an overview of logistics services at south logistics joint stock company sotrans logistics transportation forwarding agent warehousing in vietnam

Recognizing the importance and influence of this service, our team has researched and seized the opportunity to participate and experience the working environment at SOTRANS - a professi

FOREIGN TRADE UNIVERSITY SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS

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INTERNSHIP REPORT TOPIC: AN OVERVIEW OF LOGISTICS SERVICES AT SOUTH LOGISTICS JOINT STOCK COMPANY (SOTRANS

LOGISTICS) Major: Logistics and Supply Chain Management Subject: Principle of Logistics and Supply Chain Management

Credit code: PLS301F(HK1-2324)1.1

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TABLE OF CONTENTS

INTRODUCTION 2

I CHAPTER 1: INTERNSHIP PROCESS 3

1 Internship goal 3

2 Internship diary 3

II CHAPTER 2: COMPANY OVERVIEW 4

1 About SOTRANS 4

2 History of SOTRANS 4

3 Business philosophy, mission and vision 6

3.1 Business philosophy 6

3.2 Mission 7

3.3 Vision 7

4 Company scale and organizational structure 7

5 Strengths 10

6 Company growth 10

III CHAPTER 3: SERVICES OF SOTRANS LOGISTICS 12

1 Warehousing 12

2 Port operation 13

3 Contract logistics 14

4 Domestic freight forwarding 15

5 International freight forwarding 16

5.1 Sea Freight 16

5.2 Air Freight 17

5.3 Multimodal transportation 17

5.4 Cross border trucking 17

5.5 Consolidation service 18

6 Major agent sale overseas in SOTRANS Logistics 18

6.1 Definition 18

6.2 Detailed process 18

6.3 Document needed 18

6.4 Results and evaluations 19

CONCLUSION 21

REFERENCES

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INTRODUCTION

International trade development is one of the most significant missions in our country in the process of regional and worldwide economic integration in which export and import activities have brought about several momentous benefits to our economy

However, there are numerous arising issues in transporting goods internationally which result in a complicated and time-consuming process Hence, freight forwarding exists as a solution to facilitate shipments supporting businesses regularly importing and exporting their products as well as the collaboration between countries Recognizing the importance and influence of this service, our team has researched and seized the opportunity to participate and experience the working environment at SOTRANS - a professional provider

in Transportation - Forwarding Agent - Warehousing in Vietnam with over 45 years of experience in providing, arranging and managing logistics services

The theoretical knowledge at the university together with the practical experience during days at SOTRANS has helped me cultivate a great deal of knowledge, skills about the method, the process of organizing and most importantly, completion of the topic However, the knowledge of logistics is practically extensive; therefore, the content in our report is limited only to the exploration about the growth and services of this company

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CHAPTER 1: INTERNSHIP PROCESS

1 Internship goal

 Explore operating process of SOTRANS Logistics

 Build a professional network

 Apply the knowledge studying in class in reality

 Improve time management and communication skills

 Learn from professional managers

 Secure new employment chances

Session

5 08/11/2023

Clarify carefully the processes, documents, results benefits of major agent sale overseas at SOTRANS Logi

Pic 1 Logo of SOTRANS

 The red S character symbolizes Vietnam

 The Globe is the connotation of SOTRANS’s international service

 The word TRANS is the abbreviation of Transportation

 The 3 swallow wings represent the Air operations

 The shapes of ships and waves signify for the Sea Freight Forwarding operations

 The polygon frame is the iconic symbol of the coherent cooperation creating the prestige of the company

 The key shape is the meaning “the key to success”

General meaning of SOTRANS logo: SOTRANS is a company majors in International & Domestic Freight Forwarding and SOTRANS is the key to success

2 History of SOTRANS

Having a long and storied history in the world of LSCM (Logistics and Supply Chain Management), SOTRANS has been a pioneer in the industry for many years and is known for taking innovative steps

Establishment period (1975 - 1987):

On October 14, 1975, the 1st Depot Company the predecessor of Southern Logistics –Corporation (SOTRANS) today – was established on the basis of taking over the Thủ Đức

During this period, the company was a leading unit in the field of warehousing and domestic transportation, with hundreds of trucks, thousands of tons of coastal transport vehicles, and river transport vehicles For many consecutive years, the company consistently exceeded the state's plans for warehouses, delivery, North -South transportation, and international obligations.

Integration Period (1988 - 1991):

The centralized planned economy and the comprehensive subsidy mechanism created numerous difficulties for the company during this period There was a shortage of goods in terms of quantity and quality, warehouses remained empty for extended periods, and both the domestic road and water transportation markets experienced a decline The company had to liquidate all transportation assets: ships, barges, truck fleets, etc., and seek more suitable business solutions

In 1990, the company established the Business and Trade Enterprise, operating in the production and sale of lubricants under the SOLUBLE brand This initiative was awarded the Trade Service Prize

Development Period (1992 - 2007):

In 1992, SOTRANS INTERNATIONAL FREIGHT FORWARDERS (the predecessor of present-day SOTRANS LOGISTICS) commenced operations, marking a significant milestone in the company's history SOTRANS now has an agent network worldwide

In 1994, May 117 Enterprise was established, engaging in the export garment processing industry During this period, Southern Logistics Corporation became a member of organizations such as the Vietnam Chamber of Commerce and Industry (VCCI), the Vietnam Freight Forwarders Association (VIFFAS), and the International Federation of Freight Forwarders Associations (FIATA)

In 2001, SOTRANS' quality management system was certified ISO 9001:2000 by DNV, one of the world's most reputable quality management organizations By 2005, SOTRANS officially became a member of VCCI, VIFFAS, FIATA, and the International Air Transport Association (IATA)

With a policy focused on investing in the development of human resources to meet the increasingly stringent market demands, SOTRANS now boasts a team with Ph.D and Master's degree holders, hundreds of Bachelor's degree holders, and dozens of individuals currently pursuing postgraduate programs

SOTRANS is also actively involved in community activities, participating in funds for the poor, scholarship funds, charitable activities, and the "repay the gratitude, fulfill the duty" program, supporting and caring for the mothers of Vietnamese heroes The company has been honored by the state with 5 Labor Medals for the collective, 4 Labor Medals for

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individuals, numerous commendation flags, and certificates of merit from the Ministry of Trade and various other levels of government On the occasion of commemorating the 30th anniversary of its establishment (October 14, 1975 – October 14, 2005), the company was honored to receive the First-class Labor Medal from the President

Equitization Period (2007 - Now):

In 2007, SOTRANS transformed into a Joint Stock Company with a new name, SOUTHERN LOGISTICS CORPORATION, and won the Golden Star of Vietnamese Land award in 2009 In 2010, it established SOTRANS Focus International Corporation (SOTRANS Focus), the Logistics Port (SOTRANS ICD), and the Petroleum Supply Enterprise (SOTRANS Petrol) Celebrating its 35th anniversary, SOTRANS was honored with the First-class Labor Medal and the Trade Service Award From 2014, several constructions were built such as SOTRANS Long Binh warehouse in 2014, SOTRANS Long Binh port in 2016, to facilitate their service and increase customer satisfaction Currently, Southern Logistics Corporation SOTRANS Joint Stock Company has a team

of over 380 employees, operating in various fields: warehouse business, petroleum business, domestic and international transportation and delivery services, and domestic customs clearance ports The company has a nationwide operating network, a global agent system, and sufficient infrastructure to meet customer needs, including hundreds of thousands of square meters of warehouse port space, modern container loading and unloading equipment, and transportation facilities SOTRANS has become a strong brand domestically and internationally, with annual growth rates ranging from 20 to 30%

3 Business philosophy, mission and vision

3.1 Business philosophy

SOTRANS’ business philosophy was built on four pillars: cooperation, creativity,

communication and closely, in order to bring added value to the logistics operating chain and, through that, to create strong growth opportunities with customers

Cooperation: Cooperate closely with customers and partners to bring mutual benefits SOTRANS prioritizes building a huge network of partners and collaborators to ensure comprehensive supply chain solutions for their clients

Creative: Have creative thinking to fit special customers

Given the evolving nature of the logistics industry, SOTRANS often emphasizes innovation and the use of technology to streamline processes, track shipments, and enhance overall operational efficiency

Communication: Have good communication to meet customers’ demand

As many errors can occur in the supply chain process resulting in procedural disruption, effective communication is a critical element to the success of SOTRANS’s services

Closely: Provide a friendly working environment

A focus on employee well-being and professional development is conducive to the success of logistics companies This helps to contribute to a positive corporate culture and enhance overall service quality of SOTRANS

SOTRANS has a vision to acquire the following objectives in about 2030:

 Top 3 logistics services provider in Vietnam

 Top 1 logistics network in Vietnam

 Top 2 warehouse system in Vietnam

4 Company scale and organizational structure

Pic 2 SOTRANS company scales

SOTRANS currently has 5 business units, 3 member companies and 6 sales offices nationwide

* Business divisions

 Southern Waterborne Transport Joint Stock Corporation (SOWATCO) founded in 1975 with almost 40-year operating experience SOWATCO is a large shareholder of Vietnam International Container Terminals (VICT)

 Vietranstimex Multimodal Transport Holding Company (VIETRANSTIMEX) Vietranstimex was founded in 1976 After 40 years of construction & development, Vietranstimex is currently a leading company

in the field of transport in Vietnam, Number 1 in South East Asia and Top 50

of the world in heavy & oversized transport

* Offices, Branches in Vietnam

 SOTRANS Ha Noi Branch

 SOTRANS Hai Phong Office

 SOTRANS Quang Ninh Office

 SOTRANS Da Nang Office

 SOTRANS Bình Dương Office

 SOTRANS Ben Tre Office

* Functional dept in SOTRANS Ha Noi Branch

 Business Development department

o Business research - gathering, studying, analyzing information

o Customer access, identify potential customers, develop new customers, new products

o Be responsible for working with oversea customers, sales activities, quote for customers/ or biddings, negotiate and close won for new business in order

to gain higher customer satisfaction and perform a set budget of revenue and gross profit

o Business development project management: project or specific tasks will be controlled by specialists of the business development department, so they can be aware about progress of development plan realization

o Collaboration with other departments: give recommendations and consultations regarding questions of development of other departments and general company organization

 Sales department

o Supporting and advising customers to provide optimal solutions

o Report sales activities by week / month / quarter

 Human Resources department

o Recruiting, hiring and retaining talent

o Employee engagement: set up two-way dialogue and engagement between employees and HR or senior leadership to build and maintain a vibrant company culture, where everyone is united around shared goals, mission and values

o Performance management

o Development and training

o Compensation and benefits: create a competitive and attractive offer that aligns with the candidate’s experience and expectations

o Risk management: identify, assess and resolve short- and long-term risks before they become a real threat This serves to protect both the employees and the company

o Update customers, sales departments, and OPS on legal developments pertaining to customs rules and logistics market information

o Inform the CS team leader of the order's status, any issues that arise, and client comments

o Gather client data on a regular basis, schedule meetings with them, and offer solutions to foster a relationship with them

 Finance- Accounting dept

o Generate bills for clients based on a comprehensive summary of services rendered Verify revenue recognition, output invoices, and finished reports pertaining to money received

o Verify the input bills and accounting for expenses

o Reasonable cost containment Track changes in spending for every accounting quarter

o Monitor client payments via financial institutions

o Keep track of past-due debt amounts and generate reports on them

on schedule with appropriate and comparative rates of pay, satisfy each customer’s requirements.

With over 45 years of experience in warehousing management and operation, SOTRANS has a system of warehouses with large capacity, about more than 230,000 m across the 2

country This system is located in the center of Ho Chi Minh City, surrounding areas and industrial areas adjacent to the Sai Gon River, which is practically convenient for freight forwarding

SOTRANS is equipped with sufficient infrastructure, advanced technical facilities and their labor force has the ability to apply and operate high-tech management softwares, specialized appliances in sorting, packaging, delivery, etc Hence, SOTRANS is capable of providing customers with a variety of services

SOTRANS services are covered by full liability insurance, helping to limit risks for customers when incidents occur

6 Company growth

SOTRANS was established in 1975 and they have continued to upgrade and grow to nowadays In the last seven years, SOTRANS's revenue growth has climbed steadily, averaging approximately 30% over the previous few years That demonstrates SOTRANS's steady growth and development

Additionally, SOTRANS is among the companies in the city with the highest average salary for workers in the delivery, transportation, and warehousing sectors especially Vietnam in general and Ho Chi Minh in particular By 2022, SOTRANS generated 2,639 billion VND in revenue for the year Below here is the graph growth of SOTRANS from

2015 to 2022: