Analysis of potential value added alternatives to enhance port logistics activities and major services

Research Background

In the course of global economic integration, Vietnam has recently made significant progress in a number of areas, not the least of which is the field of logistics The Vietnam Logistics Business Association (VLA) reports that as of December 30, 2022, the growth rate of its members’ logistics service activities reached about 15%, positively influencing recovery and socioeconomic development following the COVID-19 pandemic and increasing Vietnam’s import- export turnover to a record amount of 732 billion USD 1 Besides, Vietnam was placed 39th out of 160 nations in the World Bank’s most recent ranking evaluation of the degree of logistics development through the Logistics Performance Index (LPI) 2 This demonstrates how the trend of global economic integration has given Vietnam’s logistics businesses many options for the association, joint venture, and collaboration.

Nevertheless, in addition to these potential advantages, Vietnamese logistics companies also face a number of dangers and obstacles, including an increasingly competitive market and issues with their capabilities However, the majority of businesses engaged in logistics operations in Vietnam are small and medium-sized businesses, which means they don’t just compete with one another The logistics sector has substantial foreign investment capital, but they also face domestic rivals in the same market Also, consumers may get information and access logistics service providers quite easily in the contemporary information technology era. Customers have the right to select the service suppliers that provide them with the best value Thus, it is crucial to identify, maintain, and attract clients who will utilize the service In fact, it could be claimed that this aspect determines whether any Vietnamese logistics firm will remain.

Da Nang Port Logistics Joint Stock Company (DANALOG), which has been in business for 14 years, has as its continual objective to become the top supplier of

2 https://bom.so/mkxMtY logistics services in Vietnam’s central area Danang Port, OOCL Logistics, Shipco Transport, DHL, Viconship, Sinotrans, etc are just a few examples of local and international clients that trust and rely on us Despite the fantastic results that DANALOG Company (DNL) has achieved, there are still a lot of issues that need to be resolved after the intern leaves the organization These issues include customer feedback, complaints made via email or phone, reflections on delivery staff confusion or customer service staff email errors, lack of flexibility in exploitation and management of services, weak customs staff, or document staff that results in document loss.

Due to the aforementioned factors, I made the decision to choose the research topic

“Analysis of potential value-added alternatives to enhance port logistics activities and major services: Strategy and action plan at the Port Logistics Services JointStock Company: DANALOG, Danang, Vietnam”in the hopes of enhancing the logistics activities and main services of DANALOG in order to help the company bring a certain competitive advantage; build a loyal customer base; and bring the best satisfaction.

Research Objectives

Analyzing potential value - added alternatives to enhance port logistics activities and major services at DANALOG Company, Danang, Vietnam.

The specific research objectives, have the following purposes: a) To know the component of “Reliability” affects the operation of logistics services in CFS warehouse b) To know the component of “Flexibility” affects the operation of logistics services in CFS warehouse c) To know the component of “Cost” affects the operation of logistics services in CFS warehouse d) To know the component of “Quality Service” affects the operation of logistics services in CFS warehouse e) To know the component of “Responsiveness” affects the operation of logistics services in CFS warehouse

Overview of DANALOG Company

With 14 years of expertise offering specialized logistics services, Da Nang Port Logistics Joint Stock Company (DANALOG) focuses on a service - based business strategy In the mission of becoming a leading logistics provider in Central - Central Highlands Vietnam and a confidential partner of domestic and foreign customers A Logistics Company provides logistics services from: Warehouse services (CFS/Bonded/Domestics Warehouse); Container depot; Container trucking; Container sales;Customs clearance; etc.

Figure 1.1 Logo Company Source: Self-search on the website’s DANALOG

Danang Port Logistics Joint Stock Company (DANALOG) was established in

2009 In orientation to become a professional logistics supplier in Central Viet Nam and confidential partner of domestic and foreign customers.

DANALOG is situated in the city of Da Nang, which serves as the regional commercial hub as well as a significant crossroads for transportation between the nation and its neighbors On the way to Tien Sa port, and directly linking National Highway 14B, this location is on the East - West Economic Corridor route.

The completion of the traffic system connecting DANALOG with Tien Sa port, Da Nang international airport, National Highway 1A, railway station, and industrial parks has made it easier for commodities to be transported by road and road even while transporting extremely large cargo by train, sea, or air.

To attract goods to the domestic market, southern Laos, and northeast Thailand along the East - West economic corridor, as well as to Da Nang Port, the establishment of DANALOG aims to create a source of import and export goods for the port This will help the movement of goods through the port be smooth, quick, and efficient The establishment of DANALOG is essential In accordance with the agreements made with the WTO, Vietnam will begin to fulfill its promise to open the service sector in 2009, including the logistics industry Enterprises with 100% foreign capital will thus be eligible for rewards In our nation, this kind of service requires a company license.

At this moment, there is a significant increase in demand for logistics services. Statistics demonstrate that an important percentage of Vietnam’s GDP is already generated by the export of products and services This proportion will rise from 72.9% in 2015 to 93.3% in 2021 as a result of improvements in the quality and quantity of these services From 2015 to the present, Vietnam’s freight volume has steadily expanded at a high level, and the logistics industry has contributed 4-5% of GDP to this growth The aforementioned data indicates that there is significant room for growth in the logistics business in Vietnam in 2023 3

The company is located at 97 Yet Kieu - Tho Quang Ward - Son Tra District - Da Nang City, Vietnam and the business phone number from Danang is 84-236 3 667

669 which is used for mainly communication channels.

The company also has a Fax: 84-236 3 924 111 and to display the products/services, the business Website include a Vietnamese domain known as DANALOG.com.vn while the company is responsible for Tax license as a registered business under the number: 0400999731 and the Stock index is classified using the UPCoM: DNL classification.

Da Nang Port Joint Stock Company and Vietnam Container Joint Stock Company (VICONSHIP), the company’s two largest owners, each control a combined 45.10% and 30.91% of the shares 4 Under the cooperation and mutual support of major shareholders and other shareholders, DANALOG has strengthened its position in the market working in the field of logistics, and the area that the business cares a lot about is warehousing, particularly CFS (Container Freight Station) - refers to a warehouse where cargo that is consolidated or unconsolidated before being shipped or imported belongs to numerous exporters or importers.

1.3.2 Timeline of the Business’s Founding and Growth

DANALOG was established in 2009 and has been expanding and changing ever since The DANALOG brand has progressively gained market recognition over the course of those 14 years thanks to important titles, honors, and in particular the confidence of local and foreign clients in the areas of import-export, logistics, transportation, warehousing system, etc It is the driving force behind DANALOG’s daily efforts to steadily enhance the way it operates and the services it offers in order to give its clients exceptional benefits and services The greatest alternatives whenever choosing Da Nang Port Joint Stock Corporation products and services.

The following phases led to the formation and growth of DANALOG:

Established Da Nang Port Logistics Joint Stock Company, formerly known as Da Nang Port Warehousing Station, with the responsibility of serving as the logistics division of Da Nang Port

The Leader of Danang Port’s reconstruction policy led to the establishment of Da Nang Port Logistics Joint Stock Company (DANALOG), which gives a business registration certificate by the Department of Planning and Investment of Da Nang City No.0400999731, dated March 5, 2009 with actual contributed charter capital 27,528,550,000 VND

Increasing the charter capital in accordance with the Board of Directors’ Decision No.09/NQ dated November 27, 2009 on the additional sale of shares from27,528,550,000 VND to 29,951,600,000

Establishment of CFS and Bonded warehouse - the company’s expansion of its business model and the development of economic and operational efficiency in the logistics industry are both significant by this establishment Also, the issuing of shares to current owners boosted charter capital to 36 billion VND at the same time

Establishment of Container Depot - has significant implications for decreasing the demand on time while the container stays in the port, improving the seaports’ traffic capacity, and boosting the ability to carry containers from the port to the inland

In 2017, charter capital increased to 43 billion VND - the ability to compete more effectively while reiterating DANALOG’s reputation and brand

Opening of Container Depot 2,3,4 and 5 - DANALOG is a new breakthrough in the company’s market expansion strategy that will help speed up future growth The Director of the business additionally anticipates that the new branches will assist it in greater client outreach and user service

Table 1.1 Company Milestones Source: Self-search on the website’s DANALOG

According to its annual report for 2022, DANALOG Corporation operates in the following business sectors: Services of CFS Warehouse, Bonded Warehouse,Container Depot Service, Customs tax declaration service, Inland transportation agent, Container agent, Commodities counting service, Carriage of Goods by

Water and Road In such a case, the company’s main business strategy is to concentrate on operations in the field of Logistics services through three primary sectors: Warehousing (focused on evolving more on CFS warehouses),

Figure 1.2 A Reach Stacker Lifting a Tractor in a Container Terminal

Source: Self-search on the website’s DANALOG

Figure 1.3 Organizational Structure of DANALOG

1.3.4.1 Fundamental Responsibilities and Obligations by Department

 Make decisions on the company’s strategy, medium-term development plan, and yearly business plan

 Overseeing and guiding the Director or General Director, and other managers in carrying out the day-to-day operations of the company

 Overseeing the company’s business operations, internal control procedures, and risk management practices

 To make judgments on the organizational structure, internal management policies, establishment of subsidiaries, branches, and head office, as well as capital contributions and share purchases of other enterprises

 Examining whether the Board of Directors and management actions are reasonable in light of the law and the business charter

 Analyze and assess the core business processes to identify any possible risks or weaknesses, and then make suitable suggestions

 Accepting an invitation to attend Board of Directors meetings to examine and oversee the Board of Directors execution of the resolutions of the General Meeting of Shareholders (GMS)

 Review the company’s adherence to regulations, rules, and financial and accounting standards

 Conducting research and formulating strategies for the expansion of the business operations of the organization, as well as creating plans for each cycle and operational period

 Directly monitor and manage the actions of subordinates

 Directly establish the company’s basic rules, regimes, and policies about the best method of staffing, compensation, financial management, and accounting

 Arrange accounting tasks and tools in accordance with the company’s business structure, continually enhancing the organizational structure

 Organize for the correct, timely, honest, and complete recording, calculation, and reflection of all assets; and analysis of the company’s financial performance

 Calculating and immediately subtracting all taxes that must be paid to the state budget, money left to the business, and on-time loan, receivables, and payables payments

 Accurately and promptly reflect, in line with the regime, the findings of the yearly asset inventory, and provide remedies to deal with loss cases

 Comply with the present regime by completely preparing and maintaining the company’s accounting and settlement reports

 Plan for the maintenance and storage of accounting records, and safeguard private accounting information

 Administration - Department of Human Resources

 Create and carry out a recruitment strategy

 Develop and carry out training programs to raise employee credentials and skill levels

 Manage the wage, bonus, and other compensation systems in compliance with the rules set out by the business

 Assisting in the development and oversight of the management system’s implementation, as well as assessing how well the units’ employees are performing their jobs in compliance with legislation

 Tracking and resolving social and health insurance issues for all firm personnel

 Work in concert with research divisions to create policies, strategies,and regulations regarding workplace safety, worker protection, fire and explosion prevention, and to oversee and monitor their implementation

 Keep track of, manage, and update the company’s files and personnel roster

 The department’s internal and administrative tasks

 Develop market strategies, commercial plans, and the output of goods and services for seaports

 Suggesting the creation of marketing strategies and programs

 Corporate communications; establish a marketing budget, be in charge of its execution, and keep an eye on it within the bounds of the authority

 Recommend creating, managing, and maintaining the company’s customer service policy

 Organize research, statistics, and assessments of markets, clients, and rivals

The company’s primary goals are to protect and grow the money that has been invested in the business, maximize earnings, provide shareholders with the best possible returns, and make various forms of contributions to the state budget, reduce taxes, provide employment, and increase wages for people Customers receive the greatest logistical service from DANALOG, and the company develops a sense of pride among its staff members.

SWOT Analysis

A SWOT stands for Strengths - Weaknesses - Opportunities – Threats It is a method for assessing these four aspects of the business and SWOT Analysis is a tool that can support to analyze what the company does best now and to devise a successful strategy for the future.

 Evaluate a company’s overall performance Potential challenges and weaknesses must constantly be addressed in order to strengthen and retain the company’s strengths The trend of greening trade activities is an inevitable trend, which will create higher standards, which means more costs for trade and logistics

 The SWOT analysis plays an essential role in helping to clearly direct the Case Study on “Strategy and Action Plan in enhancing Logistics activities for DANALOG Company”.The majority reason is that determining the right goal for research, consequently focusing on a helpful study methodology and providing the most suitable and satisfactory solution

Figure 1.7 SWOT Analysis of DANALOG

Describe the Problem Specific to DANALOG

There are many problems occurring in the business of logistics services in DANALOG such as: lack of human resources, specifically human resources with high expertise in the field of industry; overloading of goods at the peak time has not been met in time, equipment for loading and unloading activities is often damaged, storage without timely backup equipment, status of loading and unloading staff.

Unprofessional unloading makes goods easily damaged and defective, employees lose, lose company documents, or fill in wrong delivery information with important information such as: Code tax number, Consignee name, forwarding unit affect other relevant departments.

As mentioned in section 1.1, the most remarkable issues are

 Customer feedback, and complaints made via email or phone about the reflections on delivery staff confusion or customer service staff email errors:

 As the majority of DANALOG’s clients are agents/forwarders like Worldwide Link, Shipco, Ecu, Quanterm, CP, and Maxpeed, information is frequently received via mail

 Since agents/forwarders can now register to receive items by email with electronic delivery orders and related documents, as opposed to the traditional method of obtaining information

 Then, when information is received, the latest mail will appear before the old mail, causing missing mail, which prevents the relevant agents/forwarders receiving the products from being aware of the situation, delaying the delivery schedule, and having an impact on stakeholders or other parties

 Lack of flexibility in exploitation and management of services:

 In the warehouse, there will be positions such as supervisors, workers, and mechanics who drive forklifts, electric vehicles, and diesel trucks. Typically, a CFS warehouse will handle a container that has been towed from the port yard after receiving information about which inspector will be responsible for using that container

 Customer Service (CS) will then use this information to calculate the cost of storage, loading, and unloading for customers so they can pay and go to the warehouse to pick up their goods

 There are several challenges in this process for capturing information amongst supervisors who concentrate on mining but neglect to update the information to CS, which results in inconsistent work patterns,heterogeneity in the task, information disruption, and a lack of professionalism

 One may argue that customs is extremely complicated and that customs officials are highly skilled but of poor quality

 Positions related to customs require a high level of professionalism and at least five to ten years of experience to minimize errors as much as possible because weak customs will lead to great risks for customer companies: compensation, decrease in revenue This is because inadequate customs may result in significant dangers for clients’ businesses

 Document staff that results in document loss:

 Storing documents is something that documentaries do regularly, but with an increasing amount of data, storing documents is still faulty, even losing important documents because of the arrangement of documents

 Sorting is not efficient and is still traditional in nature, i.e manual storage, which is easy to cause omission and confusion between import and export documents

Purpose of the Thesis Work

 The purpose is to identify the elements impacting the logistical operations and understanding the causes that makes DANALOG organizational structure a limited logistics efficiency service provider in relation to the objectives of enhancing logistical operations, boost competitive advantages, and leverage the economic performance in relation to the market position

 The issues are pointed out as a reference to be concretized from their underlying causes in order to propose feasible solutions with detailed strategies and action plans

 Finally, a business analysis of the position’s firm in relation to both domestic and international markets is discussed

Scope & Limitations

 Scope of space: focus on the Customer Service (CS) department of the CFS warehouse’s sales department at DANALOG Company (based on the experience as an intern associate facilitated by the company due the business relation and personal interview to apply for this position during the period from February to April 2023)

 Scope of timeframe: the work research and analyze data of the most recent years (2020-2022) This is the ideal time frame for analyzing corporate data

 Scope of content: this research target to determine how the factors affect the efficiency of logistics activities, specifically through the majority service: CFS Warehouse (export and import goods) of DANALOG Company The work identifies the situation needed to be overcome and enhances the company’s logistics activities to be more effective when doing business through the adoption, and applicability of specific strategies, actions, and planning

 Formulation of research aims and objectives: In order to promote the research topic well, focus on services related to the operation of CFS warehouses with the aim of increasing the value of the research paper with high efficiency

 Implementation of data collection method: Errors occur in the implementation of research methods such as inexperience with primary data collection and trying to find ways to collect and accept risks

 Sample size: With the orientation to survey about 120 employees in the company to ensure the variables have high reliability and limit when the low sample size affects the quality of the research

 Lack of previous studies in the research area: Research models from previous researchers or lack of information and documents related to the research topic for reference purposes also limit this research title

Working Model (General Outline of the Thesis)

Figure 1.8 General Outline of the Thesis

Introduction

The modern trend of logistics and its integration into the global economy in the case of Vietnam as a developing economy, says that logistics is an indispensable service field In other words, seizing such an opportunity, Da Nang Port Logistics Joint Stock Company (DANALOG) has formed and developed a logistics service business model with 14 years of experience since 2009 until now, focusing on developing warehousing systems, especially the CFS warehouse with the aim of promoting imported and exported goods, increasing economic efficiency, increasing competitiveness, dominating domestic and foreign markets However, with opportunities, there are always certain challenges that still exist within the business, which is also the reason for the research topic on “Analysis of potential value-added alternatives to enhance port logistics activities and major services” in DANALOG Company.

Keywords: logistics activities, CFS warehouse, DANALOG Company, Case Study

In the first section, the introduction is a detailed overview of the DANALOGCompany’s primary business divisions The research is confined to focus on logistics operations in CFS warehouses, with the goal of identifying the elements from various divisions and departments that impact the effectiveness of logistics activities in CFS warehouses Through analysis, evaluation, and the provision of solutions, the department deals with warehouse operations (including imports and exports).

The second section applies quantitative methods which are descriptive statistics, and regression analysis And then, through the use of primary data quantitative research techniques to interview corporate personnel using survey questionnaires is implemented in order to get unprocessed data.

According to Okorie et al (2015) explain that secondary data means close monitoring (behavior, communication, working style) of the departmental and warehouse staff as they go about their daily business In particular, private departments observe covertly so that the persons being watched are unaware that they are being monitored The variables impacting the logistics operations of CFS will be discovered by setting the study methodology for data collecting and analysis, and solutions to overcome them will be provided.

The third section includes the conclusion reiterating the importance of the logistics sector in Vietnam in general and in particular with the DANALOG Company in order to highlight the study topic’s contribution to the company’s ability to enhance its logistics operations.

Logistics Industry

Graph 2.1 Size of the Global Logistics Industry (2018 – 2021), with forecasts until 2027

Source: Self-search on the website’s Statista

According to the aforementioned graph 5 , the logistics sector will continue to develop rapidly globally, and in the age of the worldwide economy, intense rivalry forces businesses to enter into contracts With logistical activities and cost-cutting, attention should be directed into core capabilities Logistics is defined that: “the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements 6 “.Logistics, which was once thought of as a traditional function involving competitive relationships between suppliers, customers, and transportation providers, is now recognized as a key source of competitive advantage and a major driver of strategic alliances between businesses and their logistics providers.

According to Research and Markets, “the global logistics market was worth 10.32 Billion USD in 2017 and it is estimated to grow to 12.68 Billion USD by 2023 with a Compound Annual Growth Rate (CAGR) of 3.49% between 2017 and

5 https://bom.so/RObPlf published by Statista Research Department, Mar 24, 2023

2023” Reasons cited for this predicted growth are an increase in global trade activities in developing economies, a rise in trade-related agreements, and advancements in information technology and transportation The Asia Pacific region is predicted to be the leader of the global logistics market in the future. Currently, the U.S is among the top ten leading global logistics markets and is the third-highest market in the world for third-party logistics (3PL) companies.

Ross claims that four main areas - warehousing and transportation management, total cost management, integrated logistic management, and supply management - can be considered as the four stages through which logistics develops The logistics sector evolved from only offering tactical transportation and storage services to more centralized logistical operations focused on cost management and customer service From total cost management to integrated logistic solution providers, or so-called 4PL, the function of the logistician then proceeded to grow Based on the principles of 3PL, 4PL leverages the ability of business process managers, technological service providers, and third-party logistics providers to develop a solution through a single point of contact.

The design, operation, and goals of supply chain systems have been impacted by the changing industry dynamics in the area of business logistics by placing more emphasis on increased customer service levels, shorter cycle times, better products and services, lower costs, integrated information technology, process flows, planned and managed movement, and flexibility of product customization to meet customer needs It has undoubtedly also put logistics companies to the test since, while outsourcing supply chain management has demonstrated benefits, in many instances, in order to realize significant savings, the supply chain must be reorganized As a result, there is a rising need for professionals who can manage such restructuring Information Technology has long been used to help logistics in the name of efficiency Information is becoming one of the most important resources from which forward-thinking businesses may create real competitive advantage as a result of recent technological advancements.

The introduction of Electronic Data Interchange (EDI) was the key technological advancement that revolutionized information flow It provides significantly better information flows and is a crucial component in the drive to cut lead times within top corporations Currently, it has been established that the logistic system’s information flow is its foundation One of the most crucial areas in which the logistic providers compete with one another is how to improve the information flow to leverage the efficacy and efficiency of the whole logistic system.

Graph 2.2 GDP Value of Storage in Vietnam Source: General Statistic Office, Vietnam

This graph demonstrates that one of the key elements that significantly boost the GDP of the nation is storage It is vital to establish a warehouse system to store products, and in Da Nang, DANALOG has tackled the problem and invested in expanding the warehouse’s capacity while putting a particular emphasis on the development of CFS.

The nation’s expanding manufacturing, e-commerce, and GDP have all contributed to the growth of Vietnam’s logistics business Furthermore, the young population of the nation’s quick e-commerce adoption has raised the demand for expansion in logistic services Vietnam wants to transition to an export-based economy Another factor contributing to Vietnam’s logistics industry’s potential is the aggressive action the government is taking to encourage manufacturing investments through the establishment of economic zones and industrial parks.

One of Vietnam’s fastest-growing economic sectors is logistics, whose expansion may exceed GDP In the first three quarters of 2020, the country’s import-export receipts were close to US$390 billion According to the General Statistical Office(GSO), there has been an increase of 1.8 percent over the same time last year By

2025, the Vietnamese government wants to see yearly growth in logistics close to 20% 7

Vietnam has developed into a significant ASEAN industrial center during the past

20 years It is necessary to import raw materials and then export completed items since the nation wants to have an export-driven economy Vietnam’s logistics industry has to be developed even further as a result of the growing flow of commodities into and out of the country The expansion of Vietnam’s manufacturing sector has been further aided by the country’s involvement in manyFree Trade Agreements (FTAs).

Logistics Practices/Measurements

A collection of actions taken inside a company to boost the effectiveness of logistics service activities is referred to as a logistics practice The logistics practices were viewed and discussed by several scholars from distinct viewpoints

According to a study on the influence of Logistics on the business performance of garment enterprises in Da Nang City, conducted by student “Nguyen Thi My Van”of Danang University of Economics in 2017, there are 5 factors affecting the business performance of enterprises based on the assessment of service quality, which are internal logistics quality, input logistics, output logistics, support logistics and logistics costs 8

According to “Analysis of the potential contribution of value-added services (VAS) to the competitive logistics strategy of ports”by Okorie, Chukwuneke, Tipi, Nicoleta S and Hubbard, Nick J 2015 at University of Huddersfield Storage. There are 3 main factors influencing the potential value-added for Logistics services: Transportation, Warehousing, and Water Supply Services 9

According to a 2002 report by the Nomura Research Institute (Japan), just 25% of the demand for logistics services is presently being met in Vietnam This report,

“Vietnam Logistics Development, Trade Facilitation and the Impact on Poverty Reduction”, was released The logistics market’s fundamental requirements The cheap cost of logistics services is a benefit for Vietnam, according to this report, but the unreliable service quality and the lack of growth of domestic forwarding firms are the country’s biggest challenges market for domestic logistics.

Steven A Samaras (2000) conducted a study “Competing upstream: Inbound logistics as a source of competitive advantage” with the aim of researching the factors that help improve and enhance the competitive advantage of inbound logistics services Research results show that cost, delivery speed, and customer advantage are closely related to the quality of logistics services.

Consequently, Logistics practices are revealed in the literature from a range of viewpoints, all with the ultimate objective of enhancing organizational performance In reviewing and consolidating the document, four aspects, including customer factors, internal business, service infrastructure conditions, and service quality were selected for measuring logistics practice.

Logistics Activities in CFS Warehouse

2.4.1 General Overview of CFS Warehouse

According to Clause 6, Article 3 of Decree No 68/2016/Decree-Government dated July 1, 2017, Container Freight Station, also known as a retail collection site, or CFS Warehouse for short, is a warehouse and yard area where operations such as collecting, separation, packing, arranging, packing, and ownership transfer service are performed for many commodities owners’ exported and imported items delivered in the same container”.Accordingly the concept of CFS has grown in importance along with the development and growth of ports.

The Port/ICD/Aircargo Complex’s CFS is an outlying division where import and export products are stored while they undergo inspection and approval Imported products can be moved from the port to CFS right away, which also helps to ease port gridlock From these locations, all operations connected to clearing products for domestic consumption, warehousing, interim entries, re-export, temporary storage for onward transportation, explicit export, and transshipments are carried out Since CFS is the last customs contact point, clearing products from CFS is an essential factor to take into account for commerce in regard to cargo import or export.

What goods does CFS store?

Similar to bonded warehouses, goods stored in CFS are also quite diverse In terms of regulations, CFS is also not allowed to store counterfeit, counterfeit, banned and dangerous goods, which must comply with Vietnamese law Clause 3, Article 61 stipulates that items stored in CFS will usually fall into the following cases:

⮚ Imported goods have not yet gone through customs procedures

⮚ Exported goods that have completed customs procedures or have completed customs declaration registration are put into CFS warehouses for physical inspection

According to regulations, the maximum time limit for storing and handling goods in the retail collection point is 90 days from the time they are brought in However, if there is a legitimate reason and approval from the Director of the Customs Sub- Department that is managing the CFS, the extension will be extended once but not exceeding 90 days.

In case the above time limit for storing goods in the CFS warehouse is exceeded, there is no recipient or responsible for handling, the customs authority will make a public announcement Within 60 days from the time the notice is issued, the owner of the goods who comes to receive the goods can still carry out customs procedures but will be sanctioned according to regulations Or the goods will be liquidated according to Clause 6, Article 58 of the Customs Law.

There are many logistics-related operations at the DANALOG organization, but the CFS warehouse is where export and import activities are seen to be the most crucial for other activities to obtain their primary reason to function Storage of imported products and shipment of commodities in containers for international shipping are the two primary operations For the study to be more in-depth in this chapter, it is thus required to first grasp the freight forwarding procedure for imported and exported commodities.

2.4.2 Operations in the CFS Warehouse

In the CFS Warehouse, the following operations are performed:

 Packing, sorting, or repacking and rearranging goods awaiting export

 Splitting, packing goods into containers for goods in transit or transshipment

 These goods will be split, packed together or combined with Vietnamese goods for export

 Separation of imported goods to wait for procedures to import goods into the Vietnamese market

 Container packing of export items in preparation for export to a third country with other export shipments for export to a third country

 Change ownership of goods in stock

2.4.3 Importing and Exporting CFS Procedures

Briefly summarize the process of exploiting goods at the CFS warehouse as follows

 The consolidator receives shipments from many different shippers

 Sorting, arranging, gathering goods, doing customs procedures and then packing them into containers at the CFS warehouse

 Transfer containers to destination port by suitable route

 At the destination, the consolidator’s agent will receive these containers, carry out procedures, unload and deliver the goods to the consignee

Below is a detailed description of the process of handling goods at CFS (applicable to shipping by ship), types of CFS including the management of export and import goods, specifically: a) Imported of Goods

 Power of attorney of goods owner or warehouse tenant for CFS

 Master bill of lading (1 copy)

 Step 2: Carrying out customs procedures to exploit CFS imported goods

 Ship arrival time is updated by CFS unit from transportation companies

 Typically, CFS will transport the container from the harbor to the storage to exploit the cargo in less than a day, assuming the paperwork is accurate and full

 In order to guarantee that the products are exploited, the CFS unit must call the inspection agency, inform the storage renter of the time of cargo exploitation, record the exploitation time with the customs authority, and work with related parties can take advantage of the quickest delivery of the products to the CFS facility

 Step 3: Delivery from the Port to the warehouse

 Before transferring the products from the port, the CFS must thoroughly inspect each container, including counting the number of containers, the amount of lead, and the container’s condition

 It is required to notify the lessee right away and urge the port to produce pertinent documentation between the parties if mistakes or anomalous indicators are discovered, such as dented or perforated containers, water leaks or impacts, loss of products, etc shipping lanes and ports Provide the lessee this information right away

 If the warehouse tenant submits a written request, the port has a broken cargo record, and the container is placed under the control of the warehouse customs and the inspection agency, then the CFS party may only accept the container with the aforementioned error or technical damage

 Step 4: Delivering commodities to CFS warehouse

The CFS party must set up a time that is appropriate and ensures the presence of the warehouse Customs, the inspection unit, and the representative of the warehouse lessee when documents are handed over and items are being broken and exploited

 The parties must verify the cargo container’s number, lead number, and condition before breaking the seal of the container

 The CFS unit must promptly cease the exploitation of the goods, contact the lessee, and take images if it discovers that the commodities are not in their original package or are damaged

 The process of loss assessment, preservation, and evaluation of the state of the products to create a record and a certificate of assessment were now agreed upon by the parties

The CFS unit will import and export goods at the request of the lessee in accordance with the principles of delivery, import and export goods in and out of the CFS warehouse and the provisions of the current Law

 The amount of the CFS storage charge is determined by the terms of the CFS warehouse leasing contract between the owner of the goods (or warehouse tenant) and the CFS warehouse owner

 According to the general regulations on management of import and export goods until the conclusion of customs processes, the management of import and export goods at the CFS must be put under the control of the CFS and the warehouse Customs

Figure 2.1 Process of Making Goods at CFS Warehouse for Imported Goods

Source: Self-search on the Internet b) Exported of Goods

 The amount for each item in the order

 Port of discharge and delivery locations

 Train details (trip number/Feeder train name)

 Time of closure (the time the ship cuts the chute)

Contact the shipper to determine the time the goods will be delivered to the warehouse

Logistics Strategy

According to Lincoln University’s statement 10 that Logistics strategy comes under the umbrella of the Supply Chain Management (SCM) process Logistics strategy uses management principles to ensure the optimization of workflow It includes planning, implementing, and maintaining the efficiency of warehousing, goods flow, services, and information.

The primary focus of managing the Supply Chain(SC) is to fulfill the end-customer needs, create efficiency along the SC and add value to the product (Stock & Boyer,

2009) To develop an effective logistics strategy, it is necessary to understand such factors and characteristics.

To evaluate logistics strategy more objectively who is arguing that strategic planning for logistics management requires three strategic dimensions: Competitive priorities, Competitive scope, and Geographic scope as framework below 11

10 https://bom.so/8qq5Dx

Figure 2.3 A Logistics Strategy Framework Source: Self-search on the Internet

Logistics is directed by three main objectives as quality, time delivery and cost. Quality is an important objective because it is visible by the end-customer and benefit to the loyalty of the customer (Harrison & Van Hoek, 2011) 12 Time factor is also described as responsiveness which represents how fast the product can pass through the SC to reach the end-customer

Cost can give an advantage on the market when a low price or high margin is reached However, it includes a cost reduction at each stage of the SC as manufacturing, distribution, warehousing, etc Harrison and Van Hoek (2011) mentioned the importance of having a collaborative effort from the overall partners within the SC As to set the importance of these main objectives of logistics performance, it is crucial to look at the market of each product.

Unlike competitive strategies, logistics strategies are not classified in a variety of ways Nonetheless, several writers have made comments on various logistics strategy categories, including:

 James L Heskett’s (1977) 13 Cost, service, effective inventory

 Edward Frazelle, Ph.D (2002) 14 Logistics data mining, logistics performance measurement, customer response, inventory planning and management, supply management, transportation, warehousing, logistics information systems, and logistics organization design and development

 A Harrison (2007) 15 Cost leadership, delivery (speed, reliability), and flexibility

 Gregory Neal Stock, Noel Greis, and John D Kasarda (1999) 16 Cost,Quality, Delivery reliability, Flexibility, Delivery speed

Theoretical Model

There are three theoretical models studied to serve research purposes as follows:

SERVQUAL service quality measurement model and SERVQUAL is a scale that achieves reliability and value, the scale set includes 22 observed variables.

When the SERVQUAL scale is set (Parasuraman et al., 1988) to be announced, there have been debates about how to best measure service quality Nearly two decades later, many researchers have tried to prove the effectiveness of the SERVQUAL scale, given by the following structure:

SERVQUAL Model: QUALITY = PERCEPTION - EXPECTED VALUE

13 https://bom.so/WS6dSv

Figure 2.4 Five Dimensions in the SERVQUAL Model

As later suggested by the original developers of the SERVQUAL model 17 , the easy way to recall the five dimensions are by using the letters of RATER, as follows:

Reliability The firm’s ability to perform the promised services accurately and dependably

Assurance Knowledge and courtesy of employees and their ability to inspire trust and confidence

Tangibles Refers to physical facilities, equipment, and appearance of personnel

Empathy Caring and individualized attention paid to customers

Responsiveness The firm’s willingness to help the customer and provide prompt service

Table 2.1 Descriptive 22 Observed Variables and 5 Independent Variables

Source: Self-search on the Internet

The utility of distance and quality models as a foundation for service quality evaluation is still debatable due to the SERVQUAL measuring procedure’s length and complexity (Carmen, 1990; Babakus & Boller, 1992; Cronin & Taylor, 1992).

As a result, SERVPERF, a version of SERVQUAL, appeared:

Owing to its origins in the SERVQUAL scale, the SERVPERF model shares 5 fundamental components with the SERVQUAL model’s 22 observed variables but omits the question of expectations The perceived model is the name given to this paradigm as a result.

Figure 2.5 Oliver’s “Expectations - Perception”Model

The model “Expectations - Perceptions”of Oliver (1980) 18 was introduced to study the evaluation of customer satisfaction, which refers to two small processes that have an independent impact on customer satisfaction It is the expectation of the service before buying and the actual feeling of the service after the experience.

There are 3 possibilities that will happen with this model: (1) If the actual perception completely coincides with the expectation, the expectation will be confirmed and the customer will feel satisfied; (2) If the actual perception is greater than the expectation, the confirmation will be positive, ie the customer will be very satisfied; (3) On the contrary, if the actual perception is smaller than the

18 https://goeco.link/dxzqT expectation, the confirmation will be negative, that is, the customer will be unsatisfied (disappointed).

Proposed Research Model

This is a proposed research model to address the topic's issue, based on the aforementioned theoretical model and the results of the research demonstrated with references to the authors' personal findings in the field of logistics.

In the proposed research model, there are five independent variables, at the same time five potential value-added alternatives, five factors effect on the operation of logistics services in CFS warehouse (dependent variable).

 Hypothesis H1: The component of Reliability affects the operation of logistics services in CFS warehouse

 Hypothesis H2: The component of Flexibility affects the operation of logistics services in CFS warehouse

 Hypothesis H3: The component of Cost affects the operation of logistics services in CFS warehouse

 Hypothesis H4: The component of Quality Service affects the operation of logistics services in CFS warehouse

 Hypothesis H5: The component of Responsiveness affects the operation of logistics services in CFS warehouse

According to the research model above, the variables affecting the logistics services of employees at DANALOG company will be conducted quantitative research From there, provide a case study with a specific strategy and action plan for the company and propose appropriate solutions and recommendations for the purpose of improving the quality of logistics services, better serving the needs of customers demand and use of logistics services at the customer's company.

Introduction

The primary goal of research methodology is to describe how the study is carried out, what expertise is necessary, what information is required, and how information is gathered.

The research methodology comprises the research approach, sample design- sampling procedure, sample size, data collecting source and instruments, data analysis methodologies, ethical considerations, study validity and reliability.

Research Approach

The research was carried out using qualitative research method Conducted through the form of consultation with the lecturer, on the basis of the prepared questions. Preliminary research to collect students' opinions to adjust and supplement the questionnaire.

The research was carried out using a quantitative research method

Quantitative Research: This is a formal research step that is carried out with direct interview techniques through questionnaires to collect information from students Collected data will be processed by SPSS software The scale after being tested for reliability by Cronbach's Alpha coefficient and EFA exploratory factor analysis, linear regression analysis is used to test the factors affecting customer satisfaction.

Form of Survey: The survey using drive.google.com's sample collection The research sample was selected by simple random sampling method Data were collected through a pre-designed questionnaire based on a questionnaire developed by Abdullah in 2006 The questionnaire was designed using a Google Form and the link was sent to employees in DANALOG Company To meet the stated research objectives, the data is processed by descriptive statistics and inferential statistics to prove the research hypotheses.

Research Progress

Figure 3.1 Steps to conduct research

3.3.2 Description of the Research Process

 Step 1: Build and adjust the scale

Currently, the scale commonly used to measure service quality is the SERVQUAL scale Therefore, we have used the SERVQUAL scale as the basis for preliminary research in our research However, each service industry in each market has its own characteristics Therefore, there will also be some variables of the SERVQUAL scale that are not suitable Therefore, preliminary research is carried out to adjust and supplement some observed variables of the scale.

 First time: Learn, discuss and exchange with advisor and a number of teachers with professional experience related to Logistics on conducting scientific research at Duy Tan University

 Second time: Discuss and exchange with 10 employees who are working at DANALOG Company so that recognizing the contributions of the brothers and sisters in the company through the internship process at the Company

 Result: After 2 times of consulting, exchanging and discussing with the lecturers at the school and the staff at DANALOG company, the factors of the research model on the factors affecting the process of Logistics service operation at DANALOG company CFS repository has been agreed The scales have also been fully defined

Based on the preliminary research results and the scales have also been determined and the questionnaire has also been designed based on the Likert scale Use non-probability sampling method and sample size is 120 After obtaining the official questionnaire, collect data by creating a survey onGoogle Form and conducting surveys directly to employees from many positions and departments at Danang Port Logistics Joint Stock Company –DANALOG, Danang, Vietnam.

 Proceed to process the obtained data

 Coding and entering data into IBM SPSS Statistics (Version 20)

 Descriptive statistical analysis to find out the characteristics of the study sample

 Cronbach's Alpha test to determine the reliability of the scale, eliminating inappropriate variables

 Exploratory Factor Analysis to identify groups of observed variables, remove unsuitable variables

 Pearson Correlation Analysis and Multiple Linear Regression Analysis was used to determine the fit of the model Test the hypothesis to be able to clearly determine the influence of the independent variables on the dependent variable

Building a Research Scale

Design the scale through argument analysis and discussion with lecturers After receiving comments, the scale is completed with 5 independent variables are:

“Reliability”; “Flexibility”; “Cost”; “Quality Service”; “Responsiveness”.

RE1: Resolve customer complaints consistently and reliably

RE2: Committed to providing high-quality service

RE3: Customers receive accurate and timely information about orders and other service-related requests

RE4: A high level of control in effective inventory management, optimal utilization of available space, storage of goods, and intense monitoring

RE5: Highly reliable cargo safety metrics (such as shipping does not cause damage, correct or perfect bills of lading, and safe return execution)

FL1: Flexibility in the process of exploiting and managing activities taking place in the warehouse

FL2: The departments involved are highly flexible in transmitting and receiving information

FL3: Design and ship in accordance with customer needs and product characteristics

FL4: Timely and flexible settlement in the regular inventory of goods to promptly grasp the status of goods in stock

CO1: Lower inventory storage costs than competitors

CO2: Offer the best price for customers when using the service

CO3: Affordable investment policy for infrastructure and equipment to improve the warehouse system

CO4: The surcharges for dangerous goods and oversized goods are clearly shown to customers

QS1: Always offer good compensation policies in customer service management

QS2: Fully facilities and equipment that adapt to high quality requirements

QS3: The document procedures are immediately supported, without becoming overly complex or difficult for customers

QS4: To guarantee the efficient exploitation and processing of visitor requests, always prepare ahead

RS1: Responding to a variety of exchanges or answering customers' questions about cargo exploitation schedules in containers orders via social networks (gmail, zalo, facebook)

RS2: Speed of responding to information, receiving information or plans sent by customers quickly

RS3: Customers can easily capture information and mining status in the warehouse

RS4: Receive good feedback and support when customers encounter some force majeure reasons not coming to pick up goods on time (after 5pm)

RS5: The status of shipping or exploiting goods at the warehouse is updated immediately

Table 3.1 Describe in Detail the Observed Variables of the Independent Variables

LO1: The company provides very good logistics services

LO2: The problems that occur during the operation of logistics services are handled perfectly

LO3: All employees, including leaders of departments, manage and operate well the logistics activities that take place in the CFS warehouse

Table 3.2 Describe in Detail the Observed Variables of the Dependent Variable

The questionnaire was conducted using the drive.google.com sample collection by use to Likert scale Employees will be surveyed and indicate their level of agreement with 23 related questions by circling the numbers from 1 to 5 corresponding to 5 levels: (1) Strongly Disagree; (2) Disagree; (3) Neutral; (4) Agree; (5) Strongly Agree

After completing the scale, the questionnaire will be completed.

Source of Data

The required data for the study was collected using both primary and secondary data collection methods.

⮚ Primary Data: Using a Likert scale questionnaire, primary data was acquired from DANALOG workers According to Lahti et al (2009)’s study work on the development of logistics activities, Facchini et al (2019) said that utilizing questionnaires based on the Likert scale model is a straightforward technique to measure the degree of logistics It is an excellent measuring tool since it allows for the creation of ready-made responses to examine the ideas and perspectives of survey respondents at various levels Excellent primary data collection will pave the way for subsequent SPSS analysis

⮚ Secondary Data: The secondary data source for this study is the evaluation of corporate business performance through Human Resources Situation;Financial Statements, Annual Reports from 2020 to 2022 on DANALOG’s website and etc Furthermore, for the study, additional information was gathered with the assistance and cooperation of the Human ResourcesDepartment and Sales Department

Data Gathering Tool/Instrument

Two primary instruments, namely a questionnaire and document analysis, were utilized to gather data.

Questionnaire: It is created after a survey of the relevant literature Because there are a significant number of responders, this method is excellent for gathering essential data Close-ended answers are complemented with a few open-ended items to elicit additional responses from respondents The questionnaire was carefully designed to assess the influence of the suggested independent factors on the dependent variable The type of questions, their format, phrasing, and sequencing were all carefully researched.

Document Analysis: Using this data collection tool, reports, journals, and pertinent documents from the administrative and human resources departments, as well as the sales department were evaluated and gathered This data collection tool is intended to supplement the information gathered through the questionnaire approach.

Sample Size

A specific group of individuals or an item is referred to as the target population, and inquiries can be directed at them or observations can be conducted of them in order to gather the information and data structures needed Employees at DANALOG Company’s headquarters are thus the study’s primary target demographic, especially those workers who work at the company.

As the overall population of the study is big and varied in type, the researcher employed probability sampling, specifically the stratified sampling approach, for the aim of this study Using information from the firm’s divisions and sections, the target audience for the research was divided into six strata The samples are then chosen from each stratum based on how much of the population they represent. Because different people with knowledge and awareness of various supply chain management strategies and dimensions, performance, and organizational performance of the firm are needed to gather the information needed for the study, a stratified sampling technique is used to ensure that the appropriate number of people are drawn from each relevant department or section The departments that were stratified and used to gather data are:

Human Resources Department, Finance and Accounting Department, CS Department, Transportation Sales Department, Sales Department, Research and Development Department are regarded in the sample that was obtained (expandable with more departments).

There are two formulas in scientific research to determine the sample size

Formula 1 For Exploratory Factor Analysis (EFA):

In there: n: sample size to be determined m: number of questions

Formula 2 For Multivariate Regression Analysis:

According to the formula: nP + 8*m nP +8*5

In there: n: sample size to be determined m: number of independent variables

As a result, the research data analysis used formula 1 to analyze the data with a sample size of 115, and took 120 samples in order to boost the survey’s dependability.

Method of Data Analysis

Descriptive statistics is a technique that helps researchers describe in general the characteristics of the research sample and the survey results obtained For example: how many men and how many women in the survey sample: How many people are there in the city? Ho Chi Minh, ow many in Hanoi, how many in other provinces; The average score of a certain question A is how much it falls on Likert 1-5 The statistical indicators of interest are the mean, mode, and standard deviation These three parameters allow to describe the students' overall assessment of the factors mentioned in the questionnaire.

In 1951, Lee Cronbach developed a tool called Cronbach's alpha test, α (or alpha coefficient) has the function to reflect the degree of close correlation between observed variables in the same factor which observations are suitable and which are not suitable for inclusion in the scale In quantitative research, Cronbach's Alpha test method is used before the EFA exploratory factor analysis to eliminate inappropriate observed variables in a factor.

Cronbach's Alpha reliability coefficient is a coefficient that allows to assess the appropriateness when certain observed variables belong to a research variable. However, the reliability coefficient only indicates whether the measures are related or not To know which observed variables do not contribute much to the description of the concept to be removed and which observed variables should be kept, we will rely on Corrected Item - Total Correlation Specifically, the criteria in the reliability coefficient test are as follows:

 0.7 > α >= 0.6: Acceptable factor scale for new studies

 0.6 > α >= 0.5: Factor scale is not suitable

 0.5 > α: Factor scale is not suitable

Corrected Item - Total Correlation: for the degree of correlation between one observed variable in the factor and the other variables The total variable correlation coefficient reflects the contribution of a particular observed variable to the value of the factor The standard correlation coefficient of the total variable to evaluate the observed variable contributing to the value of the factor is at >= 0.3 If

< 0.3, it is considered to have no contribution and it is necessary to remove that observed variable from the evaluation factor.

Cronbach's Alpha if Item Deleted: If Item Deleted > Cronbach's Alpha then the variable will be removed from the evaluation factor.

 EFA is a very important step when performing quantitative data analysis using SPSS in a dissertation, scientific research paper including analysis of the following components:

 KMO coefficient (Kaiser-Meyer-Olkin) is an index used to consider the appropriateness of factor analysis The value of KMO must reach a value of 0.5 or more (0.5 ≤ KMO ≤ 1) which is a sufficient condition for factor analysis to be appropriate If this value is less than 0.5, then factor analysis is likely not suitable for the research data set

 Bartlett's test of sphericity is used to see if the observed variables in the factor are correlated with each other or not It should be noted that the necessary condition to apply factor analysis is that the observed variables reflecting different aspects of the same factor must be correlated with each other This point is related to the convergence value in the EFA analysis mentioned above Therefore, if the test shows no statistical significance, then factor analysis should not be applied to the variables under consideration Bartlett's test has statistical significance (sig Bartlett's Test < 0.05), showing that observed variables are correlated with each other in the factor t

 Eigenvalue is a commonly used criterion to determine the number of factors in EFA analysis With this criterion, only factors with Eigenvalue ≥ 1 are kept in the analytical model

 Total Variance Explained ≥ 50% shows that the EFA model is suitable Considering the variation is 100%, this value shows how much % of the extracted factors are condensed and how many % of the observed variables are lost

 Factor Loading also known as factor weight, represents the correlation relationship between the observed variable and the factor. The higher the factor loading coefficient, the greater the correlation between that observed variable and the factor and vice versa. According to Hair & et al (2009,116), Multivariate Data Analysis, 7th Edition

 Factor Loading at ± 0.3: Minimum condition for the observed variable to be retained

 Factor Loading at ± 0.5: The observed variable has good statistical significance

 Factor Loading at ± 0.7: The observed variable has very good statistical significance

 However, the standard value of Factor Loading should be considered with the same sample size With each different sample size interval, the level of factor weight for the observed variable to be statistically significant is completely different Details in the table below

Factor Loading Minimum Sample Size to be

Table 3.3 Statistically Significant Sample Size Source: Self-search on the Internet

The purpose of running Pearson Correlation is to test the close linear correlation between the dependent variable and the independent variables and early identify the problem of multicollinearity when the independent variables are also strongly correlated with each other; usually this step will be performed before Regression Analysis.

 Pearson Correlation r has a value ranging from -1 to 1 (note, the r coefficient is only meaningful when sig is less than 0.05)

 If r gets closer to 1, -1: the stronger the linear correlation, the closer it is Moving towards 1 is a positive correlation, moving to -1 is a negative correlation

 If r gets closer to 0, the linear correlation is weaker

 If r = 1: absolute linear correlation, when represented on the scatter plot as shown above, the points represented will merge into a straight line

 If r = 0: there is no linear correlation At this point, there will be 2 situations One, there is no relationship between the two variables. Second, there is a nonlinear relationship between them

In research, it is often necessary to test hypotheses about the relationship between two or more variables, including one dependent variable and one or more independent variables If there is only one independent variable, the model is called Simple Linear Regression (SLR) In case there are two or more independent variables, the model is called Multiple Linear Regression (MLR) The next content in this document only refers to multiple regression, univariate regression similar properties to multiple regression.

Y: dependent variable, is the variable that is affected by another variable

X, X1, X2, Xn: independent variable, is the variable that affects other variables β0: regression constant, also known as intercept coefficient This is an index that tells us what the value of Y would be if all Xs were equal to 0 In other words, it tells us what the value of Y would be if there were no Xs When shown above Oxy graph, β0 is the point on the Oy axis that the regression line crosses. β1, β2, βn: regression coefficient, also known as slope coefficient This metric tells us about the change in Y caused by the corresponding X In other words, this metric tells how many units of Y will change if X increases or decreases by one error (e): the larger this index, the more likely the regression prediction becomes less accurate or more deviating from reality The error in the population regression or the residual in the sample regression represents two values, one being independent variables outside the model, the other being random errors.

In statistics, the problem when trying to evaluate is the information of the population However, because the population is so large, it is not possible to obtain this information Therefore, the information of the sample must be used to estimate or test the information of the population Likewise, with linear regression, the overall regression coefficients such as β1, β2 or regression constant β0 are parameters that we want to know but cannot measure Therefore, it is common to use the corresponding parameter from the sample to estimate and then infer the population The regression equation on the study sample:

All of the following regressions talk about regression on the sample data set only. Therefore, the term error will not be mentioned, but only the residual One of the most popular linear regression estimation methods is OLS (Ordinary Least Squares).

For the population, the error (error) is denoted by e, while in the study sample the error is now called the residual and is denoted ε The residual variation is calculated as the sum of the squares of all the residuals.

Ethical Clearance

A formal letter was sent to DANALOG and the appropriate firm officials by the Finance and Economic Faculty, Logistics, and Supply Chain Management Program at Duy Tan University After obtaining the aforementioned parties’ consent, the data-gathering process just began In order to ensure anonymity, the names of the employees who were chosen for the sample were not included.

Reliability & Validity

Insofar as the definitions of reliability and validity in quantitative research reveal two strands: Firstly, with regards to reliability, whether the result is replicable.

Secondly, with regards to validity, whether the means of measurement are accurate and whether they are actually measuring what they are intended to measure 19

However, the concepts of reliability and validity are viewed differently by qualitative researchers who strongly consider these concepts defined in quantitative terms as inadequate In other words, these terms as defined in quantitative terms may not apply to the qualitative research paradigm.

The question of replicability in the results does not concern them (Glesne & Peshkin, 1992), but precision (Winter, 2000), credibility, and transferability (Hoepf, 1997) provide the lenses of evaluating the findings of a qualitative research In this context, the two research approaches or perspectives are essentially different paradigms (Kuhn, 1970).

Joppe (2000) defines reliability as follows: The degree to which the results do not change over time and accurately represent the population under study is called reliability, and if the study results can be reproduced by the same methodology when Therefore, the research tool is considered reliable (p.1).

Expressed in this quote is the idea of replicating or repeating results or observations

Kirk and Miller (1986) define three types of confidence in quantitative research:

(1) the degree to which a measurement remains the same when repeated; (2) the stability of the measurement over time; and (3) the similarity of measurements over a certain period of time (p.41-42).

The traditional criteria for validity find their roots in a positivist tradition, and to an extent, positivism has been defined by a systematic theory of validity Within the positivist terminology, validity resided amongst, and was the result and

19 https://bom.so/2CoaFi, Understanding Reliability and Validity in Qualitative Research, N.Golafshani,2003 culmination of other empirical conceptions: universal laws, evidence, objectivity, truth, actuality, deduction, reason, fact and mathematical data to name just a few (Winter, 2000).

Joppe (2000) provides the following explanation of what validity is in quantitative research: Validity determines whether the research truly measures that which it was intended to measure or how truthful the research results are In other words,does the research instrument allow you to hit “the bull’s eye” of your research object? Researchers generally determine validity by asking a series of questions,and will often look for the answers in the research of others (p 1).

Primary Data Analysis

As discussed in the previous chapter, this study attempted to examine the problems in logistics operations at the CFS with a survey The questionnaires were developed in five scales ranging from one to five; 1 Strongly Disagree, 2.Disagree, 3 Neutral, 4 Agree, 5 Strongly Agree A total of 23 questionnaires were distributed to employees and 123 responders but just 120 responders (100%) were obtained valid and used for analysis (Fits the original sample size of 120).The collected data were presented and analyzed using SPSS (version 20.0) statistical software The study used correlation analysis, specifically Pearson correlation to measure the degree of association between different variables under consideration Regression Analysis was also used to test the effect of independent variable on dependent variable.

 No High School Diploma, University

Table 4.1 Profile of Respondents Source: SPSS Output

The analysis of the respondent profile in terms of their Gender, Educational Qualification, Work Experience and Work Department in line with Table 4.1 is presented as follows:

Gender: Of the 120 responses received, statistics on the gender of employees at the company, male accounted for the majority with 63.3% rate with 76 answer sheets obtained, while male employees accounted for 36.7% with 44 answers. receipts received It can be concluded that the questionnaire is approached and answered by more men, so the percentage of male employees is the majority at DANALOG.

Educational Qualification: According to statistics, 82.5% of the 99 responds collected indicate that the majority of the company's employees are at the college/intermediate level, with the remainder being at the master's level With 13.3% (16 responds), the completion rate for the 12th grade is 2.5% (3 responses), and the number of unqualified 2 workers accounts for 1.7% of the 120 samples that were gathered This demonstrates how the business has improved its human resources department by placing a greater emphasis on credentials and education from a university or higher when recruiting.

Work Experience: Observationally, the majority of employees at the organization had less than two years of experience, which accounted for 53.3% of the 64 responds 45 response sheets represent 37.5% of the workforce with 2-5 years of experience 6.7% with 8 responds indicating 6-10years experience Employees have more than 10 years of experience at the firm, according to 2.5% of the remaining 3 responds The bulk of DANALOG personnel, it is determined, have less than two years of professional experience.

Work Department: 41 respondents (34.2%) are from sales department, 34 respondents (28.3%) of them are from human resources department, 16 of respondents (17.3%) are from customer service department, 10 respondents (8.3%) are from finance department and Inspector at warehouse The rest 5 (4.2%) respondents are from other deparrtments and 4 (3.3%) are transportation department This implies the fact that all the employees are directly and indirectly involved in the operations of logistics at CFS warehouse of the company and hence, their information can be considered as reliable and relevant for the study.

N Minimum Maximum Mean Std Deviation

Table 4.2 Response of the RE Scale

According to the survey results with 120 samples, it can be seen that the smallest value of the variables is 1 and the largest value is 5 At the column mean value all variables have mean > 3, showing that the respondents agree with the point of view of the RE scale The standard deviation of the variable in the column has a relatively low value, indicating that there is not much difference or fluctuation among the respondent. b) Flexibility

N Minimum Maximum Mean Std Deviation

Table 4.3 Response of the FL Scale

According to the survey results with 120 samples, it can be seen that the minimum value of almost variables are 1 and the largest value is 5 In the column mean values of all variables have mean > 3, showing that respondents agree with the point of view of the F scale In the column, the standard deviation of the variable is quite small, showing that the respondents do not have much difference with each other. c) Cost

N Minimum Maximum Mean Std Deviation

Table 4.4 Response of the CO Scale

According to the survey results with 120 samples, it can be seen that the minimum value of all variables is 1 and the largest value is 5 In the column mean values of all variables have mean > 2, showing that most of the employees who answered only disagree partiallyed of the CO scale The standard deviation of the variable in the column is relatively low, demonstrating that there are little differences between the respondents. d) Quality Service

Table 4.5 Response of the QS Scale

According to the survey results with 120 samples, it can be seen that the minimum value of the variables is 1, and the maximum value is 5 At the column mean value all variables have mean > 3 (except QS2 has mean > 2), showing that the respondents agree with the point of view of the QS scale The standard deviation of the variable in the column has a relatively low value, indicating that there is not much difference or fluctuation among the respondents. e) Responsiveness

N Minimum Maximum Mean Std Deviation

Table 4.6 Response of the RS Scale

According to the survey results with 120 samples, it can be seen that the smallest value of the variables is 1 and the largest value is 5 All of the column's mean values have a mean value greater than 3, indicating that respondents concur with the RS scale's point of view The standard deviation of the variable has a relatively low value in the column, indicating that there is little variation among the respondents. f) Logistics Service

N Minimum Maximum Mean Std Deviation

Table 4.7 Response of the LO Scale

According to the survey results with 120 samples, it can be seen that the minimum value of all variables is 1 and the largest value is 5 In the column mean values of all variables have mean > 3, showing that respondents agree with the point of view of the LO scale In the column, the standard deviation of the variable is quite small, showing that the respondents do not have much difference with each other.

4.1.2 Cronbach's Alpha Analysis (CAA) a) CAA of the component “Reliability”

Sign Names of Observed Variables Corrected

Cronbach's Alpha if Item Deleted

RE1 Resolve customer complaints consistently and reliably 0.899 0.947

RE2 Committed to providing high-quality service 0.885 0.949

RE3 Customers receive accurate and timely information about orders and other service-related requests

RE4 A high level of control in effective inventory management, optimal utilization of available space, storage of goods, and intense monitoring

RE5 Highly reliable cargo safety metrics

(such as shipping does not cause damage, correct or perfect bills of lading, and safe return execution)

Table 4.8 Cronbach's Alpha Result of component “Reliability”

Reliability coefficient of Cronbach's Alpha scale of R is 0.959 (very good factor scale) All observed variables have Corrected Item – Total Correlation > 0.3 The

Corrected Item-Total Correlation of the observed variables in the scale is all greater than 0.3 and there are no cases where the observed variables can be removed makes Cronbach's Alpha greater than 0.959 Therefore, all observed variables are accepted, meet the requirements of reliability and will be used in the next factor analysis. b) CAA of the component “Flexibility”

Sign Names of Observed Variables Corrected

Cronbach's Alpha if Item Deleted

FL1 Flexibility in the process of exploiting and managing activities taking place in the warehouse

FL2 The departments involved are highly flexible in transmitting and receiving information

FL3 Design and ship in accordance with customer needs and product characteristics

FL4 Timely and flexible settlement in the regular inventory of goods to promptly grasp the status of goods in stock 0.832 0.912

Table 4.9 Cronbach's Alpha Result of component “Flexibility”

Cronbach's Alpha of the "Flexibility" component is 0.931 (very good factor scale).All observed variables have Corrected Item – Total Correlation > 0.3, and there are no cases where the observed variables can be removed makes Cronbach's Alpha greater than 0.760 Therefore, all observed variables are accepted, meet the requirements of reliability and will be used in the next factor analysis. c) CAA of the component “Cost”

Sign Names of Observed Variables Corrected

Cronbach's Alpha if Item Deleted

Cronbach's Alpha (α) = 0.959) = 0.879 CO1 Lower inventory storage costs than competitors 0.759 0.840

CO2 Offer the best price for customers when using the service 0.808 0.821

CO3 Affordable investment policy for infrastructure and equipment to improve the warehouse system

CO4 The surcharges for dangerous goods and oversized goods are clearly shown to customers

Table 4.10 Cronbach's Alpha Result of component “Cost”

The Cronbach's Alpha of the "Cost” component is 0.879 (good factor scale), the Corrected Item-Total Correlation of the observed variables in the scale is all greater than 0.3 and there are no cases where the observed variables can be removed makes Cronbach's Alpha greater than 0.760 Therefore, all observed variables are accepted, meet the requirements of reliability and will be used in the next factor analysis. d) CAA of the component “Quality Service”

Sign Names of Observed Variables Corrected

Cronbach's Alpha if Item Deleted

Cronbach's Alpha (α) = 0.959) = 0.975 QS1 Always offer good compensation policies in customer service management 0.917 0.970

QS2 Fully facilities and equipment that adapt to high quality requirements 0.933 0.968

QS3 The document procedures are immediately supported, without becoming overly complex or difficult for customers

QS4 To guarantee the efficient exploitation and processing of visitor requests, always prepare ahead

Table 4.11 Cronbach's Alpha Result of component “Quality Service”

The test results show that: The reliability coefficient of the Cronbach's Alpha scale of the experiment is 0.975 > 0.6 (demonstrate that scale QS is measured very good) and all observed variables have Corrected Item - Total Correlation > 0.3 Thus, the scale is reliable, all the observed variables have good explanations for the factor QS. e) CAA of the component “Responsiveness”

Sign Names of Observed Variables Corrected

Cronbach'sAlpha ifItem Deleted n

Cronbach's Alpha (α) = 0.959) = 0.923 RS1 Responding to a variety of exchanges or answering customers' questions about cargo exploitation schedules in containers orders via social networks (gmail, zalo, facebook)

RS2 Speed of responding to information, receiving information or plans sent by customers quickly

RS3 Customers can easily capture information and mining status in the warehouse 0.825 0.901

RS4 Receive good feedback and support when customers encounter some force majeure reasons not coming to pick up goods on time (after 5pm)

RS5 The status of shipping or exploiting goods at the warehouse is updated immediately 0.817 0.903

Table 4.12 Cronbach's Alpha Result of component “Responsiveness”

Official Research Model

Through the above factor analysis, it can be confirmed that the scales are well built and received enthusiastic answers to the survey questions of 120 employees in DANALOG company (the actual number may be more), so the factors impact on the logistics service operation at the CFS warehouse remains unchanged, the initial

4 independent variables are Flexibility, Cost, Quality Service, Responsiveness (these variables are also 4 potential value - added alternatives to reflect the problem and through analysis and evaluation to provide solutions to enhance logistics activities) and a dependent variable is “Operation of Logistics Services”.

 Hypothesis H1: The component of Reliability affects the operation of logistics services in CFS warehouse (Rejected)

 Hypothesis H2: The component of Flexibility affects the operation of logistics services in CFS warehouse (Accepted)

 Hypothesis H3: The component of Cost affects the operation of logistics services in CFS warehouse (Accepted)

 Hypothesis H4: The component of Quality Service affects the operation of logistics services in CFS warehouse (Accepted)

 Hypothesis H5: The component of Responsiveness affects the operation of logistics services in CFS warehouse (Accepted)

Secondary Data Analysis

4.2.1 Human Resources (HR) Situation Analysis

Human is one of the most important part of the business, so if the HR situation in the company is challenging, the company's development will be constrained This is for the purpose of analyzing the HR situation within the last 3 years (2020 -

2022) to determine the limitations that the company encounters, contribute to build a correct orientation with the company's strategy and action plan. a) Evaluation of Human Resource Structure of DANALOG

Graph 4.1 The Amount of Work by Nature of Labor Source: Human Resources Department

Based on graph 1.3, Da Nang Port Logistics JSC (DANALOG) has a steady increase in personnel but still tries to ensure that the ratio of indirect and direct labor is at 2/3 stable This is to ensure that the enterprise does not deviate from its

HR strategy, and does not disturb the salary system.

Graph 4.2 The Labor Size by Gender Source: Human Resources Department

The proportion of male employees at Da Nang Port Logistics Joint Stock Company(DANALOG) always accounts for three or even four times that of female employees The main reason is that a lot of work positions are required to be male workers While, women cannot take on positions that require high physical strength and health, so the company cannot recruit them except for some departments such as administration, human resources, accounting, finance,warehouse inspector, customer care service Another reason is that women often have problems with children and families while the characteristics of the logistics service industry require frequent overtime.

Graph 4.3 The Labor Situation by Age Source: Human Resources Department

The average number of employees in the age group from 30 to 40 years old accounts for the majority of the labor structure at the company, which is a great advantage because this is a workforce that has almost reached maturity in both physical and mental health.

In addition, the labor force over 40 to 49 years old accounts for a low proportion.

At this age, although the labor capacity is not equal to the age group of 30 to 40, but they have rich skills, knowledge and practical experience, enough to complement and pass on to the rest of the age groups.

Besides, the labor force from 18 to 29 years old accounts for a relatively large number, this is the object of enthusiasm and desire to express youth.

Graph 4.4 The ratio of HR by Qualifications Source: Human Resources Department

The rate of primary personnel always accounts for the highest percentage and tends to continue to increase to serve the annual increase in production and business scale at the company.

The rate of personnel concentrated at College & Intermediate level tends to decrease gradually, this is a good sign of the company, showing the improvement of input capacity, in order to reduce training costs and increase competition in the industry.

The rate of university is the second highest and tends to increase steadily every year, gradually standardizing the workforce. b) The Limitations of the Human Resources Situation

 Through the data provided by the HR department

 Employee specialization levels and specialized skills in the logistics field are both weak

 There is no policy to attract young human resources, because this is a workforce with many newthings and creative potentials for the logistics industry

 There has been no identification of training needs, training programs have almost attracted officials and employees interested in participating The curriculum and teaching units have not been evaluated, so they cannot be applied in practice

 Lack of extensive communication channels about company goals, specific job descriptions for each department are still shortcomings, inadequacies, not close to reality

 Through the process of practical experience (Intern at the Company)

 The company culture is not really good, which is reflected in the unclear assignment of work to employees, the superiors are very superficial with the opinions of each individual employee, and are not yet united and supportive of each other when inadequate problems, will often blame the relevant departments

 Highly qualified personnel are still very few, leading to a situation where one person takes on too much work, leading to overload, inefficiencies, and productivity

For the purpose of determining whether the company's financial position is having problems, what difficulties are available through the balance sheet to determine whether the company's assets are working well or vice versa and evaluate the results of business performance in the last 3 years (2020 - 2022) to identify the causes and jointly determine the common orientation goals for the part that proposes solutions. a) Balance Sheet

BALANCE SHEET OF DA NANG PORT LOGISTICS JOINT STOCK

4 Long-term assets in progress

2 Funding sources and other funds

Table 4.23 Balance Sheet of DANALOG Company from 2020 – 2022

Source: Financial Report on the website’s DANALOG

In the financial report 20 , specifically for the balance sheet, Total Assets = Total Equity, or Assets = Liabilities + Equity This means that the assets or instruments used to run the company are balanced against the company's financial liabilities, the equity invested in the company, and retained earnings.

In general, over the 3 years from 2020 to 2022, the value of assets as well as capital has shown signs of decline; such as “Cash and cash equivalents” with the year 2020 is 11,195 million VND and decreases sharply over the years, specifically in 2022, down to 5,652 million VND This decline speaks volumes about the company's performance, as it reflects a decline in the company's ability to pay its short-term debt One of the main reasons is the impact of the Covid pandemic and inflation, the war between Russia and Ukraine (mentioned in section 1.3.6).

In summary, Da Nang Port Logistics Joint Stock Company (DANALOG) is still trying to actively promote the Company's capital and assets, helping the Company to still generate annual revenue and flexible adaptability to improve the impact of external risk factors.

20 https://www.DANALOG.com.vn/

Figure 4.2 The company's capital situation from 2020 to 2022 Source: Annual report on the website’s DANALOG

The proportion of the company's capital items from 2020 to 2022 is inclined to increase the proportion of equity The proportion of equity in 2021 increased by 2,068 million VND compared to 2020 and there was a decrease of 1,818 million VND in 2022 compared to 2021 In general, equity in all three years was very high, meaning that the ability to self-finance The financial owner of the company is very good Looking at figure 3.1, the liabilities in 2021 is the highest The company's liabilities in 2022 decreased compared to 2018 (2,220 million VND) This means that the company is profitable, business efficiency increases, thereby leaving a large amount of profit to supplement capital, meeting the increased capital demand in the year. b) Results of Production and Business Activities of the Company in RecentYears (2020-2022)

Production and business results in the year: Implementing the Resolution of the Annual General Meeting of Shareholders in 2022, DANALOG has implemented well according to the set contents.

Proposing measures to improve production and business efficiency, closely coordinating between departments, workers' groups, field departments and achieving the following results:

 Total revenue: 192,252 million VND, equivalent to 86.6% of the plan in 2022

 Profit before tax: VND 7,154 million, up 2.2% compared to the plan in 2022 (The plan has been adjusted at the Extraordinary General Meeting of Shareholders in 2022)

Performance against plan: The revenue and profit targets in 2922 were achieved in comparison with the Resolution and plan set out by the General Meeting of Shareholders, specifically as follows:

RESULTS OF BUSINESS ACTIVITIES OF DA NANG PORT LOGISTICS

 Net Revenue from providing services 130,776 217,879 222,000 189,851 87.1% 85.5%

Table 4.24 Results of Business Activities in 2020 - 2022 of DANALOG Company

Source: Annual Report on the website’s DANALOG

Through the table of business results in the period of 2020 - 2022, in general, revenue and profit over the years from 2020 to 2022 has a slight downward trend, in terms of total revenue in 2022 is 192,252 million dong, with an increase of VND60,313 million compared to revenue in 2020 Total realized revenue in 2022 increased by 87.8% compared to 2021 Pre-tax profit in 2022 is VND 7,156 million, a decrease of VND 3,960 million compared to 2020 and decreased to4,566 million VND compared to 2021 At the same time, the profit after tax also decreased.

Total Revenue Profit Before Tax Profit After Tax

Total Revenue Profit Before Tax Profit After Tax

Figure 4.3 The Results of Production and Business Activities in 2020-2022

Source: Annual Report on the website’s DANALOG

 Business results in 2022 are more volatile than previous years due to the following reasons:

 Revenue: The revenue in 2022 is 192,252 million VND, equivalent to

Recommendations

Because through quantitative research SPSS determines that the independent variables (Opeartion of Logistics Activities) have the same effect as the dependent variable, so if these factors are improved, the dependent variable (Flexibility, Cost, Quality Service, Responsiveness) will be improved according to the results Based on 4 potential factors affecting the process of logistics service operations at DANALOG company, the specific solution proposals to enhance the logistics activities include:

 Flexibility in the process of exploiting and managing activities taking place in the warehouse:

 Use technology: Implement warehouse management systems (WMS) and other technologies such as barcode scanners, RFID tags, and automated material handling equipment to improve the speed, accuracy, and flexibility of warehouse operations

 Optimize layout: Optimize the layout of the warehouse to improve flow and maximize storage capacity This can be done by using modular storage systems, mobile shelving, and dynamic storage systems that allow for quick and easy reconfiguration

 Cross-train employees: Cross-train employees in multiple warehouse tasks to increase flexibility and reduce reliance on specialized labor. This can help ensure that workers can be quickly reassigned to different tasks as needed

 Adopt lean principles: Implement lean principles such as just-in-time inventory, continuous improvement, and waste reduction to increase flexibility and efficiency in warehouse operations

 Establish partnerships: Establish partnerships with suppliers, logistics providers, and other businesses to share resources and improve flexibility in the supply chain

 Implement flexible scheduling: Use flexible scheduling practices such as staggered start times, part-time schedules, and job sharing to increase flexibility in staffing and respond to changing demands

 Use data analytics: Use data analytics to monitor warehouse operations, track performance metrics, and identify areas for improvement This can help increase flexibility by allowing for quick adjustments in response to changing demand pattern

 The departments need to flexible in transmitting and receiving information:

 Implement regular meetings: Implement regular meetings between departments to review progress, share information, and coordinate efforts This could include daily huddles, weekly status meetings, or monthly project reviews

 Train employees: Provide training for employees on effective communication skills and techniques This could include training on active listening, conflict resolution, or effective feedback

 Encourage feedback: Encourage feedback from employees on communication processes and tools to identify areas for improvement and make adjustments as needed

 Design and ship in accordance with customer needs and product characteristics

 Conduct market research: Conduct market research to understand customer needs and preferences This will help the design products that meet customer expectations and develop a shipping strategy that aligns with those expectations

 Customize product offerings: Customize product offerings to meet the specific needs of customers This could include offering different sizes, colors, or features to meet individual customer requirements

 Partner with logistics providers: Partner with logistics providers that have the capabilities to meet the shipping requirements and customer expectations This could include providers that specialize in certain types of shipping, offer international shipping, or provide customized shipping solutions

 Communicate with customers: Communicate with customers throughout the shipping process to keep them informed of shipment status and address any concerns or issues that may arise

 Timely and flexible settlement in the regular inventory of goods to promptly grasp the status of goods in stock:

 Implement a regular inventory cycle: Implement a regular inventory cycle that allows to track inventory levels and adjust stock levels based on demand This could include weekly or monthly inventory checks

 Optimize storage space: Optimize storage space to improve inventory management by using vertical storage systems, modular storage solutions, and implementing first-in-first-out (FIFO) or last-in-first- out (LIFO) inventory management techniques

 Use demand forecasting: Use demand forecasting to predict future inventory needs and adjust to inventory levels accordingly This can help DANALOG to reduce the risk of overstocking or stock shortages

 Lower inventory storage costs than competitors:

 Optimize warehouse layout: Optimize the layout of the warehouse to maximize storage space and minimize unnecessary movements of goods This can improve to reduce the amount of space required to store inventory

 Use sustainable practices: Implement sustainable practices such as recycling and using renewable energy sources to reduce energy costs and minimize the environmental impact of logistics activities

 Implement a just-in-time (JIT) inventory system: Implement a JIT inventory system to minimize inventory levels and reduce the amount of space required to store inventory Advoing overstock and reduce the cost of inventory storage

 Offer the best price for customers when using the service:

 Analyze the costs: Determine the cost of providing the service to the customers, including materials, labor, and overhead costs This will help to understand the minimum price to charge to cover the expenses

 Research the market: Research the competitors and find out what prices they charge for similar services This will get an idea of the going rate in the company in logistics industry

 Set a competitive price: Based on the cost analysis and market research, set a price that is competitive and attractive to customers This may mean offering a lower price than competitors’s DANALOG or offering additional value for the same price

 Monitor and adjust prices: Regularly review the pricing strategy to ensure which are remaining competitive and profitable If necessary, adjust the prices to reflect changes in costs or market conditions

 Affordable investment policy for infrastructure and equipment to improve the warehouse system

Conclusion

Vietnam's import and export industry is rapidly gaining speed in the present trend of global economic integration and economic liberalization The official admission of Vietnam into the World Trade Organization (WTO) has presented both great potential and formidable obstacles to the Vietnamese economy as a whole and to each individual business Logistics storage space is one of the key components in the supply chain that allows for continuous import and export of products

As a respected provider of logistics services with operations both domestically and internationally, DANALOG always aspires to maximize potentials to raise service standards, support current markets, and open up new ones.

DANALOG has reaffirmed its position in both local and international markets, and the business is steadily developing to become one of the most prestigious inVietnam and a provider of the best logistics services in the Central area.

The measures that the firm takes, its leadership's effective business strategy, and all of the organization's personnel work together to produce the outcomes that they do. The timely delivery and receipt of products is made possible by CFS's method of managing the implementation of processes and operations for import and export goods delivery, which is also the primary service that the firm values defined, in accordance with the needs of the customer

Through this graduation thesis, have gained a more general view of how to organize the implementation of import and export processes for goods at CFS and potential factors to create motivation promote the improvement of the company's logistics activities through specific strategies and action plans and create sustainable development for DANALOG

At the same time, it was observed that while warehouse-related operations are only a minor part of foreign trade activities, they nonetheless play a very significant and complex role, necessitating that the implementer fully comprehend and master customs operations, swiftly catch up with any new rules issued by the State, and consistently update existing rules while adhering to the laws of Vietnam The absorbvation and learning include a lot of things during the practical internship at

Da Nang Port Logistics Joint Stock firm under the passionate direction of the employess in the company The comparision of the theory with reality to examine how closely the knowledge provided in the lecture hall at Duy Tan University adheres to reality and is crucial to use in the process of working afterwards

Even though the internship and research time was limited, this report cannot fully cover the situation that occurs during the implementation and exploitation of goods at the CFS warehouse at the company However, this research is the result of theoretically in the process while studying at school and through practice at the internship company In the maintime, readers can grasp the business situation and information of Da Nang Port Logistics Joint Stock Company in the most general and accurate way Above all, readers can understand what a CFS warehouse is and how its operating procedures and processes and related activities of the company can apply and implement the process professionally and most accurate.

1 Vietnam Logistics Report: https://valoma.vn/wp-content/uploads/2022/12/Bao- cao-Logistics-Viet-Nam-2022.pdf

2 Vietnam LPI: https://lpi.worldbank.org/

3 GDP of Logistics in Vietnam: https://vneconomy.vn/thi-truong-logistics-viet- nam-duoc-du-bao-tang-truong-kep-hang-nam-dat-5-5.htm#:~:text=LOGISTICS

%E1%BB%9ENG%20GDP&text=%C4%90%E1%BB%93ng%20th%E1%BB

%9Di%2C%20b%E1%BA%A3ng%20x%E1%BA%BFp%20h%E1%BA

4 Logistics Strategy of Lincoln University: https://online.lincoln.ac.uk/what-is-a- logistics-strategy/

5 Logistics Activities inside CFS warehouses: https://als.com.vn/en/what-are-cfs- warehousing

6 Some related research studies: https://hbr.org/1977/11/logistics-essential-to- strategy,https://eprints.hud.ac.uk/id/eprint/23892/1/TipiAnalysis.pdf,http:// tailieuso.udn.vn/bitstream/TTHL_125/7519/1/NguyenThiMyVan.TT.pdf , https:// industri.fatek.unpatti.ac.id/wp-content/uploads/2019/03/144-Supply-Chain-

Strategy-The-Logistics-of-Supply-Chain-Management-Edward-Frazelle-Edisi-1 2002.pdf ,emerald.com/insight/content/doi/10.1108/sd.2007.05623cae.001/full/ html,https://www.researchgate.net/publication/

228866205_Enterprise_Logistics_and_Supply_Chain_Structure_The_Role_of_Fit

7 SERVQUAL Model: https://www.marketingstudyguide.com/understanding-the- servqual-model/

8 SERVPERF Model: https://issuu.com/morissette/docs/1_5_/s/17445477

9 Website company: https://danalog.com.vn/

10 Financial Statements for 2020 of DANALOG: https://danalog.com.vn/quan-he- co-dong/bao-cao-tai-chinh/531519-bao-cao-tai-chinh-nam-2020-da-kiem-toan.html

11 Financial Statements for 2021 of DANALOG: https://danalog.com.vn/quan-he- co-dong/bao-cao-tai-chinh/531541-bao-cao-tai-chinh-da-kiem-toan-nam-2021.html

12 Financial Statements for 2023 of DANALOG: https://danalog.com.vn/quan-he- co-dong/bao-cao-tai-chinh/531563-bao-cao-tai-chinh-nam-2023-da-kiem-toan.html

13 DANALOG's 2020 Annual Report: https://danalog.com.vn/quan-he-co-dong/bao-cao-thuong-nien/531520-bao-cao- thuong-nien-nam-2020.html

14 DANALOG's 2021 Annual Report: https://danalog.com.vn/quan-he-co-dong/bao-cao-thuong-nien/531540-bao-cao- thuong-nien-nam-2021.html

15 DANALOG's 2022 Annual Report: https://danalog.com.vn/quan-he-co-dong/bao-cao-thuong-nien/531566-bao-cao- thuong-nien-nam-2023.html

16 Theory guides SPSS analysis: https://www.phamlocblog.com/

DUY TAN UNIVERSITY FACULTY OF FINANCE – ECONOMIC MAJOR: LOGISTICS AND SUPPLY CHAIN MANAGEMENT

Dear respondents, the purpose of this questionare is to survey your opinions about the problems your have encountered during the operation of Logistics services of CFS warehouses at Danang Port Joint Stock Company (DANALOG) I hope that you will take a moment to exchange some of I ideas and views that will help us successfully carry out this thesis All your opinions and views are important to my research Your information will be kept strictly confidential

 There is no need of writing your name

 Where answer options are available please mark () in the appropriate box for part I and part II

If you have any query, please do not hesitate to contact me and I am available as per convenience at (mobile: 0986.915.729 or e-mail: nguyenlmyuyen@dtu.edu.vn) Thank you for scarifying your precious time in advance!

No High School Diploma, University Degree

PART II FACTORS AFFECTING LOGISTICS ACTIVITIES AT CFS WAREHOUSE

Here, I would like to survey the factors that you feel have problems in logistics service activities at CFS warehouse in the company Please mark () in the appropriate box for the given parameters as follows:

The item scales are five-point Likert type scales with 1 = Strongly Disagree, 2 Disagree, 3 = Neutral, 4 = Agree, 5 = Strongly Agree

StronglyDisagree Disagree Neutral Agree StronglyAgree

RE1 Resolve customer complaints consistently and reliably RE2 Committed to providing high-quality service

RE3 Customers receive accurate and timely information about orders and other service-related requests

RE4 A high level of control in effective inventory management, optimal utilization of available space, storage of goods, and intense monitoring

RE5 Highly reliable cargo safety metrics

(such as shipping does not cause damage, correct or perfect bills of lading, and safe return execution)

FL1 Flexibility in the process of exploiting and managing activities taking place in the warehouse

FL2 The departments involved are highly flexible in transmitting and receiving information

FL3 Design and ship in accordance with customer needs and product characteristics

FL4 Timely and flexible settlement in the regular inventory of goods to promptly grasp the status of goods in stock

CO1 Lower inventory storage costs than competitors

CO2 Offer the best price for customers when using the service

CO3 Affordable investment policy for infrastructure and equipment to improve the warehouse system

CO4 The surcharges for dangerous goods and oversized goods are clearly shown to customers

QS1 Always offer good compensation policies in customer service management

QS2 Fully facilities and equipment that adapt to high quality requirements

QS3 The document procedures are immediately supported, without becoming overly complex or difficult for customers

QS4 To guarantee the efficient exploitation and processing of visitor requests, always prepare ahead

RS1 Responding to a variety of exchanges or answering customers' questions about cargo exploitation schedules in containers orders via social networks (gmail, zalo, facebook)

RS2 Speed of responding to information, receiving information or plans sent by customers quickly

RS3 Customers can easily capture information and mining status in the warehouse

RS4 Receive good feedback and support when customers encounter some force majeure reasons not coming to pick up goods on time (after 5pm)