INTRODUCTION
Logistics industry overview
In most industries, logistics is the part of the supply chain management that includes transportation, warehousing, forwarding and other value added services The term
Logistics encompasses the planning and management of the flow and storage of goods, services, or information from origin to consumption, ensuring customer requirements are met It plays a crucial role in global trade, where effective logistics control the movement of resources and supplies Businesses in the logistics industry must ensure that necessary items are delivered to the right place at the right time Ultimately, lower logistics costs combined with high-quality logistics services lead to increased global trade According to the World Bank (2004), logistics activities typically include several key elements.
- Infrastructure: ports, terminals, railway, roads;
- Operations: warehousing, storage, local distribution, trucking, cabotage;
- Services: freight forwarders and customs brokers.
Source: Decree No 140/2007/ND/CP issued by September 5, 2007
Transportation is a key component of logistics, accounting for 40% to 60% of logistics costs It encompasses various combinations of transport modes, making it the most prevalent type of logistics service The five common modes of transportation include road, rail, air, sea, and pipeline, each offering unique advantages for efficient logistics management.
Airways / airplanes Airplanes are the fastest mode but very expensive
Availability of appropriate airport facilities
Roadways / trucks Trucks are relatively quick and a very flexible mode
Subject to the fluctuation of fuel cost and road conditions
Railway / rail Rail is a cost efficient mode but can be slow
Shipping / vessels Ship is very cost efficient but the slowest mode of transport
Availability of port and canals
Pipelines Pipelines can be very efficient Restricted to liquid commodities and gases
First party logisticsSecond party logisticsThird party logisticsFourth party logistics (1PL)(2PL)(3PL)(4PL)
Logistics has evolved significantly over time, progressing from first-party logistics (1PL) to more sophisticated models like third-party logistics (3PL) and fourth-party logistics (4PL) With advancements in technology, infrastructure, and human resources, 3PL services are increasingly prevalent in developed nations, including Vietnam.
The third-party logistics (3PL) sector in Vietnam is experiencing rapid growth, both in revenue and the number of active companies According to the Vietnam Logistics Association, the membership of 3PL firms surged from just 4 members between 1994 and 1997 to an impressive 275 members by 2014.
Table 2: Historical development of growth stage of logistics
Logistics were limited to distribution Problems relating to transaction with finished products and related physical distribution were dominant The problem of inventories was not important.
Corporate logistics were gradually extended to supplying (purchases, procurement) and to production management.
Companies are establishing comprehensive logistics chains and systems that connect customers and suppliers This integration of corporate activities is leading to the development of efficient supplying, production, and distribution systems.
Integrated logistics system is a very complex, system-related problem One of the requirements is the establishment of strategic alliances between companies, their customers, products suppliers and logistics providers.
Logistics has emerged as a crucial driver of Vietnam's economic development, accounting for approximately 25% of the country's GDP, which is significantly higher than that of its peers However, the logistics sector faces challenges, including cumbersome and inconsistent government regulations, corruption, and a disconnect between planning and implementation in transportation infrastructure that overlooks supply and demand Additionally, the trucking industry is fragmented, and there are imbalances in infrastructure provision Despite these obstacles, Vietnam continues to show consistent economic growth, as highlighted by the World Bank's 2014 report, which ranked Vietnam 48th among 166 countries and 5th in the ASEAN region, reflecting an improving Logistics Performance Index (LPI) score.
3.15 which following after Singapore (4.3), Malaysia (3.59) and Thailand (3.43).
Figure 2: Percentage changes of LPI score from 2007 – 2014
The establishment of free trade agreements like the Trans-Pacific Partnership (TPP) and the Vietnam-European Union (EU) Free Trade Agreement (FTA) at the end of 2015 is set to significantly enhance Vietnam's economy and international trade Notably, the logistics sector is expected to experience substantial growth as a direct result of these agreements.
Company background
Interlog, officially known as the International Logistics Joint Stock Company, is a small to medium-sized enterprise (SME) in Vietnam's logistics sector, established in August 2005 and headquartered in Ho Chi Minh City Recognizing the vital role of logistics in economic development, Interlog has expanded its operations with branch offices in both Southern and Northern Vietnam, as well as partnerships in Hai Phong and Da Nang The company has built a strong workforce of 30 to 100 full-time employees, with plans for future growth To remain competitive in the evolving logistics market, Interlog is committed to the continuous professional development of its employees.
Interlog is committed to creating an effective supply chain that benefits customers, the company, and the community With a vision to become the leading supply chain innovator in Vietnam and Indochina over the next five years, Interlog emphasizes a strong corporate culture centered on teamwork, knowledge, and win-win cooperation Teamwork is essential for achieving shared objectives and ensuring precise communication for problem-solving Knowledge is fostered through continuous learning and training, which the leadership team prioritizes to enhance service quality Additionally, Interlog actively seeks passionate employees in the logistics industry and promotes equitable benefits sharing among stakeholders, ensuring that performance is recognized and rewarded.
Over 10 years, Interlog has developed with achievements through significant milestones, include:
- 2005: Established Intelog Head office in Hochiminh City Achieved ISO 9001:2000
- 2006: Achieved Vietnam Excellent Brand Certificate, which was organized by Ministry of Trade and Vietnam Economic Times
- 2007: Became the agent of PCI (Pacific Concord INTL in Taiwan) who is one of the leading of NVOCC in Asia
- 2008: To be approved as an Official Licensed Customs Broker by Vietnam Customs General Agency
- 2011: Became the partner of AGS (AGS World Transport) in Vietnam AGS is one of the leading of NVOCC in Asia
- 2014: Established Nhon Trach Depot in Dong Nai province
Company structure
Interlog has structured its logistics business into distinct departments to efficiently manage each aspect of customer shipments The organization includes a Sales Division, which focuses on Export, Import, and Domestic shipments, and a Production Division that handles paperwork, customs, trucking, and warehousing According to a survey by the Vietnam National Productivity Institute, Interlog's organizational structure is complex, featuring multiple departments and several layers of management.
Board of Director Board of Supervisor
Interconsol Document Accounting Sales Supply Chain
Source: Organizational structure from Human Resources Department in 2015
Interlog, a leading logistics service provider, began its journey offering essential forwarding services, including sea and air freight forwarding, customs clearance, warehouse management, and non-vessel operating common carrier (N.V.O.C.C) solutions Since 2008, Interlog has evolved significantly, expanding its offerings to include comprehensive logistics services and managing various ongoing projects.
Interlog aims to be a leading logistics services provider in Vietnam by establishing a comprehensive global network of agents With a decade of experience, the company leverages its logistics expertise and local knowledge to deliver diverse solutions tailored to its core clientele, including factories and FDI companies with significant import and export needs Interlog enhances customer value through innovative projects that optimize production processes and streamline supply chains, such as barge transportation initiated in 2012, the establishment of the Hanoi Hub as a logistics center in Northern Vietnam and the Dong Nai Hub in 2013, the launch of the Nhon Trach Depot in 2014, and the trucking connection between Nhon Trach and Cai Mep in 2015.
PROBLEM IDENTIFICATION
The limited evaluation and promotion system at Interlog Company
In today's competitive job market, leaving employment has become commonplace, highlighting a deficiency in supportive work environments, growth opportunities, and ongoing policy enhancements According to a VNPI survey, the "Evaluation and Promotion" aspect ranks among the four lowest in employee satisfaction, indicating significant discontent among some employees regarding their salaries and wages at Interlog Company.
More details, the employee satisfaction survey results from VNPI showed that
The "evaluation and promotion" dimension received a low satisfaction rate, with only 31.6% of respondents expressing strong agreement regarding their contentment with the personnel evaluation mechanism Ms Nguyen Thi Van, Director of VNPI, noted that the Key Performance Index (KPI) at Interlog has not been effectively implemented across the organization Additionally, the existing KPI evaluation system is perceived as cumbersome and lacks integration with the company's overall KPI framework Furthermore, Interlog Company has not established clear career paths for employees, such as managerial or specialist roles, which hinders employee orientation and obscures potential growth opportunities within the organization.
Personnel evaluation significantly influences employee motivation, often serving as a more compelling incentive than salary alone Recognition of efforts and commitment can enhance job satisfaction and drive, with many employees aspiring for promotions as a key career goal (Bilal, 2011) Furthermore, employees frequently assess their compensation in relation to their peers, particularly those in similar roles, highlighting the importance of fair evaluations in fostering a motivated workforce.
Many organizations today understand that motivating employees necessitates mutual respect between management and staff This respect is demonstrated by involving employees in decision-making, actively listening to their feedback, and implementing their suggestions when feasible Consequently, employees view evaluations and promotions as valuable opportunities that enhance both their tangible and intangible benefits This approach not only allows employees to showcase and develop their skills but also fosters greater organizational commitment.
In Q3 2015, Interlog Company's Board of Directors implemented a new salary scale featuring distinct functional branches for management and expert roles, moving beyond the previous focus solely on management This change aims to enhance clarity in employee development pathways and assist managers in effectively guiding their teams The Board anticipates that this revised salary structure will improve the promotion system, ultimately boosting employee motivation and fostering career growth within the company.
Table 6: Salary scale according functional position
Management Function Salary Scale (VND) Expert Function
Trainee Statutory minimum wage Trainee
Source: Data sourced from Human Resource Department at Quarter 3 of Year 2015
In summary, Interlog Company faces challenges with its limited evaluation and promotion system, which lacks clear links to specific KPIs and leaves employees uncertain about their career advancement opportunities To address this issue, the Board of Directors has implemented a structured salary scale system tailored for both management and expert roles, aimed at motivating employees and enhancing clarity in career progression.
Causes and effect diagram
Interlog Company faces three critical issues: internal coordination, salary, and evaluation systems, all of which significantly affect employee satisfaction and contribute to a high turnover rate over the years Specifically, the problem of internal coordination has numerous underlying causes that impact both employee satisfaction and overall business performance, making it a major challenge for logistics service providers (Chyn & Kalianna, 2011).
Motivation and Evaluation Low Salary
Internal Coordination it is challenges that inform the requirement for working relationship, internal communication, knowledge sharing and empowerment in working process should be improved appropriately.
While the issues surrounding salary and evaluation systems are not urgent concerns, the company has identified short-term solutions to address other pressing challenges.
In summary, the primary issue identified is centered on the need for effective analysis and swift resolution Poor internal coordination can obscure underlying disunity, potentially leading to significant repercussions for the organization.
Figure 8 Fishbone diagram of the inefficiency of internal coordination in Interlog
The real core problem
Based on secondary data from Interlog Company and in-depth interviews, the author identifies three key issues: ineffective internal coordination, low wage satisfaction, and a restricted evaluation and promotion system.
Contrary to result of employee satisfaction about wages, the Board of Director of
Interlog Company emphasizes that salary increases are not the primary focus for achieving top rankings Instead, they implement annual salary increments at a reasonable rate that aligns with the company's overall growth Over the years, the basic salary has risen between 500,000 and 1,000,000 Vietnam Dong for each position Additionally, the unit price for specific jobs is continuously adjusted alongside the basic salary The leadership's awareness is evident as they compare internal salary data with industry averages, ensuring that any differences remain minimal and do not adversely affect employee satisfaction.
The limited evaluation and promotion system significantly impacts employee motivation at Interlog, where the current evaluation process lacks clarity and connection to specific KPIs Many employees perceive promotion opportunities and meaningful evaluations as more motivating than financial compensation To address these challenges, the Board of Directors has implemented a structured salary scale system aimed at motivating employees This initiative allows employees to choose between two clear career paths: becoming a skilled manager or an experienced expert, thereby providing a clearer trajectory for professional growth and enhancing long-term motivation.
The central issue facing Interlog Company is its business performance, significantly influenced by employee satisfaction and turnover rates Key factors contributing to this problem include poor communication, strained working relationships, inadequate knowledge sharing, and a lack of empowerment in the workplace Effective communication strategies are essential for fostering positive employee engagement, while poor communication hinders information flow and diminishes professional skills These interconnected issues create a cycle that adversely affects employee satisfaction, leading to an increasing turnover rate over the years Therefore, addressing the inefficiencies in internal coordination is critical for the company's improvement.
TENTATIVE SOLUTIONS
The first alternative of enhancing communication and
Interlog Company's primary alternative emphasizes improving workplace relationships through effective communication and internal knowledge sharing Research on team effectiveness highlights essential components of organizational processes, such as boundary management and intragroup dynamics, which are vital for knowledge transfer and communication (Gladstein, 1984) These elements play a crucial role in enhancing coordination within the organization Insights from knowledge management literature underscore that skills, resources, and knowledge are distributed across the organization, making relationships essential for acquiring necessary knowledge (Borgatti and Cross).
The characteristics of organizational relationships significantly influence individuals' likelihood of seeking information from one another, as knowledge creation and distribution is inherently a social process (Argote, McEvily, and Reagans, 2003) Strong, direct, and dependent links among individuals enhance information sharing, with frequent interactions facilitating knowledge transfer (Lai and Wong, 2002) Relational factors, such as awareness of others' knowledge and valuing their insights, also guide information-seeking behavior (Borgatti and Cross, 2003) Organizations function as knowledge systems encompassing creation, storage, transfer, and application of knowledge, which can be affected by structural, human, and technical challenges (Alavin and Leidner, 2001) Establishing effective internal communication based on knowledge management is crucial for gaining a competitive advantage, especially in challenging market conditions This communication fosters commitment and a sense of belonging among stakeholders, while enhancing awareness of environmental changes and evolving organizational goals (Welch & Jackson, 2007) Consequently, Interlog Company should explore both IT and non-IT solutions to improve communication and facilitate internal knowledge sharing.
To enhance IT solutions, the company has implemented an expert system and a knowledge database, enabling employees to easily access information The creation of a knowledge expert list and an electronic library through the intranet addresses issues of communication and knowledge sharing This electronic library serves as a centralized space for storing and retrieving public knowledge, including memos, training manuals, and seminar materials, while also addressing the absence of standardized work procedures Additionally, the IT department offers user manuals and tailored systems to meet departmental needs, facilitating improved knowledge management across the organization.
To enhance knowledge sharing among employees, the company should foster an environment that encourages initiative Implementing a compensation scheme for time spent on knowledge contributions can incentivize participation Additionally, offering rewards for sharing insights will effectively motivate employees to engage in this collaborative effort.
To foster positive employee engagement, the company should establish dedicated time and space for private exchanges among employees, such as informal gatherings or coffee breaks in a designated area These interactions can significantly enhance interpersonal feelings and understanding, ultimately building trust within the team Furthermore, effective communication strategies, particularly from senior management, are essential in promoting a culture of openness and engagement among staff (Bakker, Albrecht & Leiter, 2011; Bindl & Parker, 2010; Saks).
Effective communication in the workplace is essential, serving as a two-way process where managers not only convey expectations to employees but also encourage them to share their ideas and participate in decision-making This involvement fosters a sense of respect and value for employees' contributions, enhancing employee relations and promoting cooperation across departments, ultimately paving the way for organizational success.
IT solution helps improve direct The server computer with strong capacity of communication through technology in order to access exactly necessary information for work.
Through technological interaction, employees can swiftly access and update information and knowledge in real-time, ensuring they remain current and avoid obsolescence Additionally, the costs associated with memory storage for files and databases amount to 20,000,000 VND.
Annual maintenance of server computer costs 7.000.000 VND
Distribution program to access electronic library costs 20.000.000 VND
Non-IT solution helps bring motivation of employees in sharing knowledge enthusiastically Moreover, they will feel their contributions are recognized and useful for the whole company.
Reward for sharing knowledge related to each concept consists of:
- To handle existing shipment: 10% of basic salary.
- Initiative of solving trouble or working process: cash bonus according to each initiative.
The establishment of private exchange space contributes time and space to build trust among employees to enhance their connectivity.
The private exchange space is set up such as the existing greenroom of the company.
Therefore, of the cost will be minimal to office administrative costs.
The second alternative of standard working process
Interlog Company is dedicated to enhancing and standardizing its working processes across all departments to ensure optimal job performance However, there are existing gaps and overlaps in these processes, particularly in transferal documentation, delegation systems, and decision-making, which create inefficiencies This lack of clarity results in the inefficient use of human resources, increased hidden costs, and a loss of overall control within the organization.
Meyer and Herscovitch (2001) suggest that enhancing effective commitment and efficient coordination requires management to actively involve employees in departmental decision-making and to foster a culture that recognizes value-added work Empowerment, as defined in human resource management theory, emphasizes employee involvement in the participatory aspects of managerial decision-making (Ford & Fottler, 1995; Pardo del Val & Lloyd, 2003) Therefore, the Board of Directors should ensure a cohesive working process across the company by implementing these principles.
The streamlined workflow enhances employee productivity and minimizes errors in collaboration, while the council's wages amount to approximately 10,000,000 VND per person Additionally, this structure encourages employees to self-motivate in managing their tasks effectively.
Establish an independent council dedicated to overseeing the building process, tasked with reviewing, refining, and integrating each step into a cohesive procedure This initiative aims to be completed within a one-month timeframe.
The council comprises professionals with expertise and analytical skills from various departments, specifically the Sales Department, Productive Division, and Accounting Department, to ensure a comprehensive and cohesive building process across all areas.
To enhance the working process, it's essential to strengthen the delegation of authority from middle managers to their subordinates This strategy fosters trust and accountability among employees, encouraging them to take ownership of their tasks beyond mere compliance As a result, management can focus on overarching administrative responsibilities rather than getting bogged down in minute details.
Interlog Company is currently facing challenges with inefficient internal coordination, stemming from poor colleague relationships, inadequate knowledge sharing, and unclear working processes To address these issues, the company must evaluate tentative solutions that offer a favorable cost-benefit ratio while maximizing human resource efficiency A significant barrier has been the misunderstanding of general objectives among departments, which can be mitigated through clear communication and information sharing between the Board of Directors, mid-level managers, and staff By establishing detailed guidelines and normative documents, Interlog can enhance its working processes and reduce internal shortcomings Given the current circumstances, prioritizing the first tentative solution is essential to leverage both human and technological capabilities effectively.
Implementing an independent council to streamline the building process across departments is a complex task that demands significant time and expertise While hiring high-cost consultants may enhance process efficiency, companies often find themselves managing stable operations without such external assistance Consequently, establishing a long-term solution that focuses on gradual implementation and ongoing updates proves to be a more viable strategy.
IMPLEMENTATION
To effectively execute the strategy, the Human Resource Department will collaborate with the Administrative section to establish a designated private space within the office This initiative, which can be implemented within one week, will include the installation of artificial walls and the provision of equipment to support designated break times.
The company plans to implement an IT system as an electronic library to facilitate knowledge and information sharing The IT department will set up a high-capacity server to store all databases and develop a distribution program for accessing the electronic library Additionally, they will provide user manuals and training for each department on a quarterly basis To ensure the smooth operation of the electronic library, the IT department will conduct regular maintenance either annually or semi-annually.
Employee motivation for knowledge sharing is crucial for organizational success The Board of Directors, Human Resource Department, and managers will hold meetings to brainstorm ideas for a compensation scheme that encourages knowledge sharing Following these discussions, the Human Resource Department will compile the information and issue a company-wide notice A structured reward system will be established to recognize various types of contributions, thereby fostering a culture of collaboration and continuous learning within the organization.
- Sharing the latest information on business regulations by summarizing concise important ones with easily understanding This post-standardized information will be updated in the intranet system.
- Propose the improvements of specific job or working process in department The proposals must be practical and approved through the direct Manager and the Board of Directors.
- The proposal of changing is effectively applied within department as well as become learning model of other departments.
- Participate in innovate the detailed work issues, information management at the company level in order to create the more efficient working system.
To enhance internal coordination and improve employee satisfaction, the company should implement a biannual employee satisfaction survey This practice will enable the organization to regularly evaluate progress in employee morale and the effectiveness of the solutions put in place.
CONCLUSION
In conclusion, this thesis identifies the critical issues facing Interlog Company and proposes potential solutions A thorough analysis revealed that internal coordination significantly contributes to the high employee turnover rate Key factors influencing this issue include poor communication, lack of knowledge sharing, inadequate working relationships, and insufficient empowerment in the workplace Notably, most employees expressed that low working relationships negatively affect their job satisfaction Addressing these internal coordination challenges is essential for improving overall company performance and employee retention.
SUPPORTING INFORMATION
Research methodology
The study utilized secondary data sourced from the annual report of the Human Resource Department at Interlog Company, the 2015 Management Consultancy report from the Vietnam National Productivity Institute, and statistical data from the Vietnam Logistics Association.
Traditional research methods include quantitative and qualitative approaches, both essential for data collection and analysis in commerce Quantitative research focuses on numerical data, while qualitative research emphasizes non-numerical data According to Saunders (2007), quantitative techniques are ideal for analyzing numerical information, whereas qualitative methods are suited for exploring cultural specifics, values, and social contexts This research employs a qualitative approach, which excels in providing rich, complex descriptions of how individuals experience specific issues, capturing the intricate human aspects such as beliefs, emotions, and relationships.
The most common qualitative data collection methods include observation, in-depth interviews, documents, and audiovisual materials (Creswell, 2003), each with its unique advantages and limitations This thesis utilizes in-depth interviews to analyze the realistic situations at Interlog Company According to Boyce (2006), in-depth interviews are a qualitative research technique that involves intensive individual discussions with a small number of respondents, allowing for a deeper understanding of their perspectives on specific ideas or situations This research aims to explore how working relationships, communication, knowledge sharing, and empowerment impact internal coordination at Interlog A total of five managers and experienced staff members participated in one-hour interviews, utilizing open-ended questions to gather comprehensive insights.
Interlog Company’s HR, sales, and customs functions each bring unique insights and commitment to addressing current internal coordination and related challenges Comprehensive interviews were conducted, with all data meticulously tape-recorded and transcribed for analysis.
Report transcript
This report summarizes insights from in-depth interviews with five employees at Interlog Company, including the Deputy Manager of Human Resources, a Sales Executive from the Interconsol Department, the Customs Department Manager, the Managing Director, and the Team Leader of Customer Services They discussed the high turnover rate at Interlog from 2013 to the present and shared their perspectives on the company's current situation.
The interviewees highlighted the interconnected roles of their functional departments, emphasizing collaboration in the working process The Sales Executive at Interconsol and the Team Leader of Customer Services manage business relations with both domestic and international clients, as well as logistics and forwarding companies The Manager of the Customs Department facilitates import and export procedures and customs declarations, supporting the Sales Department in meeting customer needs Furthermore, the Human Resource Department oversees recruitment, training, and social insurance, ensuring effective connectivity across all departments to build and maintain a stable workforce.
The interviewees unanimously identified the high employee turnover rate at Interlog as a significant issue, persisting since 2013 Notably, the Sales Department experiences the highest turnover, with around 50% of its workforce leaving each year.
The organizational structure of the company is overly cumbersome, limiting employee decision-making power and leading to confusion in processes due to excessive involvement from the CEO and managers in minor details This lack of transparency and consistency, coupled with an unattractive reward system, drives talented employees to seek better opportunities elsewhere Internal conflicts, particularly between the sales and customs departments, arise from ineffective communication, while managers struggle with leadership skills, and employees lack essential knowledge in the logistics industry The CEO has expressed dissatisfaction with unclear communication and departmental focus on isolated issues, and the HR Deputy Manager emphasized the need for better employee utilization and leadership skills to address these challenges Additionally, the influx of recent graduates from diverse educational backgrounds complicates training efforts In summary, the main issues identified are inadequate internal coordination, low motivation due to insufficient salary, and ineffective communication.
Interviewees proposed several improvements to enhance incident management, emphasizing the need for increased transparency in all work processes to prevent overlap among roles This includes clear job design, well-defined job descriptions, streamlined workflows, and better interdepartmental connections Additionally, fostering a culture of knowledge sharing across the organization was highlighted as essential Furthermore, both interviewees and the Vietnam National Productivity Institute recommend that the Board of Directors implement transparent performance evaluations for managers and staff, utilizing Key Performance Indicators (KPIs) to measure effectiveness.
Interview transcript
Interviewer: Tran Bao Ngoc Interviewees:
- Interviewee 1: Dang Nguyen Thao Linh – Deputy Manager at HR Department
- Interviewee 2: Nguyen Thi Hoang Linh – Sales Executive at Interconsol
- Interviewee 3: Ho Phuoc Loc – Manager of Customs Department
- Interviewee 4: Nguyen Duy Minh – Managing Director
- Interviewee 5: Vo Van Cat Duyen – Team leader of Customer services group Date: August 20 th , 2015Place: Interlog Company’s meeting room
Located on the 5th Floor of the Sai Gon Port building at No.3 Nguyen Tat Thanh Street, Ward 12, District 4, HCMC, I appreciate your time for this meeting My name is Tran Bao Ngoc, a Master's student at ISB, currently researching employee turnover retention at Interlog Company This dissertation aims to identify the factors contributing to the high turnover rate at Interlog Company since 2013 and to propose effective solutions.
The interview will last under an hour and will be recorded solely for research purposes, ensuring that your insights are accurately captured Rest assured, neither the recording nor the transcript will be shared with Interlog Company, maintaining your confidentiality My aim is to explore the current situations at Interlog Company based on your experiences to identify the underlying issues Your responses will remain confidential and will only be accessible to the research team Thank you for your valuable support in answering my questions.
Interviewer: Please tell us your full name and the position that you are holding in your company at the moment?
Interviewee 1: My full name is Dang Nguyen Thao Linh I am currently Deputy Manager atHuman Resource Department I graduated from University of Education and I have been working at Interlog Company since 2010.
Interviewee 2: My full name is Nguyen Thi Hoang Linh I have been with Interlog Company since 2010 and now I am a Sales Executive of Interconsol Department.
Interviewee 3: My full name is Ho Phuoc Loc I have worked at Interlog since 2005 and now I am a manager at Customs Department since 2011.
Interviewee 4: My full name is Nguyen Duy Minh I have been the Managing Director of Interlog Company since 2005.
Interviewee 5: My full name is Vo Van Cat Duyen I have been as Sales Executive of Sales Department from 2007 From 2012 until now, I have been a team leader of customer services group.
Interviewer: Could you please briefly describe the working process in your department particularly the connection with other departments?
Interviewee 1: I have to take responsibility on several issues such as HR, Social Insurance, Internal Marketing, recruitment and training That’s quite a very heavy workload for the HR Department Additionally, the request for human of each department is mostly different and unstable meanwhile we do not have enough labor force and resources to do everything properly Interviewee 2: My department was established at the end of 2012 and the main responsibility is dealing business with other forwarding and logistics companies and foregin agents in China, Singapore etc This is the newest department in the company so that we have to learn and set up a lot of things based on the instructions and guidelines of forgein agents such as: pricing calculation, sea routes etc The main jobs strongly require good import and export knowledge; and skills such as proficieny in English, negotiating and dealing with VIP customers etc. Therefore, a new employee mostly takes around 2 years in order to work proficiently in my department.
Interviewee 3: My department takes a responsibility in import and export procedures and custom declaration This is a very important task because if we make any mistake in paperwork, the goods of customers would get into trouble; and the company would receive a big loss in both reputation and finance Therefore, all of my subordinates have to regularly and carefully update the lastest decrees of government in order to do in a right way Additionally, we have to provide the sufficient information to the Sales Department before making contract with customers whethere their goods can be done or not.
Interviewee 4: As the Managing Director, I am responsible for the entire operations of the company Interlog is a company operating in an extremely competitive and fierce Logistics sector In current, the Vietnam Logistics Company only accounts for a small market share in proportion of Logistics services in Vietnam Meanwhile, the major market share has been manipulated by the foreign multinational Logistics group Therefore, the difficulties ofLogistics Company as Interlog are immediately great in the domestic, not to mention the international level In addition, our company has still faced with daily risks of technological backwardness, slowly changing knowledge and unstable human resources My mission is to concentrate on protecting the stability and profitability of the company through each fiscal year.
Interviewee 5: I am responsible for serving customers, especially VIP customers Moreover, my department has worked with both domestics and foreign export customers Nowadays, the customers are fastidious with detailed and cautious requirements Correspondingly, each of sales staff has important tasks to find many of quality customers that make profit for the company We have faced a lot of pressure from the market and price competition of the opponent companies Interviewer: Currently, many small and medium-sized enterprises in several industries have to cope with the high turnover rate of employees Have
Interlog Company faced this outcome and which department has the highest turnover rate?
Interviewee 1: Working in the HR department, I know clearly about the employee retention situation at the company Within company, the sales division has existed the highest turnover rate with approximately 50% each year.
Interviewee 2: In my department, there were sales staff quit jobs every year In year 2014, three of my sales staffs left the job after receiving training Most of them had low commitments to the company Furthermore, they are lack of knowledge with this consolidation function that I have been hard to train and secure their acquirement.
Interviewee 4: Of course, it does occur in our company almost 2 years from 2013 till now And the department that has the highest turnover rate is Sales Department which comprises four small divisions: Interconsol, Agents Development, Sales and Supply Chain Management.
Interviewer: In your opinion, what are the main reasons that cause this symptom and why?
Interview 1: Personally, I thought everything in life has come from both sides and this issue also can be seen through both objective and subjective aspects Objectively, logistics industry in Vietnam contains many challenges and difficulties but this is a very lucrative field therefore many logistics companies recruit many new employees almost every year in order to match the rapid development of the market At Interlog, there are many fresh graduated students annually with different education backgrounds applying into the company. After spending two or three months of probation period in different positions of different departments at different locations, some people can wisely adapt the working enviroment and be able to work meanwhile some people may not be suitable and they leave due to many reasons Conversely, the experienced employees are easy to adapt the jobs but they mostly request quite high salaries and benefits so it is not easy to retain them in the long period of time.
The current organizational structure is overly complex, limiting employee decision-making authority due to the need for multiple approvals The CEO is hindered by the absence of an effective assistant, leading to excessive involvement in minor departmental details Additionally, his strong beliefs in Feng Shui and Chinese zodiac signs contribute to a lack of trust in subordinates, particularly during the recruitment process He prefers to conduct final job interviews personally rather than relying on recommendations from department and HR managers, which can result in miscommunication between him and mid-level managers.
Interviewee 2: Personally, some of salesmen have to leave the company due to lacking of skills and knowledge in this industry Additionally, the connection between each department is quite loose because the role allocation is not clear and the transfer of employees make them feel uncomfortable and inconsistent in work For instance, the shipment handling process is too limited due to lack of decision making power of staffs while most of decisions belongs to management board and a lower-level empowerment from the manager to their staffs I am really confused about the process of waiting for shipments handled through every department, especially when trouble needs to be solved The result is that employees will waste time to connect together and their productivity will be also decreasing Last but not least, the sales team does not feel comfortable because they have to share the sales commision due to the new policy of the company They think they are strongly depended on other divisions in dealing with customers.
Interviewee 3: I can list down some typical reasons such as: the first one is “over work and under pay”; thus someone would like to find other companies that offer better salary and benefits for them even though the working environment in that company is extremely harsh and not friendly at all This one most likely happened for those who do not own a house in HCMC because they have to spend more money and therefore strongly pay attention to the base salary rather than those who own a house or live with their family in HCMC.
Employees may struggle to adapt to the management styles of their direct supervisors or CEOs, leading to internal conflicts When these conflicts remain unresolved, talented individuals with significant experience often choose to leave the company without hesitation.