ESTABLISHING PERFORMANCE STANDARDS OF OCEAN FREIGHT FORWARDING SERVICES FOR IMPORT AT AMITY LOGISTICS CO., LTD.. THIẾT LẬP TIÊU CHUẨN THỰC HIỆN DỊCH VỤ VẬN CHUYỂN ĐƯỜNG BIỂN NHẬP KHẨU TẠI CÔNG TY TNHH AMITY LOGISTICS. THIẾT LẬP TIÊU CHUẨN THỰC HIỆN DỊCH VỤ VẬN CHUYỂN ĐƯỜNG BIỂN NHẬP KHẨU TẠI CÔNG TY TNHH AMITY LOGISTICS.ESTABLISHING PERFORMANCE STANDARDS OF OCEAN FREIGHT FORWARDING SERVICES FOR IMPORT AT AMITY LOGISTICS CO., LTD.
TOPIC: ESTABLISHING PERFORMANCE STANDARDS OF OCEAN FREIGHT FORWARDING SERVICES FOR IMPORT AT AMITY LOGISTICS CO., LTD Contents CHAPTER LITERATURE REVIEW 1.1 Overview of freight forwarding service 1.1.1 Overview of service 1.1.2 Overview of freight forwarding service .5 1.2 Overview of performance standards in freight forwarding 1.2.1 Overview of performance standard 1.2.2 Performance standards in freight forwarding service 11 CHAPTER 2: OVERVIEW OF AMITY LOGISTICS CO., LTD 20 2.1 History of formation and development 20 2.2 Organizational structure 21 2.3 Functions-Tasks 22 2.3.1 Functions 22 2.3.2 Mandates 23 2.4 Business performance of the Company in the period from 2019 to 2021 23 CHAPTER 3: ESTABLISHING PERFORMANCE STANDARD OF SEA FREIGHT FORWARDING SERVICE AT AMITY LOGISTICS CO., LTD .28 3.1 Actual situation of providing sea freight forwarding services at Amity Logistics Co., Ltd in the period from 2019 to 2021 28 3.1.1 3.2 Internal factors .28 Procedures of establishing performance standard of sea freight forwarding service at Amity 42 3.2.1 Developing questionares 42 3.2.2 Focus-group interview 44 3.2.3 Completing performance standard of sea freight forwarding service at Amity 45 CHAPTER LITERATURE REVIEW 1.1 Overview of freight forwarding service 1.1.1 Overview of service 1.1.1.1 Definition of service There are different definitions of service But in general, from these definitions, it could be concluded that services are products of labor, not exist in the form of objects, production and consumption processes occur simultaneously, in order to meet the needs of production and consumption In a broad sense, products and services are a third economic sector belonging to the national economy It includes many economic activities outside of the two main sectors that are agriculture and industry However, in a narrow sense, products and services are useful human activities to bring about products that not exist in physical form and not lead to ownership or transfer of ownership However, it is still possible to fully and quickly meet the needs of production and life in society Services are economic products including work in the form of physical labor, management, knowledge, organizational ability and professional skills to serve the needs of production, business or consumption activities of the customer individuals and organizations Service is a common concept in marketing and business Being a “special product” has many characteristics that are different from other goods such as intangibility, heterogeneity, inseparability, and non-storability Therefore, up to now, there is no complete definition of service According to Zeithaml and Bitner (2000), “Services are behaviors, processes and ways of doing a certain job to create value for customers to satisfy their needs and expectations” According to Philip Kotler (2005)“a service is any activity or benefit that one person can provide to another In which the object provided must be intangible and does not lead to any ownership of an object The production of a service may or may not be tied to a physical product.” Services play an increasingly important role in the national economy Service quality is one of the factors that determine the effectiveness of services as well as the creation of value contributing to the national economy 1.1.1.2 Characteristics of service First, intangibility of a service is reflected in the fact that the service is the activities performed by the provider, the service does not have the features that attract customers' senses like other ordinary physical products, they cannot be seen, tasted, felt, smelled, heard before buying In other words, potential customers cannot feel the service before providing it Second, services are often produced and consumed at the same time As for physical goods, they are produced into products, distributed through many intermediaries, and then consumed However, in the case of services, it cannot be separated from the service provider As a result, the service provider becomes part of the service Third, the perishability of services is that they cannot be stored for later sale or use This is one of the most important characteristics of a service, as it can have a big impact on a service provider's financial results: In the case of steady demand, perishability is not a factor The problem is too big that service providers need to pay attention However, in the event of fluctuating demand, service companies may face difficulties Fourth, changeability: Changeability also belongs to the important characteristics of the service It refers to the fact that the quality of services can vary greatly, depending on who provides them and when, where and how Due to the labor-intensive nature of services, there is a great deal of variation in the service quality of different providers, or even by the same provider at different times Finally, price the service Pricing decisions about services are influenced by perishability, fluctuations in demand, and inseparability The quality of a service cannot be carefully standardized Service pricing depends on demand and competition where variable pricing can be used 1.1.2 Overview of freight forwarding service 1.1.2.1 Definition of freight forwarding service Freight forwarding are activities in the circulation and distribution of goods, an important step linking production with consumption, the two main sides of the social reproduction cycle Freight forwarders perform the function of bringing products from the place of production to the place of consumption, completing the second side of distribution circulation, which is physical distribution, when the first side is the commercial procedure that has formed Forwarding is associated with and parallel with the transportation process Through forwarding and forwarding, transportation operations are carried out: gathering goods, transporting, loading and unloading, storing, conveying, packing, procedures, documents With such a broad connotation, so There are many definitions of forwarding According to FIATA's model rule on forwarding services: "Forwarding services are defined as any type of service relating to the transportation, consolidation, storage, handling, packing or distribution of goods as well as consulting services related to the above services, including customs, financial, insurance, payment, document collection related to goods” According to the 2005 Vietnam Commercial Law, the delivery of goods is a commercial act, whereby the person providing the freight forwarding service receives the goods from the sender, organizes the transportation, storage, storage, and carrying out the following procedures documents and other related services to deliver the goods to the consignee as entrusted by the shipper, the carrier or another forwarder So basically, freight forwarding is a collection of operations and procedures related to the transportation process in order to move goods from the place of delivery (the consignor) to the place of receipt (the consignee) recieve) Freight forwarding activities are a type of Logistics activities, in which forwarding activities include the following types: - By mode of transport, including: Forwarding by sea: Using ships to transport goods, is the most popular mode of transport today in international trade Air freight forwarding: Is a method of importing and exporting goods using a means of transport, which is an airplane Usually used for goods of great value, small volume, short shelf life or special preservation requirements Forwarding and forwarding by road - railway: A form of using land transport means to transport goods to the land border between two countries Multimodal freight forwarding (MTO): A mode of transport that combines many different means of transport, the purpose is to optimize costs and transportation time Pipeline delivery: A method of using a means of transport, which is a pipeline Usually used to transport liquid goods such as gas, oil and gas 1.1.2.2 Characteristics of freight forwarding service - International freight forwarding by sea depends on external factors International freight forwarding by sea is the service for transporting import and export goods from the exporting country to the importing country As a part of international freight forwarding, freight forwarding for import and export by sea depends a lot on external factors such as the preparation of the shipper's export goods , international means of transport of the carrier, commercial law, especially maritime law, customs of other countries, natural conditions So in the process of delivering and receiving goods by sea, it is impossible fully active - International freight forwarding by sea is seasonal, directly affected by the import and export market Seasonality is an attribute of the forwarding service because it serves the import and export process Only when import and export activities take place strongly will the international freight forwarding service have the conditions to develop, but import and export activities are seasonal, sometimes taking place strongly, but there are times when import and export activities are very seasonal little movement - International freight forwarding by sea depends on the material and technical foundations and experience and professionalism of the forwarder Conducting business in forwarding services must have means of transport, fleets, means of communication management, means of storing goods to conduct business related services such as: Consolidation, transportation transportation, loading and unloading, receiving goods, The requirements of those services also require the forwarder to have qualifications, business skills and experience 1.2 Overview of performance standards in freight forwarding 1.2.1 Overview of performance standard 1.2.1.1 Definition of performance standard A performance standard is a management-approved expression of the performance threshold(s), requirement(s), or expectation(s) that must be met to be appraised at a particular level of performance A fully successful (or equivalent) standard must be established for each critical element and included in the employee performance plan If other levels of performance are used by the appraisal program, writing standards for those levels and including tem in the performance plan is not required by is encouraging so that employees will know what they have to to meet higher standards 1.2.1.2 The role of performance standard in service provision/quality management Services play an increasingly important role in the national economy Service quality is one of the factors that determine the effectiveness of services as well as the creation of value contributing to the national economy Service quality is assessed depending on culture, field and industry, so there are many different definitions Depending on the research object and research environment, understanding service quality is the basis for implementing measures to improve and enhance service quality of enterprises In the history of development, many service providers have found their own distinction from the competition and maintained their customers through the implementation of excellent service quality Service quality has become a key marketing tool to differentiate from competitors and promote customer loyalty Customers can only evaluate the quality of services after they have purchased and used them Therefore, the definition of service quality is often subjective, mainly based on the attitude, perception and understanding ability of service users Through the process of reviewing documents, it was found that there are a number of concepts of service quality used by many writers Service quality is a measure of how well the service delivered to the customer matches the customer's expectations Creating a quality service means meeting customer expectations consistently (Luu Van Nghiem, 2008) Gronroos (1984) considers service quality to be assessed on two aspects, namely technical quality (referring to what is served) and functional quality (how they are served) In his 1998 study, he described perceived service quality as the difference between expected service quality and perceived service quality Parasurman, Zeithaml and Berry (1985, 1988) said that "Service quality is the expected gap between customers' products and services and their perceptions and feelings when using that product or service." He explains that the best way to know your customers' expectations is to identify and understand their expectations It is necessary to develop a system that identifies customer expectations, and then to create an effective service quality strategy This can be considered as the most general concept, fully covering the meaning of service when considering service quality from the customer's point of view, considering the customer as the center Although there are many different definitions, in general, service quality includes the following characteristics: Superiority: For customers, quality service is service that shows its superiority "premium" compared to other services It is this preeminence that makes service quality a competitive strength of service providers Evaluation of the superiority of service quality is greatly influenced by the perception of service recipients, especially in marketing research and customer satisfaction Features: Service quality is the sum total of the most core aspects crystallized in products and services that create the characteristics of products and services Therefore, high-quality service products will contain more "outstanding features" than low-level service products This distinction is associated with the identification of outstanding tangible or intangible attributes of products and services It is thanks to these characteristics that customers can identify the service quality of this business compared to other businesses However, in reality, the core characteristics of the service are only relative, so it is difficult to define fully and accurately Supplyability: Service quality is associated with the process of performing/delivering services to customers Service implementation, service style and service delivery will determine the good or bad service quality This is an internal factor that depends on the performance of the service provider Therefore, in order to improve service quality, service providers first need to know how to improve this intrinsic factor to form their own long-term strengths in providing services to customers Satisfaction of needs: Services created to meet the needs of customers Service quality must necessarily satisfy customer needs and take customer requirements as the basis to improve service quality If customers feel that the service does not meet their needs, they will not be satisfied with the quality of service they receive In the modern business environment, service providers must always focus on customer needs and try their best to meet those needs In terms of customer service, "demand satisfaction" includes the meaning of "supplyability" The reason for this is because service quality starts from the time the business understands the needs of the customer to the time of service implementation, but it is in the process of providing service that customers will feel satisfied or not and from there perceive the quality of service good or bad If supply has an internal factor, the satisfaction of demand is influenced by external influences more Calculating value creation: Service quality is associated with the values created to serve customers It is futile and worthless to provide services that customers consider to be of poor quality Businesses create value and customers are the recipients of those values Therefore, the consideration of service quality, or more specifically, the value it brings to customers, depends on the assessment of the customer, not the business Customers take the value of services brought and compare them with what they expect