Recommendations to improve the freight forwarding procedure of imported animal feed cargo at an phu trading and forwarding service co , ltd

Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd PREFACE If trading is considered as the “blood-line” of the world economy, it can be said that maritime transportation is the key element to ensure blood circulation According to International Chamber of Shipping, it is about 90% of the world trade carried by ship In order to support this potential industry, freight forwarding service was born to enhance thedevelopment of maritime transportation and has played an important role Vietnam is not an exception with the strong emerge of the freight forwarding activities which attract many enterprises to involve in this field Understanding the importance of the freight forwarding service for the development of An Phu Co., Ltd, I chose the topic “Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding service Co., Ltd” for my dissertation Luu Thi Thu Trang GMA02 Page i Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd DECLARATION I certify that all the materials in this dissertation that is not my own work has been identified, and that no materials is included for which a degree has previously been conferred on me The contents of this dissertation reflect my own personal views, and are not necessarily endorsed by the University Signature LUU THI THU TRANG Luu Thi Thu Trang GMA02 Page ii Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd ABSTRACT Thanks to globalization, economy of Vietnam has been developing dramatically Along with economic growth, exchange of goods and services has also significantly risen which are mainly transported by sea It is no doubt that freight forwarding is an indispensable part of Export- Import industry As a matter of fact, after recognizing this potential field, An Phu Trading and Forwarding Service Limited Company was established which has been an active player in the freight forwarding service Therefore, recognizing the importance of freight forwarding activities in national economy development; in this dissertation, the freight forwarding procedure of imported Animal Feed cargoby FCL method will be studied and explained in details in the case of An Phu Co., Ltd The purpose of this study is to provide an overview of the freight forwarding activities and to understand deeply about the freight forwarding procedure of imported animal feed cargo at An Phu Co., Ltd Moreover, it aims to analyze the current status quo of the above mentioned procedure of the company Although, the procedure is created to be compatible with specific cargo- Animal Feed cargo, there are still some problems happening during the procedure that need feasible solutions Thus, based on found limitations, I have proposed some suggestions to resolve the currents limitations of the procedure in this dissertation Therefore, this study hopes to help readers have a basic knowledge about freight forwarding service However, due to the limitations of time and length and other external factors, this report still contains some drawbacks with the aim of finding the most effective solutions for the company I really hope to receive feedback from the lectures to be able to complete my study Luu Thi Thu Trang GMA02 Page iii Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd Table of Contents PREFACE i DECLARATION ii ABSTRACT iii LIST OF ABBREVIATIONS vi LIST OF FIGURES vii LIST OF TABLES viii INTRODUCTION 1 The necessity of the research Methodology Dissertation Scope Time Duration Research results Dissertation structure CHAPTER 1: LITERATURE REVIEW 1.1 General methodology of freight forwarding 1.1.1 Definition of freight forwarding and freight forwarder 1.1.2 Commercial functions of freight forwarders 1.1.3 Obligations, Responsibilities and Rights of freight forwarder 1.1.4 Definition of FCL cargo 1.1.5 Related parties in the freight forwarding procedure 1.2 Legal Basis of the freight forwarding 1.2.1 Vietnamese Law 1.2.2 International Law 1.2.3 Related documents in the freight forwarding procedure 1.2.4 Legal documents relating to animal feed CHAPTER 2: THE STATUS QUO OF THE FREIGHT FORWARDING PROCEDURE OF IMPORTED ANIMAL FEED CARGO AT AN PHU TRADING AND FORWARDING SERVICE CO., LTD 11 2.1 Company Overview 11 2.1.1 History of foundation and development of the company 11 2.1.2 Company Structure 13 2.1.3 Business Performance 15 Luu Thi Thu Trang GMA02 Page iv Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd 2.2 The status quo of the freight forwarding procedure of imported Animal Feed cargo at An Phu Co., Ltd 17 2.2.1 Introduction about the cargo and clients .17 2.2.2 The freight forwarding procedure of imported Animal Feed cargo at An Phu Co., Ltd 18 2.2.3 The status quo of the freight forwarding procedure of imported Animal Feed cargo at An Phu Co., Ltd 25 CHAPTER 3: RECOMMENDATIONS TO IMPROVE THE FREIGHT FORWARDING PROCEDURE OF IMPORTED ANIMAL FEED CARGO AT AN PHU TRADING AND FORWARDING SERVICE CO., LTD 29 3.1 Evaluating the freight forwarding procedure of imported Animal Feed cargo at An Phu Co., ltd 29 3.1.1 Advantages of the procedure 29 3.1.2 Limitations of the procedure 30 3.2 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Serive Co., Ltd 32 3.2.1 Professional Training Courses for forwarding staff 32 3.2.3 Applying modern software 33 3.2.2 Re- allocation of human resources in the procedure 34 3.2.4 Re- arrange transportation plan 36 CONCLUSION 37 BIBLIOGRAPHY 38 APPENDIX 39 Luu Thi Thu Trang GMA02 Page v Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd LIST OF ABBREVIATIONS B/L Bill of Lading C/O Certificate of Origin CLECAT Comité de Liaison Européen des Commissionaires et Auxiliaires de Transport du Marché Commun Co., Ltd Company Limited D/O Delivery Order EIR Equipment Interchange Receipt FCL Full Container Load FIATA International Federation Of Freight Forwarders Association THC Terminal Handling Charge WTO World Trade Organization VAT Value Added Tax Luu Thi Thu Trang GMA02 Page vi Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd LIST OF FIGURES Figure 1.1: Related parties in the freight forwarding procedure Figure 2.1: Organizational structure of An Phu Co., Ltd 12 Figure 2.2: The current freight forwarding procedure of imported Animal Feed cargo at An Phu Co., Ltd 17 Figure 2.3: Login ECUSS VINACCS/VCIS 20 Figure 2.4: Register to open a new importing declaration 20 Figure 2.5: Declare General Information 21 Figure 2.6: Declare Cargo Information 22 Luu Thi Thu Trang GMA02 Page vii Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd LIST OF TABLES Table 2.1: An Phu Co., Ltd Business Performance from 2013 to the first six months of 2015 14 Table 2.2: Volume of import, export and domestic of animal feed cargo at An Phu Co., Ltd in 2013, 2014 and 2015 15 Table 2.3: Charges and Fees to be collected by Shipping Line 19 Table 2.4: The current number of staff involving in the freight forwarding procedure of imported Animal Feed cargo at An Phu Co., Ltd 25 Table 2.5: The difference between the average required time and average actual time for each step of the freight forwarding procedure of imported Animal Feed cargo 26 Table 3.1: The difference of the working style and efficiency of staff before and after applying F.A.S.T 32 Table 3.2: Re- allocation of human resources in the procedure 34 Luu Thi Thu Trang GMA02 Page viii Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd INTRODUCTION The necessity of the research Thanks to globalization, Vietnam has been immersed in the growing development of the world’s economy It can be said that International Trade of Vietnam has grown rapidly over the past 20 years, especially after Vietnam became a member of the World Trade Organization (WTO) Along with economic growth, exchange of goods and services has also significantly risen which are mainly transported by sea As seaborne trade has expanded, the significant role of freight forwarding service continues to become more important The development of freight forwarding activities in import and export field in our country play a key role which contribute to enhance the competitiveness of goods in international market Therefore, recognizing the importance of freight forwarding activities in national economy development;in this dissertation, the freight forwarding procedure of imported Animal Feedcargo by FCL method will be studied and explained in details in the case of An Phu Co., Ltd Although, the procedure is created to be compatible with specific cargo, there are still some problems happening during the procedure that need feasible solutions Therefore, the purpose of this dissertation is to assess the present freight forwarding procedure of Animal Feed cargoby FCL method at An Phu Co., Ltd and give some recommendations to improve the procedure in order to enhance the competitiveness of the company Methodology This dissertation applies the following approaches: Participant observation: I have chance to work as an apprentice at An Phu Co., Ltd to study and have deep understand about the freight forwarding procedure of imported Animal Feedcargo by FCL method Data collection: General information about freight forwarding service is studied and gathered from books and internet Company’s information and statistics are provided by company’s functional departments and websites Interview: I interviewed some company’sstaffs to get more detailed information about the freight forwarding procedure and their experiences as well as their advices Luu Thi Thu Trang GMA02 Page Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd Method of analysis: After collecting all necessary data and information, method of analysis is applied to assess the current status of the studied procedure Dissertation Scope This dissertation aims to analyze the freight forwarding procedure of imported Animal feed cargo carried out by employees of An Phu Co., Ltd More specific, the dissertation focuses on each detailed step to understand clearly how the company doesits business as well as the efficiency of company’s performance Time Duration I have worked as an intern at An Phu Co., Ltd in order to study the freight forwarding procedure of imported animal feed cargowithin months Research results The current status of the studied freight forwarding procedure, evaluation of the advantages and disadvantages as well as recommendation to improve the procedure are analyzed in this dissertation Dissertation structure This dissertation includes three chapters: Chapter 1:Literature review Chapter 2: The status quo of the freight forwarding procedure of imported animal feed cargo at An Phu Trading and Forwarding Service Co., Ltd Chapter 3:Recommendations to improve the freight forwarding procedure of imported animal feed cargoat An Phu Trading and Forwarding Service Co., Ltd Luu Thi Thu Trang GMA02 Page Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd - Container Loan Receipt Operation staff brings these above documents and ID card to port authority to exchange for EIR Handling fee was also asked to be paid during the loading and discharging procedure at port After checking all necessary documents, port officer provided Port Delivery Order equivalent to Equipment Interchange Receipt- EIR 42 full containers EIRs and also an invoice of handling fee were handed to the forwarding staff Then, staff brings EIR and customs declaration sheet to get confirmation of Customs at port to bring full cargo container out of port ” Step 7: Arrange inland haulage to transport cargo to the customer After receiving confirmation of port authority, operation staff notifies trucking staff at the office of the company about the delivery time and the amount of containers Then, trucking staff contacts with trucking company to arrange trucks and deliver cargo to customers After completing the delivery of containers to the “ destination, the forwarder collects EIRsincluding full container EIRs and empty container EIRs Together with Container Borrow receipt, the forwarding staff took back the deposit from the shipping line after returning empty containers to container yard If there is no incurred damage; therefore, the forwarder just have to pay cleaning fee and back charge to his customer only ” Step 8: Recording of the procedure In this step, accountant received customs declaration sheet and invoices and gave back to customer, prepared and signed the Proof of Delivery She is also responsible for keeping the records of the cargo, making sale invoice for customer and settling payment for company’s staff “ ” 2.2.3 The status quo of the freight forwarding procedure of imported Animal Feedcargo at An Phu Co., Ltd Each step in the freight forwarding procedure of imported Animal Feedcargo is taken by different functional staffs The below table illustrates the current number of staff in each step of the procedure Luu Thi Thu Trang GMA02 Page 25 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd “ Table2.4: The current number of staff involving in the freight forwarding procedure of imported Animal Feedcargo at An Phu Co., Ltd No Step Staff Number Receive and prepare documents Documentary staff Obtain D/O and Borrow receipt E- Customs Clearance Documentary Staff Register Quality Inspection Operation staff 1 Customer Clearance Operation staff Get container and exchange EIR Operation staff at Port of Discharge Arrange inland haulage to Truck driver transport cargo to the customer Make and keep record Container Operation staff1 Accountant (Adapted from Human resources Department Copyright 2015 by An Phu Co., Ltd Reprinted with permission) As can be observed from the above table, overall, each step of the procedure has been implemented by one specified staff Sometimes, they can help each other in order to complete their work in time Additionally, the company also sets the average required time for completing each step in the procedure In general, the freight forwarding procedure of imported Animal Feed cargo is required to complete within five working days The differences between time requirements and average actual time are demonstrated in the following table Luu Thi Thu Trang GMA02 Page 26 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd Table2.5: The difference between the average required time and average actual time for each step of the freight forwarding procedure of importedAnimal Feed cargo No Step Average required Average actual time time Receive and prepare documents hours Obtain D/O and Container Borrow hours 10 hours hours receipt Register Quality Inspection 24 hours 24 hours E- Custom Clearance 20 minutes 20 minutes Customs Clearance hours hours Get container and exchange EIR at hour hours Port of Discharge Arrange inland haulage and days transport cargo to the customer’s warehouse days Make and keep record 0.5 hour 0.5 hour (Adapted from Import and Export Department Copyright 2015 by An Phu Co., Ltd Reprinted with permission) As can be seen from the above table, in general, the procedure has been implemented in a controlled manner However, there are some differences that need to be discussed further: - Firstly, the documentation steptakes more actual time in comparison with - average required time It is mainly because equipment for this step is quite poor Specifically, staff has to work with simple tools such as Words and Excel to handle the documents; therefore, it would take more time for this step than expected when the work load is heavy In addition, Customs Clearance step also takes a large amount of time The main reason for this delay belongs to forwarding staff being in charge of this step because he is still young, doesn’t have enough experience and sometimes inputted wrong information in Customs declaration; therefore, Luu Thi Thu Trang GMA02 Page 27 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd customs officer would reject to clear it until someone is competent to prove it reasonable Moreover, the next reason could be that Customs Office is usually crowed so that company’s staff has to wait longer to customs - clearance Regarding to step 7- arrange inland transportation and deliver to customer’s warehouse-, it also takes a large amount of time to complete this step It is mainly because Transportation Company is passive in preparing appropriate carrier when he is informed about thecargo lately; therefore, he does not have enough time to transport cargo to customer on time Luu Thi Thu Trang GMA02 ” Page 28 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd CHAPTER3: RECOMMENDATIONS TO IMPROVETHE FREIGHT FORWARDING PROCEDURE OF IMPORTED ANIMAL FEEDCARGOAT AN PHU TRADING AND FORWARDING SERVICE CO., LTD 3.1 Evaluating the freight forwarding procedure of imported Animal Feedcargo at An Phu Co., ltd 3.1.1 Advantages of the procedure “ In general, the freight forwarding procedure of imported Animal Feed (FLC) cargo at An Phu Company contains a numbers of advantages First of all, despite the few number of company’s staff (only from 10 to 15 people), some senior employees of the company have professional knowledge, excellent qualification and experience in freight forwarding field; therefore, the quality of the procedure would be ensured because if there is any problem happening during the procedure, they can handle it in the most effective way thanks to their experience ” The second advantage is that the procedure is unified within the company with eight detailed steps and every step in the forwarding procedure of imported cargo is described clearly has specific guidance In other words, the procedure is systematically organized so that time and cost could be saved for the company “ Last but not least, the allocation of human resources in implementing the procedure is clear Each staff is responsible for specific work so that their work would not be overlapped Moreover, when there is something wrong happened during the procedure, the Manager would know which step is not efficient and who is responsible for that problem In addition to, specialization of human resources is ” “ also advantageous for implementing the procedure For example, when a staff has to be in charge of one or two steps only, he will focus on his task and complete work faster and more effectively ” In conclusion, the implementation of forwarding procedure becomes simpler and easier thanks to these advantages Luu Thi Thu Trang GMA02 Page 29 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd 3.1.2Limitations of the procedure Beside aforementioned strengths, there are also the weaknesses in this procedure Overall, human factors are the main justifications for the drawbacks of company’s freight forwarding procedure Specifically, due to the small scale of operation, An Phu Company has to face with the problem of labor shortage when the volume of cargo increase too high For example, if something happens unexpected to a specified employed and he/she cannot complete work, the whole procedure will be likely to be delayed Moreover, it is difficult to find replacement because daily workload of the company is quite large and remaining staff cannot be responsible for taking too much work In addition, some forwarding staffs are young and not have enough experience in this field, especially in Customs Clearance In addition, although almost all of the staffs of An Phu Company bachelors, some of them studied other majors that are not related to the requirements of companies; therefore, they often not have much technical knowledge in freight forwarding field Instead, they gain and accumulate knowledge by practicing and implementing the procedure multiple times and then become accustomed to this business activity As a consequence, when meeting ” unexpected situations, it is often difficult for them to react quickly and solved problems fluently The next disadvantage of the procedure is that the actual working time is longer than average required hours of the company, especially in preparing documents, customs clearance and arranging truck step Although, freight “ forwarding is the main service of An Phu Company, the procedure still does not work efficiently The following problems are demonstrated for this drawback : ” Firstly, as mentioned above, forwarding staff usually is in trouble of dealing with mistake happened in doing customs clearance The main reason is that customs clearance is sometimes incorrect and therefore; it is delayed An explanation for this is that the documentary staff is a quite new employee because he just took over the position in May, 2015; therefore, he does not have enough experience to deal with a great number of documents and figures about cargo As a consequence, it would “ lead to some mistakes in customs clearance In addition, after he finished doing ECustoms declaration, no one rechecks the information This leads to the delay in ” Luu Thi Thu Trang GMA02 Page 30 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd Customs Clearance step because Customs officer would require correcting the information Secondly, the real time of preparing documents for imported cargo is longer “ than required time with 10 hours against hours This difference is quite large for the first step It is because during receiving and preparing necessary documents step, the company uses email to receive import documents from importer and only use Words and Excel which are quite simple tools requiring many steps to prepare documents for next steps Therefore, it takes much more time for documentary staff to complete his work In addition, sometimes, there might be mistake in documents and time for correction is not enough and it often takes at ” least one day to correct and resend documents More importantly, the problem in arranging domestic transport and delivering goods to customer is also considered as a serious problem Specifically, “ inland transportation is outsourced to other firms, making An Phu Company dependent on them Therefore, sometimes, vehicles for transportation are insufficient to meet the demand of customer, especially in peak season of transportation (from September to November); therefore, it slows down the forwarding procedure Moreover, trucking staff does not know about the imported cargo until the customs clearance step was finished and operation staff completed obtains Delivery Order from Shipping Lines The final disadvantage is the work distribution of human resources in the procedure There are eight steps in the procedure; however, the operation staff has to be responsible for several steps which are: Obtain D/O and Container Borrow receipt from Shipping Lines; Register Quality Inspection for goods; Doing Customs Clearance and Exchange EIR at port As can be observed from above information, the workload of operation staff is too heavy to take responsibilities; therefore, it might be said that the procedure depends too much on a person In addition, overall, there is only one person being responsible for one step; therefore, if there is any mistake during each step, it would be almost no one to recheck the result As a consequence, if he got any trouble or there is not enough time to complete work in time, the whole procedure would be affected adversely Luu Thi Thu Trang GMA02 ” Page 31 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd 3.2 Recommendations to improve the freight forwarding procedureof imported Animal Feedcargo at An Phu Trading and Forwarding SeriveCo., Ltd After evaluating the strengths and weaknesses of the freight forwarding procedure of imported Animal Feed cargo at An Phu Company, there are some suggestions to improve the weaknesses and enhance the efficiency of freight forwarding procedure of Animal Feedcargo: 3.2.1 Professional Training Courses for forwarding staff “ - “ Objective of this recommendation: As mentioned in the disadvantages of the procedure, there are some young employees who still not have enough experience in dealing with unexpected problems as well as skill in this job.For example, the youngemployee who is in charge of customs clearance with little experience is still the main reason for delay of this step.In addition, some staff did not study the major of freight forwarding and not have official technical skill.Therefore, the objective of this solution is to open professional training courses for forwarding staff of the company - Implementation: Young forwarding staff should attend forwarding training courses which are organized by professional organization in short term.The company would pay 100% tuition for the first training course and in the next courses;the payment should be shared equally by both company and employees More importantly, there should ” only be one to two classes in one week to ensure that the course will not impact negatively to the quality and performance of employees - Expected results: Not only the young employees but also all staff of An Phu Company would have more knowledge about the whole freight forwarding procedure in general and specific step in particular They will have more knowledge to deal with unexpected problems in the most effective way As a result, the employee quality will be improved as well as the performance of the procedure will be enhanced “ ” ” Luu Thi Thu Trang GMA02 Page 32 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd 3.2.3Applying modern software “ - Objective of this recommendation: It usually takes more time for documentary staff to receive and prepare documents to implement next steps because they always use simple tools to complete work such as Words and Excel In order to solve the problem of delaying in the first step of the procedure, the application of modernsoftwarehelpingfreight forwarding procedure is expected to minimize working time in documentation step in particular and the whole procedure in general ” - Implementation: Recently, there is a number of softwares that are capable of supporting the freight forwarding field and the software is recommended is F.A.S.T standing for Freight Assistant System Technology (a product of Softek Solution) Firstly, An “ Phu Company contacts with Softek Solution, a software development company, to install F.A.S.T It costs approximately 12 million VND to buy and install this software After that, there should be a lesson that trains employees to use the new software Then, staff and employees are required to use this software mainly instead ” of words or excel in working in order to synchronize company’s operation “ Expected result: Table3.1: The difference of the working style and efficiency of staff before and after applying F.A.S.T Before using FAST After using FAST Customer service Several manipulation of Applying rule of “ ONE KEY FOR and Documentary entering data into computer ALL” Staff Accounting Staff Accounting Errors Avoiding errors Director Waiting for reports Checking company’s operation at any time The above table compares the working style and efficiency of staff before and after applying the new software First and foremost, this software is especially Luu Thi Thu Trang GMA02 Page 33 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd beneficial for documentary staff because within a click, he can save more time to prepare document by applying rule “ONE KEY FOR ALL” that can help him to create new cargo documents based on previous data stored in the software at faster peace Therefore, it will not take more time in manipulating and preparing particular documents by Words and Excel.In addition, by applying this software, accounting staff is expected to have more strict control in settling accounts and making record Moreover, F.A.S.T is quite useful for management because instead of waiting report from employees, director can check the efficiency of progress, number of mistakes, ” time is delayed, the status of cargo as well as business activities at any time just by using this software From there, he can control the operation as a whole 3.2.2 Re- allocation of human resources in the procedure " - Objective of this recommendation: The work distribution of human resources in the procedure has not been suitable yet because operation staff has to be responsible for a large amount of workload in comparison with other staff In addition, there is no one who is responsible for re check the result of each step in particular and the whole procedure in general Therefore, the objective of this solution is re- allocating human resources in each step of the procedure so that workload of operation staff could be reduced as ” well as the performance of the company would be enhanced - Implementation: As soon as the recommendation for opening training courses for forwarding “ staff is implemented, not only one specialized person can be responsible for one specific step but also he could be in charge in another step To be more specific, one staff should be responsible for consistent steps such as Documentation Preparation and Obtaining Delivery Order from Shipping Line Specifically, there should be one senior and one young staff working in one step so that senior staff can support and help young one to complete work more efficiently and gain more experience The below table is the suggestion for re- allocation of human resources in each step of the procedure: ” “ Luu Thi Thu Trang GMA02 Page 34 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd Table 3.2: Re- allocation of human resources in the procedure No Step Staff Number Receive and prepare documents Documentary staff 2 Obtain D/O and Container Operation staff Borrow receipt E- Customs Clearance Documentary Staff Register Quality Inspection Operation staff Customer Clearance Get container and exchange EIR Operation staff at Port of Discharge Arrange inland haulage to Truck driver transport cargo to the customer Make and keep record Accountant Moreover, additional staff also should not only share work and help the main employees in each step but also be the sub-supervisor in order to check each step carefully to avoid any mistakes before continuing the next step in the procedure In addition, there should be one main supervisor who is responsible for checking the progress and update regulations to inform them to specified staff on time ” - Expected result: When the number of staff in each procedure is increased, forwarding staff could support others in the next step to prevent any unexpected problems “ Moreover, the workload of operation staff would be shared and reduced as well as the efficiency of the whole procedure Therefore, all the deadlines in the procedure would meet the requirement of average required working time ” Luu Thi Thu Trang GMA02 Page 35 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd 3.2.4 Re- arrangetransportation plan “ - Objective of this recommendation: Currently, the real working time of arranging transportation and delivering goods to customers lasts much longer than required It is mainly because the company has to lease truck from Transportation Company and during the procedure, they not contact Transportation Company as soon as possible This leads to the delay in step Therefore, the objective of this solution is to make sure that arranging domestic transportation and delivering goods to customer would be ” on time - Implementation: After receiving Notice of Arrival and necessary documents from customer, forwarding staff would contact and notify the transportation company to prepare for “ trucking Therefore, trucking company will have more time to arrange appropriate inland haulage transport goods to customer Moreover, if there are any mistakes in the documents, company’s employees would notify the truck driver sooner to reduce any unexpected problems ” - Expected result: When the trucking staff has details of goods transportation sooner, he will be active inarranging trucking schedule of other customers Therefore, the goods delivery to customer will be on time as required as well as the performance of the procedure will be enhanced “ ” Luu Thi Thu Trang GMA02 Page 36 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd CONCLUSION Freight forwarding service has played an increasingly important role in the national economy Currently, the freight forwarding companies in Vietnam are in the procedure of their prestige indomestic market in particular and in international market in general Despite having seven years of operation in this field, An Phu Co., Ltdhas been attempting to improvethe efficiency of operational procedure, ensure to maximize customer demand Although, the current freight forwarding of procedure of imported Animal Feed cargo at the company has specific guidance, there are still some limitations which require forwarderto constantly calculate, build and logically modify procedure to ensure that company’s service is always in the most efficient state Specifically, the forwarder is in the trouble of managing time in implementing the freight forwarding procedure.Therefore, I sincerely give out some feasible solutions to overcome the limitations of company’s freight forwarding procedure During the internship at An Phu Co., Ltd, I had chance to accumulate more knowledge as an apprentice From the knowledge I learned, I have chance to improve skill in the freight forwarding activity as well as define what knowledge that I have to gain in the upcoming time At this last internship, although, I still had some shortcomings in this field,I was given motivations to pursue my future career I sincerely thanks to lecturers of ISE as well as staff at An Phu Co., Ltd Especially, I really thanks to Nguyen Viet Hoang Son, my supervisor, who has been extremely enthusiastic to guide me to complete this dissertation Luu Thi Thu Trang GMA02 Page 37 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd BIBLIOGRAPHY Dang Cong Xuong, Nguyen Huu Bao (2013) Shipping agency and freight forwarding at ports Hanoi: Transportation Development, M o (2012, June 25) Decree 26/2012/TT-BNNPTNT about inspecting quality of animal feed product Retrieved October 20, 2015, from Government of Vietnam: http://vanban.chinhphu.vn/portal/page/portal/chinhphu/hethongvanban?class _id=1&mode=detail&document_id=163330 FIATA (2004, Oct 29) Freight forwarders adopt an official description of “freight forwarding and logistics services" Glattbrugg, Switzerland Finance, M o (2015, January 01) Decree 17709/BTC-TCT about applying VAT for particular products Retrieved October 20, 2015, from Bac Giang Department of Taxation: http://bacgiang.gdt.gov.vn/wps/portal/bacgiang/documents/detail?WCM_GL OBAL_CONTEXT=/BacGiang/site/docsystem/otherdocument/c05ff3e417bb-4926-bcce-5aadc95b0a39 Government, V (2010, May 02) Decree 08/2010 / ND-CP about the management of animal feed Retrieved October 20, 2015, from Vietnamese Government: http://www.chinhphu.vn/portal/page/portal/chinhphu/hethongvanban?class_i d=1&mode=detail&document_id=93211 Vien, D N (2002) International Freight Forwarding Hanoi: Transportation Luu Thi Thu Trang GMA02 Page 38 Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd APPENDIX Bill of Lading Certificate of Analysis Commercial Invoice E-Customs result Packing List Registration for Quality Inspection of Feeds Sales Contract Luu Thi Thu Trang GMA02 Page 39 ... improve the freight forwarding procedure of imported Animal Feed cargo at An Phu Trading and Forwarding Service Co., Ltd 2.2 The status quo of the freight forwarding procedure of imported Animal Feed. .. imported animal feed cargoat An Phu Trading and Forwarding Service Co., Ltd Luu Thi Thu Trang GMA02 Page Recommendations to improve the freight forwarding procedure of imported Animal Feed cargo at An. .. OF IMPORTED ANIMAL FEED CARGO AT AN PHU TRADING AND FORWARDING SERVICE CO., LTD 29 3.1 Evaluating the freight forwarding procedure of imported Animal Feed cargo at An Phu Co., ltd