Trang 1 FOREIGN TRADE UNIVERSITYHOCHIMINH CITY CAMPUS---***---MID-COURSE INTERNSHIP REPORTMajor: Logistics and Supply Chain ManagementTHE IMPORTING PROCESS OF LUBRICANT PRODUCTS BYHOA KH
FOREIGN TRADE UNIVERSITY HOCHIMINH CITY CAMPUS -*** MID-COURSE INTERNSHIP REPORT Major: Logistics and Supply Chain Management THE IMPORTING PROCESS OF LUBRICANT PRODUCTS BY HOA KHANH GENERAL SERVICES AND TRADING COMPANY LIMITED Student: Tran Cao Anh Ngoc Student ID: 1915535332 Class: K58CLC6 Supervisor: Vuong Thi Bich Nga Ho Chi Minh City, August 2022 FOREIGN TRADE UNIVERSITY HOCHIMINH CITY CAMPUS -*** MID-COURSE INTERNSHIP REPORT Major: Logistics and Supply Chain Management THE IMPORTING PROCESS OF LUBRICANT PRODUCTS BY HOA KHANH GENERAL SERVICES AND TRADING COMPANY LIMITED Student: Tran Cao Anh Ngoc Student ID: 1915535332 Class: K58CLC6 Supervisor: Vuong Thi Bich Nga Ho Chi Minh City, August 2022 TABLE OF CONTENT CHAPTER INTRODUCTION TO HOA KHANH GENERAL SERVICES AND TRADING COMPANY LIMITED 1.1 General Company Information 1.2 Formation & Development .2 1.2.1 Development Process 1.2.2 Business Strategies 1.2.3 Business Portfolio 1.2.4 Organizational Structure 1.2.5 Business Performance .7 1.3 Internship Duties & Experience 1.4 Summary of Chapter 11 CHAPTER ANALYSIS OF THE GLOBAL LUBRICANT SUPPLY PROCESS FOR DOMESTIC DISTRIBUTION BY HOA KHANH 12 2.1 The ordering process from foreign lubricant suppliers 13 2.2 The payment process for foreign lubricant suppliers 14 2.3 The delivery process from foreign lubricant suppliers 15 2.3.1 Seller's obligations in the delivery process 15 2.3.2 Hoa Khanh's obligations in the delivery process as a buyer 22 2.4 Summary of Chapter 29 CHAPTER EVALUATION & RECOMMENDATION FOR THE GLOBAL LUBRICANT SUPPLY PROCESS OF HOA KHANH 30 3.1 The SWOT Analysis of Hoa Khanh Current Lubricant Procurement Process 30 3.1.1 Strengths 30 3.1.2 Weaknesses 32 3.1.3 Opportunities 33 3.1.4 Threats .34 3.2 Recommendation for Improving the Efficiency of the Current Supply Process34 3.2.1 Innovate warehouse management system (WMS) and supplier relationship management (SRM) process 34 3.2.2 Build the training and development plan for employees to deal with the international working process 37 3.3 Summary of Chapter 39 REFERENCES 40 APPENDICE 41 TABLE OF FIGURES Figure 1-1 Basic profile of Hoa Khanh Co., Ltd Figure 1-2 Critical milestones in the formation and development of Hoa Khanh Figure 1-3 The vision, mission, and core values of Hoa Khanh Company Figure 1-4 The organizational structure of Hoa Khanh Company .5 Figure 1-5 The subsidiary list of Hoa Khanh .5 Figure 1-6 The branch list of Hoa Khanh Figure 1-7 The income statement of Hoa Khanh over the last years Figure 1-8 Summary of internship duties at Hoa Khanh .9 Figure 2-3 The overview of supply part in the global lubricant procurement process 12 Figure 2-4 The commodity details in the PO sample for SPC branded lubricants .13 Figure 2-5 The procedure of TT remittance before shipment between SPC and Hoa Khanh 15 Figure 2-6 The sequence of operational steps in customs clearance and on-carriage of Hoa Khanh 23 Figure 3-1 The SWOT overview of Hoa Khanh current lubricant supply process .30 Figure 3-2 The fields in the SWOT matrix led to the first solution 34 Figure 3-3 The fields in the SWOT matrix led to the second solution .37 TABLE OF APPENDICES Annex - Lubricants Supply Agreement between Singapore Petroleum Company and Hoa Khanh Trading and General Service Company Limited .33 Annex – Purchase Order (PO) Form of Singapore Petroleum Company (SPC) 39 Annex – Pro Forma Invoice issued by Singapore Petroleum Company (SPC) .40 Annex – The Printed Single Customer Credit Transfer 41 Annex – Commercial Invoice 42 Annex – Packing List 43 Annex – Certificate of Analysis (COA) 45 Annex – Insurance Certificate 48 Annex – Import Export License 53 Annex 10 – Certificate of Origin (CO) form D 55 Annex 11 – Port-to-port or Combined Transport Bill of Lading (BL) .57 Annex 12 – Customs Declaration on ECUS5-VNACCS system .58 Annex 13 – Statement of Importing Tax Payment .60 Annex 14 - The registration for quality inspection on Vietnam National Single Window 61 Annex 15 – The customs declaration for goods clearance 62 Annex 16 – Report of quality inspection for imported lubricants 67 CHAPTER INTRODUCTION TO HOA KHANH GENERAL SERVICES AND TRADING COMPANY LIMITED 1.1 General Company Information Established in 1994, Hoa Khanh General Services and Trading Company Limited has so far become one of the leading trading companies in the industry of petroleum import and export in Vietnam The trading activities of Hoa Khanh are specialized in energy and raw materials of gasoline, oil, and lubricants Figure 1-1 Basic profile of Hoa Khanh Co., Ltd Legal name (English) Hoa Khanh General Services and Trading Company Limited Legal name (Vietnamese) Công ty TNHH Thương Mại Dịch Vụ Tổng Hợp Hòa Khánh Company name in Abbreviation Hoa Khanh Co., Ltd Business address 14 Nguyen Tri Phuong Street, Chinh Gian Ward, Thanh Khe District, Da Nang City, Vietnam Logo Website http://hoakhanh.vn Fanpage https://www.facebook.com/hoakhanhvn/ Email info@hoakhanh.vn Phone 0236 3646 014 Fax 0236 3656 625 Document continues below Discover more from: vận Logistic tải quốc tế TMA305E Trường Đại học… 744 documents Go to course Tài liệu ôn tập kiểm 26 tra Logistic vận t… 100% (10) Đề cương tự soạn 47 Đề cương vấn đáp Logistic vận t… 100% (10) NHÓM TIỂU LUẬN 24 95 logistics xanh Logistic vận tải… 100% (6) English for Logistics - For practice, read… Logistic vận tải… 100% (4) Oral test Logistics 13 Tax code 0400124881 Legal representative Nguyen Van Phuc Questions Logistic vận tải… 100% (4) Trả lời bộ đề thực tế 1.1 Formation & Development 30 1.1.1 Development Process vấn đáp Logistics b… Logistic Figure 1-2 Critical milestones in the formation and development Hoa Khanh vậnof tải… 100% (3) 1990 1994 2000 2010 2015 2020 2022 The first Hoa Khanh 06 gas stations 09 gas stations 12 gas stations 15 gas Distributor gas Co., Ltd 02 subsidiary License to stations of Singapore companies import and 01 export petroleum petroleum warehouse station Petroleum Company (SPC) Distributor of Eni Lubricant In the 1990s, Hoa Khanh was formerly a gas station in the Hoa Khanh Area, Lien Chieu District, Da Nang City Over 30 years of continuous development and expansion, Hoa Khanh has become one of the leading companies in distributing gas, petroleum, and lubricants in the Central Region of Vietnam The year 2015 was a notable year as it saw the initial involvement of Hoa Khanh in international trade activities The license to import and export petroleum, passed by the Ministry of Industry and Trade, was the turning point for Hoa Khanh to gain much higher competitive power in the market Over and above, with the milestone of becoming the distributor in the Vietnam market of Eni Lubricant, which is one of the well-known Italian lubricant brands, Hoa Khanh has taken the opportunity to establish business relationships with foreign partners as well as innovate the negotiation process and contract performance to international standards at the same time By 2020, Hoa Khanh had constructed a total of 15 gas stations across Vietnam's Central Region With the larger scale and more diversified trading activities, the company has decided to build one wholly owned petroleum warehouse in Tho Quang Ward, Son Tra District, Da Nang City With a capacity of 3500 tons, this warehouse could not only store all of Hoa Khanh's petroleum before distribution but also provide rental space Furthermore, in 2020, the Ministry of Industry and Trade and related authorized agencies of Quang Nam Province passed the license to build the Hoa Khanh Centralized Petroleum Warehouse, wholly invested by Hoa Khanh Co., Ltd in the Chu Lai Open Economic Zone (OEZ) The centralized warehouse was inaugurated in the middle of 2022 with a total capacity of 36,000 cubic meters This warehouse has been identified as Hoa Khanh's primary location for international trade activities Currently, Singapore Petroleum Company (SPC) branded lubricants are the main products which are stored and traded in Hoa Khanh Centralized Petroleum Warehouse 1.1.2 Business Strategies Figure 1-3 The vision, mission, and core values of Hoa Khanh Company VISION The leading private company in the Vietnamese market for petroleum and lubricant import, export, and distribution Provide the best energy sources for the Vietnamese people, as MISSION well as the best services and the highest levels of corporate social responsibility, with a focus on human rights and environmental protection Integrity and reliability are the priorities in employee treatment and customer service CORE VALUES Sustainable development by providing more environmentally friendly energy sources such as LPG and LNG is the long-term goal With the above-mentioned vision, mission, and core values, Hoa Khanh has applied Integrative Growth Strategies horizontally Firstly, the company focuses on innovating the operation process, supply chain, and sales management through technological implementation Since 2022, Hoa Khanh has been running the enterprise resource planning (ERP) software to enhance business reporting with real-time information as well as improve business processes With the new ERP system, all information about orders, invoices, and payments is transparent for all functional departments, so there is no longer miscommunication between sales, supply chain, and finance departments It then improves the effectiveness in managing the cash flow, product flow, and customer service level Secondly, Hoa Khanh aims to expand its distribution network and retail chains nationwide So far, the company has been targeting the Central Region first by establishing gas stations on every key road route in the Central Region At the same time, the company has been investing in a warehouse system and a fleet of petrol tankers to be capable of expanding distribution on a nationwide scale and attracting more foreign business partners Thirdly, the company has a huge investment in human growth and sustainable energy sources Regarding human growth, Hoa Khanh prioritizes attracting the pool of talents through remuneration, bonuses, standardized training programs, and other extensive employee benefits Regarding sustainable growth, in addition to the commitment to tax and social responsibilities, Hoa Khanh has great support for scientific research on how to enhance the sale and usage of environmentally friendly energy such as LPG, LNG, and CNG in developing countries 1.1.3 Business Portfolio The business portfolio of Hoa Khanh is divided into broad groups: petroleum, lubricant, mixed bioethanol, gas and gas products, fuel delivery, real estate, and warehouse For petroleum, Hoa Khanh is capable of import and export as well as distribution nationwide The key types of petroleum that Hoa Khanh is trading are mineral spirit, RON-95, bioethanol, diesel, and kerosene In terms of lubricants, in addition to importing, Hoa Khanh is the exclusive distributor of Italian Eni Lubricant as well as the key distributor of Singapore Petroleum Company (SPC) in Vietnam Hoa Khanh's lubricants are primarily used in machinery, industrial manufacturing, and maritime transportation