Impacts of logistics management on the performance of vantage logistics corporation

OPEN UNIVERSITY HO CHI MINH CITY UNIVERSITEÙ LIBRE DE BRUXELLES SOLVAY BUSINESS SCHOOL MMVCFB 6 VIETNAM – BELGIUM MASTER IN MANAGEMENT PROGRAM NGUYN KHOA VINH IMPACTS OF LOGISTICS MANAGEMENT ON THE PERFORMANCE OF VANTAGE LOGISTICS CORPORATION MASTER IN MANAGEMENT THESIS HO CHI MINH CITY 2007 OPEN UNIVERSITY HO CHI MINH CITY UNIVERSITEÙ LIBRE DE BRUXELLES SOLVAY BUSINESS SCHOOL MMVCFB 6 VIETNAM – BELGIUM MASTER IN MANAGEMENT PROGRAM NGUYN KHOA VINH IMPACTS OF LOGISTICS MANAGEMENT ON THE PERFORMANCE OF VANTAGE LOGISTICS CORPORATION Majority: MASTER IN MANAGEMENT MASTER IN MANAGEMENT THESIS Thesis Tutor: Dr. NGUYN VN SN HO CHI MINH CITY 2007 UNDERTAKINGS This thesis was done with the research and study of author basing on those knowledge learnt from MMVCFB6, references and the supports, instructions, help from professors, thesis tutor, experts in logistics activities who are working in current logistics companies in Viet Nam Nguyen Khoa Vinh ACKNOWLEDGEMENTS I would like to express my sincere thanks to: - Viet Nam – Belgium Master in Management Program (MMVCFB6). - Professors and Tutors during Master Course. - Dr. Nguyen Van Son, thesis tutor. - Mr. Philip Diep, Managing Director, Vantage Logistics Corporation. - Mr. Michael Trung, President, Viet Nam Ship Corporation. Also, I would like to send my best regards and sincere thanks to Management Board and Staffs of Vantage Logistics Corporation who supported me for interviews, surveys to fulfill this thesis Nguyen Khoa Vinh COMMENTS OF THESIS TUTOR Thesis Tutor, Dr. Nguyen Van Son, have some comments on thesis by author Nguyen Khoa Vinh with subject: “IMPACTS OF LOGISTICS MANAGEMENT ON THE PERFORMANCE OF VANTAGE LOGISTICS CORPORATION ” as below: CONTENTS 1. Comments on thesis: - Thesis has high value in term of practice with logical lay-out. Study objective is defined clearly. - Author used suitable methodologies. There are new and creative issues with highly scientific quality. Especially, thesis advises current activities, advantages, disadvantages of Vantage Logistics Corporation; also have some recommendations and solutions which are logical, applicable for Vantage Logistics Corporation in particular and for logistics providers in Viet Nam in general. - However, there are still unavoidable constraints such as: analysis is mostly basing on qualitative, there is less data in term of quantitative. - In general, thesis quality matches with those requests of master level in term of content and form. 2. Comments on student: Student Nguyen Khoa Vinh has diligence, enthusiasm, creativeness in studying, researching; has ability to research independently. And, he is meritorious to get master level in economic management. I accept to have student Nguyen Khoa Vinh to have thesis defense upon the jury of Viet Nam – Belgium Master in Management Program 6 (MMVCFB6) Ho Chi Minh City, Feb 07 2007 Thesis Tutor Dr. NGUYEN VAN SON COMMENTS OF JURY MEMBER 1 COMMENTS OF JURY MEMBER 2 INDEX LIST OF FIGURES ABBREVIATIONS INTRODUCTION 1 1. STATEMENT 1 2. RATIONALE 2 3. METHODOLOGY 3 4. SCOPE AND LIMITATION 4 Chapter One: LOGISTICS MANAGEMENT 5 1.1 GLOBAL TRENDS IN LOGISTICS 5 1.1.1 Stage 1: Physical distribution 6 1.1.2 Stage 2: Logistics system 7 1.1.3 Stage 3: Supply chain management 8 1.2 WHAT IS LOGISTICS MANAGEMENT 10 1.3 ROLE OF LOGISTICS MANAGEMENT 12 1.3.1 The cost associated with the physical transfer of the goods. 12 1.3.2 Transit time 13 1.3.3 Safety of goods 14 1.3 SITUATION OF VIETNAM'S FORWARDING INDUSTRY 16 1.3.1. Overlook on Vietnam's forwarding industry 16 1.3.2 Difficulties of Vietnam forwarders 18 1.3.2.1 Low productivities 19 1.3.2.2 Lacking of long term development strategy 19 [...]... following questions: - What are Logistics and Supply Chain Management? - Who is Vantage Logistics Corporation? - What are the problems of Vantage Logistics Corporation? - Where logistics management positively effects on Vantage Logistics Corporation? - What to do to improve the activities of Vantage Logistics Corporation? This is prepared for those who have interest in and people who concerned in the field,... - Studying structure of Vantage Logistics Corporation in order to apply logistics management to improve the performance - Studying theory with the knowledge from master program to define the primary data, also with some investigations and interviews done on practice - Description and presentation of Vantage Logistics Corporation s management to get the practical information of the company’s activities... activities 4 4 SCOPE AND LIMITATION Scope of study This research focuses mainly on Logistics management and Vantage Logistics Corporation In the first part, there is introduction about Logistics and Forwarding The second part introduces Vantage Logistics Corporation and its services In the next part, there are some analyses on these experiences of logistics management of some nearby and developed countries... out solution for case of Vantage Logistics Corporation There would be also some solutions for Vantage Logistics Corporation to improve itself Limitation This research could not show fully the impact of applying logistics management in Vantage Logistics Corporation due to time and personal knowledge limitation However, hope that the research will be good use for further personal study in logistics service... Chapter One: LOGISTICS MANAGEMENT 1.1 GLOBAL TRENDS IN LOGISTICS Up till the 1970's the focus of the producer was to get the product to the market This was first done through “unimodal transport” The development of containerization in the seventies and eighties brought with it the prospect of multimodal transport At that time there was the proliferation of terms and definitions The UN finally selected the. .. Council of Logistics Management in 1998: Logistics is a part of the supply chain process that plans, implements, and controls the effective flow of storage of the goods, services, and related information from the point of origin to the point of consumption in order to meet customer's requirements 2) 2 Definition provided by the Council of Logistics Management, Oak Brook, IL, 1998 11 Management Actions... provided In general, they are based on published tariffs, which reflect the local market conditions, the quality of the service, and the management capacity of the service provider These considerations depend on the state of the local infrastructure and equipment, and on the local infrastructure equipment maintenance policy to provide reasonable transport services They also depend on the local capacity... economy The global economic integration relies upon efficient and philosophy of logistics and supply chain management has moved to the center stage The concept of logistics and supply chain management is not new, but the acceptance of its validity by manager is still a big question There has been a growing recognition that through logistics and supply chain management, the twin goals of cost reduction... strengthened that many consider logistics as being involving pre-production and post-production control of material Logistics management is a management technique that controls the physical flow of goods and the flow of information on a synchronized basis Transport operators and service providers must therefore comply with the specification laid down in the logistics system This system's approach to the. .. 3) 1.3 ROLE OF LOGISTICS MANAGEMENT The competitiveness of internationally traded products is greatly influenced by various factors, which build up the overall logistics cost The main ones are: 1.3.1 The cost associated with the physical transfer of the goods This is an essential piece of information in the negotiation of an international trade transaction To maintain competitiveness, the trader must . Association of Southeast Asian Nations. CFS : Container Freight Station. CIM : The International Convention for the Carriage of Goods by Rail. CMR : The Convention of the Contract for the International. - Who is Vantage Logistics Corporation? - What are the problems of Vantage Logistics Corporation? - Where logistics management positively effects on Vantage Logistics Corporation? - What. IMPACTS OF LOGISTICS MANAGEMENT ON VANTAGE LOGISTICS CORPORATION AND SOME RECOMMENDATIONS 46 3.1 DEVELOPMENT ORIENTATION OF VANTAGE LOGISTICS CORPORATION 46 3.1.1 Promoting strategically on