improving the logistics process in building technologies department at bosch vietnam co ltd

TECHNOLOGY AND EDUCATIONGRADUATION THESIS INTERNATIONAL BUSINESS IMPROVING THE LOGISTICS PROCESS IN BUILDING TECHNOLOGIES DEPARTMENT AT BOSCH VIETNAM CO., LTD LECTURER: MSc.. Nguyen Ki

SOLUTIONS TO IMPROVE LOGISTICS PROCESS AT BOSCH VIETNAM

CHAPTER 1: INTRODUCTION OVERVIEW OF THE BUSINESS AT BOSCH 1.1 General introduction about Robert Bosch GmbH & BOSCH Vietnam

Bosch, founded in 1886, has become a global powerhouse with operations spanning mobility solutions, industrial technologies, consumer goods, and energy and building technologies As an automotive leader, Bosch drives advancements in automated driving and connected mobility The company's focus on the Internet of Things drives innovations in smart homes, cities, and Industry 4.0 Bosch prioritizes environmental sustainability with carbon neutrality goals and supports education, community development, and conservation A privately held company with diverse employees, Bosch's financial strength ensures its ongoing success.

Historically, Bosch has left an indelible mark through pivotal innovations such as the magneto ignition system for automobiles and the development of the anti-lock braking system (ABS) As Bosch continues to navigate the dynamic landscape of Technologies and industry, its emphasis on innovation, sustainability, and societal impact remains integral to

2 its corporate identity The story of Bosch is one of continual evolution, marked by a legacy of pioneering spirit and a commitment to shaping a better future

Bosch’s Business Canvas Model Key Partner

- Leading global supplier of technology and service

- High-quality components that integrate in third parties supply-chain

- Regeneration and restoration of natural capital

(Source: From Humans Resources and Edited by Student)

Picture 1 1 Some data from the Bosch Group

In 2021, Bosch Group reported a revenue of approximately €78.7 billion, marking a significant milestone in its financial performance The company also saw a profit of around €2.8 billion before taxes and interest during the same period With a global workforce of approximately 402,600 employees, Bosch continued its commitment to innovation and development This dedication was reflected in its substantial investment of roughly €6.1 billion in research and development activities throughout the year Furthermore, Bosch Group strengthened its position in the market through strategic

5 partnerships and collaborations aimed at driving growth and fostering innovation Operating across various key sectors such as automotive, industrial Technologies, consumer goods, and energy and building Technologies, Bosch maintained its presence and relevance in diverse markets worldwide These achievements underscored Bosch's resilience and adaptability in navigating the challenges and opportunities of the global business landscape in 2021

Establishment of Representative Office (1994): Bosch first established a representative office in Vietnam in 1994, marking its initial entry into the Vietnamese market This office served as a liaison point for business activities and market research

Bosch established its first manufacturing plant in Vietnam in 2008 in Dong Nai This facility specializes in automotive components to meet the burgeoning demand in the industry, producing control units and sensors.

Expansion of Manufacturing Capacities (2012): Bosch continued to expand its manufacturing capacities in Vietnam by investing in additional production lines and facilities This expansion was driven by the increasing demand for Bosch products both domestically and internationally

In 2014, Bosch established a Research and Development Center in Ho Chi Minh City to harness local talent and expertise for innovative product and technology development specifically tailored to meet Vietnam's market demands This initiative demonstrates Bosch's commitment to fueling innovation and technological advancements within the region.

Diversification into Other Business Sectors (2016-present): Over the years,

Bosch has diversified its business interests in Vietnam beyond automotive components The company has ventured into various sectors, including power tools, security systems, home appliances, and energy solutions, catering to the evolving needs of Vietnamese consumers and industries

Sustainability Initiatives and Corporate Social Responsibility (ongoing): Bosch has been actively involved in various sustainability initiatives and corporate social responsibility (CSR) projects in Vietnam These efforts include promoting environmental conservation, supporting education and vocational training programs, and fostering community development projects

Partnerships and Collaborations (ongoing): Bosch has forged partnerships and collaborations with local businesses, government agencies, and academic institutions in Vietnam to foster innovation, Technologies transfer, and skills development These partnerships aim to drive economic growth and technological advancement in the country

Details Introduction at present in VietNam

Since 2007, Bosch has steadily expanded its presence in Vietnam, establishing representative offices in Ho Chi Minh City, Hanoi, and Da Nang, and a CVT belt manufacturing facility in Dong Nai Province Moreover, Bosch operates R&D centers for automotive technologies and enterprise solutions in Ho Chi Minh City, with the latter also having a presence in Hanoi In fiscal 2021, Bosch achieved consolidated revenue of approximately 192 million euros in Vietnam.

As of December 31, 2021, Bosch employed more than 5,000 associates and had diverse business activities in Vietnam

• Bosch in Vietnam located in HCM, HN, and Da Nang

Picture 1 2 Bosch office map in Vietnam

Bosch chooses important strategic locations in Vietnam's terrain to optimize all production activities, contributing to bringing in huge revenue sources in the Vietnamese market In addition, in the territory of Southeast Asia, Bosch also has a number of branches in Singapore and Thailand

Facts and Figurest about Bosch in Vietnam 2021

Picture 1 3: Facts and figures about Bosch in Vietnam 2021

In 2021, Bosch continued to be a significant player in Vietnam, contributing to the nation's technological advancement and industrial growth With continued investment in its operations, including manufacturing facilities and research centers, Bosch expanded its footprint in the country Employing a diverse workforce comprising engineers, technicians, and professionals across various domains, Bosch played a vital role in Vietnam's economy Offering a wide array of products and services ranging from automotive components to industrial Technologies solutions, Bosch catered to the needs of Vietnam's burgeoning market Collaborating with local partners, government entities, and educational institutions, Bosch fostered innovation and sustainable development initiatives in the region Particularly prominent in Vietnam's automotive sector, Bosch supplied components to domestic automakers, further solidifying its market presence Moreover, Bosch upheld its commitment to corporate social responsibility through community development projects and environmental conservation efforts, contributing to Vietnam's social progress

These endeavors underscore Bosch's dedication to driving economic growth and societal well-being in Vietnam throughout 2021

• Logo and Slogan of Bosch group

Picture 1 4: Bosch – Invented for Life

“We are Bosch” with this slogan, the company supports non-racial discrimination, treats everyone equally, and looks forward to a good future The use of "we" could signify collaboration and teamwork among employees, highlighting the collective efforts of the company's workforce in achieving common goals

1.2 Mission, functions, and business philosophy of the enterprise

Bosch has been focused on areas such as Automotive Technologies, Industrial Technologies, consumer goods, and energy and building Technologies We aim to develop

2 Bosch office map in Vietnam

3: Facts and figures about Bosch in Vietnam 2021

4: Bosch – Invented for Life

9 technologies that are efficient, safe, and environmentally friendly Our commitment to innovation and sustainability is often reflected in our products and initiatives Our strive to develop technologies and solutions that enhance people's lives and contribute to a better future

Bosch empowers you to "master" your life with innovative products Smart home appliances simplify daily tasks, while optimized automotive components enhance safety and comfort on the road From smart home solutions to cutting-edge auto parts, Bosch accompanies you on every step of your journey, ensuring a seamless and secure experience Whether you're navigating your home or embarking on a road trip, Bosch has the solutions to make your life easier and safer.

As a member of the Bosch group, BSH Household Appliances (Vietnam) Co., Ltd is a genuine distributor of high-quality household appliances with German Standard Technologies Each of our products before leaving the factory is thoroughly tested and inspected, so consumers can have complete confidence in the quality of everyday life

Bosch Automotive Aftermarket provides repairers and spare parts dealers with solutions related to workshop processes, diagnostics, and repairs, as well as a wide range of spare parts for transport vehicles – from new parts, and remanufactured parts to repair solutions

As the world's leading supplier of both hand tools and accessories, Bosch meets the toughest requirements and delivers outstanding performance for the construction, woodworking, and metal industries

Aqua Easy is transforming aquaculture from an art to a science by connecting farmers directly with the best aquaculture experts Powered by a unique combination of sensors, artificial intelligence, and automation, Aqua Easy helps farmers make everyday decisions, reduce risk, and increase shrimp productivity

Bosch Building Technologies is the world's leading provider of Security, Safety and Acoustics solutions The product portfolio includes video surveillance systems, intrusion alarms, fire alarm and audio evacuation systems, access management, conferencing systems, and professional audio We use groundbreaking technologies to create the best experience for the end user

Bosch Rexroth, a global leader in drive and control technologies, drives innovation in machine and plant engineering By partnering with customers, the company develops ground-breaking solutions that empower them to achieve market leadership Bosch Rexroth's unwavering commitment to innovation and responsiveness ensures that it remains a trusted partner for customers seeking to navigate the complexities of the industry.

Dynamic, safe, connected, and customizable: These are often the key requirements when it comes to the ultimate riding experience with two-wheelers and sports motorbikes With advanced Technologies and intelligent software, Bosch offers connectivity solutions, driver assistance, powertrains, and personalized mobility solutions It all comes from a single source

• Technologies Research and Development Center

Bosch Global Software Technologies Company Limited is a 100% subsidiary of Robert Bosch GmbH - one of the world's leading Technologies and service corporations BGSW Vietnam is Bosch's first software development center in Southeast Asia, currently providing comprehensive solutions for businesses in the fields of Engineering, Information Technologies and Business

Bosch, as a global Technologies and engineering company, adheres to a comprehensive business philosophy that underlines its commitment to innovation, quality, and customer satisfaction With a rich history of technological advancements, Bosch places a paramount emphasis on creating cutting-edge solutions to address the evolving needs of

11 society The company is unwavering in its dedication to delivering products and services of the highest quality, fostering a reputation for reliability and durability Bosch's customer- centric approach involves understanding and meeting the diverse needs of its clientele, ensuring that its offerings contribute positively to their lives Sustainability is deeply embedded in Bosch's ethos, as the company strives to balance economic success with environmental protection and social responsibility Ethical conduct, transparency, and compliance with laws underscore Bosch's commitment to integrity in all business practices Employee development and a positive workplace culture are integral to the company's success, reflecting its recognition of the importance of a motivated and skilled workforce Taking a long-term perspective, Bosch aims for sustainable growth, while actively engaging in social responsibility initiatives that contribute to the well-being of communities This comprehensive philosophy guides Bosch's actions, positioning the company as a leader in Technologies and a responsible corporate citizen

Bosch Vietnam achieved "Great Place to Work" certification in 2023

5: Certificate of “Great Place to Work”

- Bosch Vietnam received Great Place to Work certification in 2023 for its tireless efforts in building a trustworthy and professional working environment

- Bosch Vietnam focuses on promoting a people-centered working environment, applying the 3 "Giving" model: Empowering development (Grow), Giving the joy to work (Enjoy), and Giving inspiration (Inspire)

Ho Chi Minh City, Vietnam – Bosch Vietnam, the world's leading technologies and service provider, has achieved the 2023 “Great Place to Work” certification by Great

Bosch Vietnam's commitment to fostering a positive and inclusive work environment is evidenced by their recognition in Great Place to Work's global assessment The agency evaluates workplace cultures based on factors like credibility, respect, fairness, engagement, self-esteem, and pride Bosch Vietnam's achievement, as assessed through a survey of 1,272 employees, reflects a notable employee satisfaction rate of 89% This signifies the effectiveness of their efforts in creating a workplace where individuals feel valued and empowered.

13 employees rate Bosch Vietnam as a great place to work, affirming the company's efforts to promote a positive work culture

Bosch Vietnam has a long track record of investing in employee development The company supports a variety of training and development opportunities, including leadership development programs, soft and technical skills training, and department rotation In addition to investing in employee development and happiness, Bosch Vietnam offers many benefits, such as flexible working policies, physical and mental health care programs employees, comprehensive insurance packages for associates and families, etc Bosch Vietnam always values the values of diversity and fairness and actively builds an inclusive working environment for all employees Members feel appreciated and respected

1.3.2 Organizational chart of the Internship Department

HOD Nguyen Anh Dung says that “We call 2023 a breakthrough year when seizing opportunities in common challenges, the Bosch Building Technologies division has achieved growth of more than 20% In the audio segment, Bosch's sales and annual growth in Vietnam are among the few leading units in the Asia-Pacific region”

Bosch Building Technologies serves various industries with its solutions for security, safety, and communication systems in buildings and infrastructure Here are some details about our products, particularly:

- Video System: Providing security and safety solutions for offices, retail stores, malls, hotels, and other commercial properties to protect assets, employees, and customers and offering security systems for homes and residential complexes to safeguard residents and their belongings against intruders and emergencies.

- Public Address: New generation speaker systems including fixed and mobile with modern design provide solutions for large music events, educational institutions, healthcare facilities, and other public infrastructure to ensure public safety and security

Prosound's cutting-edge speaker systems, spanning fixed and mobile designs, offer tailored solutions for grand-scale events, concerts, and gatherings Their partnership with industry leaders Electrovoice and Dynacord solidifies their position as a leading provider of audio solutions, ensuring exceptional sound experiences for audiences of all sizes.

- Conference System: Serves meetings, seminars, and conferences at state agencies, business organizations, people's committees, companies, schools, and social organizations.

6: Some demo products of Bosch Security

In 2023, we successfully implemented the global event series "Loud & Clear" in 3 major cities: Hanoi - Da Nang - and Ho Chi Minh This is the first time we have launched this event on a large scale and the result is out of expectations We set a record 70% growth than last year

1.4 Overview of the personnel situation at BOSCH VIETNAM CO., LTD

7: Human resources systems at Bosch Vietnam

(Source: From Human Resources Department and Edited by Student)

The organizational structure at Bosch is extremely complex, demonstrating high expertise and clarity in each department Each part is independent and interconnected to create a consistent system The diagram is general in nature, each part will be divided into many more branches, and only a few positions in the part are fixed In addition, there are outsourcing (External) and intern personnel At Bosch, human capital is not just a resource; it's the driving force behind innovation and success Employees at Bosch are not merely workers but specialists in their fields, each contributing uniquely to the company's overarching goals The company places a strong emphasis on utilizing people effectively by recognizing and nurturing individual talents Whether it's engineering, design, marketing, or management, Bosch ensures that employees are placed in roles where their

16 skills are maximized and their potential is fully realized This specialization is evident in the diverse workforce at Bosch, where experts from various disciplines collaborate seamlessly to develop cutting-edge technologies and solutions From automotive Technologies to industrial manufacturing, Bosch employees are at the forefront of innovation, pushing the boundaries of what's possible Moreover, Bosch fosters a culture of continuous learning and development, providing employees with ample opportunities to enhance their skills and expertise Through training programs, mentorship initiatives, and cross-functional projects, employees at Bosch are constantly refining their craft and staying ahead of industry trends The specialization in utilizing people at Bosch goes beyond mere job roles; it's about harnessing the full potential of every individual to drive innovation, growth, and success in the ever-evolving landscape of Technologies and engineering

Table 1 1: Personnel details at Bosch

Global Viet Nam Global Viet Nam

Source: From the Human Resources Department and Calculated by Student

Gender diversity is improving, with a notable rise in female representation There's a strategic focus on younger talent, while the decline in middle-aged employees signals a need for retention efforts Educational trends show an increase in advanced degrees, indicating a commitment to skilled workforce development However, the decrease in bachelor's degrees warrants attention Overall, Bosch is fostering diversity and skill development but should ensure a balanced talent pipeline across age and education levels for sustained success.

1.5 Logistics activities of departments at BOSCH VIETNAM CO., LTD

8: 3PL process in Bosch Vietnam

The Bosch Group is responsible for the production We have logistics specialists with good skills to support the movement of goods between countries Currently, transportation services such as ships and trucking, we will outsource, including a storage warehouse for each department

Shipping lines: We work with major shipping lines in the world such as DHL,

Maersk, DSV, K+N, and KWE, to get the best supply service, and agree on mutually beneficial long-term contracts

Outsourcing warehouse: Bosch Vietnam's main customers are located in two big cities, Hanoi and Ho Chi Minh Besides, some are located in Da Nang, so there are two suitable locations to rent warehouses: Binh Duong and Hai Phong We decided to choose a warehouse located in 2 areas because of the strategic geographical location: Both Binh Duong and Hai Phong hold strategic geographical positions Binh Duong is situated at the heart of the economically thriving Southern region, whereas Hai Phong is close to the major economic zones of Hanoi and the Northern regions This makes both locations ideal transit points for goods Otherwise, developed transportation infrastructure: Both Binh Duong and Hai Phong boast well-developed transportation infrastructures Binh Duong has a network of roads, railways, and sea routes, while Hai Phong is one of Vietnam's largest seaports This infrastructure facilitates convenient and swift transportation of goods

1.6 Business activities of BOSCH VIETNAM company

1.6.1 General assessment of the Technologies goods industry

The technology goods industry in Vietnam is undergoing a period of remarkable growth and transformation, positioning the country as a key player in the global tech landscape With favorable factors such as increasing internet penetration, rising consumer spending power, and government initiatives promoting digitalization, Vietnam has become a manufacturing powerhouse for electronics, semiconductors, and other tech products This export-oriented approach has not only fueled economic growth but has also attracted significant foreign investment, facilitating technology transfer and innovation Moreover, as domestic demand for technology goods continues to rise alongside urbanization and income growth, Vietnam's tech industry is poised to capitalize on its expanding domestic market Despite facing challenges such as infrastructure limitations and skills shortages, government support and investment in research and development are driving the industry forward With a strategic focus on innovation, manufacturing efficiency, and market

19 diversification, Vietnam's technology goods industry is set to play an increasingly influential role in the global tech ecosystem

Vietnam's export value of technology goods has been steadily increasing over the years For example, in 2021, the total export value of electronics and Technologies products reached approximately $100 billion, representing a significant contribution to the country's GDP The amount of FDI flowing into Vietnam's Technologies sector demonstrates investor confidence and interest in the country's tech industry In 2020, FDI in the Technologies sector accounted for over $10 billion, a substantial portion of the total FDI inflows into Vietnam.The internet penetration rate in Vietnam is a key indicator of the country's digitalization efforts and its readiness for technology adoption As of 2021, Vietnam's internet penetration rate surpassed 70%, indicating a growing market for digital products and services Domestic consumption of technology goods, such as smartphones, computers, and electronics, provides insight into the expanding domestic market Retail sales of electronics and tech products in Vietnam reached over $20 billion in 2021, reflecting increasing consumer demand and purchasing power

1.6.2 Evaluate the performance of the Building Technologies Department

The year 2023 is an extremely difficult year economically for us in the Vietnamese market, with consumers tightening their budgets, making our sales gradually more difficult than ever But we are very proud to record sales growth of 20% over the same period last year and to be one of the pioneering departments in surpassing the goals set at the beginning of the year

Table 1 2: The final sales report of the year of the Building Technologies Department

FINAL SALES REPORT OF THE YEAR

(Source: From financial report of Building Technologies Department and Edited by Student)

Notably, there was a discernible increase in total sales from 2022 to 2023, suggesting overall growth within the business (from 237,851 to 285,422 million VND)

- Prosound Dominance: Prosound emerges as the top-performing industry in terms of total sales, with both Installed and Portable categories contributing The significant growth in the Portable category suggests a potential market shift towards more portable audio solutions

- Steady Growth: Video System and Public Address industries also show consistent growth from 2022 to 2023, although not as pronounced as Prosound

- Conference Segment: While Conference sales increased slightly, they didn't show as substantial growth as Prosound Further analysis might be needed to understand the factors influencing this segment

The overall increase in total sales from 2022 to 2023 indicates a positive trend for the company, with potential areas for further investment or strategic focus identified within the Prosound and Portable categories

1.7 Analyze the financial situation of the business

1.7.1 Overall assessment of the growth situation of the business in 2023 compared to 2022

Table 1 3: Summary of Bosch company's financial data for the period 2022 - 2023

- percentage change from the previous year (%) 8.0 12.0 (4)

- percentage share of sales revenue generated outside Germany (%) 82 80 2

Research and development cost (billion euro) 7,6 7,2 0,4

- as a percentage of sales revenue (%) 8,3 8,2 0,1

- average for the year (associates) 427,600 421,338 6,262

Balance-sheet total (billion euro) 101,212 100,247 0.965

- as a percentage of total assets (%) 45 47 (2)

Profit after tax (billion euro) 2,216 1,838 0,378

Dividend of Robert Bosch GmbH (0.18%) 165 162 3

(Source: Finance Department and Edited by Student)

In 2023, we have seen a weak economic situation increasing cost pressure – achievement of the target margin delayed (93 billion euros) In Stuttgart, Germany, despite facing challenges during the 2023 business year, the Bosch Group has managed to meet its

22 anticipated outcomes According to initial reports, this provider of technology and services achieved sales amounting to 91.6 billion euros, marking an 8 percent growth after adjusting for exchange-rate fluctuations (with a nominal growth of 4 percent) The operational EBIT margin reached 5 percent, indicating a slight enhancement compared to the previous year's performance (4.2 percent), aligning with expectations Dr Stefan Hartung, the chairman of the board of management of Robert Bosch GmbH, remarked, '2023 presented greater difficulties than anticipated for Bosch Nonetheless, through exceptional effort, we succeeded in elevating our sales and enhancing our margins, progressing despite significant resistance.' He further added, 'This achievement in such challenging conditions is a testament to the dedication of our team members Looking ahead, we anticipate demanding circumstances that will require continued commitment from us all

In the dynamic landscape of 2023, the enterprise demonstrated an exceptional trajectory of growth and resilience across its operations, reaffirming its status as an industry leader Spearheading this remarkable journey was the substantial surge in sales revenue, catapulting from 88.2 billion euros to an impressive 91.6 billion euros, marking a noteworthy increase of 3.4 billion euros Despite navigating through a challenging economic environment, the company exhibited unwavering determination, showcasing a commendable growth rate of 8.0%, albeit slightly tempered compared to the previous year's 12.0% Notably, the enterprise's global reach expanded significantly, with the share of sales revenue generated outside Germany surging from 80% to an impressive 82%, indicative of its growing international footprint and market penetration strategies Complementing this growth trajectory, the company intensified its investments in cutting-edge research and development, signaling a steadfast commitment to innovation and technological advancement Concurrently, strategic capital expenditure initiatives underscored the company's forward-thinking approach, laying the groundwork for future expansion and competitiveness in key markets Furthermore, a substantial increase in the workforce, exemplified by a surge in the average headcount from 421,338 associates to a robust 427,600 associates, highlighted the enterprise's commitment to talent acquisition and organizational growth Despite minor fluctuations in equity and balance-sheet totals,

23 profitability soared to unprecedented heights, with EBIT surging from 3.7 billion euros to an impressive 4.6 billion euros, alongside a remarkable increase in profit after tax from 1,838 billion euros to an astounding 2,216 billion euros This stellar financial performance was mirrored in the elevation of the dividend of Robert Bosch GmbH from 162 million euros to a noteworthy 165 million euros, reaffirming the company's steadfast commitment to delivering value to its shareholders In sum, against the backdrop of formidable challenges, the enterprise not only persevered but thrived, showcasing an indomitable spirit and solidifying its position as a beacon of success in the global market

1.7.2 Bosch's business results in Vietnam

Experts at Bosch believe that Vietnam is an extremely potential market for Bosch's market expansion plan However, in the period 2022 - 2023, we also see a time of economic crisis, so reaching expected revenue will be quite difficult Therefore, in 2024 when the economy gradually recovers, we hope to achieve extraordinary things here

Table 1 4: Bosch Vietnam’s recorded revenue in 2023

(Source: From Financial Department of Bosch Vietnam and Edited by Student)

In 2023, Bosch displayed a promising performance with a notable increase in target revenue, which surged by 7.69% compared to the previous year This upward trend was also reflected in the total revenue, albeit at a slightly lower growth rate of 4.76% However, amidst this growth, the company faced challenges, particularly in managing revenue deductions, which soared by a substantial 22.5% Despite this hurdle, Bosch managed to maintain positive momentum in net revenue, showcasing a commendable 3.17% increase.

On the operational front, Bosch witnessed a mixed bag of results Selling expenses saw a significant uptick, rising by 10% from 2022 to 2023 Conversely, the company made strides in administrative cost reduction, achieving a notable 20% decrease This cost-saving measure likely contributed positively to the overall financial performance Furthermore, Bosch demonstrated efficient inventory management practices, as evidenced by a notable 13.51% decrease in inventory levels.

Overall, Bosch's performance in 2023 reflects a blend of successes and challenges While revenue growth and cost-saving initiatives signal resilience and adaptability, the company must address the surge in revenue deductions and selling expenses to sustain its upward trajectory effectively Through strategic planning and continued focus on efficiency, Bosch is poised to navigate these challenges and capitalize on future opportunities in the market

1.7.3 Some typical features of Bosch Group in 2024

RATIONALE FOR LOGISTICS ACTIVITIES AT BOSCH CO.LTD

- CHAPTER 3: ANALYSIS OF THE STATUS OF THE LOGISTICS AND SUPPLY CHAIN MANAGEMENT PROCESS AT BOSCH VIETNAM COMPANY LIMITED

- CHAPTER 4: SOLUTIONS TO IMPROVE LOGISTICS PROCESS AT BOSCH BUILDING TECHNOLOGIES DEPARTMENT AND BOSCH VIETNAM CO.LTD

Founded in 1886 by Robert Bosch in Stuttgart, Germany, Bosch has evolved into a multinational juggernaut with a broad spectrum of offerings across diverse industries Organized into four distinctive business sectors—Mobility Solutions, Industrial Technologies, Consumer Goods, and Energy and Building Technologies—Bosch has etched its legacy as a key player in automotive Technologies, industrial solutions, household appliances, and power tools With a steadfast commitment to innovation, the company boasts a global network of research and development centers that drive advancements in areas such as the Internet of Things (IoT) and artificial intelligence Bosch's prowess in the automotive sector is particularly noteworthy, as it pioneers breakthroughs in automated driving technologies and contributes significantly to the ongoing evolution of connected mobility The Internet of Things is a focal point for Bosch, with the company actively engaged in crafting solutions for smart homes, smart cities, and Industry 4.0 applications Beyond technological achievements, Bosch is unwavering in its dedication to environmental sustainability The company has set ambitious goals, striving to be carbon-neutral by 2020 and to make a positive ecological impact Embracing corporate social responsibility, Bosch is involved in initiatives that support education, community development, and environmental conservation, reflecting a commitment to creating a positive impact beyond its business operations Boasting a global workforce representing diverse cultural backgrounds, Bosch values inclusivity and diversity Though privately held, the company's financial stability is well-established, contributing to its enduring success

Throughout its history, Bosch has made significant contributions to innovation, including the invention of the magneto ignition system for automobiles and the development of the anti-lock braking system (ABS) These groundbreaking achievements demonstrate Bosch's enduring commitment to driving technological progress As the company continues to navigate the evolving landscape of technology and industry, it maintains a strong focus on sustainability and societal impact, aligning its innovations with the needs of the modern world.

Opening of First Manufacturing Plant (2008): In 2008, Bosch inaugurated its first manufacturing plant in Vietnam, located in the southern province of Dong Nai This facility primarily focused on producing automotive components, such as control units and sensors, to cater to the growing demand in the automotive industry

In 2014, Bosch established a Research and Development Center in Ho Chi Minh City, Vietnam, to foster innovation and technological advancements This center harnesses local talent and expertise to tailor cutting-edge products and solutions specifically for the Vietnamese market.

Bosch demonstrates a strong commitment to sustainability and corporate social responsibility in Vietnam through its ongoing initiatives The company actively supports environmental conservation, invests in educational and vocational training programs, and engages in community development projects, all contributing to a positive and sustainable impact on the local community.

Bosch established its first representative office in Ho Chi Minh City Since 2007, Bosch has expanded its operations in Vietnam with two branch offices in Hanoi and Da Nang, and a Drive Systems factory in Dong Nai province that produces continuously variable transmission (CVT) belts ) in the car In addition, Bosch also operates a Technologies and Enterprise Solutions R&D center and an Automotive Technologies R&D center in Ho Chi Minh City The Center for Research and Development of Technologies and Enterprise Solutions expanded its operations in Hanoi in June 2022 In fiscal 2021, Bosch recorded consolidated revenue of approximately 192 million euros in Vietnam Male

1: The process of booking Vessel

According to MSc Ha Thi Ngoc Anh, International Trade and Business Technical

Textbook – Banking University of Ho Chi Minh City: Renting a shipping vessel can be divided into 6 steps as follows:

• Step 1: the charterer requests the charter through the broker ship to transport your goods

At this step the charterer must provide the broker with all information about goods such as product name, packaging, quantity, and itinerary goods, so that brokers have a basis to find ships

• Step 2: the broker greets the vessel

Based on the information about the goods provided by the charterer, the broker

(forwarder) will find ships and offer charter ships to suit the needs of transporting goods

• Step 3: the broker negotiates with the shipowner

After greeting the ship, the shipowner and the broker will negotiate everything with

28 each other in terms of the charter contract such as conditions of carriage, freight, loading costs,…

• Step 4: the broker informs the negotiation results with the charterer

After the negotiation results are available, the broker will notify the charterer of the negotiation results so that the charterer knows and prepares for signing the charter contract ship

• Step 5: The charterer and the shipowner sign a contract

Before signing the contract, the charterer must review all the terms and clauses of the contract The two sides will cross out or add to the agreed terms suitable because for chartering a ship, the sample contract only states the general features

Once the contract has been signed, the charter contract will be executed

Air transport, defined by Le Xuan Phuong (2018) as utilizing aircraft to convey passengers and goods across substantial distances, offers the benefits of speed and security This mode of transport is particularly fitting for high-value items requiring prompt delivery and for passengers seeking expeditious travel.

2: The process of booking Airplanes

The air transport process includes many steps from cargo preparation to final delivery According to the textbook "International Freight Forwarding and Freight Forwarding" by author Pham Van Tien (2019), the air transport process is described as follows:

• Prepare goods: Goods are carefully packaged according to aviation regulations, ensuring safety during transportation

• Airline reservations and procedures: The sender contacts the airline or forwarding company to make reservations and complete the necessary procedures

• Delivery at the departure airport: Goods are transported to the departure airport and export customs procedures are completed

• Shipping: Goods are transported by plane to the destination airport

• Receive goods at the destination airport: After the goods arrive at the destination airport, the recipient carries out import customs procedures

• Final Delivery: Goods are delivered to the final recipient

2.2 An overview of the ordering and shipping process

According to the textbook "International Trade" by author Nguyen Van Nam (2017), the concept of international ordering is defined as follows: "International ordering is a commercial transaction process in which a buyer in one country orders goods or services from a seller in another country This process includes many steps such as finding a supplier, negotiating contracts, making payments, and shipping goods."

According to the textbook "Supply Chain Management" by MSc Tran Van Binh (2016), the concept of "back-to-back order" is defined as follows: "Back-to-back order is a type of order in which a new order is created to immediately satisfy an existing order This helps to minimize inventory holding time and optimize processing, and inventory management process, while ensuring that customer orders are filled quickly and efficiently."

According to the textbook "Supply Chain Management" by MSc Tran Van Binh (2016), the role of suppliers in the supply chain is described as follows:

• Supply of Raw Materials and Goods:

Suppliers ensure adequate and timely supply of raw materials, components, and goods necessary for the enterprise's production and business process This helps maintain continuous production and respond to customer needs quickly

The quality of raw materials and goods from suppliers directly affects the quality of the final product Therefore, suppliers must adhere to strict quality standards and regularly improve production processes to ensure satisfactory products

Effective supplier partnerships can help businesses reduce manufacturing costs by negotiating better prices, reducing transportation and inventory costs, and taking advantage of bulk purchasing incentives

Suppliers contribute to shortening production and delivery times, helping businesses quickly bring products to market, thereby increasing competitiveness and promptly meeting customer needs

Suppliers are often involved in new product development, providing expertise and technical knowledge to improve products and manufacturing processes This partnership helps businesses innovate and develop higher-quality products

Suppliers also play an important role in promoting sustainable practices, through the supply of environmentally friendly materials and the adoption of sustainable production methods

2.2.2 The Role of Shipper (Bosch Singapore)

According to the textbook "Supply Chain Management and Logistics" by DBA Le

Thi Hong Minh (2018) – University of Economics Ho Chi Minh: The shipper's role in the supply chain does not stop at transporting goods but also includes warehouse management, optimizing shipping costs, and improving customer service quality Shippers need to ensure that goods are delivered on time, to the right location, and in the best condition, while also having effective risk management measures to maintain the stability and efficiency of the supply chain

According to the textbook “Logistics and Supply Chain Management" by MSc Nguyen Thi Van Hoa (2020) – National University of Economics: Shippers play an essential role in the modern supply chain They ensure that goods are delivered to the right place, at the right time, and in the best condition In addition, they also help businesses optimize costs and improve customer satisfaction through high-quality delivery services

2.2.3 The Role of Consignee (Bosch Vietnam)

In the supply chain, the role of the consignee, or consignee, cannot be ignored The consignee does not simply receive goods from the sender or shipper at the end of the supply chain but is also responsible for many different activities Excerpt from the textbook

"Supply Chain Management" by MSc Tran Van Binh (2016) describes the role of consignee as follows: "Consignee must not only receive goods but also check their quality and quantity, store and manage goods effectively, handle goods according to the specific needs of the business, and carry out procedures customs and legal matters as necessary, as well as paying fees and recording information relating to the receipt and handling of goods."

In this important role, consignees contribute to the success of the entire supply chain by ensuring that goods are received and processed properly and efficiently

2.2.4 The Role of the Customers in Vietnam

Customers play an important role in the supply chain with great influence on the process from ordering to receiving goods According to the textbook "Supply Chain Management" by MSc Tran Van Binh (2016), customers are not only the final consumers

32 but also the main source of information about specific needs and requirements for products and services Customer satisfaction is the decisive factor in the success of each batch and also greatly affects the reputation and brand of the business Therefore, understanding and properly meeting customer needs is the key to building long-term and sustainable relationships in the supply chain This is especially important in promoting business development and success in an increasingly competitive business environment

The role of the forwarder in the supply chain is undeniable, with an important contribution to the organization and management of goods transportation activities Below is a description of the role of the forwarder, quoted from the textbook "Supply Chain Management" by MSc Tran Van Binh (2016): "Forwarders, or transport brokers, play an important intermediary role in the supply chain by organizing and managing the movement of goods from source to destination efficiently and economically They not only ensure that goods are transported at the right time and place but also provide related services such as temporary storage, packaging, and customs document processing With professionalism and experience, forwarder helps businesses reduce transportation burdens and optimize costs, thereby improving efficiency in supply chain management."

2.2.6 The Role of the Customs Department

The Customs Department assumes a crucial role in supply chain management by overseeing import-export operations across borders As highlighted in the textbook "Supply Chain Management" by Tran Van Binh (2016), the department safeguards national interests while performing key tasks such as revenue collection, goods control, and fostering international trade Its responsibilities encompass inspecting and processing merchandise, streamlining customs clearance, and upholding customs and legal regulations, ensuring the stability and efficiency of the global supply chain.

• Decree No 08/2015/ND-CP: This Decree of the Government of Vietnam promulgates detailed regulations and guides the implementation of several articles of the Customs Law on the customs clearance process and customs management of goods with import and export goods

• Decree No 127/2018/ND-CP: This Decree also of the Government of Vietnam promulgates detailed regulations and instructions for implementing several articles of the Customs Law on regulations on customs procedures, management, and use of credit institutions in import and export activities

3: The Role of Logistics

2.4.1 The principle of 7Rs in Logistics

The concept of "7Rs" in Logistics often refers to some basic and important principles in supply chain management and Logistics operations According to the textbook

“Supply Chain Management: Strategy, Planning, and Operation" by authors Sunil Chopra and Peter Meindl (2015), the principles include:

• Right Product: Ensures that the product matches the customer's needs and requirements

• Right Quantity: Determine and transport the correct quantity of goods needed, avoiding shortages or excesses

• Right Condition: Ensures that the product is transported and stored in appropriate conditions to avoid damage or deterioration

• Right Place: The product needs to be transported and delivered to the destination at the required time and place

• Right Time: Ensures that the product is delivered at the requested time, avoiding late or early delivery

• Right Customer: The product needs to be delivered to the correct customer, address and contact information

• Right Cost: Ensures that Logistics activities are carried out at a reasonable and efficient cost

2.4.2 The concept of B2B to C model

According to the textbook “B2B Marketing Strategy: Differentiate, Develop and Deliver Lasting Customer Engagement" by authors Robert W Bly and Charles C Schaefer (2016), the concept of B2C to C model usually refers to a business model in which one business (B2B) provides a product or service to another business (B2B), and the second business then continues to provide the product or service this to the final consumer (C)

• Supplier (B2B): The supplier is the original manufacturer or provider of the products or services They sell their offerings to intermediary businesses rather than directly to consumers

• Intermediary Business (B2B): The intermediary business acts as a middleman between the supplier and the end consumer They purchase the products or services from the supplier and then resell or distribute them to consumers

The consumer is the final recipient of goods or services They procure these offerings from intermediary businesses, typically via retail outlets, e-commerce platforms, wholesalers, or other distribution channels.

2.5 The competitor of Bosch Group

As a German engineering and technology powerhouse, Bosch Group faces competition across its sprawling portfolio Within their home turf of Germany, Siemens

AG emerges as a key rival This multinational conglomerate clashes with Bosch in areas like infrastructure and the development of smart mobility solutions When it comes to the automotive industry, Bosch faces stiff competition from Continental, another German multinational Here, the battleground centers on who provides the best automotive components and mobility solutions Shifting focus beyond Germany, Bosch encounters Schneider Electric, a French multinational specializing in the digital transformation of energy management and automation These two companies find themselves competing in

37 the development of building automation solutions and who offers the most effective strategies for energy efficiency

Across the Atlantic, Bosch faces challenges from American players as well

Honeywell International Inc., a U.S conglomerate, competes with Bosch in various sectors, including climate control systems used in buildings, security solutions for those same structures, and even industrial automation solutions Similarly, Johnson Controls

International plc, an Irish-American multinational, finds itself toe-to-toe with Bosch in areas like smart home technology, building automation systems, and the all-important climate control solutions market

It's important to remember that this list isn't exhaustive The specific competitors

Bosch faces depend on the particular product or service in question However, this broader perspective highlights the diverse range of companies vying for market share in the sectors

4: Some of the competitors of the Bosch Group

(Source: From the market research department at Bosch)

CHAPTER 3: ANALYSIS OF THE STATUS OF THE LOGISTICS AND SUPPLY CHAIN MANAGEMENT PROCESS AT BOSCH VIETNAM COMPANY

LIMITED 3.1 Roles and functions of Supply Chain Management

1:Connected from customer to supplier

(Source:https://www.bosch.com/company/supply-chain/)

Bosch's emphasis on Supply Chain Management (SCM) enables cost reductions through waste and inventory minimization Efficient SCM enhances customer service by ensuring product availability and satisfaction Moreover, it fosters agility, allowing Bosch to respond quickly to market changes This strategic approach to SCM is crucial for Bosch's competitiveness in the global marketplace.

The supply chain, a complex and interconnected web of processes, logistics, and relationships, stands as a linchpin in the intricate machinery of modern business At its core, the importance of an efficiently managed supply chain lies in its capacity to drive cost efficiency throughout the entire spectrum of operations From procurement strategies that optimize supplier relationships to streamlined production processes and the seamless distribution of goods, a well-orchestrated supply chain can significantly reduce operational costs, enhancing a company's financial health and competitive positioning

Crucially, customer satisfaction, a pivotal metric in the contemporary marketplace, is intricately linked to the supply chain's ability to deliver products when and where they are needed Timely and accurate deliveries are not mere logistical feats; they are integral components of customer experience, directly influencing loyalty and brand perception A supply chain thatensures product availability, minimizes lead times and responds adeptly to evolving market demands becomes a driving force behind customer retention and positive word-of-mouth

The strategic advantages afforded by an optimized supply chain extend further into inventory management Balancing the delicate act of maintaining optimal inventory levels prevents the pitfalls of overstocking, and reducing carrying costs, while averting stockouts ensures that sales opportunities are maximized The supply chain's role in inventory optimization is, therefore, central to achieving a delicate equilibrium between operational efficiency and customer satisfaction Beyond its operational and financial dimensions, the supply chain is a linchpin of organizational resilience and adaptability In the face of rapidly changing market conditions, a responsive supply chain is a strategic asset Its agility allows companies to adapt swiftly to fluctuations in demand, navigate disruptions caused by unforeseen events such as natural disasters or economic downturns, and maintain a competitive edge in the dynamic business landscape

In the realm of competitiveness, the supply chain emerges as a source of strategic advantage Companies that can deliver products faster, more reliably, and at a lower cost than their counterparts gain a competitive edge This competitive advantage is not solely about cost; it is about the ability to meet customer demands more efficiently, enhancing

40 the overall value proposition in the market Furthermore, the supply chain catalyzes innovation and collaboration By fostering strong relationships with suppliers, manufacturers, and distributors, businesses can tap into new ideas, technologies, and processes Collaborative innovation within the supply chain can lead to the development of groundbreaking products and services, setting a company apart in a crowded marketplace

In a globalized world, digital technologies change markets, and sustainability is becoming a key factor For Bosch, this means reacting with greater flexibility, speed and transparency to increasingly individualized customer wishes — while meeting highest quality requirements at the same time This is a demanding task for the 33,000 employees of Bosch Supply Chain Management Their work in the subfields of purchasing and logistics relies on automated processes and digitalization.

2: Some typical data about the supply chain at Bosch

Risk management holds immense significance in supply chain operations, as global interconnectedness exposes them to diverse threats, including geopolitical uncertainties and environmental hazards To enhance resilience and mitigate these risks, effective strategies are essential, such as supplier diversification to reduce reliance on a single source, and contingency planning to prepare for unforeseen events.

41 real-time monitoring, ensuring business continuity in the face of adversity The regulatory landscape adds another layer of complexity to supply chain management Companies must navigate a maze of legal and industry-specific regulations to ensure compliance A well- managed supply chain integrates regulatory considerations seamlessly, avoiding legal pitfalls and safeguarding the company's reputation As the world becomes more environmentally and socially conscious, the supply chain plays a pivotal role in supporting sustainable and ethical practices Companies that embed environmental and social responsibility into their supply chains not only meet evolving consumer expectations but also contribute to a more sustainable and equitable global business ecosystem

In essence, the supply chain is not merely a logistical framework; it is a dynamic and multifaceted engine that propels businesses toward operational efficiency, customer satisfaction, competitiveness, resilience, innovation, and responsible global citizenship As businesses navigate the complexities of the modern marketplace, the strategic importance of a well-managed supply chain becomes increasingly evident, shaping the destiny of companies in an ever-evolving landscape

3.1.1.1 How supply chain management works at Bosch

3: Revenue allocation at Bosch

(Source:From Bosch Annual Report 2023)

Delving deeper into Bosch's revenue allocation strategy, we can uncover a multifaceted approach designed to optimize global profitability:

Dominating Established Markets: Europe stands as Bosch's financial powerhouse, generating a staggering 51.1% of total revenue This dominance allows Bosch to leverage economies of scale by spreading fixed costs across a larger production volume Additionally, well-established European operations likely benefit from optimized operational efficiency, further boosting profitability in this mature market

To mitigate risk and capitalize on growth opportunities, Bosch has embraced market diversification by expanding into emerging regions like South America and Asia Pacific This approach reduces reliance on a single market's performance While South America has experienced a slight decline (-6% compared to 2022), Bosch remains committed to this market, recognizing it as a strategic adjustment or a reflection of regional economic fluctuations By establishing a presence in developing markets, Bosch positions itself for future growth as these economies mature.

Regional Tailoring for Maximum Impact: Bosch doesn't simply replicate its European success formula globally They suggest a nuanced understanding of regional strengths For example, focusing on industrial products in Europe aligns with the continent's strong manufacturing base Conversely, prioritizing consumer products in Asia Pacific caters to the region's burgeoning consumer demand This regional tailoring ensures Bosch leverages each market's unique strengths for maximum impact Therefore, in the Asia Pacific region, an impressive increase of 27.9 billion Euros has been recorded

Investing in the Future: Bosch isn't resting on its laurels The image doesn't reveal specific figures, but industry knowledge suggests Bosch is likely investing in high- growth potential markets like electric vehicles and smart technologies This forward- thinking approach ensures Bosch remains at the forefront of technological advancements and positions them to capture market share in these rapidly evolving sectors

However, a note of caution is necessary The image provides a limited snapshot

A more comprehensive analysis would require a deeper dive into factors like operating costs in each region, competitor strategies, and the overall economic climate Additionally,

43 specifics on Bosch's performance in South America and its diversification efforts there would be valuable

Bosch's revenue allocation strategy is a well-orchestrated symphony It combines a focus on established, profitable markets with strategic expansion into emerging regions Regional customization ensures they capitalize on each market's strengths, while investments in future technologies position them for long-term success While the image provides valuable insights, further exploration is needed to paint a complete picture

While the location of Bosch's factory is a significant factor in their sourcing activities, it's not the single most crucial element Bosch employs a strategic approach that considers a multitude of factors to optimize their supply chain On the one hand, geographically dispersed manufacturing offers advantages Bosch can leverage lower production costs in certain regions, improve responsiveness by being closer to target markets, ensure compliance with local regulations, and mitigate risks associated with disruptions by having geographically diverse production facilities.

4: The location of Bosch’s factory in Vietnam

(Source: From Logistics Operation Department and Edited by Student)

Bosch's factory in Dong Nai enjoys a strategic location within Vietnam's Southern Key Economic Zone This proximity facilitates connections with suppliers throughout the region and neighboring countries like Thailand and China Additionally,

44 major seaports like Cat Lai and Cai Mep-Thi Vai are nearby, enabling cost-effective import and export of goods However, these benefits come with challenges Maintaining consistent quality control across various locations, managing communication and logistics across different time zones and cultures, and protecting intellectual property in certain regions can be complex Therefore, Bosch prioritizes a well-rounded approach Supplier capabilities are paramount

Bosch seeks suppliers who consistently meet their stringent quality standards, deliver on time, and offer competitive pricing, regardless of location Additionally, Bosch prioritizes innovation, potentially sourcing from regions known for advancements in specific technologies Finally, sustainability is a key consideration, with Bosch seeking suppliers who adhere to environmentally friendly practices around the globe

In conclusion, Bosch's sourcing strategy goes beyond simply considering the location of manufacturers They prioritize a blend of factors, including supplier capabilities, cost competitiveness, market proximity, risk mitigation, and sustainability, to make informed decisions that optimize their entire supply chain and contribute to their overall success

5: The life circle of the product

(Source:From Logistics Operation Department and Edited by Student)

In Bosch's supply chain management (SCM), the role of "making" is pivotal, encompassing the manufacturing processes that are intricately linked with various stages of the product lifecycle Collaborating closely with product designers and engineers, SCM ensures that manufacturing processes align seamlessly with product design specifications,

45 emphasizing efficiency, quality, and sustainability This entails meticulous management of procurement and sourcing activities to secure raw materials and components essential for manufacturing Once materials are acquired, SCM oversees production planning, scheduling, inventory management, and quality control to optimize manufacturing processes, meeting customer demand while minimizing waste and lead times Additionally, SCM at Bosch orchestrates the distribution and logistics network, ensuring timely delivery to customers through efficient transportation, warehousing, and order fulfillment As products near the end of their lifecycle, SCM manages end-of-life processes such as recycling and disposal, aligning with sustainability goals By integrating "making" with the entire product lifecycle, Bosch's SCM achieves comprehensive visibility and control, driving competitiveness and customer satisfaction

Bosch Group is divided into many different product lines For specific product lines, businesses will have warehouses available to store products In addition, to save costs, we will cooperate with outsourcing warehouses to store and transport goods to customers Therefore, there needs to be a smooth combination of the office operations department and the employees working in the warehouse

The SCM officer plays a key role in overseeing delivery operations at Bosch This individual is responsible for coordinating transportation logistics, managing carrier relationships, and optimizing delivery routes to ensure timely and cost-effective product distribution The officer works closely with various internal teams, including production, procurement, and customer service, to align delivery activities with overall supply chain objectives and customer requirements Additionally, the SCM officer monitors performance metrics and implements continuous improvement initiatives to enhance delivery processes and outcomes

Outsourcing warehouse operations is another aspect of delivery management in Bosch's SCM By leveraging external warehouse facilities and logistics providers, Bosch can expand its distribution network, improve inventory management, and enhance delivery capabilities SCM at Bosch collaborates with outsourcing partners to optimize warehouse

By strategically outsourcing logistics operations, Bosch streamlines inventory flow, ensuring seamless integration within the supply chain This allows for flexible scaling of logistics infrastructure to meet fluctuating demand and market conditions, while maintaining cost efficiency and service quality.

Managing returns in supply chain management (SCM) at Bosch through third- party logistics (3PLs) involves a strategic partnership approach to efficiently handle product returns while prioritizing customer satisfaction and cost-effectiveness To begin, Bosch establishes clear and transparent return policies, defining acceptable reasons, timeframes, and condition requirements for returned items, ensuring alignment with 3PL capabilities Collaborative partnerships with selected 3PL providers are forged, emphasizing shared values, quality standards, and customer service objectives Integration of Bosch's systems with those of the 3PL facilitates seamless communication and data exchange, enabling real-time tracking of returns and efficient inventory management Within this framework, a robust reverse logistics strategy is developed jointly with 3PL partners, optimizing transportation routes and leveraging 3PL warehouses for sorting, inspection, and disposition of returned products Processes for return authorization and processing are established, ensuring returned items meet predetermined criteria before inspection, testing, refurbishing (if necessary), and restocking Regular performance evaluations and continuous improvement initiatives are undertaken collaboratively to analyze return trends, identify root causes, and implement corrective actions, ultimately enhancing customer satisfaction and optimizing overall supply chain performance

Sustainable supply chains are crucial for business success and social well-being, supported by ethical practices and efficient resource management Through collaboration with suppliers, we establish a solid foundation for a prosperous and sustainable future, benefiting all stakeholders.

3.2 Business market situation, business market and customer

3.2.1 Market research and product development situation

Bosch Research, with its team of 1,700 brilliant minds, is dedicated to translating scientific advancements into practical solutions that enhance our daily lives The focus lies on developing cutting-edge technologies in crucial areas such as automation, digitalization, and connectivity, including breakthroughs in artificial intelligence and the development of connected homes Bosch Research is also heavily committed to sustainability, with ongoing research in electrification, climate action, and healthcare innovations, ultimately aiming to create a more efficient and eco-conscious world.

6: Bosch Research

(Source: https://www.bosch.com/research/)

Bosch Research spearheads the development of intelligent automation We create data-driven systems that can think, act, and react, paving the way for autonomous vehicles and robots in the Factory of the Future These innovations take on difficult, monotonous, and dangerous tasks, making human work safer and easier Automation is a

48 game-changer across all industries, and Bosch Research is at the forefront of this revolution

Bosch Research weaves the future of connectivity We develop secure and powerful digital systems, from cutting-edge devices to innovative algorithms Our work merges digitalization with mechanics and electronics, often using advanced AI methods

By pioneering distributed systems and virtualized engineering, our experts lay the groundwork for groundbreaking applications across diverse industries

At Bosch Research, connectivity and AI are the cornerstones of innovation

We develop game-changing applications across all Bosch sectors, from smart appliances and connected factories to self-driving vehicles AI is the engine driving this progress, with our dedicated Center for Artificial Intelligence empowering each division Bosch Research collaborates closely with business units, ensuring cutting-edge AI seamlessly integrates with decades of Bosch expertise This powerful fusion brings futuristic ideas to life, shaping the intelligent solutions of tomorrow.

7: Collaboration between research and Bosch business divisions

(Source: From Marketing and Communication Department)

Bosch Research is at the forefront of the electric revolution, driving us towards a sustainable future We're pioneering emissions-free mobility, energy-efficient buildings, and clean hydrogen production Our electrifying innovations span all areas – from powerful electric car batteries and fuel cells to efficient heat pumps and solid oxide fuel cells for buildings We're even developing cutting-edge methods for hydrogen electrolysis, the key to a clean energy future

Our unwavering commitment to sustainability permeates every aspect of our products From inception to end of life, we prioritize environmental stewardship Through rigorous research, we optimize resource and energy efficiency to minimize environmental impact Moreover, we strive to extend product lifecycles and implement innovative recycling systems Guided by the principles of the circular economy, we incorporate eco-design and judicious material selection, ensuring products align with our unwavering sustainability goals.

The COVID-19 pandemic underscored the critical role of medical technology research At Bosch Research, we're revolutionizing healthcare by developing faster, more accurate diagnostics powered by automation and AI Our work lays the groundwork for personalized medicine, with a focus on point-of-care lab solutions, connected medical devices via the Internet of Things, and innovative "cells-on-chip" technologies

Despite a mixed performance in 2023, Bosch's commitment to its established markets remains strong

Europe and North America: These regions were highlighted for their "strongest nominal growth" in 2023, suggesting Bosch will likely continue prioritizing them Their established presence and history of success in these regions make them crucial markets

Despite the lack of explicit references to economic challenges, the Bosch report acknowledges regional discrepancies and diminished market momentum in the Asia Pacific (APAC) region This implies a need for strategic adjustments to address potential economic headwinds Nevertheless, the company remains committed to APAC, recognizing its importance and the potential for long-term growth.

50 region entirely APAC is a massive market with significant growth potential, and Bosch is likely to adapt their approach to maintain a strong presence

Global Presence: The inclusion of sales figures for Europe, North America, South America, and APAC reinforces Bosch's commitment to a global strategy Shifting entirely out of major markets would be a drastic move

Economic Uncertainty: The report acknowledges an uncertain economic outlook for

2024 Bosch might need to adapt its strategies across all regions, not just APAC, to navigate these challenges However, their focus on "future markets" suggests they won't retreat from established markets but rather optimize their approach for long-term success

3.3 The situation of using human resources of the enterprise

Focus on Talent Acquisition: Bosch's emphasis on growth areas like semiconductors and mobility suggests a need for skilled professionals in these fields Their continued investment in R&D also indicates a value for talent in research, engineering, and innovation Maintaining a global presence further necessitates a strong workforce across diverse regions These factors all point towards Bosch actively seeking and retaining qualified personnel

Uncertainties and Potential Changes: The report's mention of cost improvement efforts introduces some uncertainty Bosch might look towards workforce restructuring or optimization to achieve this goal However, the details remain unclear

Despite potential adjustments, Bosch's focus on growth, innovation, and global presence suggests a continued need for qualified professionals To learn more, you can explore the Bosch careers page, search for news articles about their workforce, or see if they publish separate human resources reports

3.4 RBVN Logistics process of Building Technologies department

3.4.1 Logistics Process of Building Technologies

Logistics activities are extremely important activities to deliver products to final customers Based on the binding terms between the two parties in the contract, we have a

PO from the customer, the sales team must have a negotiation to deal with a fit price in a

51 suitable lead time and the role of the logistics team begins At this point, we have two circumstances

• The first circumstance: The sales team can capture the available product quantity of each product code that meets the customer’s requirement The sales team asks the Logistics Team to place an order directly with the CPAP warehouse in Singapore, the logistics team joins to deliver products from Singapore to Vietnam

• The second circumstance : The sales team doesn’t know exactly the product quantity of each product code or customers want more than what is currently available at the CPAP warehouse The sales team contacts the logistics team for support, the logistics team checks current stocks with suppliers all over the world based on the lowest cost and shortest lead time to the CPAP The products are delivered from Singapore to Vietnam.

8: The process logistics of Building Technologies

(Source: From Logistics Operation Department and Edited by student)

The logistics process of delivering from Singapore to Vietnam is potentially risky We apply Incoterms following the shipper from Singapore and Payment terms based on the solvency

52 of the distributor Normally, we always use CIP in Incoterms by Sea, but sometimes customers request Air mode, and Incoterms changes to FCA

Benefits of signing a commercial contract with a freight forwarder and optimizing vessel chartering costs and sea transportation time when choosing CIP terms at Bosch:

Freight forwarder long-term contract (Broker): Clearly defines the responsibilities of each party, protecting our interests during the transportation process

CIP: Minimizes risk for Bosch Vietnam because Bosch Singapore is responsible for the goods until they are loaded onto the vessel CIP offers Bosch insurance coverage and keeps them responsible for the goods until they're loaded onto the ship This reduces the risk of loss or damage during transport, which is especially important for potentially expensive building technology equipment Additionally, CIP allows Bosch to control the insurance provider and coverage level, ensuring their valuable cargo is adequately protected

Freight forwarder contract with Shipping lines (DSV, KWE, DHL, ): The freight forwarder can help us negotiate better freight rates, saving our money

CIP: The freight forwarder can help us optimize insurance costs and another related costs – to ensure the shipment

CIP clearly defines the point at which risk and responsibility shift from Bosch to the Vietnamese importer This eliminates confusion and potential disputes during customs clearance and delivery, streamlining the overall process The specific incoterms used by Bosch might depend on the negotiated contracts with their Vietnamese partners

CIP: The freight forwarder can help us track our shipment and ensure timely delivery

4 The key factors affecting to Logistics process

Transportation: This includes modes of transportation (air, sea) and related services

It affects the time, cost, and responsiveness of the supply chain

Inventory management: This involves planning, organizing, and controlling the storage of goods The efficiency of this process directly impacts flexibility and responsiveness

Customer service: Customer satisfaction depends on the ability to provide goods at the right time and place, as well as the ability to handle orders and resolve issues when necessary

Supply chain management: This relates to optimizing processes from suppliers to the end customer, including information management, risk management, and cost optimization

Information technology: Information systems and technology help improve data integrity, optimize processes, and provide real-time information, thereby enhancing efficiency and responsiveness

Human resources: Employees with logistics skills and knowledge, as well as teamwork and time management abilities, play a crucial role in ensuring smooth logistics processes

Transportation is often considered one of the most critical aspects of the logistics process for several reasons: Transportation facilitates the physical movement of goods within the supply chain, ensuring timely delivery to meet customer demand and maintain satisfaction It constitutes a significant portion of logistics expenses, but optimizing routes, modes, and carriers helps minimize costs and maintain optimal inventory levels In a globalized economy, transportation is essential for coordinating international shipments, navigating regulations, and ensuring smooth cross-border movements Transportation directly influences delivery speed, reliability, and flexibility, which are crucial for positive customer experiences and competitive differentiation

3.4.2 Analysis of the logistics process of the Building Technologies Department

The process of the Building Technologies Department of Bosch Vietnam is a complete and coherent system From supplier selection to managing shipping costs and customs-related steps, everything is built in an organized and flexible way However, there may be opportunities for further optimization of time and cost during operation In this

54 process, I am primarily involved in the following This gives me a deeper perspective on the industry as well as gives me experiences for me to go further in this work

When delivering goods to customers, Bosch Vietnam not only ensures the quality and integrity of the products but also complies with the procedures for providing important documentation After the customer has fully paid for the goods, the company is responsible for providing a detailed set of documents to prove that the delivery process took place completely and transparently Bosch Vietnam places particular emphasis on providing Certificates of Quality that are based on the specific parameters of each type of product This is not only an important step to ensure that the products meet the previously agreed quality standards, but also the main basis for transferring ownership of the goods from Bosch Vietnam to the consignee Providing detailed and complete documentation is not only a legal obligation but also an important measure to build trust and reputation in international trade These documents not only help protect the interests of both the seller and the buyer but also facilitate further transactions between the two parties By providing comprehensive documentation, Bosch Vietnam demonstrates its commitment to transparency, customer satisfaction, and long-term business relationships

B, Check goods that have cleared customs for transportation to the warehouse

Once transported from Singapore to Vietnam, goods arrive at Hai Phong Port in the north or Cat Lai Port in the south for customs clearance Bosch then transports the goods to its warehouse for inspection due to the large volume of goods imported In special cases, customs may retain goods for further screening if concerns arise over the declared value or quantity of shipments These doubts typically involve shipments with substantial quantities or discrepancies in declared prices After customs clearance, the goods are arranged on warehouse shelves based on specific criteria.

55 status of the goods also needs to be coordinated to facilitate the discharge of the warehouse for delivery to customers

Picture 3 9: The goods prepared through the scanner

C, Coordinate with warehouse to label product

When the goods have been towed to the warehouse, the office block will coordinate with the warehouse to label the goods and then transfer to the customer

To ensure accurate product identification and streamline inventory management, it is imperative to adhere to specific labeling guidelines Clearly identify the products to be labeled, specifying their SKUs or names Determine the essential information to be included on the labels, such as product details and barcodes Establish the label format and quantity required for each product Provide precise application instructions, including the placement of the labels and any necessary temperature or pressure requirements.

Choose a Communication Channel: we send a detailed email outlining the labeling instructions to the warehouse manager (emergency) For complex labeling needs, consider scheduling a meeting to discuss the process thoroughly and answer any questions

Additional Considerations: Give the warehouse enough lead time to complete labeling, especially for large quantities Ensure they have sufficient label stock before starting Finally, discuss a verification process after labeling is complete to guarantee accuracy and consistency across all products

Picture 3 10: The Label of Product

(Source: From the North Warehouse and Edited by Student)

For ordinary customers, when the goods arrive at the labeled warehouse, they will prepare a delivery notice for customers to prepare the warehouse to receive the goods This process will take place within one day if no special circumstances occur For customers who need to urgently, do not wait for the warehouse to prepare procedures for the warehouse's transport to deliver, it is necessary to notify Bosch Vietnam to support the procedures to go to the warehouse to receive goods directly

In this aspect, the delivery also needs a lead time for the warehouse to prepare because depending on the location of the two warehouses, there will be two different lead times

- For the Southern warehouses: if you want to receive goods the next morning, the procedure must be completed by 3 pm the previous day

- For the Northern warehouse: Due to the characteristics of the location, if you want to receive the goods the next morning, the procedure must be before 10 am the previous day so that the warehouse can book transportation

Bosch Group's decision to outsource warehouses in Binh Duong and Hai Phong is strategically driven by several factors Firstly, both locations offer proximity to manufacturing facilities, facilitating efficient transportation between production sites and warehouses, thus reducing lead times and transportation costs Secondly, strategically situated within Vietnam, Binh Duong and Hai Phong provide easy access to major transportation networks, including highways, ports, and airports, enabling smooth domestic distribution and import-export activities Moreover, these regions boast growing economies and commercial activities, ensuring accessibility to local markets and customers, and enhancing the company's responsiveness to demand fluctuations Additionally, Binh Duong and Hai Phong benefit from well-developed infrastructure and logistics support, streamlining warehouse operations and bolstering overall supply chain efficiency Government support and incentives further incentivize investment in these areas, while the presence of warehouses in multiple locations diversifies risk and ensures business continuity In general, Bosch Group's choice of Binh Duong and Hai Phong as warehouse locations aligns with a strategic approach aimed at optimizing supply chain operations, accessing markets, leveraging infrastructure, and mitigating risks

Warehouses serve as pivotal hubs in Bosch’s business operations, fulfilling various crucial functions within supply chain management and logistics At their core, warehouses provide essential storage space for goods, materials, and products, enabling businesses to maintain inventory until needed for production, distribution, or sale Efficient inventory management is facilitated through organization, categorization, and tracking of stock, ensuring optimal levels and minimizing stockouts or overstocking Moreover, warehouses play a central role in order fulfillment processes by receiving, picking, packing, and shipping out items for timely delivery, thereby enhancing customer satisfaction They also

1: The delivery process at Bosch

In reality, suppose the customer needs the goods urgently when the goods have arrived in the warehouse but sends the bank statement late but requests to receive the goods as soon as possible At this point, the warehouse's delivery lead time has passed, and there is a high possibility that the goods will be dropped in the warehouse and not delivered on time The issue of money is quite sensitive because it directly affects the organization To solve the above problem safely, Bosch usually has the following solution First of all, Bosch respects customers very much and wants to deliver goods to customers quickly

Table 4 3: Some reasons for the return rate of the delivery process

The customer sends the bank statement late after passing the lead time of delivering the product, but they

If the customer sends the bank statement late, and the warehouse's delivery lead time has passed, the Bosch office will still notify the warehouse (if the warehouse can still book a shipping unit), and an additional fee will be charged as

The costs incurred in this matter will not be borne by Bosch but will be paid by the customer Cost depends on the customer's familiarity with the transport unit On

69 want to receive the orders in time requested by the shipping unit

Bosch will notify the customer again, this amount will be paid by the customer If all of this process is agreed upon by all parties, it will proceed as normal average, about 10-15 million/time

Delivery to the wrong address

In some real cases, customers request Bosch to deliver goods to another location than the regular delivery location The warehouse's carelessness when working with the shipping unit, which led to the wrong delivery to the customer and the customer not receiving the goods

This cost Bosch will work with the warehouse and the warehouse will be responsible if the warehouse makes a mistake Usually greater than 3 million VND Additional time loss of 2-3 days due to having to renegotiate with customers The office team exchanged information with each other via email, however, while delivering the goods, the customer's warehouse was not aware of not receiving the goods due to reasons such as

Related to subjectivity at work leading to lack of information during the goods transportation process, leading to additional loss of costs

Normally, this return cost is responsible by Bosch This loss ranges from 3 million VND/time (not including storage costs)

Operating an outsourcing warehouse still faces many limitations, typically the communication process with the warehouse is usually only via email Problems will often arise when a new employee joins the team position Not understanding the process poses many risks if operated incorrectly That's why we need more solutions to connect people and meetings to disseminate information to both sides are extremely necessary The process makes development more efficient

Table 4 4: Solutions for delivery problems

The customer sends the bank statement late after passing the lead time of delivering the product, but they want to receive the orders in time

To resolve the present conundrum, Bosch faces the challenge of obtaining a bank statement to generate an invoice for merchandise delivery To prevent similar complications in the future, Bosch should implement measures to encourage customers to prioritize prompt payment for purchased goods.

- Reducing transportation costs and helping increase profits for customers

- Save costs of working overtime of employees in the warehouse

(40,000VND*number of working overtime*number of employees) About 5 workers in 1 time (4 hours), the cost is 800,000VND/day (depending on each case) Delivery to the wrong address

This is an internal matter This needs to be improved by having Bosch's office team be more proactive In addition to the email to the warehouse,

- If Bosch has delivered them to the wrong location, but customers can continue to receive goods, it will cost an additional amount (from 3-5

71 there should be an additional call to remind them about the change of location so that they can pay more attention because they have to handle many orders within one day

If the product has been delivered to the wrong location, Bosch can send a message to the customer to continue moving to the correct location if possible Otherwise, you will be forced to bring the goods back to storage million VND/time), but it will save the cost of 1 shipping time (3 - 12 million VND/time) In addition, there are loading and unloading fees and storage fees if the goods are returned Save unloading fees

(25,000VND*weight(kg)) + Storage (3millionVND/day))

- Save time loss (takes 1-2 extra days to negotiate with relevant parties) if refunded

The office team exchanged information with each other via email, however, while delivering the goods, the customer's warehouse was not aware of not receiving the goods due to reasons such as

When delivering goods, it is necessary to pay attention to relevant parties who need to be aware of the orders being shipped Which party will transport, which party will receive Sometimes, due to the amount of work happening quite quickly, the warehouse will forget to call before delivery Therefore, customers cannot prepare in time to receive goods Therefore, Bosch needs to email both

- It takes time for both parties if the customer does not receive the goods (2-3 days to arrange the warehouse)

- Save double the shipping cost (6-24million VND/time)

- Reduce the storage (about 6- 9million/time)

72 lack of storage space parties about the upcoming delivery to prepare in time

We can see that good warehouse operation can help us reduce many hidden costs in business activities, thereby contributing to increasing profits for the company Besides, ensuring the basic principles when delivering goods will help Bosch increase its reputation with customers

Table 4 5: The general assessment of the solutions

Besides the current solutions, we need to find other solutions and continuously improve the process In addition, during transportation, we need to be more careful and have backup methods in any case

If we’ve done well, the return rate can be reduced to less than 10% (saving about 100

- 150 million VND/month) The significant cost savings here help increase management efficiency and in the long term will increase profits significantly

4.2 Improved knowledge about Bosch products during operation

Based on each department, there will be separate policies for each partner to optimize the sales process for Bosch products, a comprehensive approach can be adopted to foster effective collaboration between the business and partner First and foremost, specialized training sessions should be organized for both the internal sales team and the dedicated Bosch sales team within the outsourcing partner's organization These training sessions should cover detailed product knowledge, including features, specifications, and target customer segments, ensuring that all team members are well-equipped to effectively communicate the value proposition of Bosch products

Table 4 6: Solutions from Bosch experts for partners

Training Normally it will take place quarterly (3 months/time), however, when there are many new products launched, we need to flexibly arrange (maybe once a month)

- Domestics - Normally, the cost will range from 5 - 10 million VND for renting a venue and personnel, and 1 – 2 million VND to prepare food and drink

The process at Bosch is relatively closed

2: The year-end party to connect people at Bosch

(Source: https://www.bosch.com.vn/)

Bosch's effective reward policy involves a strategic approach with key components Defining clear objectives and guiding principles is crucial, aligning with Bosch's values and business goals These may include attracting and retaining talent, driving performance, and fostering a positive work culture Transparency, fairness, and recognition of employee contributions underpin the policy To align with employee needs and preferences, it's essential to thoroughly understand their requirements.

81 through surveys, focus groups, or one-on-one interviews to gather insights into what motivates and engages employees Factors such as career advancement opportunities, work-life balance, recognition, and financial incentives should be considered in shaping the policy

Table 4 10: Reward policy for employees at Bosch

Reward for Outstanding employee of the month

Encourage employees to put in more effort next month The reward will be cash from (25 - $50) depending on KPI Reward for Outstanding employee of the quarter

Rewards include cash (50 - $100) + "Outstanding employee of the quarter" medal worth (10 - $15) Reward for Outstanding employee of the year

Rewards include cash ($200 - $250) + "Outstanding employee of the quarter" medal worth $10 - $15 + souvenir from the Managing Director

Tet and holiday bonuses Lucky money (200,000 VND) for all + bonus from 50 to 10$ for holidays and triple salary during holidays Women Day Internal congratulations + Party + Bonus 500,000VND/time Birthday Bonus Birthday greetings + 500,000VND

Creative idea of the month

Reward from Managing Director + 1 million VND

Creative idea of the year Reward from Managing Director + 5 million VND + medal Training courses abroad - Asia region: 6-month training, costs range from $15,000-

$20,000 for employees with a clear commitment

- European region: 6-month training, costs range from

$30,000-$40,000 for employees with a clear commitment

Developing a comprehensive total rewards framework is key to providing a well- rounded package that goes beyond monetary compensation This framework should include a mix of financial and non-financial rewards, such as base salary, bonuses, benefits,

82 career development opportunities, and recognition programs It's important to ensure that the total rewards package is competitive within the industry and aligned with Bosch's commitment to employee well-being and growth Implementing a performance-based compensation structure is crucial for linking rewards to individual, team, and organizational performance This could involve setting clear performance metrics and targets aligned with Bosch's strategic objectives and values Rewards such as merit-based salary increases, bonuses, profit-sharing plans, and stock options can be tied to the achievement of these goals Formal recognition programs play a vital role in acknowledging and appreciating employee contributions These programs could include awards ceremonies, employee of the month/year awards, peer-to-peer recognition systems, and spot bonuses for exceptional performance or behavior aligned with Bosch's values

In addition to financial incentives, offering career development opportunities is crucial for employee engagement and retention This could involve providing access to training programs, mentorship initiatives, leadership development courses, and opportunities for advancement within the organization.

3: Award ceremony for outstanding employees

To enhance employee well-being, promoting work-life balance through flexible work arrangements and wellness programs is crucial Clear communication about the reward policy ensures understanding and trust, while regular evaluation and adjustment maintain effectiveness Regularly monitoring feedback and metrics allows for adjustments to improve the policy and employee retention Furthermore, compliance with legal and regulatory standards is essential for ethical practices and mitigating risks By implementing a comprehensive reward policy that addresses these aspects, Bosch can motivate employees, drive performance, and foster a positive work culture.

Have a good bonus scheme for employees

- Enhanced Employer-Employee Trust and Transparency (The average employee retention rate with Bosch is 8 years)

- Retention of Key Talent During Economic Downturns (The rate of talents staying in the organization during Covid times reached more than 85%)

- Increased Productivity (Besides the Flexible Working policy, bonus policy will be the perfect stepping stone for employees to maximize their potential.)

- Attraction of Talent (The rate of talents from rival companies moving to work for Bosch is 18%)

4.4.1 Business-to-Business to Consumer Model

In Vietnam, we have many companies wishing to be long-term partners with Bosch to distribute genuine products to Vietnamese consumers Bosch's decision to prioritize Business-to-Business (B2B) to Consumer (B2C) markets is likely driven by various strategic considerations

Table 4 11: How to Business to Business to Customer work

Information Bosch Entity Bosch Partner

Revenue Each Bosch entity will be responsible for a portion of the revenue that Bosch Vietnam allocates (allocated revenue will be based on the size of the entity, human resources, etc.)

For each BSCP, each entity at Bosch will consider their capabilities and set their own sales target

- Adjust between different systems and processes of partners

- Pressure on sales to achieve commitments with Bosch

- Non-transparent competition between distributors

Firstly, Bosch may possess core competencies that align more closely with serving businesses rather than individual consumers, such as expertise in manufacturing, engineering, or providing tailored solutions for specific industries Additionally, B2B markets often exhibit higher demand for Bosch's products and services due to industrial needs, infrastructure requirements, and the potential for greater revenue stability

By focusing on B2B relationships, Bosch can cultivate long-term partnerships with clients, leading to repeat business, referrals, and opportunities for collaboration and

By catering to business clients, Bosch leverages its expertise and resources to provide customized solutions and specialized products, catering to their specific requirements This allows the company to tap into diverse industries and geographic regions, expanding its market reach and driving sales growth Bosch's established reputation and strong B2B brand presence further contribute to its success in this segment.

Finally, prioritizing B2B transactions may offer Bosch more predictable revenue streams and risk management compared to consumer sales, particularly in sectors with larger contract values and longer-term commitments Overall, Bosch's strategic focus on B2B to Consumer markets enables the company to leverage its strengths, enhance customer relationships, and create long-term value for both its business clients and end consumers.

4: Bosch partner map

To become a distribution partner for Bosch, prospective partners must undergo several steps and meet specific criteria Because the partner will be the party working directly to distribute Bosch products Therefore, choosing a partner must meet the following criteria

Table 4 12: Evaluation criteria for selecting a Bosch partner organization

Qualification Bosch partners need a highly qualified sales technical team to promote Bosch's image and brand to Vietnamese consumers accurately and clearly

Financial strength is the key point because Bosch products have a high value Bosch will support product storage, however, partners need to pay before taking the goods to the warehouse for delivery to consumers

Meet the sales target set by

Bosch (10 billion VND for each industry)

Bosch appreciates partners who bring good sales Besides, when meeting the goals set by Bosch, partners will have many benefits for signing long-term contracts

Operation Ability The ability to operate smoothly and connect departments is also one of the important factors for Bosch to consider when deciding to sign contracts with partners Because this is a factor in evaluating the capacity of a business Legal records Legality plays an important role when partnering with

Bosch Partners must have clear legal documents and demonstrate the professionalism of the business

It's essential to understand and adhere to Bosch's standards and requirements for distribution partners, which cover various aspects such as finance, operations, customer service, and inventory management Demonstrating financial capability is crucial, and partners are required to provide documentation such as financial reports and balance sheets to prove stability and capacity Completion of profiles and registration forms is necessary, including providing business information and legal representation details, along with signing relevant agreements or contracts as per Bosch's guidelines Additionally, partners

To maintain efficient product supply and service delivery, distributors should evaluate their systems and capabilities Bosch provides training and support to new partners in product knowledge, business processes, and quality standards Regular performance evaluations are crucial to ensure alignment with Bosch's expectations By fulfilling these requirements, distributors establish strong partnerships with Bosch for product distribution However, challenges may arise in the operational process, necessitating ongoing assessments and improvements.

Table 4 13: Current status of B2B to C model operation

Failed to achieve the set sales target

At Bosch, we will set a sales target for partners based on capacity, so each supplier will have a different sales volume However, the average limit per year for each industry ranges from 10 billion VND (0.5$ million) However, at such a sales level, not all partners can complete it because the market competition is quite fierce between distributors and distributors In addition, we also have to compete with Bosch's competitors in the Vietnamese market

There is no uniformity in the process

Compliance with the process is the partner's responsibility when signing a partnership with Bosch However, not understanding the process and not implementing it according to the process will cause relative difficulties for both parties Dishonest competitive behavior of distributors

For a project, many partners will bid, using fraudulent business practices to carry it out

The element of competition in sales is inevitable Besides satisfying customers, Marketing costs can be reduced through successful bidding on large projects, bringing the names of distributors to light It is an important stepping stone for future sales goals

However, when we encounter difficulties in business, we should have good solutions to solve these problems

Table 4 14: How to solve these problems in a suitable way

- Support partners to break down targets according to different levels (VND): 1 billion, 2 billion, 5 billion, 10 billion, For each target level achieved, Bosch will support additional price discounts from (2 -3%) for the next time renewed contract

Bosch collaborates with partners to promote their products through marketing initiatives, offering compensation ranging from 10-15 million VND per campaign Furthermore, Bosch supports partners in organizing events, sharing the associated costs within the range of 100-150 million VND This partnership strategy enables Bosch to leverage partner relationships for market expansion, fostering a mutually beneficial collaboration.

- Organize training courses on operations (Free)

- Proactively meet with partners to discuss more about work

- Provide detailed instructions on each necessary process when working on a project for a partner

Dishonest competitive behavior of distributors

- There are official documents (Official Letter) to protect partners from fraudulent competition

- Support project problems such as technology and products as quickly as possible

- Quickly take stock to Vietnam when you successfully bid on the project

Resolving the difficulties being encountered promptly will create many opportunities for Bosch to develop further If these solutions are optimally effective, they will bring benefits to Bosch

Table 4 15: Positive benefits of the above solutions

Solution for “Failed to achieve the set sales target”

- Have a good level of sales growth year after year ( 232 → 243.6 million euros)

- Get better bonus and welfare policies for employees (Flexible working time, Excellent employee rewards, quarterly rewards, Health insurance for individuals and families)

- Trustworthy brand image for customers

- 7-day travel policy in Germany for partners with the best sales for each industry

“AUTHORISED VALUE- ADDED-RESELLER” for partners

DISTRIBUTOR" for partners for top 1 sales and the right to renew a contract with additional discounts from (2-3%) for best-selling products

- Certificate “DIAMOND EFFORT” for new partners who have good sales

- Better prices for distributors achieving sales of the year (0.5-1%)

Solution for “There is no uniformity in the process”

- Have the opportunity to recognize shortcomings in the process to improve better

- Access and work in a professional environment with Bosch experts

- Solve difficult problems with customers based on

“Dishonest competitive behavior of distributors”

- Create trust with partners in sustainable attachment and cooperation

- Expanding reputation among customers when successfully bidding on large projects

- Opportunity to increase revenue in the next projects bringing good profits to the company

4.4.2 Timeline with Partners and End-user

When partnering with Bosch, distributors are typically responsible for negotiating with end users, with Bosch providing support as needed Distributors may need to manage negotiations independently, leveraging their expertise and market knowledge to meet the needs of end users effectively However, Bosch may offer assistance in the negotiation process by providing guidance, resources, and access to product information or technical support Regarding delivery timelines, distributors need to carefully consider and manage any risks associated with delivery times This includes factors such as transportation logistics, inventory management, and potential supply chain disruptions While Bosch may provide support and guidance on best practices for delivery logistics, distributors ultimately bear responsibility for ensuring timely delivery to end users Effective communication and

91 collaboration between Bosch and its distribution partners are essential to address any challenges and minimize risks associated with delivery timelines

To effectively address this challenge, Bosch can take several specific actions Firstly, the company can design comprehensive training programs tailored to the needs of distributors These programs should cover various aspects of negotiation skills, time management techniques, and risk assessment strategies related to transportation Bosch can provide hands-on workshops, online courses, or educational materials to ensure distributors have the necessary skills and knowledge to negotiate effectively and manage delivery schedules efficiently

In addition to training, Bosch can offer ongoing support to distributors by assigning dedicated support personnel or establishing a helpdesk to address any questions or concerns that arise during negotiations or delivery management This support system can provide guidance on pricing strategies, product specifications, and shipping logistics, enabling distributors to navigate complex negotiations with confidence Furthermore, Bosch can develop and distribute comprehensive documentation to assist distributors in their negotiations with end users This documentation may include detailed pricing sheets, product catalogs, technical specifications, and shipping guidelines By providing distributors with access to this information, Bosch empowers them to answer customer inquiries accurately and make informed decisions during negotiations

Establishing strong relationships with distributors is crucial for successful negotiations and delivery management Regular communication, sharing market insights, and collaborative problem-solving foster these partnerships Distributor feedback provides valuable insights into market trends, customer needs, and emerging challenges, enabling Bosch to adapt its strategies and offerings Additionally, prioritizing risk management and conducting thorough assessments help mitigate potential disruptions to delivery schedules By developing contingency plans and addressing potential bottlenecks or transportation challenges, Bosch and its distributors can ensure smooth and reliable delivery operations.

92 minimize the likelihood of delays and ensure timely delivery of products to end users Finally, continuous process optimization is essential to improve efficiency and reduce delivery times Bosch can collaborate with distributors to identify areas for improvement in the negotiation and delivery management processes and implement solutions to streamline operations This may involve leveraging technology solutions, implementing best practices, and optimizing supply chain logistics to enhance overall efficiency and effectiveness

4.5 Improved Logistics process from Singapore to Vietnam

5: Strategic cooperation signing ceremony between ISB Institute and Bosch Vietnam

(Source: https://isb.edu.vn/le-ky-ket-hop-tac-giua-vien-isb-va-bosch-viet-nam/)

In the long term, Bosch wants to create values for young people in Vietnam to live and work in a multinational environment Besides, according to a manager of the FCM Department in Vietnam, "The core value of a business relies on its people"

Table 4 25: The win-win solution in the human resources recruitment process

Cooperate with many universities in

Find a source of quality labor with good skills (More than 300 thousand students graduate each year)

- Affirming the position of Germany's leading technology corporation

- Collaboration with universities enables Bosch to leverage these resources for our own research and development projects

Allowing students to become managers in just 18

- Reduce training time for new people (3 – 4 months to get acquainted with the business)

- Clearly understand the capabilities and have confidence in the candidate

Internship Program Opportunity to experience

6 months working in a multinational environment and possibly become an official employee

- Quality resources, cheap prices (5-7 million/month)

To expand its market presence in Vietnam, Bosch understands the necessity of investment in the local market and collaboration with key partners Firstly, Bosch conducts thorough market research and analysis to comprehend market dynamics, consumer

105 behavior, and regulatory frameworks This informs the development of a tailored market expansion strategy Subsequently, Bosch invests in infrastructure and operational capabilities within Vietnam, potentially establishing manufacturing facilities, distribution centers, and research hubs to meet local demand efficiently Additionally, Bosch forms strategic alliances with large corporations in Vietnam to leverage their resources, expertise, and market reach Collaborating with local businesses and distributors further enhances

Bosch's penetration into the Vietnamese market, utilizing their networks and insights To ensure compliance and navigate regulatory complexities, Bosch establishes robust government relations and adheres to local regulations Furthermore, Bosch invests in marketing and branding initiatives to increase awareness of its products and solutions among Vietnamese consumers Investing in localized product development, innovation, and corporate social responsibility initiatives aligns Bosch's offerings with local needs and values, enhancing its reputation and competitiveness in Vietnam's dynamic market landscape Through these strategic actions, Bosch strengthens its foothold in Vietnam and capitalizes on the country's burgeoning opportunities for growth.

INTRODUCTION OVERVIEW OF THE BUSINESS AT BOSCH

General introduction about Robert Bosch GmbH & BOSCH Vietnam

In 2021, Bosch Group achieved a remarkable financial performance, with revenue reaching €78.7 billion and a pre-tax profit of €2.8 billion The workforce expanded to 402,600 employees worldwide, reflecting the company's commitment to innovation, as evidenced by its investment of €6.1 billion in research and development Strategic acquisitions and partnerships further solidified Bosch Group's market position, demonstrating its focus on growth and expansion during this period.

Bosch established its manufacturing presence in Vietnam in 2008, opening its first plant in Dong Nai The facility played a pivotal role in meeting the rising automotive industry demand by producing essential components, including control units and sensors.

Introduction of Research and Development Center (2014): Recognizing the importance of innovation and Technologies development, Bosch established a research and development center in Ho Chi Minh City in 2014 This center aimed to leverage local talent and expertise to develop new products and solutions tailored to the Vietnamese market

Sustainability Initiatives and Corporate Social Responsibility (ongoing): Bosch has been actively involved in various sustainability initiatives and corporate social responsibility (CSR) projects in Vietnam These efforts include promoting environmental conservation, supporting education and vocational training programs, and fostering community development projects

Bosch has established partnerships with local businesses, government bodies, and educational institutions in Vietnam These collaborations aim to promote innovation, technology transfer, and skill development in the region By fostering these partnerships, Bosch and its partners strive to drive economic growth and technological advancement in Vietnam.

Bosch's slogan, "We are Bosch," encapsulates the company's commitment to fostering an inclusive and equitable work environment where all employees are treated with respect and dignity This slogan underscores the importance of collaboration and teamwork, emphasizing the collective efforts of the workforce in achieving the company's goals The use of "we" emphasizes the company's commitment to shared responsibility and unity, highlighting the value placed on diversity and inclusion By embracing this principle, Bosch aims to create a workplace where individuals feel valued and empowered to contribute their unique perspectives and experiences towards the collective success of the organization.

Mission, functions, and business philosophy of the enterprise

9 technologies that are efficient, safe, and environmentally friendly Our commitment to innovation and sustainability is often reflected in our products and initiatives Our strive to develop technologies and solutions that enhance people's lives and contribute to a better future

Bosch empowers you to "master" life with its smart products that simplify complex tasks Their optimized auto components enhance safety and convenience for you and your family From home appliances to automotive solutions, Bosch is committed to providing unwavering support to help you navigate life's challenges seamlessly #WorkLikeaBosch #WeLeadBosch

As a member of the Bosch group, BSH Household Appliances (Vietnam) Co., Ltd is a genuine distributor of high-quality household appliances with German Standard Technologies Each of our products before leaving the factory is thoroughly tested and inspected, so consumers can have complete confidence in the quality of everyday life

Bosch Automotive Aftermarket provides repairers and spare parts dealers with solutions related to workshop processes, diagnostics, and repairs, as well as a wide range of spare parts for transport vehicles – from new parts, and remanufactured parts to repair solutions

As the world's leading supplier of both hand tools and accessories, Bosch meets the toughest requirements and delivers outstanding performance for the construction, woodworking, and metal industries

Aqua Easy is transforming aquaculture from an art to a science by connecting farmers directly with the best aquaculture experts Powered by a unique combination of sensors, artificial intelligence, and automation, Aqua Easy helps farmers make everyday decisions, reduce risk, and increase shrimp productivity

Bosch Building Technologies is the world's leading provider of Security, Safety and Acoustics solutions The product portfolio includes video surveillance systems, intrusion alarms, fire alarm and audio evacuation systems, access management, conferencing systems, and professional audio We use groundbreaking technologies to create the best experience for the end user

Bosch Rexroth is one of the world's leading suppliers of drive and control Technologies and a global partner in machine and plant engineering We explore and research solutions that create breakthrough changes in machinery and services to help customers rise to a leading position We commit to adapting to all changes in the market and meeting customers' demands

Bosch empowers riders with comprehensive solutions for an optimal motorcycle experience Advanced technologies and software enable connectivity, offering driver assistance, powertrains, and personalized mobility solutions By integrating these elements seamlessly, Bosch delivers a dynamic, safe, connected, and customizable riding experience tailored to individual preferences and safety requirements.

• Technologies Research and Development Center

Bosch Global Software Technologies Company Limited is a 100% subsidiary of Robert Bosch GmbH - one of the world's leading Technologies and service corporations BGSW Vietnam is Bosch's first software development center in Southeast Asia, currently providing comprehensive solutions for businesses in the fields of Engineering, Information Technologies and Business

Bosch, a global leader in technology and engineering, is guided by a comprehensive business philosophy centered on innovation, quality, and customer satisfaction With a legacy of technological advancements, Bosch focuses on developing innovative solutions that cater to evolving market demands By prioritizing innovation, quality, and customer satisfaction, Bosch strives to deliver exceptional products and services, solidifying its position as a trusted partner in various industries.

11 society The company is unwavering in its dedication to delivering products and services of the highest quality, fostering a reputation for reliability and durability Bosch's customer- centric approach involves understanding and meeting the diverse needs of its clientele, ensuring that its offerings contribute positively to their lives Sustainability is deeply embedded in Bosch's ethos, as the company strives to balance economic success with environmental protection and social responsibility Ethical conduct, transparency, and compliance with laws underscore Bosch's commitment to integrity in all business practices Employee development and a positive workplace culture are integral to the company's success, reflecting its recognition of the importance of a motivated and skilled workforce Taking a long-term perspective, Bosch aims for sustainable growth, while actively engaging in social responsibility initiatives that contribute to the well-being of communities This comprehensive philosophy guides Bosch's actions, positioning the company as a leader in Technologies and a responsible corporate citizen

Enterprise Management Organization

Bosch Vietnam achieved "Great Place to Work" certification in 2023

Picture 1 5: Certificate of “Great Place to Work”

- Bosch Vietnam received Great Place to Work certification in 2023 for its tireless efforts in building a trustworthy and professional working environment

- Bosch Vietnam focuses on promoting a people-centered working environment, applying the 3 "Giving" model: Empowering development (Grow), Giving the joy to work (Enjoy), and Giving inspiration (Inspire)

Ho Chi Minh City, Vietnam – Bosch Vietnam, the world's leading technologies and service provider, has achieved the 2023 “Great Place to Work” certification by Great

Place to Work, a global agency demanding assessment and recognition of workplace culture This is a testament to Bosch Vietnam's commitment to creating a positive and cohesive working environment for employees The results that Bosch Vietnam achieved were evaluated based on a survey of 1,272 employees with main factors such as Credibility, Respect, Fairness, Engagement, Self-esteem, and Pride The survey shows that 89% of

13 employees rate Bosch Vietnam as a great place to work, affirming the company's efforts to promote a positive work culture

Bosch Vietnam prioritizes employee well-being and professional growth through comprehensive training programs, including leadership development, soft and technical skills enhancement, and rotational assignments It fosters an inclusive and equitable workplace by valuing diversity, ensuring that employees feel respected and appreciated In addition to investing in employee development, the company provides a range of benefits, including flexible work arrangements, health and wellness programs, comprehensive insurance packages, and support for families.

1.3.2 Organizational chart of the Internship Department

HOD Nguyen Anh Dung says that “We call 2023 a breakthrough year when seizing opportunities in common challenges, the Bosch Building Technologies division has achieved growth of more than 20% In the audio segment, Bosch's sales and annual growth in Vietnam are among the few leading units in the Asia-Pacific region”

Bosch Building Technologies serves various industries with its solutions for security, safety, and communication systems in buildings and infrastructure Here are some details about our products, particularly:

- Video System: Providing security and safety solutions for offices, retail stores, malls, hotels, and other commercial properties to protect assets, employees, and customers and offering security systems for homes and residential complexes to safeguard residents and their belongings against intruders and emergencies.

- Public Address: New generation speaker systems including fixed and mobile with modern design provide solutions for large music events, educational institutions, healthcare facilities, and other public infrastructure to ensure public safety and security

- Prosound: New generation speaker systems including fixed and mobile with modern designs provide solutions for large music events, concerts, or important events attended by many people.Besides, Bosch also combined with giants in the audio industry such as Electrovoice and Dynacord to create a strong breakthrough

- Conference System: Serves meetings, seminars, and conferences at state agencies, business organizations, people's committees, companies, schools, and social organizations

Picture 1 6: Some demo products of Bosch Security

In 2023, we successfully implemented the global event series "Loud & Clear" in 3 major cities: Hanoi - Da Nang - and Ho Chi Minh This is the first time we have launched this event on a large scale and the result is out of expectations We set a record 70% growth than last year

Overview of the personnel situation at BOSCH VIETNAM CO., LTD

Picture 1 7: Human resources systems at Bosch Vietnam

(Source: From Human Resources Department and Edited by Student)

The organizational structure at Bosch is extremely complex, demonstrating high expertise and clarity in each department Each part is independent and interconnected to create a consistent system The diagram is general in nature, each part will be divided into many more branches, and only a few positions in the part are fixed In addition, there are outsourcing (External) and intern personnel At Bosch, human capital is not just a resource; it's the driving force behind innovation and success Employees at Bosch are not merely workers but specialists in their fields, each contributing uniquely to the company's overarching goals The company places a strong emphasis on utilizing people effectively by recognizing and nurturing individual talents Whether it's engineering, design, marketing, or management, Bosch ensures that employees are placed in roles where their

16 skills are maximized and their potential is fully realized This specialization is evident in the diverse workforce at Bosch, where experts from various disciplines collaborate seamlessly to develop cutting-edge technologies and solutions From automotive Technologies to industrial manufacturing, Bosch employees are at the forefront of innovation, pushing the boundaries of what's possible Moreover, Bosch fosters a culture of continuous learning and development, providing employees with ample opportunities to enhance their skills and expertise Through training programs, mentorship initiatives, and cross-functional projects, employees at Bosch are constantly refining their craft and staying ahead of industry trends The specialization in utilizing people at Bosch goes beyond mere job roles; it's about harnessing the full potential of every individual to drive innovation, growth, and success in the ever-evolving landscape of Technologies and engineering

Table 1 1: Personnel details at Bosch

Global Viet Nam Global Viet Nam

Source: From the Human Resources Department and Calculated by Student

Gender diversity is improving, with a notable rise in female representation There's a strategic focus on younger talent, while the decline in middle-aged employees signals a need for retention efforts Educational trends show an increase in advanced degrees, indicating a commitment to skilled workforce development However, the decrease in bachelor's degrees warrants attention Overall, Bosch is fostering diversity and skill development but should ensure a balanced talent pipeline across age and education levels for sustained success.

Logistics activities of departments at BOSCH VIETNAM CO., LTD

Picture 1 8: 3PL process in Bosch Vietnam

The Bosch Group is responsible for the production We have logistics specialists with good skills to support the movement of goods between countries Currently, transportation services such as ships and trucking, we will outsource, including a storage warehouse for each department

Shipping lines: We work with major shipping lines in the world such as DHL,

Maersk, DSV, K+N, and KWE, to get the best supply service, and agree on mutually beneficial long-term contracts

Outsourcing warehouse: Bosch Vietnam's main customers are located in two big cities, Hanoi and Ho Chi Minh Besides, some are located in Da Nang, so there are two suitable locations to rent warehouses: Binh Duong and Hai Phong We decided to choose a warehouse located in 2 areas because of the strategic geographical location: Both Binh Duong and Hai Phong hold strategic geographical positions Binh Duong is situated at the heart of the economically thriving Southern region, whereas Hai Phong is close to the major economic zones of Hanoi and the Northern regions This makes both locations ideal transit points for goods Otherwise, developed transportation infrastructure: Both Binh Duong and Hai Phong boast well-developed transportation infrastructures Binh Duong has a network of roads, railways, and sea routes, while Hai Phong is one of Vietnam's largest seaports This infrastructure facilitates convenient and swift transportation of goods.

Business activities of BOSCH VIETNAM Company

1.6.1 General assessment of the Technologies goods industry

The technology goods industry in Vietnam is undergoing a period of remarkable growth and transformation, positioning the country as a key player in the global tech landscape With favorable factors such as increasing internet penetration, rising consumer spending power, and government initiatives promoting digitalization, Vietnam has become a manufacturing powerhouse for electronics, semiconductors, and other tech products This export-oriented approach has not only fueled economic growth but has also attracted significant foreign investment, facilitating technology transfer and innovation Moreover, as domestic demand for technology goods continues to rise alongside urbanization and income growth, Vietnam's tech industry is poised to capitalize on its expanding domestic market Despite facing challenges such as infrastructure limitations and skills shortages, government support and investment in research and development are driving the industry forward With a strategic focus on innovation, manufacturing efficiency, and market

19 diversification, Vietnam's technology goods industry is set to play an increasingly influential role in the global tech ecosystem

Vietnam's export value of technology goods has been steadily increasing over the years For example, in 2021, the total export value of electronics and Technologies products reached approximately $100 billion, representing a significant contribution to the country's GDP The amount of FDI flowing into Vietnam's Technologies sector demonstrates investor confidence and interest in the country's tech industry In 2020, FDI in the Technologies sector accounted for over $10 billion, a substantial portion of the total FDI inflows into Vietnam.The internet penetration rate in Vietnam is a key indicator of the country's digitalization efforts and its readiness for technology adoption As of 2021, Vietnam's internet penetration rate surpassed 70%, indicating a growing market for digital products and services Domestic consumption of technology goods, such as smartphones, computers, and electronics, provides insight into the expanding domestic market Retail sales of electronics and tech products in Vietnam reached over $20 billion in 2021, reflecting increasing consumer demand and purchasing power

1.6.2 Evaluate the performance of the Building Technologies Department

The year 2023 is an extremely difficult year economically for us in the Vietnamese market, with consumers tightening their budgets, making our sales gradually more difficult than ever But we are very proud to record sales growth of 20% over the same period last year and to be one of the pioneering departments in surpassing the goals set at the beginning of the year

Table 1 2: The final sales report of the year of the Building Technologies Department

FINAL SALES REPORT OF THE YEAR

(Source: From financial report of Building Technologies Department and Edited by Student)

Notably, there was a discernible increase in total sales from 2022 to 2023, suggesting overall growth within the business (from 237,851 to 285,422 million VND)

Prosound's dominance in the industry is evident with their superior performance in total sales Both Installed and Portable categories have contributed to their success Notably, the Portable category has experienced significant growth, indicating a potential market shift towards more portable audio solutions.

- Steady Growth: Video System and Public Address industries also show consistent growth from 2022 to 2023, although not as pronounced as Prosound

- Conference Segment: While Conference sales increased slightly, they didn't show as substantial growth as Prosound Further analysis might be needed to understand the factors influencing this segment

The overall increase in total sales from 2022 to 2023 indicates a positive trend for the company, with potential areas for further investment or strategic focus identified within the Prosound and Portable categories.

Analyze the financial situation of the business

1.7.1 Overall assessment of the growth situation of the business in 2023 compared to 2022

Table 1 3: Summary of Bosch company's financial data for the period 2022 - 2023

- percentage change from the previous year (%) 8.0 12.0 (4)

- percentage share of sales revenue generated outside Germany (%) 82 80 2

Research and development cost (billion euro) 7,6 7,2 0,4

- average for the year (associates) 427,600 421,338 6,262

Balance-sheet total (billion euro) 101,212 100,247 0.965

- as a percentage of total assets (%) 45 47 (2)

Profit after tax (billion euro) 2,216 1,838 0,378

Dividend of Robert Bosch GmbH (0.18%) 165 162 3

(Source: Finance Department and Edited by Student)

In 2023, we have seen a weak economic situation increasing cost pressure – achievement of the target margin delayed (93 billion euros) In Stuttgart, Germany, despite facing challenges during the 2023 business year, the Bosch Group has managed to meet its

22 anticipated outcomes According to initial reports, this provider of technology and services achieved sales amounting to 91.6 billion euros, marking an 8 percent growth after adjusting for exchange-rate fluctuations (with a nominal growth of 4 percent) The operational EBIT margin reached 5 percent, indicating a slight enhancement compared to the previous year's performance (4.2 percent), aligning with expectations Dr Stefan Hartung, the chairman of the board of management of Robert Bosch GmbH, remarked, '2023 presented greater difficulties than anticipated for Bosch Nonetheless, through exceptional effort, we succeeded in elevating our sales and enhancing our margins, progressing despite significant resistance.' He further added, 'This achievement in such challenging conditions is a testament to the dedication of our team members Looking ahead, we anticipate demanding circumstances that will require continued commitment from us all

In 2023, the enterprise experienced remarkable growth and resilience, with sales revenue surging by €3.4 billion to €91.6 billion, an 8.0% increase Despite economic challenges, the company expanded its international presence, with revenue generated outside Germany rising from 80% to 82% The enterprise intensified its investment in research and development, made strategic capital expenditures, and increased its workforce from 421,338 to 427,600 associates, demonstrating its commitment to innovation and growth.

Despite formidable challenges, Bosch GmbH's financial performance soared in 2023 EBIT surged from 3.7 billion euros to 4.6 billion euros, while profit after tax increased from 1,838 billion euros to 2,216 billion euros Robert Bosch GmbH's dividend was raised from 162 million euros to 165 million euros, demonstrating the company's commitment to shareholder value This exceptional financial performance solidified Bosch's position as a global leader.

1.7.2 Bosch's business results in Vietnam

Experts at Bosch believe that Vietnam is an extremely potential market for Bosch's market expansion plan However, in the period 2022 - 2023, we also see a time of economic crisis, so reaching expected revenue will be quite difficult Therefore, in 2024 when the economy gradually recovers, we hope to achieve extraordinary things here

Table 1 4: Bosch Vietnam’s recorded revenue in 2023

(Source: From Financial Department of Bosch Vietnam and Edited by Student)

In 2023, Bosch displayed a promising performance with a notable increase in target revenue, which surged by 7.69% compared to the previous year This upward trend was also reflected in the total revenue, albeit at a slightly lower growth rate of 4.76% However, amidst this growth, the company faced challenges, particularly in managing revenue deductions, which soared by a substantial 22.5% Despite this hurdle, Bosch managed to maintain positive momentum in net revenue, showcasing a commendable 3.17% increase.

On the operational front, Bosch witnessed a mixed bag of results Selling expenses saw a significant uptick, rising by 10% from 2022 to 2023 Conversely, the company made strides in administrative cost reduction, achieving a notable 20% decrease This cost-saving measure likely contributed positively to the overall financial performance Furthermore, Bosch demonstrated efficient inventory management practices, as evidenced by a notable 13.51% decrease in inventory levels.

Overall, Bosch's performance in 2023 reflects a blend of successes and challenges While revenue growth and cost-saving initiatives signal resilience and adaptability, the company must address the surge in revenue deductions and selling expenses to sustain its upward trajectory effectively Through strategic planning and continued focus on efficiency, Bosch is poised to navigate these challenges and capitalize on future opportunities in the market

1.7.3 Some typical features of Bosch Group in 2024

Picture 1 9: The forecast figure for using AI in the world

(Source: From Marketing Communication Department)

2024 is often speculated to herald the dawn of the AI era This anticipation stems from several key factors Firstly, significant strides in technological progress, particularly in fields such as machine learning and natural language processing, are expected to mature

AI systems to unprecedented levels of capability and accessibility Secondly, AI integration

AI's transformative impact spans industries, promising to revolutionize processes and decision-making Its pervasive use in daily life, seen in virtual assistants and recommendation systems, hints at its broader societal impact The potential mainstream adoption of autonomous systems, empowered by AI, further underscores its transformative potential Simultaneously, the ethical and regulatory considerations surrounding AI highlight the need for robust frameworks to guide its development and deployment While 2024 may mark a significant milestone in AI's progress, the precise trajectory of the technology remains uncertain.

In 2024, the Bosch Group, a multinational engineering and technology company, would likely integrate AI across various aspects of its operations to enhance efficiency, innovation, and customer experiences This anticipation stems from several key factors Firstly, smart manufacturing initiatives may see the implementation of AI-powered predictive maintenance systems to optimize machinery uptime and reduce downtime in manufacturing plants Secondly, advancements in autonomous vehicles and mobility solutions could be driven by AI technologies, enabling real-time navigation, object detection, and decision-making to enhance safety and reliability Thirdly, IoT devices and smart home solutions could benefit from AI integration, with home automation systems learning user preferences and optimizing energy usage based on data analysis Moreover, AI-powered customer service initiatives could provide personalized support and troubleshooting through chatbots or virtual assistants, enhancing customer experiences Additionally, supply chain optimization efforts may leverage AI algorithms to forecast demand, manage inventory, and optimize logistics Furthermore, advanced data analytics platforms driven by AI could derive actionable insights from vast amounts of data, informing strategic decision-making and product development Lastly, Bosch's commitment to sustainable technologies could be furthered by AI-driven innovations in energy management, renewable energy solutions, and eco-friendly manufacturing processes, contributing to environmental sustainability goals

General Overview of Logistics

According to DBA Nguyen Tien Minh (2020), “Logistics Textbook” - Hanoi National University: Logistics are service activities that closely connect all economic activities from manufacturers and distributors to sales in the market When these activities are shared, the forum will encourage the development of product manufacturing industries, and if interrupted, it will limit the trade regime between regions and host countries, having negative activities on economic activities economic activity and social life The economic foundation can only develop synchronously and intelligently if the chain of logistics activities is continuous Logistics becomes a factor that connects, supports, and provides transmission lines for economic transactions

According to MSc Pham Minh Hien (2004), International Freight Forwarding Service – Hutech University: Due to the characteristics of 2/3 of the earth's surface area being sea and sea transport is very suitable for transporting goods with large volumes and long distances, Sea transport is one of the earliest and most established modes of transport and plays a particularly important role in the commercial economy of human society According to statistics, maritime transport accounts for up to 80% of the volume of goods in international trade international Therefore, most countries in the world are interested in developing fleets and ships Seaports in their foreign trade development strategy, even the Countries without seaports also have fleets of ships and they borrow ports from other countries transporting goods like Laos borrows from Vietnam's Da Nang port

The ship owner's responsibility is to hand over the ship to be seaworthy throughout the rental period and after that time, return the ship according to the contract The charterer's responsibility is to operate the ship During the charter period return the vessel in good technical condition at the specified port at the time specified time The third method is usually for those who provide transportation services and goods, and the method of chartering market ships and chartering ships for traders' import and export business

- Exporters charter ships if they sell goods at prices in Groups C and Group D

- Importers charter ships when purchasing goods at the price of goods in Groups E and Groups F

- Depending on the need to transport goods, the charterer chooses the method How to charter a boat accordingly

Picture 2 1: The process of booking Vessel

According to MSc Ha Thi Ngoc Anh, International Trade and Business Technical

Textbook – Banking University of Ho Chi Minh City: Renting a shipping vessel can be divided into 6 steps as follows:

• Step 1: the charterer requests the charter through the broker ship to transport your goods

At this step the charterer must provide the broker with all information about goods such as product name, packaging, quantity, and itinerary goods, so that brokers have a basis to find ships

• Step 2: the broker greets the vessel

Based on the information about the goods provided by the charterer, the broker

(forwarder) will find ships and offer charter ships to suit the needs of transporting goods

• Step 3: the broker negotiates with the shipowner

After greeting the ship, the shipowner and the broker will negotiate everything with

28 each other in terms of the charter contract such as conditions of carriage, freight, loading costs,…

• Step 4: the broker informs the negotiation results with the charterer

After the negotiation results are available, the broker will notify the charterer of the negotiation results so that the charterer knows and prepares for signing the charter contract ship

• Step 5: The charterer and the shipowner sign a contract

Before signing the contract, the charterer must review all the terms and clauses of the contract The two sides will cross out or add to the agreed terms suitable because for chartering a ship, the sample contract only states the general features

Once the contract has been signed, the charter contract will be executed

Air transport is a fast and efficient mode of transportation that utilizes aircraft to transport passengers and goods over long distances According to Le Xuan Phuong's "Transportation and Insurance Textbook" (2018), air transport is defined as "a mode of transport by plane to transfer goods or passengers from one point to another, with the advantages of speed, safety, and suitability for high-value goods, those requiring quick delivery, and passengers seeking urgent travel."

Picture 2 2: The process of booking Airplanes

The air transport process includes many steps from cargo preparation to final delivery According to the textbook "International Freight Forwarding and Freight Forwarding" by author Pham Van Tien (2019), the air transport process is described as follows:

• Prepare goods: Goods are carefully packaged according to aviation regulations, ensuring safety during transportation

• Airline reservations and procedures: The sender contacts the airline or forwarding company to make reservations and complete the necessary procedures

• Delivery at the departure airport: Goods are transported to the departure airport and export customs procedures are completed

• Shipping: Goods are transported by plane to the destination airport

• Receive goods at the destination airport: After the goods arrive at the destination airport, the recipient carries out import customs procedures

• Final Delivery: Goods are delivered to the final recipient.

An overview of the ordering and shipping process

According to the textbook "International Trade" by author Nguyen Van Nam (2017), the concept of international ordering is defined as follows: "International ordering is a commercial transaction process in which a buyer in one country orders goods or services from a seller in another country This process includes many steps such as finding a supplier, negotiating contracts, making payments, and shipping goods."

According to the textbook "Supply Chain Management" by MSc Tran Van Binh (2016), the concept of "back-to-back order" is defined as follows: "Back-to-back order is a type of order in which a new order is created to immediately satisfy an existing order This helps to minimize inventory holding time and optimize processing, and inventory management process, while ensuring that customer orders are filled quickly and efficiently."

According to the textbook "Supply Chain Management" by MSc Tran Van Binh (2016), the role of suppliers in the supply chain is described as follows:

• Supply of Raw Materials and Goods:

Suppliers ensure adequate and timely supply of raw materials, components, and goods necessary for the enterprise's production and business process This helps maintain continuous production and respond to customer needs quickly

The quality of raw materials and goods from suppliers directly affects the quality of the final product Therefore, suppliers must adhere to strict quality standards and regularly improve production processes to ensure satisfactory products

Effective supplier partnerships can help businesses reduce manufacturing costs by negotiating better prices, reducing transportation and inventory costs, and taking advantage of bulk purchasing incentives

Suppliers contribute to shortening production and delivery times, helping businesses quickly bring products to market, thereby increasing competitiveness and promptly meeting customer needs

Suppliers are often involved in new product development, providing expertise and technical knowledge to improve products and manufacturing processes This partnership helps businesses innovate and develop higher-quality products

Suppliers also play an important role in promoting sustainable practices, through the supply of environmentally friendly materials and the adoption of sustainable production methods

2.2.2 The Role of Shipper (Bosch Singapore)

According to the textbook "Supply Chain Management and Logistics" by DBA Le

Shippers play a pivotal role in the supply chain, extending beyond mere transportation to encompass warehouse management, shipping cost optimization, and customer service enhancement Their responsibility lies in ensuring timely and accurate delivery of goods, maintaining their optimal condition, and implementing robust risk management strategies By doing so, shippers foster stability and efficiency within the supply chain, ensuring the seamless flow of goods and services.

According to the textbook “Logistics and Supply Chain Management" by MSc Nguyen Thi Van Hoa (2020) – National University of Economics: Shippers play an essential role in the modern supply chain They ensure that goods are delivered to the right place, at the right time, and in the best condition In addition, they also help businesses optimize costs and improve customer satisfaction through high-quality delivery services

2.2.3 The Role of Consignee (Bosch Vietnam)

In the supply chain, the role of the consignee, or consignee, cannot be ignored The consignee does not simply receive goods from the sender or shipper at the end of the supply chain but is also responsible for many different activities Excerpt from the textbook

The consignee plays a crucial role in the supply chain, assuming responsibilities beyond merely receiving goods They are tasked with meticulously inspecting the quality and quantity of shipments, ensuring accurate storage and management The consignee adapts handling procedures to align with specific business requirements, meticulously carrying out customs and legal processes Additionally, they are responsible for handling financial matters, including payment of fees and meticulously recording information pertaining to receipt and handling of goods.

In this important role, consignees contribute to the success of the entire supply chain by ensuring that goods are received and processed properly and efficiently

2.2.4 The Role of the Customers in Vietnam

Customers play an important role in the supply chain with great influence on the process from ordering to receiving goods According to the textbook "Supply Chain Management" by MSc Tran Van Binh (2016), customers are not only the final consumers

32 but also the main source of information about specific needs and requirements for products and services Customer satisfaction is the decisive factor in the success of each batch and also greatly affects the reputation and brand of the business Therefore, understanding and properly meeting customer needs is the key to building long-term and sustainable relationships in the supply chain This is especially important in promoting business development and success in an increasingly competitive business environment

The role of the forwarder in the supply chain is undeniable, with an important contribution to the organization and management of goods transportation activities Below is a description of the role of the forwarder, quoted from the textbook "Supply Chain Management" by MSc Tran Van Binh (2016): "Forwarders, or transport brokers, play an important intermediary role in the supply chain by organizing and managing the movement of goods from source to destination efficiently and economically They not only ensure that goods are transported at the right time and place but also provide related services such as temporary storage, packaging, and customs document processing With professionalism and experience, forwarder helps businesses reduce transportation burdens and optimize costs, thereby improving efficiency in supply chain management."

2.2.6 The Role of the Customs Department

In the supply chain, the Customs Department plays an extremely important role in managing and administering import and export activities of goods across national borders According to the textbook "Supply Chain Management" by MSc Tran Van Binh (2016), the Customs Department not only ensures national security but also performs many other tasks such as collecting taxes and fees, controlling goods, and promoting the development of international trade The activities of the Customs Department include inspecting and processing goods, managing the customs clearance process, and ensuring compliance with relevant customs and legal regulations With such a diverse and important role, the Customs Department contributes to maintaining the safety and efficiency of the global supply chain

• Decree No 08/2015/ND-CP: This Decree of the Government of Vietnam promulgates detailed regulations and guides the implementation of several articles of the Customs Law on the customs clearance process and customs management of goods with import and export goods

• Decree No 127/2018/ND-CP: This Decree also of the Government of Vietnam promulgates detailed regulations and instructions for implementing several articles of the Customs Law on regulations on customs procedures, management, and use of credit institutions in import and export activities

• Decree No 134/2016/ND-CP: This Decree regulates customs management for goods requiring special treatment and goods banned from import, goods temporarily imported for repair, and customs assurance Safe and effective

Forms of Import in Vietnam of Bosch

According to the Guide notebook “Customs documents for each type of import and export goods” by the General Department of Customs of Binh Duong province (2015)

In this form, buyers and sellers of goods directly transact with each other, the buying and selling process is not binding on each other The buyer can buy without selling and vice versa Direct import is carried out quite simply In particular, if the importer wants to sign an import business contract, they must research the market, find a suitable partner,

34 sign and implement the contract, invest their own capital, and bear all risks and costs in the process transaction

Importing services is the process of importing goods that do not involve purchase or commercial exchange Instead, it involves the transfer of goods from one country to another for other purposes such as use in research, development, advertising or other commercial events

2.3.3 Temporary import for re-export

Temporary import for re-export is a form in which Vietnamese traders temporarily import goods into Vietnam, but then export the same goods out of Vietnam to another country This form involves importing goods not for domestic consumption but for export to a third country for profit These transactions include both imports and exports with the goal of recovering an amount of foreign currency greater than the amount of the ban that has been ignored When conducting temporary import for re-export, businesses need to conduct two separate contracts simultaneously, including: a purchase contract signed with traders from the exporting country and a sales contract signed with traders from the importing country

In situations resembling temporary importation for remanufacturing, goods are exported directly from the vendor nation to the receiving nation, bypassing import and export procedures for Vietnam This is referred to as "conditional acceptance."

The Role of Logistics in the enterprises

The role of Logistics in businesses is extremely important, especially in managing and optimizing the supply chain of goods from origin to consumer

Logistics plays a central role in coordinating a business's transportation, storage, and goods management activities According to author Donald Waters in the book "Global

Logistics: New Directions in Supply Chain Management" (2021), Logistics not only ensures that goods are transported to their destination safely and promptly but also helps

Optimize processes and operating costs In this role, Logistics helps businesses increase performance and compete in the global market

Picture 2 3: The Role of Logistics