Recommendations to improve the receiving activity of imported cargoes at CFS warehouse of hai phong 128 newport joint stock company

RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY PREFACE I declare that this report is my own unaided work It has not been submitted before If violated, I am solely responsible for and bear the punishments of the Institution and University Student Name and Signature Ngo Minh Hung Ngo Minh Hung Pagei RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY ACKNOWLEDGE Firstly, I would like to express my sincere gratitude to my advisor M.S Tran Hai Viet for the continuous support of my dissertation and related research, for his patience, motivation, and immense knowledge His guidance helped me in all the time of research and writing of this thesis I could not have imagined having a better advisor and mentor for my study Secondly, In process of internship study, I was helped and instructed by officers, staffs of company and teachers of my university My dissertation was completed fully and well by this help I want to give my dramatic thanks to all officers, staffs of company and teachers of my university whom helped me in that time Ngo Minh Hung Pageii RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY Table of content PREFACE i ACKNOWLEDGE ii LIST OF TABLE AND FIGURE v INTRODUCTION CHAPTER 1:LITERATURE REVIEW 1.1 Introduction about CFS warehouse 1.1.1 Definition of CFS warehouse 1.1.2 Function of CFS warehouse 1.1.3 Role of CFS warehouse 1.2 Introduction about the forwarding activity and receiving activity of imported cargoes 1.2.1 Definition of forwarding activity 1.2.2 The receiving activity of imported cargoes CHAPTER 2:SITUATION OF THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAI PHONG 128 NEWPORT JOINT STOCK COMPANY 2.1 Introduction about Hai Phong 128 Newport Joint Stock Company 2.1.1 Overall information 2.1.2 History 2.1.3 Fields of business 2.1.4 Organization 10 2.1.4.1 The organization structure diagram 10 2.1.4.2 Introduction about departments 12 2.1.5 Personnel 16 2.1.6 Facility 18 2.1.7 CFS warehouse 19 2.1.8 Situation of business operation 21 2.1.8.1 Business operation of Hai Phong 128 Newport JSC in 2012, 2013 and 2014 21 2.1.8.2 Business operation of Hai Phong 128 Newport JSC in the first months of 2015 22 2.2 Description of the receiving activity of imported cargoes at CFS warehouse of Hai Phong 128 Newport Joint Stock Company 23 2.2.1 Receiving document 24 2.2.2 Exchange of delivery order 25 2.2.3 Customs procedure 26 Ngo Minh Hung Pageiii RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY 2.2.4 Transporting the container from port to CFS warehouse 27 2.2.5 Appraising container at CFS warehouse yard 28 2.2.6 Unstuffing and storage 28 2.3 Evaluation of the receiving activity of imported cargoes at CFS warehouse of Hai Phong 128 Newport Joint Stock Company 29 2.3.1 Indicator 29 2.3.2 Advantages 31 2.3.3 Disadvantages 32 CHAPTER 3:RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAI PHONG 128 NEWPORT JOINT STOCK COMPANY 36 4.1 Suggestion for problem about delay of document 36 4.1.1 Suggestion for lack of employees implementing documents after receipt and delivery 36 4.1.2 Suggestion for lack of employees implementing Customs clearance 36 4.2 Suggestion for problem about damage of cargoes 37 4.3 Suggestion for problem about untuffing time of imported cargoes 37 4.3.1 Suggestion for equipment issue 37 4.3.2 Suggestion for lack of handling workers 38 4.4 Suggestion for waiting time of containers to be operated 38 CONCLUSION 39 REFERENCE 40 Ngo Minh Hung Pageiv RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY LIST OF TABLE AND FIGURE Figure 2.1: Organization structure diagram of 128 Newport company…………… 11 Table 2.2: The quantity of personnel according to level of education……… …….16 Table 2.3: The quantity of personnel according to departments and gender ……….17 Table 2.4: The quantity of personnel according to gender………………… ………18 Table 2.5: the quantity of cargoes are received and stored in CFS warehouse….… 20 Table 2.6: The business operation of 128 Newport from 2012 to 2014………….….21 Table 2.7: The business operation of 128 Newport in the first months of 2015.….22 Figure 2.8: The receiving activity of imported cargoes at CFS warehouse of 128 Newport company JSC………….……… ….…….…23 Table 2.9: The claim of customers about activity of CFS warehouse….……… ….29 Table 2.10 Time for unstuffing imported cargoes at CFS warehouse……………… 30 Ngo Minh Hung Pagev RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY INTRODUCTION Internship is a practical journey by a group of people to a place away from their normal environment For student, the internship plays an important rule to their knowledge It is a practical activity that outside classroom The purpose of the internship is usually observation for education, nonexperimental research or to provide students with experiences outside their everyday activities, such as going camping, companies, enterprises with teachers and their classmates The aim of this research is to observe the subject in its natural state and possibly collect the fact experiences During internship, student can collect many information, knowledge, experiences which they don’t see or learn in their school They may be different from what student study in classroom On the other hand, internship gives student opportunity to practice knowledge, theory that they learn in their class And practical activities are the best method to understand clearly what students learn from book and school In my opinion, internship is very important and necessary to every student It helps students better understand what they are learning in your university They can determine their future work And the practical knowledge will help them not crestfallen when the first day they come out to work From 1/10/2015 to 31/10/2015, I had an internship at HaiPhong 128 Newport Joint Stock Company Specifically, I had opportunity to learn and study at CFS warehouse of company, which is one of the most important departments of HaiPhong 128 Newport JSC In there, I learned and understood a lot of knowledge of this CFS warehouse, such as duties, services, activity, procedures or processes and so on Finally, I chose the receiving activity of imported cargoes at CFS warehouse as the topic of my dissertation The first reason is that it is suitable for my knowledge and the department, where I chose to study and work at Secondly, during the process of work, study and analysis, I realized that there are some several disadvantages of this activity, beside the advantages So I want to give some of my suggestions to improve the situation of the receiving activity of imported cargoes at CFS warehouse Ngo Minh Hung Page1 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY Necessity CFS warehouse plays an essential part in the flow of exporting and importing goods In the growing trend of containerized service, CFS is estimated to be an important factor in the development of maritime industry in the next years So, in one months of internship, with a wish to study the CFS warehouse activities, I have chosen this topic: "The receiving activity of imported cargoes at CFS warehouse of HaiPhong 128 Newport Joint Stock Company" This research will give an insight to the CFS activities at Green Port And from that, give proper solutions to increase the development of company Research object This study is conducted to study the CFS warehouse operation at Hai Phong 128 Newport JSC and find the possible ways to improve the CFS services of warehouse Methodology of the research For study, this dissertation is gathered information from both primary and secondary sources From primary source, information is gathered by: visiting CFS warehouse at HaiPhong 128 Newport JSC and learn information about the receiving activity of imported cargoes at CFS warehouse From secondary source, information is found and gathered in documents related to CFS warehouse operation, especially the imported goods process; dissertations, journals, books related to CFS warehouse operation, services and activities in CFS warehouse Limitation of the research During the process of studying this topic, there are some limitations in conducting the paper Firstly, studying and evaluating a specific activity at CFS warehouse of a particular company need an amount of time Due to the time limitation, this report is conducted with the urgency Information is gathered mostly by the process of observation and studying in the appointed time Therefore, it may lack some information Secondly, there are some problems in observing the real receiving activity of imported cargoes at CFS warehouse of HaiPhong 128 Newport JSC Ngo Minh Hung Page2 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY Because this report is conducted in the busy time of the company, it is not easy to supervise CFS activities and collect data Besides, some information about the company is kept in secret for security Research Findings This dissertation provides the understanding of CFS operation, specifically the receiving activity of imported cargoes at CFS warehouse and giving out some recommendations to improve this activity of CFS warehouse Structure of the research Chapter 1: Literature review Chapter 2: Situation of the receiving activity of imported cargoes at CFS warehouse of HaiPhong 128 Newport Joint Stock Company Chapter 3: Recommendations to improve the receiving activity of imported cargoes at CFS warehouse of HaiPhong 128 Newport Joint Stock Company Ngo Minh Hung Page3 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY CHAPTER LITERATURE REVIEW 1.1 Introduction about CFS warehouse 1.1.1 Definition of CFS warehouse - C.F.S is container freight station: Shipping term meaning that goods will be packed into container(s) at the port of origin and unpacked at the port of destination at the carrier's risk and expense Besides, CFSwarehouse is a place that concentrates, checks and consolidates exported cargos, and operates imported cargoes with same bill of lading of many shipper.(Griffin, 1998) - Some advantages of CFS:(Olali, 2011)  If enterprises have many bales of LCL cargo, and want to sellto many different customers in a same nation destination, CFS can help them to collect LCL goods to be an enough big bale stuffing into container fully to export procedure, and save cost  CFS is the place where many importing shippers use or operate the same bill of lading of imported cargo This will help to decrease cost of transportation, and make activitys easier 1.1.2 Function of CFS warehouse - Receiving: receiving cargo from transportation system to warehouse The driver has to deliver goods on right schedule to rise productivity Cargo is moved to delivery area and checked perishing of goods (if any) These perishing of goods will be reflected on delivery note of driver The ware house - - receipt is made in this stage.(Prakash, 2001) Put-away: moving cargo to specific positions in warehouse This stage can implement some professional competences: identification of goods (scan of goods code), determining the position of reserve, moving cargo to position of reserve Finally, system of inventory must be updated to notify receipt of goods and their position in warehouse.(Prakash, 2001) Consolidation service: when cargoes or materials are imported from many different sources, warehouse plays the role being concentrating place to combine to be a big bale This will make advantages by scale when they are continued to transport to company or market by vehicles as truck, ship, (Prakash, 2001) Ngo Minh Hung Page4 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY - Order picking: choosing the specific groups of cargo for bill of customer - Sending information of bill to responsible employees, optimizing the move to take cargo, transferring cargo to transporting area.(Prakash, 2001) Handling: when vehicles come to receive goods at delivery door, cargoes must be handled to vehicles for transportation.(Prakash, 2001) - Reserve and store: ensuring cargo to be whole about quantity, quality during process of work, taking full advantage of warehouse area, caring and conserving goods in warehouse.(Prakash, 2001) 1.1.3 Role of CFS warehouse - Warehouse has the important role and position for production and circulation to serve for continuous production and normal circulation of cargo Warehouse is - infrastructure of fields of production, service for economy, play role to rise the productivity of society.(Prakash, 2001) The operation of warehouse has a close connection with many aspects of - operation of economy and society The more economy develops, the more warehouse system meets demand of the national economy.(Prakash, 2001) In fact, warehouse is not natural product, abstraction It is entity of matter, which is made by human to serve human So it always exist value and using value In the condition of commodity production in many sectors, warehouse is product of many sectors, need to be traded So, warehouse need to be preferential for investment and development.(Prakash, 2001) 1.2 Introduction about the forwarding activity and receiving activity of imported cargoes 1.2.1 Definition of forwarding activity - The forwarding is the commercial activity, specifically, the people who work forwarding service receive cargoes from shipper, organize transportation, storage, open storage, implement document and other related services to deliver - cargoes to consignee under the delegation of shipper, transporter, or forwarder (general name is customer) (Nguyen, 2010) Basically, cargo forwarding is works relating process of transportation to execute moving cargo from shipper to consignee 1.2.2 The receiving activity of imported cargoes - The receiving activity is a part of the forwarding activity, which can help to decrease the cost of imported cargoes as well as saving the time of circulation of cargoes.Specifically, the receiving party has responsibility to implement all Ngo Minh Hung Page5 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY Delivery Order: - Delivery Order includes below information:  Delivery Order includes below information:  The shipment with B/L  Name of vessel, voyage number, day of departure  Container number, type, seal  Commodity, gross weight, remark of cargo  Lowering place 2.2.3 Customs procedure 2.2.3.1Electronic customs clearance - Before requiring the order running team to go to Customs Branch, the document officers have to complete the Customs transportation declaration sheet The Customs transportation declaration sheet is filled according to information from bill of lading which is sent by forwarders The document officers will use the software named ECUS to the electronic customs clearance  Note: Each company has to register with the Customs Authorities to get an account and digital signature to use ECUS.In the first time using the software, the company need to enter the information about the registered - - account which is provided by customs authorities The purpose or this task is classifying and identifying flow of cargoes After finishing Customs transportation declaration, all information will be sent to Customs Branch via ECUS software Then the document officers wait the result of cargoes flow from Customs Branch There are three kinds of cargoes flow  Green flow: the cargoes are accepted customs clearance without verifying document and real cargoes  Red flow: the cargoes have to be inspected at Customs Branch  Yellow flow: the cargoes are checked again This flow can be transferred to red flow if the Customs Branch requires showing document of cargoes to inspect By contrast, it can be become green flow, if the cargoes are accepted customs clearance Ngo Minh Hung Page26 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY 2.2.3.2Customs procedure at Customs Branch - If the result of flow is green flow or yellow flow, which will be transferred to green flow, the document officers will receive a code from Customs Branch Then, they print printouts of ECUS system, including this code and give it accompanied the authorization letter, other related documents to order running team The order running team go to the Customs branch and present all of those documents to implement customs clearance  Firstly, the order running team goes to department of customs clearance In this stage, the customs will check information of cargoes based on printouts of ECUS and other related documents like D/O, Master B/L,… If all information is right or does not have any problem, the cargoes will be ratified  After that, they go to department of Customs seal to take seal of Customs 2.2.3.3Customs procedure at port - The order running team goes to the port, where the cargoes are arrived at to implement the rest of customs clearance  Firstly, they use D/O to exchange the order at commercial affair of that port  After checking information of cargoes from D/O, the staffs of commercial affair will ratify document and provide the position of cargoes or container at port yard, if everything is right  The order running team give them the seal of Customs and seal of shipping line and the staffs of that port have responsibility to seal two kinds of seals on the container As the result, the cargoes have full of legal status and have right to be delivered from that port to CFS warehouse of 128 company  Finally, the order running team receive Delivery note from the commercial affair and give it accompanied other related document to document officers of 128 CFS warehouse 2.2.4 Transporting the container from port to CFS warehouse - This duty is carried out by truck drivers - The truck drivers receive Delivery note and other necessary document from - document officers of 128 CFS warehouse The truck drivers go to the commercial affair of port, where the cargoes are arrived at to present documents, including Delivery note and offer to take cargoes Ngo Minh Hung Page27 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY - The truck drivers are responsible to check outside condition of containers - before stuffing such as: frames, latches, doors, shipping company seal, customs seal, etc., The truck drivers sign on delivery note and supervising note to get out gate of port and transport cargoes to 128 CFS warehouse - The 128 CFS warehouse staffs receive the delivery note from truck driver and check the container again, especially container number and seals 2.2.5 Appraising container at CFS warehouse yard - As a very important step of the process, there is a Customs staff at CFS warehouse yard, who has responsibility to check, appraise to unlock kinds of seals on container, including seal of shipping line and seal of Customs Then the CFS warehouse staffs will open the container take the cargoes In the other words, the container has to be checked, appraised and permitted by Customs staff at CFS warehouse yard to be opened - However, in fact, the CFS warehouse staffs in 128 company are authorised by Customs Branch to implement the appraising task Specifically, the take photos of conditions of container as well as seals and send to Customs Branch via the Internet As a result, the Customs staff at CFS warehouse yard is mostly absent 2.2.6 Unstuffing and storage 2.2.6.1Unstuffing - Based on the cargo manifest and real condition of cargo, the warehouse staffs require workers to unstuff and classify each kind of goods by batch, cargo owner, characteristic, - After unstuffing, the warehouse staffs check the quantity, name of shipper, condition of goods to detect damage, redundance, lack or unownedsituation, In the case that cargoes are damaged or have any troubles, warehouse staffs have to stop immediately works and notice Forwarder to overcome together 2.2.6.2Storage - In most of cases, the customers not come to warehouse to receive cargoes immediately after CFS warehouse complete receiving process, so this step will be implemented Specifically, CFS warehouse will operate to store and maintain imported cargoes until customers come and take them The time that cargoes are stored will be written in documents and CFS warehouse has responsibility to store cargo so that keep their initial condition Ngo Minh Hung Page28 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY - Specifically, after unstuffing and checking cargoes, if there is no problem or all troubles are resolved (if any), the forklift team will carry out storing cargoes into warehouse The storage of cargoes in warehouse has to be carefully divided into batches because cargoes are LCL from different cargo-owners Then, forklift team will provide the position of batches of cargoes for the document officers to update this information into management system of warehouse As a result, it will be easy, fast and convenient for warehouse staffs to find position of cargoes, when customers come to warehouse and receive cargoes - With vulnerable cargoes, warehouse has to preserve specially For example, they have to cover silver papers on wax goods to reduce heat which can damage this kind of cargo 2.3 Evaluation of the receiving activity of imported cargoes at CFS warehouse of HaiPhong 128 Newport Joint Stock Company 2.3.1 Indicator 2.3.1.1Claim of customers - The satisfaction of customers is the first indicator to evaluate any services or activities, so on of companies, organizations, businesses, CFS warehouse of HaiPhong 128 Newport JSC is not an exception In fact, CFS warehouse receives the feedbacks, claims of their customers about their services and activities In this case, this is an effective method to evaluate the efficiency of the receiving activity of imported cargoes at CFS warehouse Specifically, this indicator will be shown in detail through the below table and based on the method of data collection and data analysis Claim of customers Wrong document Delay of document Damage of cargoes 2012 12 2013 13 2014 15 2015 16 Table 2.9: The claim of customers about activities of CFS warehouse(Ngo, 2015) - The above table describe the type and quantity of claim of customers from 2012 to 2015 It is apparent from the information supplied that there was no any claim of wrong document during years However, the numbers of claim relating to delay of document were rather high and increased regularly in each year, at 12, 13, 15, 16 cases in 2012, 2013, 2014 and 2015, respectively Furthermore, damage of cargoes, which is one of the most serious issues happened with a high frequency, around or cases each year Ngo Minh Hung Page29 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY 2.3.1.2Unstuffing time of imported cargoes - The unstuffing time of imported cargoes is also used in this dissertation, which is one of the most important indicators to evaluate the services and activities of CFS This directly influences activity of unstuffing cargoes, which is a part of the receiving activity of imported cargoes at CFS warehouse Specifically, this indicator will be shown in detail through the below table and based on the method of data collection and data analysis Year Number of containers of imported cargoes per day (container) Time for unstuffing imported cargoes per day (hour) 2012 2013 2014 2015 6 7.5 12 Timer for unstuffing one container of imported cargoes (hour/container) 1.25 1.5 1.71 Table 2.10: Time for unstuffing imported cargoes at CFS warehouse(Ngo, 2015) - The above table describes the quantity of containers of imported cargoes at CFS warehouse per day and time for unstuffing them per day and time for unloading a container of imported cargoes from 2012 to 2015 It is clear that the number of containers increased slightly, with 5, 6, 6, containers in 2012, 2013, 2014, 2015, respectively Similarly, the time for unstuffing imported cargoes per day climbed more dramatically than number of container per day, specifically from hours to 12 hours in from 2012 to 2015 And it is the reason why the time for unstuffing one container of imported cargoes increased considerably during years, from to 1.71 hour/container 2.3.1.3Waiting time of containers to be operated - The next indicator relates to the waiting time of container to be operated at CFS warehouse And this indicator is based on the method of observation and interview - To be more specific, it is the time when containers of imported cargoes have to wait at entrance of CFS warehouse (near CFS yard) to be operated In fact, this never happened in five year ago because the amount of cargoes received at CFS warehouse is suitable for its infrastructure However, the amount of cargoes as well as container has increased regularly and considerable each year, so this trouble cannot be avoided In peak periods, the waiting time of containers to be operated is hours in maximum and 1.75 hours in average; and the number of container trucks, which are stuck at way in of CFS Ngo Minh Hung Page30 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY warehouse comes to trucks.The reason of this trouble is the small area of CFS warehouse yard 2.3.2 Advantages - There was no any claim of wrong document in recent years is an achievement of CFS warehouse of HaiPhong 128 Newport JSC There are several factors that contributed to this achievement Specifically, CFS warehouse has:  A great warehouse manager  The effective order running team  The modern software of management 2.3.2.1Great warehouse management - CFS department of HaiPhong 128 Newport company has a great female warehouse manager, who has good ability, experience and enthusiasm She is capable running, segmenting and dividing reasonably works to departments in warehouse Despite being a manager, a running work, she is willing to conduct other tasks by herself which are extremely important and lacked employees to be done With the professional attitude and working way, she is playing an important part to help warehouse operate well and develop In some of partner companies as KMG forwarding agent, they appraise that her working is quickly and more effective than the older warehouse manager 2.3.2.2The effective order running team - CFS warehouse of 128 Newport company has a very effective order running team The order running is a rather difficult and strenuous work, which is usually suitable for male, so all of members of this team are male Especially, the order running in customs requires the briskness, patience, broad relationships and knowledge of laws The order running team of company has enough ability and experience to adapt all of those requirements As a result, the warehouse office does not virtually have any problems about order, exceipting some situations that cannot be avoided or exceed the solving ability of team 2.3.2.3The modern software of management - CFS warehouse of 128 Newport company is one of few company in HaiPhong uses the most modern software of management which is used to manage container, communicating customs declaration, The document works become faster, easier and more effective, which specialize the cargo circulation through warehouse When office’s operations are smooth, works in scene are also supported very much Ngo Minh Hung Page31 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY 2.3.3 Disadvantages 2.3.3.1Problem about delay of document According to table 2.9, the number of cases relating to delay of document was rather high and even increased each year Actually, this is a trouble of CFS warehouse In fact, implementing and finishing related documents are important and indispensable in all activities of warehouse in general and receiving activity of imported cargoes in particular The delay of document negatively and directly influences the efficiency, speed and customer’s satisfaction of the receiving activity of imported cargoes at CFS warehouse The reason for delay of document comes from the problem relating to human resources Particularly, the CFS warehouse of 128 Newport JSC lacks of employees implementing documents after receipt and delivery, and employees implementing Customs clearance a The lack of employees implementing documents after receipt and delivery - In CFS warehouse, there are no any specialized officers implementing documents after receipt and delivery, this task is usually done by operation staffs (warehouse staffs in scene) after they finish their duty This does not become problem in some periods when warehouse has few cargoes or customers, and the company can actually save the labour cost However, in peak periods as October or days of weekend (Thursday, Friday, Saturday), it always happens the situation that staffs in scene have to complete receiving and delivering a huge number of cargo before they start implementing documents after receipt and delivery for all of container in one day This negatively - influences productivity of unstuffing and storage Furthermore,the working time of employees is also impacted which is easy to lead the complaint from them In fact, HaiPhong 128 Newport company is a new port compared with others, so the number of customers is not much and distributes not regularly through a year This causes the amount of cargoes circulating in CFS warehouse is also distributed not regularly during a year In some times when the quantity of cargoes is few or normal, the operation staffs (warehouse staffs in scene) can all tasks of receipt and delivery and document effectively and timely However, in peak periods, this quantity of employees is not enough to in turn these two works because of a huge number of cargoes This may be the Ngo Minh Hung Page32 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY reason why the steering committee of company is hesitating to recruit a new specialized officer implementing documents after receipt and delivery In other words, they want to avoid redundant situation of labour in periods of few cargoes b The lack of employees implementing Customs clearance - Currently, in CFS warehouse, there are only employees implementing customs clearance In fact, their professional knowledge and ability are very high, so they work very accurately However, this number is not enough for the amount document relating to customs clearance, which is important for cargoes received in CFS warehouse Consequently, the CFS warehouse cannot avoid some complaint of customers about delay of Customs clearance - According to the figure from Personnel, the number of male working in operation department is rather few, and even not enough for this kind of work In addition, the customs clearance is a very important and indispensable part in operation department, which needs the health, strength and flexible time of male employees because of it’ working essence So the insufficiency of male employees for this work is unavoidable 2.3.3.2Problem about damage of cargoes According to table 2.9, there are several cases of customer’s claim relating to damage of cargoes, which is a serious problem This affects seriously to regulation, prestige, images and reputation ofHaiPhong 128 Newport JSC in general and CFS warehouse in particular The worst case is loss of customers The human resources is cause for this issue, specifically the bad attitude of handling workers The bad attitude of handling workers - - According to warehouse’s regulation, in process of loading and unloading cargoes by hand, workers are not allowed throwing, flinging, , because this can damage to cargoes as broken, distorted, And workers have responsibility to rightly and strictly the regulation of warehouse However, sometimes they not that, specifically, they break the regulation when they throw and fling cargoes to just make the work more quickly They actually that in front of customers or with fragile goods Besides, the tallymans in scene not rather warn workers The first reason is from the management of warehouse manager which is not enough strict with handling workers Ngo Minh Hung Page33 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY - Secondly, the individual attitude of workers must be considered This can relate - to salary issue or ensuring regime, which lead the discontent from handing workers The third reason is indifferent management from tallymans in scene, who run directly steps of unstuffing and storage in scene In this case, there is a little sympathy with tallymans, because the age and seniority of almost tallymans in CFS is young and younger than workers Thus, their voice is not sometimes enough to persuade and control workers 2.3.3.3Problem about unstuffing time of imported cargoes In fact, the time for unstuffing imported cargoes per day and time for unloading one container of imported cargoes at CFS warehouse of 128 Newport JSC is rather slow, and slower significantly than some other modern CFS warehouses such as CFS warehouse of Green Port And this negatively influences activity of unstuffing in particular and receiving activity of imported cargoes in general Specifically, this does not only decreases speed and efficiency of receiving activity for a container of imported cargoes, but also negatively influences the later ones and implementing related documents There are two causes for this trouble The first reason relates to equipment of warehouse, specifically forklift trucks And human resources is another cause, specifically, lack of handling workers a The equipment issue - The specialized equipment now of warehouse is three forklift trucks and this number is really few in peak periods In fact, the situation of lack of forklifts sometimes happens when the forklifts must to operate overcapacity This causes losing time in steps ofunstuffing and storage, influence to productivity - According to the quantity of cargoes received and stored in CFS warehouse, it is clear that the number of cargoes regularly increased during recent years - However, the number of forklifts has still unchanged So the overloaded and insufficient situations of forklifts in CFS are unavoidable In addition, some forklifts are rather old, not modern as much as others, so they decrease directly the efficiency of activity of unstuffing Furthermore, this makes much exhaust fume in operating process This pollutes to environment and harms to employee’s health In fact, 128 Newport company bought these forklifts in 2010 and has used them for years, so they became rather old and Ngo Minh Hung Page34 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY not modern The reason of this issue is that the warehouse staffs and workers have not reported and reflected about problem of old forklift and polluted environment b Lack of handling workers - In this situation, the lack of handling workers should be carefully considered There is only one team of handling worker at CFS warehouse, which includes people This number is very few in some peak periods, when the CFS warehouse receives a huge amount of cargoes - According to the figure from Personnel, the number of male employees working at operation department is rather few, even not enough for this kind of work CFS warehouse is a part of this department, which is influenced by this problem This explains mostly why CFS warehouse lacking of handling workers 2.3.3.4Problem about waiting time of containers to be operated - Waiting 1.75 hours in average and even hours to be operated of a container is too long This does not only influences activities of appraising container at yard and unstuffing, but also cause congestion of trucks and impact other activities of company as well as CFS warehouse Because the number of container trucks, which are stuck at way in of CFS warehouse come to trucks To be more specific, the area yard of CFS warehouse is only enough for container trucks in maximum And this number is very low compared to the number of containers and cargoes received at CFS warehouse, which are increased regularly and considerably in recent years Ngo Minh Hung Page35 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY CHAPTER RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAI PHONG 128 NEWPORT JOINT STOCK COMPANY 4.1 Suggestion for problem about delay of document To surmountthis problem, the company should focus to solve the problem of human resources, specifically the lack of employees implementing documents after receipt and delivery, and lack of employees implementing Customs clearance 4.1.1 Suggestion for lack of employees implementing documents after receipt and delivery - If CFS warehouse recruits a specialized employee implementing documents after receipt and delivery in scene, in peak periods, he or she can implement effectively and quickly documents for each container This helps decreasing working time and share burden with the operation staffs Besides, the document employee is also useful and work effectively in periods of few cargoes The company should not worry about redundant situation of labour, because this is not more serious than low productivity or loss of customers 4.1.2 Suggestion for lack of employees implementing Customs clearance - In fact, the female employees work carefully and meticulously, so the result of work will be more effective However, most of works in the operation department require the employees to have flexible time and good healthy condition, especially customs clearance Besides, it is so hard for most of female to work late because their family works and their health cannot be - similar with men Thus, the male employees are more suitable for these kinds of work Firstly, the 128 Newport company should dispose again workforce in operation department based on gender Specifically, the number of male employees in this department will be increased and vice versa with female So the CFS warehouse will have more choices to choose the available male employees of company and train them When they gain the certificate from the course of Ngo Minh Hung Page36 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY customs clearance, they will have enough knowledge, ability and conditions to - this kind of work As a result, the problem is resolved Secondly, the company can directly recruit new employees, who have certificate of customs clearance to implement this work 4.2 Suggestion for problem about damage of cargoes To surmount this problem, the company should concentrate its reason Specifically the attitude of handling workers should be carefully considered - Firstly, CFS warehouse should make thoroughly a regulation To be more specific, who will be responsible to pay the damages if the cargoes are damaged, not only CFS warehouse in general, but also all of staffs of - warehouse in particular Secondly, CFS warehouse should have a supervisor, who has responsibility to supervise all activities of warehouse including the handling work Particularly, the supervisor use a camera to record images and videos of activities, such as working process of handling workers when they handle cargoes In addition, some fixed cameras will be installed on suitable positions of warehouse to supervise activities of staffs, including handling workers - - As a result, the handling workers will have to strictly comply with all of regulations If they continue throwing, flinging and damage to cargoes, they have to compensate for damage based on the regulation that is considered in the first paragraph Training again workers may be not necessary,because this problem is related to their attitude not working ability 4.3 Suggestion for problem about untuffing time of imported cargoes The main reasons of this trouble are equipment issue and lack of handling workers If HaiPhong 128 Newport JSC resolves these issues, the problem about unstuffing time of imported cargoes will be surmounted 4.3.1 Suggestion for equipment issue - To surmount this situation, warehouse can borrow more forklifts from other departments as pier, yard In some peak periods This is a rather flexible method to improve the situation However, other departments are not always able to lend their equipment because the number of works in each department is very much, especially in peak periods Ngo Minh Hung Page37 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY - The more effective solution is that company should invest to buy more forklift trucks to provide for peak times The forklift trucks are not only provided for operation of CFS warehouse, but also for other department if necessary So company should not worry about redundant situation of equipment - Additionally, it is very necessary to replace the old forklift, which harm to environment and employee’s health, because the issues of environment and labour’s health in production should be considered strictly in current society Besides, company needs hold to check and maintain the quality of equipment quarterly 4.3.2 Suggestion for lack of handling workers - CFS warehouse is a part of operation department According to the table 2.3, the number of male employees is too few, and is not enough for this type of work The lack of handling workers of CFS warehouse is influences partly by this situation So the company should consider arranging again the number of - male and female in this department Because the characteristic of almost works in this department is suitable for men rather than women In addition, the CFS should recruit and hire more unskilled labour to adapt the amount works and cargoes received at CFS warehouse 4.4 Suggestion for waiting time of containers to be operated - In fact, the area for CFS warehouse of HaiPhong 128 Newport JSC is very large, at 15,000 m2 in total However, the company has not taken full advantages of this large area Aside from warehouse, offices, parking lot and current CFS yard, the rest of area is still considerable, specifically, the area of the rest is about 4000 m2 If the company expands and builds to use and operate the rest of area, the trouble will be resolved - Additionally, the management team of CFS warehouse should set up and arrange appropriately and effectively the arrived and parked schedules of trucks on CFS yard Ngo Minh Hung Page38 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY CONCLUSION The theory and reality are two sides of one issue, which have close connection, influence and support each other With gathered knowledge during process of study in university and real operations in CFS warehouse of HaiPhong 128 Newport company, I realize that applying theory into reality is an extremely difficult problem HaiPhong 128 Newport Joint stock company is a young enterprise in field of port, so there are some limited aspects in operations of company, including CFS warehouse department These difficulties cannot avoided by a young company, however 128 Newport company always try to overcome all challenges and develop stably In this period, the direct competition with other big ports as Chua ve terminal, is very difficult, thus the company should consider carefully to have wise investments and suitable co-operations with partners to build a steady position in market of port Besides, in the management, use and improvement of effect of the receiving activity of imported cargoes at CFS warehouse, it requires managers of enterprise finding the best modes, methods which are not wrong with general trend of social and ensure the high effect Based on results that I studied in management and operation in CFS warehouse of HaiPhong 128 Newport company, I want to present some my individual opinions, methods to improve development of CFS warehouse To finish this report, I was helped enthusiastically by officers and employees of HaiPhong 128 NewPort Joint stock company, as well as instructor and teachers of Vietnam Maritime University I would like to thank sincerely Ngo Minh Hung Page39 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY REFERENCE Griffin (1998) Glossary Minnesota: Griffin And Company Logistic Joe, C (2008) Glossary of Shipping Term Washington DC: Maritime Adminitration Katherin, F (2012) Expeditors international of Washington New York: Lexis Nexis Ngo, T D (2015) Annual report of Saigon Newport Hai Phong: Saigon Newport Nguyen, H (2010, 6) Container transportation Retrieved 11 2015, 28, from Container transportation website: http://www.containertransportation.com/freight-forwarder-vn.html Olali, A P (2011) Strategic responses of container freight stations in Kenya to challenges in the business environment Kenya: University of Nairobi Prakash, A (2001) Customs procedures and Functioning of Container Freight Stations and Ports New Delhi: The Secretariat for the Committee on Infrastructure Saigon Newport (2012, July 14) Saigon Newport company Retrieved October 10, 2015, from Saigon Newport Web site: http://saigonnewport.com.vn/Pages/IntroPage.aspx?nid=1106&sn= Thomas, J (1999) Glossary of International Shipping Terms Liverpool: Old Dominion Freight Line Ngo Minh Hung Page40 ... receiving activity of imported cargoes at CFS warehouse of HaiPhong 128 Newport Joint Stock Company Ngo Minh Hung Page3 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE. .. HAIPHONG 128 NEWPORT JOINT STOCK COMPANY CHAPTER SITUATION OF THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAI PHONG 128 NEWPORT JOINT STOCK COMPANY 2.1 Introduction about HaiPhong... Page19 RECOMMENDATIONS TO IMPROVE THE RECEIVING ACTIVITY OF IMPORTED CARGOES AT CFS WAREHOUSE OF HAIPHONG 128 NEWPORT JOINT STOCK COMPANY - Over weight cargo The CFS warehouse in HaiPhong 128 Newport