by gathering goods and delivery to multiple customers at the same time Design a complex roadmap with many unloading points, combining multiple orders from multiple customers at the same time The purpose is to maximize the transportation capacity of vehicles and save on transport costs

+ VIM - Vendor Inventory Management: Conducting goods from many small suppliers

of goods or supplies necessary for the production and business process of customers, warehousing and distribution to customers

Manufacturing Support

+ Sub - Assembly: applied to electronics, automobiles, fast moving consumer goods

Logistics companies will always undertake the work of assembling the basic parts of products from individual components

+ Inventory Planning: Planning and controlling the storage process with the most modern warehouse management systems to ensure optimal storage and minimize costs + Packing / Labeling: Packing and labeling of goods

Outbound Logistics/Warehousing and Distribution:

Under a modern and large-scale warehouse system, logistics companies can handle finished products and distribute them to consumers at low cost In addition, at the request of customers, these companies also provide a number of special warehouse services such as: Contract warehousing, Dedicated warehousing, Multi-user warehousing, Bonded warehousing, Automated warehousing, Cross-docking warehousing

Transport and consolidation services related to the entire flow of supplies and goods:

+ Ocean / Air freight (by sea, by air): Transport of goods Which FCL and LCL

+ Dedicated contract carriage (transporting goods under specialized contracts)

+ Intermodal service (Multimodal transport)

+ Merge - in - Transit: Applying to companies that import complete parts from multiple suppliers, logistics companies will combine the input and output of the supply chain in a consistent and efficient manner, proceeding assembled into final products and delivered directly to customers

+ Customer Service

Aftermarket logistics: LSPs can help customers manage the factors that arise after the

transaction, including some services:

+ Return Logistics: Manage the process of recovering waste products, recycling or canceling to help customers

+ Repair Logistics: Receive and repair finished products or parts

+ Revers Logistics: Design and manage unused materials or equipment back to the supply chain

+ Call Center: Receive orders and sign up for goods delivery help customers

Lead Logistics Provider: On behalf of the customer managing the entire supply chain

or when it is necessary to sublease the services of some other logistics companies, customers only have to deal with a service provider

CONCLUSION OF CHAPTER 1

From research on Logistics and Logistics services in Chapter 1 we can conclude that Logistics services are not a single service but a chain of services related to the delivery and transport of goods The logistics service is the stage of high-level development of the Logistics service on the basis of using the achievements of information technology

to coordinate goods from the pre-production to the end consumer

Logistics not only plays a particularly important role in the national economy, but also has the role to minimize costs and increase competitiveness in the market for businesses

From the results achieved in Chapter 1, the next Chapter 2 will be the real analysis of the business activities of logistics services in Vietnam and namely the Logistics Sao Viet CO., LTD., which propose solutions to complete the business of Logistics services

at the company

CHAPTER 2: ACTUAL SITUATION OF BUSINESS OF VIET NAM

LOGISTICS SAO VIET COMPANY LIMITED 2.1 Overview

2.1.1 Introduction of the Vietnam Logistics Sao Viet Company Limited

International name: VIET NAM LOGISTICS SAO VIET COMPANY

LIMITED Abbreviations: VIET NAM LOGISTICS SAO VIET CO., LTD

Address: Dai Vi Hamlet, Lien Ha Commune, Dong Anh District,

Hanoi City, Viet Nam Representative office: Room 509, Cuong Thinh apartment building, Le Thai To

street, Vo Cuong ward, Bac Ninh city, Bac Ninh province

Starting the construction and development of the company, Ms Nguyen Thi Chuyen – currently director After 5 years of operation and continuous development, the company expanded its service network across the provinces to the north On 08/07/2019 the company opened its first representative office at No 509 Cuong Thinh apartment, Le Thai To Street, Vo Cuong Ward, Bac Ninh City, Bac Ninh province The company's business operations although only started to grow from the end of 2018

in early 2019, but gained a lot of success Currently, the company is continuing to invest in facilities and development of human resources to further develop the service

to maximize the workforce, perform increasingly complete service chains according to international standards to better meet the requirements of customers

2.1.2 Functions and responsibilities

 Function

In the context of the freight logistics and development market, professional, competitive and increasingly fast integration with the regional and world market, the company's activities are organized and implemented on the basis of an internal connection network, connecting with customers and partners to achieve the purpose of bringing success to both parties It can be said that the role of the company is become a bridge the communication between small and medium enterprises in Vietnam wishing

to export goods with customs authorities and transport enterprises to operate the import and export of goods of the enterprise in a fast way , accurate and effective In addition, the operation of the company also contributes to the profit of serving the expansion of the business In order to maintain its position in the market and increasingly expanding the quality and manpower of service, the company has contributed to create a certain amount of jobs for workers, motivated them to work and have a stable, consistent source of income Providing professional and diversified services to meet the needs of domestic and foreign customers is essential

 Responsibilities

In order to perform well above functions, the company has set out the following tasks:

- Focusing on building and developing the way domestic customers, expanding searching for foreign potential markets

- Promoting the expansion of import and export services with the aim of giving customers the appropriate choices with high quality, reasonable and effective cost control

- Having the responsibilities for customers, especially when opposite to the law for the service delivery process that the company have wrong performance or have incidents

- Constantly training and improving professional skills, culture, science and technology, enhance the reputation of responsibility, self-awareness of each employee in each management department

- Constantly improving facilities and working conditions in order to improve the spiritual life of the company's officers and employees Ensuring the interests of each employee in the labor network, creating stability in the company in particular and in society in general

- Complying with the laws of government, policies and economic management regimes on the process of building and managing import and export as well as understanding and understanding Vietnam's foreign trade policies for each product

- Proactive searching about the constitution and laws as well as quickly and accurately update all changes of the Code, the documents under the Law and regulations on the process, procedures and conditions of declaration Customs notice affects the declaration of import and export goods to the customs office

2.1.4 Organizational structure

2.1.4.1 Organizational diagram

Finger 2.1: Organization diagram of Logistics Sao Viet Co., LTD

(Source: Accounting and Finance Office)

Logistics Sao Viet Company consists of 25 employees are divided into 4 departments, parts with different functions Through the diagram above, the company's personnel organizational organization is arranged on a compact basis to increase the level of efficiency and flexibility between departments, in accordance with the business of the company Because the coordination of operations between departments is highly effective will help the Board decide the duties and responsibilities of each departments

2.1.4.2 Functions and responsibilities of each departments

Business

Department

Finance &

Accounting Department

Customs

objectives and tasks set out in the company's year

Using labor resources in a reasonable and effective way which follow the contract to bring certain values to employees in the company network

Building mechanisms, regulations, policies to preserve, increase the foundation and stimulate development for increasing the number of enterprises and units together with cooperation

Having fast, accurate and complete coordination with employees, departments to implement effective work and strengthen solidarity power

Coordinate with collaborative units to find customers, expand the service network Cooperate with accounting to implement financial accounting activities to serve the daily business activities

Having responsibilities for signing the units with the need to import and export, build and maintain a close relationship, engage with customers to achieve the goal of sales Developing the market and maintaining business relationship with the audience of new customers, while continuous maintaining the value and reliability with the amount of customers involved in the service

Proposing planned targets, activities aimed at securing the sales of customers in the assigned area

Finance & Accounting department

Developing certain internal standards on financial management: the process of business revenue and expenditure from the results of supply and forwarding activities

Besides, due to the small size of the company and the limited workforce to have all personnel in the departments, the financial department is also the department in charge

of human resources in the company, standing out arranging, recruiting, signing labor contracts, training and evaluating human resources in the company, effectively supporting the creation of core values in order to improve the professionalism of employees in the enterprise

Responsibilities

Reporting, providing the general situation on a regular basis for the director of the company to be able to timely grasp the issues of the service provision and the question

of personnel in the company internal

Calculating and paying monthly employees accurately that ensure to follow the rights

of employees

Reporting monthly/quarterly business results to the director and make recurring reports

in accordance with the state of the business

Completing invoices and documents of payment of settlement to the company in

accordance with the rules and legal regulations of Vietnam

Coordinating proactively associated with agencies, superior management, financial operations agencies, taxation, banking, partners of the company

Updating, synthesizing the declaration figures according to each day of the customer Coordinating with departments in the company to plan for human resources and provide standardized tables for each job position in the company This is considered a

"bridge" between the employee and the management organization

Taking the position of short-term training for employees the skills needed to serve the job

Performing assessment of the work of the employee in the company

Customs Clearance

This is considered a key part, a focal point for the export of goods The bureaus subject

to customs procedures shall carry out administrative procedures related to customs declaration, forwarding and customs clearance for import and export goods It can be said that the customs department plays a "breathing" role for the entire "body" of the company's operations and reaches a high level of efficiency

Function

The department with direct connection with the customs to clear the goods for customers By updating new changes in the Law on goods import and export, employees advise customers to import and export activities more effectively Customs declaration office is structured into small groups with different customer groups: from retail customers to businesses in the chain of connecting customers with transport companies

Responsibilities

Receiving customer documents to transmit import and export declarations quickly according to the "Just in time" criteria, to the right goods, at the right place, at the right

time

Looking up goods codes, calculate taxes related to goods

Preparing and issue documents such as bill of lading, delivery orders, according to the requirements of the customs, coordinate with related parties to arrange the delivery Collaborating with customers to solve issues directly related to the customs declaration service

Tracking the clearance process and inform customers regularly

Building good relationships with state agencies related to import and export activities Managing all expenses related to customs declaration for customers

Updating legal documents on customs declaration process and procedure

Operation

Operation is the task of taking delivery of the scene of the delivery, directly negotiating, handling the problems at the time the goods arrive, ensuring the required schedule from the customers

Function

Contact coordinate with other relevant departments to deliver, exchange, transport as well as store documents and goods for shipping companies to import and export goods Prepare reports and work plans to ensure the most careful and detailed

Directly monitor as well as checking the actual situation, fully updated the status and level of goods on the storage unit of goods that need clearance

Maintaining logistic activities, make reports and assist with goods import and export procedures, customs declaration

2.1.5 The business sector

In the integration process today, Logistics business is an industry focused on the export market not only in Vietnam but also in countries around the world, this is also a feature

of the business activities of Logistics Sao Viet Co., Ltd Currently, Logistics is an important industry in the process of promoting goods out of the market, especially when the import-export business between countries is being promoted Logistics Sao Viet Service Co., Ltd provides a full range of customs services, quality assurance and

in accordance with the business environment of each type of business Although Sao Viet's business has just started, it has achieved certain successes Logistics Sao Viet Co., Ltd conducts core business in the following areas:

 Customs Declaration Service

It is managed by a team of professional staff, trained in depth and has many years of working in freight forwarding – export of Vietnam The company provides accurate and timely, effective in the fields of customs clearance including:

- Import and export consultancy

- Electronic Customs declaration

- Import and export procedures (taking orders, bookings, inspections, packing, )

- Processing data (establishment of declarations, B/L, pressure on customs duties)

- Certificate of Origin procedure

- Customs Report

Company business Customs clearance is the person who directly performs the procedures at the request of the Customs authorities according to the trustee of the importer Meanwhile, the company is the person responsible for import and export goods Solving fast and efficient procedures is a very important link for the success of

a supply chain Currently the company is providing professional Customs declaration

service for full range of forms, below are tables some types of customers who are interested

Table 2.1 Type of Customs Declaration Service in Logistics Sao Viet Co., Ltd

A11 Enter the consumer business

A12 Enter production business

B11 Business export and export business investment

B12 Export after temporary import

E11 Import raw materials of export processing enterprises

E21 Import raw materials to process for foreign traders

E31 Import production materials for export

E62 Export products Export production

(Resource: Business Department)

 Support domestic freight

The company offers the best route finder service, the carrier is suitable for the inland route including road, river, North-South inland seaway, with a variety of transport items, from industrial and consumer goods to mechanical products or goods with large tonnage and oversized volumes

In addition, the company is also a partner of major airlines with strengths in providing freight services from Noi Bai airport to domestic airports for customers in the end with fast time and reasonable cost Services such as:

- Warehouse - loading

- Express delivery goods, parcels, samples, documents

- Ordinary goods to special goods

- Tallying and balancing according to air transport standards

- Delivery service

- Support for international freight forwarding

Transport services play an important role in building foreign and domestic foreign trade networks Sao Viet Import Export Service Co., Ltd provides customers with various types of support services such as: sending export goods by sea (including FCL and LCL containers) from Vietnam to markets As big as China, Korea, Japan and some countries in Europe At the same time providing import services from all over the world to Vietnam especially from the Chinese market Besides, there are support services such as advice on goods insurance, import and export trust with appropriate fees

Besides air transport also plays an important role in international trade More and more goods are transported by air transport This is because this form ensures the requirements of the current world economy The company also provides air freight forwarding services mostly at Noi Bai International Airport

In order for customers to have many choices, in addition to the usual way of transporting goods, the company also provides multi-modal transportation services, combining sea with air to aim at cost savings, fast on time to customers

It can be said that, when the global market develops with scientific and technological advances, especially the opening of markets in developing and underdeveloped countries, Logistics services are considered by managers as a tool , an indispensable vehicle in the enterprise, which is the basis for the company to focus on providing focused services to meet the needs of domestic and foreign customers

2.1.6 Future development of the company

With a future development orientation, the company continues to maintain and develop

its import and export support services Constantly improving service quality, strengthening reputation, expanding the size of the company and going deeper into this field Services must be of high quality and complete in order to meet the increasing demands of customers Therefore, the company has set out the following goals and solutions:

Target

The goal of Sao Viet Import and Export Services Co., Ltd in the coming years is to continue to maintain and improve the quality of services that the company is providing The company's revenue target for 2020 must increase by 20% compared to 2019

By 2023, the company aims to expand its current market in Bac Ninh, Hanoi and expand to neighboring provinces of Bac Giang and Ha Nam Strengthening the image and branding of the company, in the future to become a strong company providing import and export support services in the North

Solution

In order to achieve the immediate goal of the company's revenue and profit, the company has planned to manage well the costs incurred during the customs declaration process and maximize its revenue Not only does it retain existing customers, but the company also has to find and expand its customer base

With aim to develop sustainably, the most important factor is still the people The company has been planning to improve the quality of its employees with training sessions on tax and customs policies, and sharing of experience within the company From there, the company could provide to customers with the best quality service

2.2 Logistics business situation of Logistics Sao Viet Co., Ltd

2.2.1 Actual situation of Logistics business in Vietnam

2.2.1.1 The position of Vietnam on the world logistics map

In the context of extensive globalization, especially after Vietnam officially joined the

WTO in 2007, we begin to get used to the position rankings of each country according

to many different criteria, for example such as the Report of global competitiveness (published by the World Economic Forum - WEF) or the Report of attractiveness of retail markets (published by AT Kearney consulting firm) These reports, although not entirely accurate, still provide a relatively accurate picture of Vietnam's position compared to other countries in the world on each individual criteria, since then the makers policies and business leaders are well aware of the opportunities and challenges

at a global scale, in order to study the appropriate artillery solutions to strengthen the national position on the world stage

2007 is also the first year The World Bank has published a report on LPI (Logistics Performance Index) of countries in the world The report entitled "Connecting to complete: trade Logistics in the global economy" was conducted by surveying the opinions of people directly involved in the operation Logistics in more than 150 countries around the world every 2 years According to this study, LPI index of some countries is based on 6 main criteria formed on the environment of Logistics services:

1 Customs: The effectiveness of the Customs Clearance process

2 Infrastructure: Quality of infrastructure

3 Shipments International: The ability to ship goods at competitive prices

4 Competence logistics: Quality of Logistics services

5 Tracking and Tracing: Ability to track the status of goods after sending

6 Timeliness: Time for customs clearance and service

The score for LPI is from 1.00 to 5.00 Logistics services in Vietnam are formed and developed more slowly than other countries in the world By 1997, the definition of Logistics was first mentioned in the Vietnam Commercial Law and it took until eight years before Vietnam had the official legal document to define and regulate Logistics services in the Law Trade in 2005, Article 233 However, it is not for that reason that Vietnam's position on the world logistics map is not high The evidence is that over the last 2 reporting periods, in 2016 Vietnam ranked 64/160 countries in the survey after 2

years of Vietnam's LPI increased by 25 places and ranked 29/160 countries Highlights Vietnam ranks first in emerging markets and ranks highest among low-income countries In ASEAN, Vietnam ranked third after Singapore (7) and Thailand (32) This is the result of efforts of ministries, branches, localities and manufacturing, import / export enterprises, and especially logistics service providers and Vietnam Logistics Association (VLA) in Vietnam the implementation of Decision 200, seeking all measures to reduce logistics costs, improve service quality, enhance competitiveness to strongly develop Vietnam's logistics service industry under the conditions of our country Enter the international economy more and more deeply

Figure 2.2 Logistics service efficiency index (LPI) in Vietnam in 2018

Source: Vietnam Logistics website

Accordingly, all of the LPI 2018 rating has increased in rank, including the highest increase in service quality (rank 33, up 29 steps), and the ability to track and retrieve goods (rank 34, increase 41 ranks) This reflects the situation of improving the capacity

of the business through the application of information technology in the field of logistics, at a rate of 15-20% in 2015-2016, increased to 40-50% in 2017-2018