Some suggestions to push up the forwarding service at sotrans international freight forwarder enterprise

HO cm MINH CITY UNIVERSITY OF FOREIGN LANGUAGES AND INFORMATION TECHNOLOGY DEPARTEMENT OF INTERNATIONAL BUSINESS ADMISTRATION • TOPIC: / ; SOME SUGGESTIONS TO PUSH UP THE FORWARDING SERVICE AT SOTRANS INTERNATIONAL FREIGHT FORWARDER ENTERPRISE STUDENT'S NAME : PHUONG HOAI TAM CLASS : KDOI-OI ADVISOR : MBA.THAN TON TRONG TIN JULY, 2005 HO CHI MINH CITY UNIVERSITY OF FOREIGN LANGUAGES AND INFORMATION TECHNOLOGY DEPARTEMENT OF INTERNATIONAL BUSINESS ADMISTRA TION TOPIC: SOME SUGGESTIONS TO PUSH UP THE FORWARDING SERVICE AT SOTRANS INTERNATIONAL FREIGHT FORWARDER ENTERPRISE STUDENT'S CLASS ADVISOR NAME JULY, 2005 : PHUONG HOAI TAM : KDOI-Ol : MBA THAN TON TRONG TIN , • Acknowledgement I would like to express my gratefulness to Board of Director and International Business Administration Department of the HUFLIT University for a valuable opportunity to study and to write this graduation paper I would like to express my deeply-hearted thanks and great gratitude to my advisor, Mr Than Ton Trang Tin, for his unvaluable comments My graduation paper would advice not be completed and help without his enthusiastic supports, spiritual encouragement and invaluable guidance I would like to take this opportunity give my deep-thank to Mr Son and all staff members of SOTRANS LF.F They give me a good chance to practice at the company and their helpful support and assistance From the bottom of my heart, I wish to thank my parents for their encouragement and support during four years in the university, especially in the time of preparation and finishing this paper I also show my appreciation to all teachers of HUFLIT university for their valuable knowledge and comment Finally, I would like to say thank to all my friends • ADVISOR'S COMMENTS Assigned by the Huflit University to guide graduation paper of Miss Phuong Hoili Tam with the topic: "Some suggestions to push up the Forwarding Service at Sotrans I.F.F Co ", I have some comments as the followings: Form: Graduation Paper has been presented clearly, well with reasonable outline; not many mistakes on spelling or grammar Documents hilVe been illustrated thoroughly and well cotlvinced It shows that the author was hardworking in preparation and working Content: Author shows an understanding of the Basic forwarding in chapter 1, which is the foundation for the work in the following chapters Author shows a spirit of serious working, performs rather completely all requests given by the advisor She usually meets the advisor to discuss the topic matters, in which proved her ability of science research, analysis skills, self-solving problem She performs herself of eagerness in studying and collecting data, referenced materials by which the work shows a deep analysis in business operation in Sotrans IFF, reflects the reality in its procedure in forwarding She wrote pretty well in SWOT analysis and then recommended the applicable solutions and recommendations in improving the business performance This is also the part that the advisor is most interested and highly regards As the advisor, I am so proud of this student, Miss Phuong Hoai Tam This is the graduation paper that is highly appraised, especially in writing skill The author made much effort to finish the paper in the condition of attending internship while working This paper is really one of the useful materials for student in later courses General recommendation: The paper is considered excellent and it is recommended permits Miss Phuong Hoai Tam to protect her work Dated 04 July, 2005 Advisor Than T6n TrQng Tin that the University The trend of internationalization in economic activities has more rapidly increased, trade relations among countries have continuously developed in all fields Serving these relations, many service industries appear accompany to the development of international trade activities including forwarding service Although forwarding activity has appeared for a long time, a forwarding company with large or small size has some problems to be considered Because the development is accompanied to fierce competition, always has customers with higher and higher demands, always asks for something new How are these problems solved? That is the reason why it is necessary to study this theme From that point of view, an understanding about forwarding service in Ho Chi Minh City, using SOTRANS LF.F as an example, is necessary This research investigates forwarding operation at SOTRANS LF.F and some solutions to push forwarding service are then presented in order to improve the company's performance in the future In this paper, some recommendations for the government and concerned authorities are suggested with the hope that forwarding service will be more developed and get more profits for the country in the future Figures Figure 2.1: Organizational Structure of SOTRANS Corporation Figure 2.2: Organizational Structure of SOTRANS I.F.F Figure 2.3: organizational structure of logistics department Figure 2.4: Revenue and net profit status of the enterprise from 1999 to 2003 Figure 4.1: Concentrated marketing of SOTRANS in next time Figure 4.2: Vertical Marketing System (VMS) Content Acknowledgement i Advisor's assessments ii Acstract 111 List of tables and figures iv Introduction Chapter Basic understanding of Forwarding service 1.1 Definitions 1.1.1 Definitions of forwarding service 1.1.2 Definitions offreight forwarder and it's role 1.1.3 Rights and obligations of freight forwarders 1.1.4 Exemption of obligations , 1.1.5 Scope of responsibility 1.2 Scopes and Benefits of forwarding service 1.2.1 Scopes of forwarding service 6 1.2.1.1 Exporting process 1.2.1.2 Importing process 1.2.2 Benefits of forwarding service 1.2.2.1 Benefits for exporters 1.2.2.2 Benefits for importers 1.3 Some forwarding organizations in Vietnam and in the world 1.3.1 Some forwarding organizations in the world 1.3.1.1 FIAT A organization 1.3.1.2 AFTA- Asean Federation of Forwarder Association 1.3.2 Forwarding organization in Vietnam -VIFAS 1.4 The main contents offorwarding operation 1.4.1 Forwarding operation for export cargo 11 12 14 14 1.4.1.1 Full Container Load (FCL/FCL) 14 1.4.1.2 Less Than Container Load (LCL/LCL) 16 1.4.1.3 Exporting bulk cargo with large quatity 17 1.4.2 Forwarding operation for import cargo 18 1.4.2.1 FCL Chapter General 18 introduction about SOTRANS I.F.F 20 2.1 An overiew of corporation 20 2.1.1 The history and development of SOTRANS corporation 20 2.1.2 The history and development of SOTRANS LF.F 23 2.2 Responsibilities and authorities of SOTRANS LF.F 24 2.3 Organization structure of corporation 26 2.3.1 Organizational structure of SOTRANS corporation 26 2.3.2 Organizational structure of SOTRANS LF.F 27 2.3.3 Functions of each department 27 2.4 The business performance at SOTRANS LF.F in the last five years 30 2.5 SWOT analysis 32 Chapter Forwarding service at logistic department of SOTRANS I.F.F 35 3.1 Forwarding operation for import cargo 35 3.1.1 Less a Container Load import cargo (LCL import cargo) 35 3.1.2 Full Container Load import cargo (FCL import cargo) 45 3.2 Forwarding operation for export cargo 3.2.1 Less a Container Load export cargo 45 46 3.2.2 Full Container Load export cargo Chapter Some suggestions to push up the forwarding service at SOTRANS I F F 51 4.1 Enhancing marketing activities 51 4.1.1 Investigating primary data 53 4.1.2 Deciding market segment 54 4.1.3 Applying marketing mix 59 4.2 Planning for training and development human resource Introduction During nearly the part twenty years (1986 - 2005), thanks to the reform policy of the Vietnam Communist Party with the applying of the open door policy and the expecting of joining World Trade Organization (WTO), Vietnam's economy is yearly growing up under a political stability International trade develops; the quantity of import-export cargo has strongly increased in recent years Many service industries appear to serve the import-export process, such as, transportation, insurance, forwarding, ect Forwarding service is a service relating to transport process aim to bring cargo from the seller to the buyer Freight forwarder plays an important role in import-export trading There are more and more freight forwarders in our country In a severely competition market, customers will choose freight forwarder who can supply the fastest, safest, cheapest services Therefore, what measures should these forwarders apply and how can they operate at the most efficiently? I would like to limit the scope of theme in forwarding operation by sea, because it accounts for 90% of all import-export cargo in a whole country The research methods base on knowledge at school, relevant documents both in English and Vietnamese, data collected from newspapers, magazine, and some websites; and activity observation during the time of practicing at logistic department of SOTRANS LF.F The aim of this study is to analyze forwarding operation at Logistic Department of SOTRAN LF.F enterprise, then advantages and disadvantages through SWOT analysis is investigated From that point of view, some solutions to push up forwarding service are presented Then, some recommendations to the company as well as to the government are carried out aim to develop, forwarding service in the future The study entitled "some suggestions to push up the forwarding service at SOTRAN I.F.F" is composed of four chapters Chapter I is dealt with basic understanding of forwarding; definition, scopes and benefits, some forwarding organization in Vietnam and in the world, the main content of forwarding operation Chapter describes historical background of SOTRANS, SOTRANS I.F.F, responsibilities organizational structure, business performance, and authorities, SWOT analysis Chapter presents forwarding operation at logistic department of SOTRANS I.F.F, forwarding operation for import-export cargo in FCL, LCL Chapter is some suggestions forwarding service at SOTRANS to push up the I.F.F It ends with a conclusion recommendations to the enterprise and to the government and some OT E.PCL.Yf';KOlJR aJPKC NO 3363755 11r1P 24 2005 11: 31 "'n :!.74C'? 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