TON DUC THANG UNIVERSITY FACULTY OF BUSINESS ADMINISTRATION INTERNATIONAL BUSINESS REPORT INTERNATIONAL CARGO TRANSPORTATION AND INSURANCE Topic: Implementation of the process of deliv
OVERVIEW OF THE MELODY LOGISTICS CO., LTD
Introducing about the company
Melody Logistics Co., Ltd is a leading forwarder enterprise providing the import- export freight service in our country, it was established and officially put into operation on December 1, 2009 Up to now, Melody Logistics has more than 10 years of experience in the field of Logistics both domestically and internationally, they have a popular network of cooperation with more than 150 other companies/agents all over the world
Because of a young and experienced staff, Melody Logistics Co., Ltd is proud to be one of the industry's leading businesses Specifically, in the past 2020, even though facing difficulties due to the complicated economic situation as well as the hardships caused by the COVID-19 pandemic, the company in general still tried to overcome it and gain an achieviment net profit to number 398.1 billion VND This thing proves that Melody Logistics is a business with a high capacity to grow in the future like their slogan
Everyone from the staff to the leadership team is constantly striving, continually reforming to meet the demands of customers and the requirements of different stakeholders That is the reason why Melody Logistics has been and will be growing Currently, the company's head office is located at 01 Nguyen Van Dau, Ward 5, Phu Nhuan District, Ho Chi Minh City, Vietnam Besides, they want to serve the customer easier, so the company also expanded its branches nationwide and stretched from North to South in provinces such as Hanoi, Hai Phong, Da Nang, Binh Duong, Dong Nai, and Can Tho
Some other information we can save and contact are:
Figure 1: Logo of Melody Logistics Co, Ltd
The process of formation and development
Melody Logistics Co., Ltd as mentioned above that it was established in 2009 under the business license number 0309499306 This business service focuses is to provide customer support Logistics services goods at home and overseas
It can be said that the most difficult thing when starting a business in the early days is finding customers and building a brand The significant stages that Melody Logistics has passed through are as follows:
September 2009: the company was established at 83/10 Nguyen Thuong Hien and they have only 3 operating staff
In 2012: the company was moved to the new address No 07 Nguyen Huy Tuong
In 2013: they have 15 members, the company began to go into the process of planning and developing business strategies These include services such as NVOCC, Consol, domestic transportation, air freight,
In the period from 2013 to 2016: there are only about 80 people in the human resource structure and each member has to work hard to ease the company survive and better every day
In the 2016-2017 period: the company expanded its branches across three regions of Vietnam and they also established more companies such as ZooZoo, Best care
Finally, today Melody Logistics has officially moved to the headquarters, they have established more companies such as LGL, Feder Shipping, Besides, they also cooperate with reputable organizations such as FIATA, VCCI, VLA, and they are expected to be a potential business in the future Below is a chart of the company's organization from its beginning to its branding like now:
Figure 2: The chart of formation and development
Vision and core values
Currently, Melody Logistics Co., Ltd has been aiming to become one of the largest freight forwarding companies in Vietnam to serve, create prestigious and best services for customers To that purpose, they operate on the things below that are publicized on the website, and my group requests for permission to be mentioned as follows: a/ Vision:
- Become a reliable partner, bring the best Logistics solutions and services to customers at competitive costs
- Ensuring the satisfaction of each customer group as well as other stakeholders around the world, thereby contributing to the economic and international business development for Vietnam b/ Core values:
In this regard, Melody Logistics believes that it can bring customers the feeling of satisfaction by the fast, professional working style and high responsibility from the staff.
ANALYZING THE PROCESS OF DELIVERING FULL CONTAINER
Overview of the forwarding process imported goods by sea freight
In the scope of this report, we will investigate the process of delivering full container load imported goods by the sea freight at Melody Logistics Company Limited However, before we analyze specifically the delivery process, we want to mention to the parties involved in this operation because they are essential parts of an import-export contract and also play an important role in making the transportation of goods smoother and faster Here are some related parties we should notice:
- Seller/exporter: YOUNG GWANG STAINLESS CO., LTD
- Buyer/importer: YGS VINA CO., LTD
- Carriers: WAN HAI LINES LTD
In addition, we also have Kookmin Bank to assist in making payments between exporter and importer We do not plot this object on the chart because it does not affect the entire delivery process but this is also one of the objects we should keep in mind Besides that, we also do no except the possibility that the exporter also has a forwarding company representing them, although there is no mention in the document we received, this is most likely a possible thing
Figure 3: Diagram of the relationship between related parties
The above diagram illustrates the mutual interaction between the parties involved in the full container load (FCL) delivery process by sea freight at Melody Logistics Company Limited, as follows:
(1) YOUNG GWANG STAINLESS CO., LTD signed sale contract with YGS VINA CO., LTD
(2) YGS VINA CO., LTD contact the forwarder - Melody Logistics (Vietnam) CO., LTD to get support on freight forwarding and transportation services
(3) Melody Logistics (Vietnam) CO., LTD contact the liner - WAN HAI LINES LTD (Vietnam branch) for quotation and reservation
(4) YGS VINA CO., LTD signs a delivery service contract with Melody Logistics (Vietnam) CO., LTD and announces the delivery plan to the exporter
(5) YOUNG GWANG STAINLESS CO., LTD sends the goods to the shipping line for the forwarding company and then sends the documents to the importer - YGS VINA CO., LTD
(6) Importer - YGS VINA CO., LTD sends documents related to the imported shipment to Melody Logistics (Vietnam) CO., LTD
(7) Melody Logistics (Vietnam) CO., LTD contact WAN HAI LINES LTD (Vietnam branch) to receive goods for YGS VINA CO., LTD
2.1.2 The sea freight forwarding process of imported goods at Melody Logistics Co., Ltd
In this report on International Transports and Insurances, our group receives a set of documents are:
- Announces paper from shipping line WAN HAI
- The customs declaration (the result of Selectivity of the customs declaration form)
However, to analyze the whole delivery process clearly, we would like to mention some other related documents that may have but still do not be supplied Therefore, we will arrange it in appendixes part to make this delivery process more detailed The delivery process of Melody Logistics Co., Ltd (be abbreviated as Melody) will include seven steps, divided into two main parts that prepares the contract (from step one to three) and customs clearance of goods (from step four to final step), specifically:
Figure 4: Flowchart illustrating 7 steps of sea freight forwarding at Melody
- Step 1: (Melody) Find a customer and sign a forwarding service contract
- Step 2: (Melody) Double-check the information, related documents and get an Arrival
- Step 3: (Melody) Making the paper to obtain containers (Container Borrower)
- Step 4: (Melody or YGS Vina Co., Ltd) Prepare the customs declaration and tax payment
- Step 5: (Melody) Submit all documents to the customs bureau for review, get the selectivity of the customs declaration form, and come to the port trading bureau to receive the EIR
- Step 6: (Melody) Provide the necessary documents to the containers liquidator department/driver, take the goods, and after that return the empty container
- Step 7: (Melody) Summary of costs and service charges
Analyzing the process of delivering FCL full container load imported goods by the –
2.2.1 (Melody) Find a customer and sign a forwarding service contract
Firstly, Melody Logistics sales staff will seek or receive requests from many different groups of customers wishing to import and export to the Vietnamese market Customers can be an individual or an organization, finding information about them today has become quite easy when we are supported by a series of search engines on social networks like Google, Facebook, Zalo, Linkedin,
After finding a target customer, Melody Logistics and the exporter/importer will proceed to the negotiation and signing of a service contract They can choose the form of negotiation via phone, email, and after reaching a consensus on specific contents, either party will do the service contract In the freight forwarding service contract, it is necessary to state clearly that the customer accepts to authorize Melody Logistics Co., Ltd to receive and transport goods, to carry out customs procedures and payment as well
In this case, Melody Logistics received a demand from an import order for YGS Vina Co., Ltd In the documents that my team received, there is no service contract between Melody Logistics and YGS Vina Co., Ltd, so in below the appendix part, our group will attach its form so that the researcher can understand easier
2.2.2 (Melody) Double-check the information, related documents and get an Arrival Note to exchange D/O
After Melody Logistics and YGS Vina sign a service contract, YGS Vina will give a set of documents previously provided by the exporter so that Melody Logistics can understand important information about this shipment Some important pieces of information that the forwarder should note are: a/ Sales contract:
- Commodity: bundles hot rolled and cold rolled stainless steel coils
- Sales term: CIF HOCHIMINH, VIETNAM
- Payment method: T/T (by 100% after 30 days against Documents arrival at Buyer)
- Some documents will be attached and the responsible party for the insurance b/ Commercial invoice, Packing List, and Bill of Lading:
A packing list is an internationally-used document This entails information about each unit good from the exporter to the importer, between the international freight forwarder (consignor) and the final consignee, such as how they are packaged, the size and weight of each package, and the marks and numbers on the outside of the boxes
Commercial invoices can be understood as the seller's invoice, clearly indicating the amount to be paid by the buyer and the purchaser shall pay in accordance with the invoice amount Commercial Invoice is also known as one of the important documents for paying the partner in the purchase and sale of international goods This kind of invoice contains all information about the goods' businesses and the payment value It is therefore evident that this is an important basis for the calculation of the tariff value of the goods Therefore, when the buyer receives the document from the seller, they have to send to Melody Logistic Co Ltd this document
- Port of loading: Pasir Gudang, Malaysia
- Port of discharge: Cat Lai, Ho Chi Minh, Vietnam
- Commercial invoice number for this shipment: YGS190416-001
- Ocean vessel/ Voy No.: WAN HAI 307 N317
- Other relevant documents (if any - attached in the appendix): Introduction, Certificate of Origin, etc
When receiving the full set of documents, the forwarding staff will step by step check the validity and consistency of the above documents to ensure that customs procedures are carried out smoothly and quickly c/ Booking with shipping lines (if any):
On the issue of booking with the shipping company, if the importer wins the right to charter the ship, the forwarding company, Melody Logistics, will carry out the information to the shipping company and the shipping company will resend the Booking Note information such as booking number, bill of lading number, port of departure, port of destination, date of delivery, name of the carrier, name of the owner, consignee, trip number,
However, in this case, my group will not receive the Booking Note either, so my group will understand that the right to charter the boat belongs to the exporter, YOUNG GWANG STAINLESS CO., LTD
2.2.3 (Melody) Making the paper to obtain containers (Container Borrower) a / The forwarder (FWD) receives the Arrival Note from the exporter and receives D/O from the shipping company:
Before continuing to write the container borrower, our group would like to mention other parts that are also quite important to take notice After completing the initial profile check and ship scheduling (if any), FWD will receive the Arrival Note from the importer, forwarder from Melody Logistics at this time is to bring this document with a letter of introduction from YGS Vina at the agent of the shipping company (WAN HAI) in exchange for D/O for the purpose of import clearance
However, in the case of our group also did not have the Arrival Note, we only received the Notice of Wan Hai shipping company recording important information such as:
- D/O attached list and the description is: 6 x 20'GP Containers
Besides, our group also did not have a letter of introduction from YGS Vina, so our group looked up the forms online and attached both the introduction letter and the Arrival Note in the appendix to make this report more detailed Assuming that Melody Logistics company receives Arrival Note, they will need to check additional information such as date of arrival (ETA), vessel name, trip number, container number, seal, recipient information, and D/O will need to be checked The forwarder will check whether the contents are correct with the B/L or not, whether there is a stamp of the carrier and the effective date of D/O is up to date In addition, in this part, the FWD of Melody Logistics also needs to pay expenses such as D/O, cleaning containers, THC, b / Making paper to borrow containers:
After receiving the D / O, the delivery staff of Melody Logistics company will switch to making empty container loan paper, which will be handed over to the liquidator/driver to return the container when the company has finished loading Melody Logistics' forwarding staff need to contact shipping lines for container lending procedures, if the shipping line approves the container lease contract, the staff will send it to the shipping line's representative office at the port and wait for it be confirmed
When the shipping company accepts, they will issue the seal corresponding to that container and it is FWD's job to go to the port business office to pay the container wager Because my group does not have this type of paper in the document set, but my group has attached it in the appendix and for this paper, the content that the delivery staff of Melody Logistics company should note is the number of containers needs to borrow, the time to borrow and then return the empty container to the port is how many days, the amount of the bet and in some other references, many people also suggest noting that it is straight delivery of empty goods
After lowering the container, the forwarding staff will check the number of containers and notify the shipping company representative to send the container truck to the company to prepare for packing or send it to the importer Finally, when the forwarder returns the container to the yard if its condition is normal, the amount you paid will be refunded
2.2.4 (Melody or YGS Vina Co., Ltd) Prepare the customs declaration and tax payment a/ Make a customs declaration:
Parallel to the making of the container loan, the forwarder has another important job is to hold the D / O to open the import customs clearance declaration, in this step, there are 2 cases to determine who is the person Customs declaration:
Case 1: After receiving the D / O, FWD will hand it over to the importer for them to do the import clearance by themselves.
Case 2: If Melody Logistics company provides the importer support service for the whole process, of course, they will be the one to carry out the import clearance.
SOME RECOMMENDATIONS FOR MELODY LOGISTICS CO., LTD
Recommendations for Melody Logistics to improve the efficiency of import activities
Melody Logistics should recommend to government authorities to improve the quality of sea and road transport infrastructure that is convenient for work and receiving goods For example, the FTA, between ASEAN countries to minimize the barriers between countries so that the common system of maritime law is convenient for trade to avoid possible problems later Multinational branches simplify procedures and save more costs by having to exchange foreign currency every time because of the target item for the best forum b/Micro vision
Confront the management and management of the company in tune with the need to collect customer data as well as find out the future trend of freight transport through financial and state news from there launched suitable books developed to optimize resources in maintaining, developing, and creating competition with other Logistics companies such as Amazon, Expeditor Vietnam Senior managers of the company need to arrange the work properly to create smooth coordination among departments in the company to optimize time, human resources, quality to arrive To reach customers that are of high quality and bring satisfaction to them so that they can continue to use their
Logistics services In order to work effectively as above, Melody Logistics Co., Ltd needed to create a good working environment such as modern facilities, professional environment, high-temperature wind author should set aside some bonus funds for employees to be more effective in their work to increase their capacity and quality
For employees of the company, they need to be recruited reasonably with the right majors and their own capabilities in accordance with the position in the company from which the managers will train a human resource as teaching Employees make decisions, their ability to handle situations from which they can maximize their own capabilities and their personal strengths, thereby applying in many situations to increase flexibility while working Company managers should create class meetings, performances, group meetings to increase the relationship, collaboration, among individuals in the company, thereby forming a system of practice that keeps the source of good employees sticking to the company for a long time, thereby saving a lot of costs and time such as recruitment costs, training costs and time to use those accounts The company account company will be more effective Melody Logistics should join hands with the major transport associations in the world so that its employees have more opportunities to acquire science and technology; sharing experiences and information with each other, expanding relationships to establish new authors and potential customers The potential customers of Melody Logistics can be industrial, factories, where production and business activities take place, from which to build partnerships if they have a need, increasing the level of competition in foreign trade and give them a successful impression on the business because Melody Logistics is a business with many characteristics such as quality, prestige, low price, fast related time to complete quickly,
In addition to looking for potential customers, Melody Logistics needs to keep its existing customers, through the best quality waiters to meet the customer's requirements, above all to keep credibility with them gifts, emails to stay in touch and stay in touch with them Because in the Melody company's process, there is a process to contain the company that needs to be re-borrowed, so it is best for Melody Logistics to develop more infrastructure and some resources for the company such as warehouse, separate container to Minimizing time, manpower reduction purposes during retrieval and retrieval of stock containers
Because in the Melody company's process, there is a process to contain the company that needs to be re-borrowed, so it is best for Melody company to develop more infrastructure and some resources for the company such as warehouse, separate container to Minimizing time, manpower reduction purposes during retrieval and retrieval of stock containers c/ Technology:
With the development of the company in the era of technology 4.0, there are many benefits that Logistics companies can apply to develop the company further Some technologies can be referenced such as Google Meet, Zoom, Viber, Zalo or some other managing software, and one of the software why video calling software is extremely important because in the international transaction process, time is the factor that needs to eliminate the difference The time difference between countries and geographical distance is a huge obstacle, so making good use of these software’s will help solve related problems in forwarding and welcoming customers In addition, the use of video calling devices also helps Melody Logistics not increase interaction but also create an easy and more effective multinational communication environment
In the era of globalization and international integration, the trend of the world, Logistics has played an important role in promoting socio-economic development, especially international trade To do that, businesses need to maintain their competitiveness in the Vietnamese market as well as the international market, enhance facilities, means of transport, update new services to ensure effective results for partners Especially with the vision "Improving the performance of customers through people, expertise and technology", businesses need to focus on developing and training human resources with good knowledge and skills In addition, to be able to occupy a sustainable position in a competitive Logistics environment, businesses need to maintain facilities, apply new technologies and invest in research to improve productivity and supply new services and the best Logistics solutions for our customers and partners.
Through the process of review and in-depth analysis the process of delivering full container load imported goods by the sea at Melody Logistics Co, Ltd, our team has grasped the basics of Logistics, many knowledge/experiences in a forwarding corporation This report clearly states the process of delivering imported in Melody Logistics, at the same time, clearly stating the advantages and disadvantages of the process to give some recommendations to contribute to the completion of the process.
Due to the lack of time and practical experience, we have not studied in depth the current operational status of Melody Company, so this report will not avoid shortcomings and problems However, the report has helped us to better understand this competitive Logistics environment and the correct result when customers can choose for themselves a reliable partner like Melody Logistics Once again, we hope to get the comments of teachers to make the report more detailed
APPENDIX 3 ANNOUNCES FROM WAN HAI –
APPENDIX 8 - List of Figures of Import Custom Clearance
APPENDIX 9 – hợp đồng dịch vụ giao nhận (mẫu)
APPENDIX 10 – thư giới thiệu (mẫu)
APPENDIX 12 – phiếu mượn container (mẫu)
APPENDIX 13 – phiếu nộp ngân sách nhà nước (mẫu)
APPENDIX 15 – danh sách containers thông quan nhập khẩu (mẫu)