Logistics basic knowledge and logistics activities of Indochina Logistics & Trading JSC

ACKNOWLEDGEMENT 3 Chapter 1: Overview of Indochina Logistics & Trading JSC 4 1.1- Introduction: 4 1.2 - Management structure: 5 1.2.1 – Management Board: 5 1.2.2 – Sale & Marketing Department: 6 1.2.3 – Operation Department: 7 1.3 – SERVICES: 8 1.3.1- Custom clearance services: 8 1.3.2- Ser freight services: 9 1.3.3- Multimodal transport: 10 1.3.4- Ship booking and Chartering: 10 1.3.5- Customs consultancy services: 10 1.3.6- Customs brokerage services: 11 1.3.7- Air freight services: 12 1.3.8- Warehousing & Distribution services: 13 1.3.9- Fairs & Exhibition services: 13 1.3.10- Removal Relocation: 14 1.3.11- Project cargo handling: 15 1.3.12- Railway transportation: 16 1.3.13- Overland transportation: 17 Chapter 2: Logistics basic knowledge and logistics activities of Indochina Logistics & Trading JSC. 18 2.1- Logistics basic knowledge: 18 2.2- Logistics activities of the company: 19 Chapter 3: Some recommendations to services of Indochina Logistics & Trading JSC and developing logistics Market in Viet Nam at international economics integration progress. 24 3.1- Services development in the Indochina Company: 24 3.2- Logistics solutions in Vietnam: 25 CONCLUSION 27 REFERENCES 28 ACKNOWLEDGEMENT I would like to convey my sincere thanks to Ms. Phuong To Tam, Business English teacher at Foreign Trade University for her supervision and suggestions in writing of this report. I also would like to express my special thanks to the entire teacher at Foreign Trade University for giving me new knowledge and studying methods. I am deeply indebted to all the seniors at Indochina Logistics & Trading JSC for their support, suggestions, and criticism during the development of this report. I wish to extend my special thanks to my family and my friends for their assistance and encouragement in the making of this report. Finally, because of the limitation of time and knowledge, I cannot avoid some mistakes in writing my report. I wish to have more opportunities like this. I also wish receive more contribution and criticism of my teachers to better my report. Chapter 1: Overview of Indochina Logistics & Trading JSC Introduction: Indochina Logistics & Trading JSC was established in 2007 with the head office locating in Hai Duong, Viet Nam. With the aim to satisfy & protect customers, they have been developed strongly. Their team includes long-experienced management board members, well-trained, aggressive & professional sales force plus highly-skilled operation staffs, especially all staffs have Certificate of Customs Broker. They are always kept up to date on reliable import, export, customs, and logistics services and are fully committed to quality management and customer satisfaction. In addition, they would like to emphasize that we are always customer-driven to follow your needs anytime, anywhere. Their goal is to provide you an uncomplicated, worry-free, total transportation solution. To support their sea & air freight arms and to fully serve customers in forwarding industry, they have our strong arm of logistics. The strong and close relationship with port authorities, customs department, and state owned inspections has allowed their company to grow in a strategically sound manner and with business expertise. Plenty of containers and all kinds of cargoes are smoothly and efficiently imported and exported to deliver customers punctually every year Indochina Logistics is known for its ability to quickly respond to customer needs and provide knowledgeable assistance with individual concerns. - Management structure:
 Each department has its own tasks. In this report, I only focus you on three main departments in Indochina Company. Those are Management Board, Sales & Marketing Department and Operation Department. – Management Board: owner of the company. They run the company and carry out the strategic goals, manage the company such as: meeting, marketing, delivering quality and services. *Responsibility: They have a responsibility to Support operations and administration of board by advising and informing Board members. Oversees meeting with partners, marketing, delivery and quality of programs and service. In addition, they recommend yearly budget for Board approval and prudently manages organization’s resource within those budget guidelines according to current laws and regulation. Effectively manages the human resources of the organization according to authorized personnel polices and procedures that fully conform to current laws and regulations. Assures the organization and its duty, programs and services are consistently presented in strong, positive to the partner. *Authority: They employment and fire employees, separate of make effective recommendations to separate employees, making decision on the company’s finance, having authority to make some independent decisions to the business. – Sale & Marketing Department: In any kind of business, marketing always plays an important role. “The purpose of marketing is not necessary to promote consumption, its real purpose is to identify and understand customers, and they can themselves consume”; in details, Indochina also its own marketing strategy, especially, marketing sales. The sales executives make the needs of customers become their wants. To be a sales executive, the seller must understand exactly what their customer’s need and try them best to satisfy those. There are several ways to please customers, but the most efficient way to satisfy those needs by the most competitive price and the comfortable services. In Indochina, sellers take an important part. The market share of the company depends on how the sellers target customers. By their art of marketing and sales, their customers believe o their services and let Indochina to take care their cargoes. One important process in selling services is to make quotation. The quotation is not fixed time by time but depended on some certain issues such as schedule, transit time, fee of shipping lines (air lines, sea lines). For a certain destination, sales executives choose the best receiving agent following criterions such as good services, close relationship, quick payment. It is fact that Indochina services fees can be divided into many kinds following up the place of shipment and place of destination. Door to door service is the most completely service of Indochina. In this quotation, Indochina quotes their customers the freight of local export (import) handling services charges, freight charges (air freight, sea freight) and then local import (export) handling charges. As per this main quotation and the order of customers, Indochina divides Door to Door services into many smaller terms that are suitable to the terms of shipments on the business contract of customers. For example, Door to port services, port to port services, port to door service, to door service, ect, ... . – Operation Department: Operation department starts to open file upon receiving the instruction from Sales and Marketing department, the Operation department will start open file basing on invoice, packing list from customers, Indochina issues HOBL (House Original Bill of Lading) for customers. This Bill of Lading is considered as the contract between Indochina and customers. In the next step, Indochina makes chipping instruction and then sends to shipping line. It contains following information: container number, shipper name, consignee name, port of lading, port of discharge, weight of cargo, quantity, etc. Shipping line issues MOBL (Master Original Bill of Lading) basing on this shipping instruction. After cargo delivered, the site staff makes shipping advise is the notice of local or foreign buyers that shipment has occurred with details of backing, routing, ect. A copy of invoice is usually enclosed and sometimes a copy of bill of lading. This document helps receiving agent receive goods quickly and actively. Bill of Lading is a very important documentation in logistics field. Bill of Lading is a principal transportation document by which a carrier acknowledges receipt of the freight and sets forth a contract of carriage. Bill of Lading may be negotiable or non-negotiable. Every Bill of Lading must contain at least the following: 1- Date of issue 2- Name of consignor 3- Place of original consignment 4- Place of delivery 5- Statement of whether goods are to be delivered to a specific person 1.3 – SERVICES: 1.3.1- Custom clearance services: Indochina Logistics will solve all confuse task of Customs declaration services for importation and exportation of moving consignment the fast and efficient as possible: Filling the Customs Declared Form. Customs Declaration and Tax Code Application. Carrying out procedures of Commodity Control or applying for Extra commodity control. Dealing with parties concerned to comply with all sub-formalities upon the requirement of Customs house including: Cultural control, Geology control, Quarantine of botanical – animal – foodstuffs, fumigation, etc.... Carry out of formalities to apply for Certificate of origin (C/O) Forms A, B, C, D ... 1.3.2- Ser freight services: Indochina Logistics offers its customers flexible service options for ocean freight transportation. Our sea freight services encompass capabilities for handling less-than-container load (LCL) and full-container load (FCL) shipments, break bulk cargoes and charter services. FCL/LCL import/export. Door to door transportation. Issuance and verification of documentation. Export and import customs clearance. Packing and crating. Warehousing and distribution. Part & full vessel charter. Conventional shipments. Transport insurance 1.3.3- Multimodal transport: Inland transportation of your cargo (FCL/LCL) by trucks from any ports of Hai Phong, Quang Ninh to Industrial processing Zones within Viet Nam Northern City and other neighboring provinces. Domestics and Import/ Export transportation under method “Door to Door” and under other request of yours. Combined transportation at your request: sea – air, air – air, rail, river and road combined whichever the most appropriate. 1.3.4- Ship booking and Chartering: Sale and purchase of vessels: New building/ Second hand. Ro-Ro and Dry bulk chartering, Deadweight ranges from 1000 mt to 30000 mt for transportation Agricultural products, Rice, Wheat, Salt, Fertilizer, Cement, Clinkers, Coal, Steel and Truck/ Car... Liquid bulk chartering for transportation crude oils, clean petroleum products, chemicals, acids, liquid gas and veg oils... 1.3.5- Customs consultancy services: Customs clearance of import & export shipment can be particularly difficult, is not applicable under the same practices and standards in every country. Especially, if documentation is not prepared properly and carefully, any and all discrepancies can result in delays, extra costs and/or penalties. Indochina Logistics can help its customer how to solve the above problems, including guidance in customs clearance in Viet Nam as well as in other countries where your goods should be exported. Indochina Logistics’ Customs Consultancy Services include the following: Customs formalities of all kinds of imports and exports including commercial goods, aid shipment, project cargoes, transit cargoes, exhibits, temporary export/re-import, temporary import/re-export, non-commercial goods. Consultancy on customs declaration, tax access and other relevant tax & duty policies. Consultancy on customs formalities and clearance in other countries. 1.3.6- Customs brokerage services: Prompt and effective clearance of international cargoes is critical to the successful supply chain. As a total logistics solutions provider, Indochina Logistics deploys one of extensive customs brokerage operations. Indochina Logistics incorporates a team of professional customs brokers, import and export specialists. Indochina Logistics’ Customs Clearance Services include the following: Legal valuation of merchandise. Classification of goods. Proper tax & duty assessment. Import/export procedure. Temporary Import/export procedure. Port clearance. Maintenance of record. Consultancy services. 1.3.7- Air freight services: Sensitive and valuable goods are often subject to extreme time pressures and deadlines for every one involved. Therefore, our air freight department provides comprehensive air freight services to meet our customer's specific. Our Air Freight Services offer all types of transport option, including: Import and export air freight. Packing and crating. Door-to-door service. Customs clearance. 1.3.8- Warehousing & Distribution services: Indochina Logistics offers storage facilities at key destination of Viet Nam. All goods are properly protected so that they can remain in our warehouse for as long as the customer deems necessary.Our warehousing and distribution systems will pick, pack, store and distribute consignments anywhere in Viet Nam by efficient mode of transport. Our Warehousing and Distribution Services include the following: Receiving and inventory. Sorting and segregating. Forklifts and cranes. Pick and pack, labeling. Crating. Delivery and emergency parts distributions. Security. Insurance. 1.3.9- Fairs & Exhibition services: Indochina Logistics offers comprehensive exhibition forwarding services to/from international trade fairs and exhibitions. Our Fair and Exhibition Forwarding Services include the following: Planning & preparation. Inland freight arrangement. Cargo consolidation. Customs clearance. Ocean & air freight arrangement. On-carriage to show ground. Unloading at show ground. On-site assistance. Storage arrangement. Return & on-forwarding. 1.3.10- Removal Relocation: You need to move your personal effects and household goods to the news location, what must be packed? Which transportation route is the most favorable? And the price? And the security, insurance, customs clearance and a lot more - that are the questions, but Indochina Logistics will assist you to solve the problems. Indochina Logistics will take full and complete responsibility for the immensely important task of moving your personal effects and household goods to a new home-wherever the destination. Every step of your move will be planned to meet your wishes and no request is ever too much trouble. Our Removal Relocation Services include: Free surveying. Packing and crating consultancy. Transportation consultancy. Packing & transportation planning. Packing & crating. Documentation. Warehousing and trucking. Customs clearance. Air and sea freight Insurance 1.3.11- Project cargo handling: Indochina Logistics offers project management, all associated planning and implementation services, whether you are moving an individual heavy lift or complete industrial plant from various origins to remote construction sites. Our Project Services include the following: Transportation consultancy. Feasibility studies. Road studies. Budget calculations. Project flow description. Cargo supervision during loading and unloading. Full/Partial charter by ocean and air. Consolidation, packing and containerization. Transport insurance. Oversize cargoes transportation. Heavy loads. Barge service. Module movement. Heavy cranes and forklift 1.3.12- Railway transportation: Besides trucking services, Indochina Logistics specializes in railway transport. We provide scheduled group age, full wagon load and less than wagon load, especially international transportation to/from China and OECD area. Our Railway Transport Services offer the following: LCL & FCL services. Assembly positioning of load units. Reliable door-to-door transportation service. Conventional railway transportation using variety of rail wagon suitable for break bulk and oversized shipment. International transportation to/from China and OECD. Customs clearance. Warehousing and distribution. 1.3.13- Overland transportation: Road transportation can not be excluded from supply chain of logistics services. Indochina Logistics provides its customers with scheduled group age services, part load and full truck load transportation. Our Trucking Services include the following: Assembly positioning of load units. Reliable door-to-door transportation service. Transportation of heavy lifts, over-sized, bulk and sensitive Cargoes. Special transportation of household goods and personal effects. Transportation of transit cargoes. Transportation of temporary admission cargoes. Warehousing and distribution. Chapter 2: Logistics basic knowledge and logistics activities of Indochina Logistics & Trading JSC. 2.1- Logistics basic knowledge: The verbatim definition of logistics in a course book of ESCAP (Economic and Social Committee in Asia and the Pacific) in 2000 says, “Logistics/ Supply chain management is the synchronized movement of inputs and outputs in the production and delivery of goods and services to customers.”  Also in the documents of ESCAP, another definition is raised: “Advanced logistics and Supply chain management means: The concept of synchronizing the operations of different organizations in logistics chain and giving necessary feedback to organizations in production and/or to material distribution divisions in a real time with the help of information technology and digital communication network.” So, here are some highlight points: This is the synchronized movement of materials and products. The definition refers to the movement of both inputs and outputs. The point which needs special attention is that logisticians need to make use of digital communication to give necessary feedback to producers, distributors, and consumers.  There are many different definitions of logistics service, however, each definition focuses on a certain aspect, for example one definition says, “Logistics is the process of planning, implementing and managing efficiently the cost of flow of materials, inventory and finished-products ...” There is also the definition: Logistics is the process of delivering the right products to the right place at the right time. All of these definitions aim to the ultimate requirement of logistics service, which is to ensure the essential quality. 2.2- Logistics activities of the company: Indochina Logistics & Trading JSC is an international provider of integrated logistics services including over-land transport, worldwide air and sea freight and associated logistics services. Indochina provides its customers with professional, personalized guidance in the export and import process. Indochina is known for its ability to quickly respond to customer needs and provide knowledgeable assistance with individual concerns. Even though the most profit of Indochina comes from commercial companies but it its fact that Industrial Zones is long term target of Indochina. Currently, there are some customers in Industrial Zones that Indochina has targeted. Some Industrial Zones using Indochina logistics such as: Phuc Dien Industrial Zone Tan Truong Industrial Zone Dai An Industrial Zone Nam Sach Industrial Zone KEN MARK Industrial Zone STT  Company  Industrial Zone   1  Brother Industrial Vietnam Co. Ltd  Phuc Dien Industrial Zone, Hai Duong   2  Regent Garment Co. Ltd  Nam Sach Induatrial Zone, Hai Duong   3  UMC Electronics Vietnam Co. Ltd  Tan Truong Industrial Zone, Hai Duong   4  Sumidenso Vietnam Co. Ltd  Dai An Industrial Zone, Hai Duong   5  KEN MARK Industrial Co. Ltd  KEN MARK Industrial, Hai Duong   6  MACRO MAX Co. Ltd