RECOMMENDATIONS TO IMPROVE WAREHOUSE OPERATIONS IN QUANG NINH PORT JOINT STOCK COMPANY

MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: VU THI LUONG DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATIONS TO IMPROVE WAREHOUSE OPERATIONS IN QUANG NINH PORT JOINT STOCK COMPANY HAI PHONG – 2015 MINISTRY OF TRANSPORTATION MINISTRY OF EDUCATION & TRAINING VIETNAM MARITIME UNIVERSITY STUDENT NAME: VU THI LUONG CLASS: GMA 02 DISSERTATION GLOBAL STUDIES AND MARITIME AFFAIRS RECOMMENDATIONS TO IMPROVE WAREHOUSE OPERATIONS IN QUANG NINH PORT JOINT STOCK COMPANY Supervisor: Hoang Thi Lich Division : Global Studies and Maritime Affairs Faculty : Economics HAI PHONG – 2015 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company PREFACE Because of globalization trend of economy, Viet Nam has had significant improvement to integrate into general development of world economy Trading and commercial activities among states is more and more developing, this leads to high demand of cargo transportation, therein port plays an important role Ports are considered as “connecting bridge” motivating economic exchange Especially, since Viet Nam implemented reform policies, port system in Viet Nam has expanded and upgraded to satisfy demands of domestic and abroad cargo transportation The economic development of the country and around the world requires the exchange of trade and commerce between countries and regions Therefore, export and import operations are increasingly improved leading to the speed of cargo throughput also increases However, cargo cannot always be adapted to go straight all the time Consequently, the appearance of storage services to store merchandise is really necessary That set off for now the question as: how is warehouse operation and how to improve warehouse operations These questions will be addressed according to the specific characteristics of the business, from which each business sets the direction and development goals are different To this, the company provides warehousing services need to measure innovation, enhancements to improve warehouse operations Therefore, I chose the topic “Suggestions to improve warehouse operations in Quang Ninh Port Joint Stock Company” I choose this topic because recently Vietnam is increasingly becoming a country, which import a great volume of bulk cargoes like agricultural products and fertilizers, which need to be stored if it cannot go straight Therefore, warehouse operation activities play an indispensable role in the efficiency of port operation In this report, I will describe the whole results of this study trip, reality that I see and some information as well as some solutions I recommend to deal with some problems of warehouse operation in Quang Ninh Port Joint Stock Company Vu Thi Luong – GMA 02 Page i Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company The main contents of the dissertation consist of three main parts: Chapter I: Literature overview Chapter II: Evaluation warehouse operations in Quang Ninh Port Joint Stock Company Chapter III: Recommendations for a number of measures to improve warehouse operations in Quang Ninh Port Joint Stock Company Vu Thi Luong – GMA 02 Page ii Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company ACKNOWLEGEMENT Although I have tried to learn and study documents in the fields of topic, but the dissertation are inevitable shortcomings Therefore, I would like to receive comments, complement, and repair from the lecturers In particular, I would like to thank the lecturer Ms Hoang Thi Lich, who guided me all the time of research and writing of this thesis and the staffs in Quang Ninh Port Joint Stock Company helped me to complete the dissertation 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 Vu Thi Luong – GMA 02 Page iii Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company Table of Contents PREFACE i ACKNOWLEGEMENT iii Table of Contents iv LIST OF ABBREVIATIONS v INTRODUCTION CHAPTER 1: LITERATURE OVERVIEW 1.1 General information of warehouse 1.1.1 The definition of warehouse and warehouse operation 1.1.2 Justification for selection of warehouse capacity 1.1.3 Warehouse classification 1.1.3.1 Warehouse classification based on ownership Private warehouses are constructed and owned by the business enterprises in order to store the products produced by them These are exclusively owned and used by the producers themselves and are not meant for other manufacturing or business units (Kyle Lau, 2011) 1.1.3.2 Warehouse classification based on items 1.1.3.3 Warehouse classification based on architecture 1.1.3.4 Main warehouse services 1.2 The indicators to evaluate warehouse operations The purpose of measurement the ability of operation is to find out whether things are going the right way or not in order to find out what were the causes that created a poor operation Basing on that, people could found solutions for improving operational ability The main tools for evaluating operational ability are operational indicators, also named key operational indicators They are specific characteristics of the process is realized according to pre-established standards The best way to use indicators is to compare real values with standard values If there are poor results, poor operational ability, in reality, improvements for the process have to be made 1.2.1 Safety: .7 1.2.2 Dwell Time: 1.2.3 Storage Space: 1.2.4 Cargo preservation 1.2.5 The area utilization CHAPTER 2: EVALUATION OF WAREHOUSE OPERATION IN QUANG NINH PORT JOINT STOCK COMPAY 10 2.1 Overview of Quang Ninh Port Joint Stock Company 10 2.1.1 General information .10 2.2 Evaluation of warehouse operations in Quang Ninh Port JSC 18 Vu Thi Luong – GMA 02 Page iv Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company 2.2.1 General information of warehouses and yards of Quang Ninh Port JSC 18 2.2.1.1 Types of warehouse and yards 18 2.2.1.2 Warehouse of dry bulk cargo 19 2.2.2.2 Dwell time 23 2.2.2.3 Storage Space 29 CHAPTER 3: RECOMMENDATIONS TO IMPROVE WAREHOUSE OPERATIONS IN QUANG NINH PORT JOINT STOCK COMPANY 33 3.1 Strengths and Weaknesses 33 3.1.1 Strengths 33 3.1.2 Weaknesses 35 3.2 Recommendations 36 CONCLUSION 38 References 40 LIST OF ABBREVIATIONS JSC JOINT STOCK COMPANY ISO INTERNATIONAL ORGANIZATION FOR STANDARDISATION CFS CONTAINER FREIGHT STATION H HEIHGT W WIDE L LENGTH CV CHEVAL VAPEUR IPO INITIAL PUBLIC OFFERING ES ELECTRIC SCALE Vu Thi Luong – GMA 02 Page v Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company LIST OF TABLES TABLE 1: Business Status (2013 – 2014) 14 TABLE 2: Business Results in the First Six Months in 2015 15 TABLE 3: Cargo Throughput and Revenue of Warehouse Operations (2013 – 2014 and the First Nine Months in 2015) 19 TABLE 4: Summary Cargo Throughput of Warehouse in the First Nine Months in 2014 21 TABLE 5: The Input, Output and Inventory for Each Months (2014) .23 TABLE 6: Summary Cargo Throughput of Warehouse in the First Nine Months in 2015 24 TABLE 7: The Input, Output and Inventory for Each Months (2015) .26 TABLE 8: Maximum Capacity Utilization of Warehouse in the First Nine Months in 2014 - 2015 27 TABLE 9: Maximum Area Utilization of Warehouse in the First Nine Months in 2014 2015 29 LIST OF CHARTS CHART 1: The Volume of Cargo Throughput in Warehouses …………………… 20 CHART 2: The Changes of Input, Output and Inventory (2014) … ………….… 23 CHART 3: The Changes of Input, Output and Inventory (2014) … …………… 26 CHART 4: Real Cargo Loss (2014) ……………………………………………… 28 CHART 5: Real Cargo Loss (2015)………………………………………………… 28 Vu Thi Luong – GMA 02 Page vi Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company INTRODUCTION Necessity Vietnam is a developing country with high development speed International economy and finance organizations offered evaluation and positive forecast about economic development of country in near future Along with the economy development and integration is the increase of logistics business sector Logistics is a new field in Vietnam in recent years, especially in the period of opened market, while import and export activities is pushing up, logistics activities play a pivotal role creating suitable conditions for Vietnam’s enterprises joining in international market The development of logistics services ensure produced operation, ensuring the time and the quality of other business services Logistics develop considerably would bring the ability of reduce cost, improve the quality of products This is an action meaning as a chain, the efficiency of this activity plays an important role for the competition of industry and commerce of each country Therefore, with the extremely important position in the whole chain of logistics services, warehousing are contributing in huge part to revenues and profits as well as the development of logistics Without warehouses, logistic activities cannot take place effectively It not only plays an important role for the business but also plays a pivotal role for partner, organizations, national economy by saving the cost of production, preservation and storage, transport costs In other words, warehouses contribute to increase the value of goods, increase service quality, meeting customer needs However, reality shows that this activity in our country is relatively backward and inefficient Thus, how to improve warehouse operations, the matter that both business providing services and clients concerned In order to better understand the situation of warehouse activities of businesses providing storage services, I want to mention directly to a particular company, such as Quang Ninh Joint Stock Company Research Purposes First and foremost, this dissertation contributes to supplement the logistics knowledge in general and specific warehouse operation insight in particular Based on the relationship with logistics system in logistics enterprises, this dissertation would like to provide the specific theories of warehouse operation Along with this, theoretical knowledge will be applied in to real situations in order to solve troubles This dissertation focuses on the situation of warehouse operation of Quang Ninh Port Joint Vu Thi Luong – GMA 02 Page Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company Stock Company in order to understand specifically about logistics activities of a particular company Additionally, this dissertation contributes to recommend a handful of solutions to improve warehouse operations in particular and the business situation of the company in general Research Object Research object is dry bulk cargo warehouse in Quang Ninh Port Joint Stock Company – where provides storage service Research Scope - Space: Logistics and Warehousing Enterprise – Quang Ninh Port Joint Stock Company - Time: the first nine months of 2014 and 2015 Methodology To achieve this goal, in implementation process topic, I have used three main methods, including:  Secondary data collection To evaluate the company’s business, I refer to data from the company and the Website of Quang Ninh Port SJC, including the final report, financial statements, and reports of personnel through the year of the company  Statistical analysis Data analysis is based on comparative method which is commonly used, we can compare the situation of business activities of the company over the years and compares revenue, cargo volume, the total revenue or profit of the company over the years  Observation In the period of internship in Quang Ninh Port JSC, I used this method in order to observe facilities as well as equipment which company has being utilized and working manner of employees CHAPTER 1: LITERATURE OVERVIEW Vu Thi Luong – GMA 02 Page Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company 27 26 27 28 29 30 31 32 33 34 35 Corn Soybean meal Soybean meal Soybean meal Soybean meal Soybean meal Corn Corn Soybean meal Corn Corn 15/6/2015 23/6/2015 30/6/2015 8/7/2015 13/7/2015 14/7/2015 26/7/2015 13/8/2015 23/8/2015 11/9/2015 12/9/2015 14/8/2015 6/7/2015 10/8/2015 30/7/2015 22/9/2015 12/8/2015 28/8/2015 10/9/2015 6/10/2015 6/10/2015 13/10/2015 61 14 42 22 72 30 34 29 45 26 32 Total input 1,340.47 1,336.23 4.24 0.316 2,539.19 2,534.13 5.06 0.199 1,712.38 1,701.13 11.25 0.66 2,033.88 2,023.83 10.05 0.494 2,033.84 2,026.88 6.996 0.344 2,032.30 2,025.62 6.685 0.329 2,928.23 2,917,567 10.663 0.364 857.58 855.01 2.561 0.299 1,523.78 1,518.98 4.798 0.315 2,871.50 2,862.48 9.02 0.314 777.79 774.88 2.912 0.374 55918.738 (Source: Logistics and Warehousing Enterprise, QNP JSC) The above Table and Table show the date of cargo input and output According to the table, we can see that from December, 2013 to the first nine months of 2014 and from December, 2014 to the first nine months of 2015, the number of input and output was frequently However, in 2014 the volume of cargo going through warehouse was more frequently with a greater total quantity compared to 2015 Looking at the input and output time, we may find that during the first nine months of both two years, warehouse always stores cargoes, this means that companies always provide storage services to customers therefore companies always have revenue in providing warehousing services Vu Thi Luong – GMA 02 Page 27 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company According to the above table, I can calculate the input, output and inventory for each month (relatively) by following table: Table 7: The input, output and inventory for each month (2015) Period 22/12/2014 - 31/1/2015 1/2/2015 - 28/2/2015 1/3/2015 - 30/3/2015 1/4/2015 - 30/4/2015 1/5/2015 - 31/5/2015 1/6/2015 - 30/6/2015 1/7/2015 - 31/7/2015 1/8/2015 - 30/8/2015 1/9/2015 - 31/9/2015 Input(tons) 8,650.298 10,429.678 15,718.02 14,528.856 15,415.445 14,319.005 19,719.837 12,156.588 7,792.496 Output(tons) + cargo loss 676.49 3,210.238 8,122.994 2,792.621 11,738.49 3,627.418 9,944.609 8,013.382 2,624.447 Inventory(tons) 7,973.808 7,219.44 7,595.026 11,736.24 3,676.955 10,619.59 9,775.228 4,143.206 5,168.049 We can see in the first nine months in 2015, cargo volume circulated through the warehouse constant changes monthly Specifically, the highest volume of goods was brought into the warehouse with 19,719.837 tons in July While the greatest number of inventory in warehouse could reach 11,736.24 tons in April Interestingly, in 2014 the number of inventory could be achieved the biggest number was also in April with 11,374.47 ton The remaining months having inventory were relatively low Although the total amount of input of the first months in 2014 is greater than 2015, but cargo should be taken more frequently so inventories still often less than in 2015 We will consider the space utilization and area utilization basing on the highest volume of inventory reached in the first nine months in both 2014 and 2015 to make a comparison Chart 3: The changes of input, output and inventory (2015) Vu Thi Luong – GMA 02 Page 28 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company 2.2.2.3 Storage Space 1ton of bulk cargo = 1.36 m3 (German marine insurers) We will consider the greatest number of inventory of both two years 2014 and 2015 with the number of cargo is equal or less than 11,374.47 tons and 11,736.24 tons respectively to calculate the capacity utilization of warehouse in order to compare and evaluate warehouse operations of company Considering: Table 8: Maximum capacity utilization of warehouse in the first nine months in 2014 and 2015 1.36 m / ton ton % of capacity utilization 15,469.2792 m3 11,374.47 tons 36% Capacity utilization (2014) Capacity utilization (2015) Real volume of warehouse 15,961.2864 m3 11,736.24 tons 38% 42,517.248 m3 The result indicated that capacity utilization of both two years in this warehouse in the first nine months was quite low compared to real warehouse capacity because some studies suggest that a warehouse capacity of 80-85 percent is optimal (Jesper Lilelund, 2015) However, the capacity utilization of warehouse in 2015 was 2% higher than in 2014, although in 2014 the amount of input was bigger In conclusion, in the first months period of both two years, company has not operated the maximum capacity utilization of warehouse as volume desired Vu Thi Luong – GMA 02 Page 29 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company 2.2.2.4 Cargo preservation Chart 4: Real cargo loss (2014) Chart 5: Real cargo loss (2015) Looking at the chart and chart we can see clearly that the cargo loss changed for each category of goods and storage time, however, basing on experience and the measurement by the technical staff of Quang Ninh Port JSC, they could calculate the natural wastage level for all types of commodities including corn, soybean meal and wheat is 0.3% Compared with the loss in fact, obviously, both two charts show the volume loss of both years has reached more than allowed We can see the actual amount of the cargo loss of both two years was still quite high compared to the amount of losses allowed, namely the volume of actual losses in 2014 often reach over 0.3%, sometimes reaching over 0.6% However, when considering the volume loss in 2015, we can see the obvious difference, namely the level of cargo loss fluctuated from 0.3% to 0.6% in 2015 while in 2014 cargo loss fluctuated from only approximately 0.25% to 0.47% Shipments have increased depreciation in 2015 than in 2014 although in 2014 the amount of higher input The amount cargo loss in 2015 increased significantly compared to 2014 although in 2014 the amount of input was higher This can be due to many reasons, first reason may be because of changes in temperature and moisture Vu Thi Luong – GMA 02 Page 30 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company during storage repository, however there is no equipment of controlling temperature and humidity thus warehouse supervisor cannot control the changes related to weather conditions Besides, during practice and actual observations at warehouse, cargo in warehouse was stolen in some cases due to the negligence of the guard 2.2.2.5 The area utilization Basing on experience and the measurement by the technical staff of Quang Ninh Port JSC, they could calculate the floor arbitration for all types of commodities including corn, soybean meal and wheat is 2.8 tons per m We will consider the greatest number of inventory of the period of April in both two years with the number of cargo was equal or less than 11,374.47 tons and 11,736.24 tons respectively to calculate the area utilization of warehouse in order to compare and evaluate warehouse operations in the first nine months in 2014 and 2015 Considering: Table 9: Maximum area utilization of warehouse in the first nine months in 2014 and 2015 Area utilization(2014) Area utilization(2015) Real area of warehouse 2.8 tons/ m2 11,374.47 tons 11,736.24 tons 1m2 4,062.31 m2 4,191.51 m2 4,612.44 m2 % of area utilization 88% 90% The result indicated that area utilization of this warehouse is a positive number compared to real warehouse capacity because Frazelle (2002) suggests that the optimum level of warehouse utilization, depending on the type of operation is a maximum from 86% to 90% for real time In fact, area utilization is 90% in 2015, 2% higher than that in 2014 basing on calculation when the number of cargo reached a maximum level Obviously in the first months of both 2014 and 2015, only in April Company could reach almost maximum useful area, but the other months, the useful area utilization was not taken advantage 2.2.3 General evaluation Vu Thi Luong – GMA 02 Page 31 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company According to the indicators we can see Quang Ninh Port JSC can maintain the cargo throughput going through warehouse, nevertheless, the volume decreased significantly compared to 2014 Therefore company has been unable to fully operate Specifically, in the period of first nine months in 2015, only the amount of inventory in April may reach a maximum of 11,736.24 tons of cargo and using nearly 90% of the real area of warehouse while in another months, company had not taken advantage of the total useful area of warehouse because the volume of inventory was too little Specifically, in May, 2015 the volume of cargo stored in the warehouse reached only 30% compared to the warehouse area allows Obviously the company has been unable to take advantage of useful storage area for the month of inventory is too low Based on these above calculations, we can see in the first months of 2015, the volume of inventory might reach a maximum of 11,736.24 tons in only April while in another months, the number of cargo was not much leading to big empty area warehouse This was the similar case in 2014 Furthermore, based on observation, cargo in warehouse is not pushed up to maximum height, as the result, the area as well as capacity of warehouse consumed is larger than the area needed to store a certain amount of goods This leads to not take advantage of the warehouse capacity Besides, the amount of the cargo loss is still numerous compared to the loss allowed (0.3%) Looking at chart and 4, in the first months of actual volume loss in 2014 and 2015 often exceeds loss allowed However, the rate of cargo loss in 2015 increased considerably compared to 2014, fluctuating form 0.3% to 0.6% This may be because there is no system to control the temperature and humidity in the warehouse, leading to obstacles in controlling the reasons caused cargo loss Furthermore, the case of goods stolen due to the negligence of security personnel still persists Besides the above - mentioned indicators, we also consider other important factors affecting to warehouse operations such as equipment and human resource cater for operations activities In fact observations, warehouse does not directly provide equipment to cater for cargo handling operations in warehouses and warehouse only provide storage service for cargo Therefore, this is quite a big obstacle to promptly respond storage service for customers Additionally, the lack of control system of temperature and humidity for a standard warehouse are also a matter of concern This Vu Thi Luong – GMA 02 Page 32 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company directly affects the determination of the cause of the rate of cargo loss Moreover, the human factor also plays a very important role in the efficient warehouse operations However, both the qualification and the responsibility for the work of the staff need to be improved For these reasons, the warehouse operations of company is not really effective, thereby company need remedial measures to improve the efficiency of warehouse operations CHAPTER 3: RECOMMENDATIONS TO IMPROVE WAREHOUSE OPERATIONS IN QUANG NINH PORT JOINT STOCK COMPANY 3.1 Strengths and Weaknesses 3.1.1 Strengths - Quang Ninh Port Joint Stock Company owns 02 warehouses with area of 4.600m2 for each warehouses, this is a reasonable place for goods delivery and also be Vu Thi Luong – GMA 02 Page 33 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company distribution channel of Quang Ninh Province Especially, this 02 warehouses are located in Cai Lan, which is a deepest sea port in the North of Vietnam, often receive big vessels, this type of vessels often demand to rent warehouse in order to facilitate the transport, loading and unloading goods and ensure the safety of goods, especially for temporarily imported and re-export goods - The staff and workers in the field of warehouses operations have many years of experience This is the source of longtime employees working at the company, providing services in warehouses for the regular customers of the company, so they quickly grasp customer requirements better, experience of exposing to regular customers facilitate more convenient and fast work Besides, the working style of the warehouses staff are considered to be quite agile, especially in doing the paperwork, although the procedures in warehouses is not worked on the computer but because of long experience, the processing does not take a long time of customer - Overall, the company offers customers a clear, detail service delivery process, ensuring that staff and customers make an easy way, without causing troubles and rise unnecessary procedures in the supply process Obviously the general process through the stages necessary, the first stage is to receive information about the requirements of the customer service, depending on the capacity of companies can arrange infrastructure and conditions to serve customer or not - When considering the full capacity to meet the needs of customers, accept transaction with the customer, avoid annoying customers while cannot afford providing service The next step is to implement the provision of services The work in the process of providing service are outlined very specific and clear requirements for such steps, especially work with procedures and paperwork relating to transport The last stage was a general report of the results of service provision contract, in this step also requires employees to report to the board of directors and the transaction records Vu Thi Luong – GMA 02 Page 34 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company - Warehouse is equipped fire safety alarm in case of emergency, increasing the safety of goods in warehouse as well as helping the supervisor of warehouse increase activeness in solving risk 3.1.2 Weaknesses - Equipment and technology supplied in company's warehouses are weak, lack of uniformity There is no equipment serving permanent in warehouse therefore taking time waiting orders equipment from technology department of company This makes time-consuming for customer and cargo cannot be granted as soon as the transport vehicle coming to the door of warehouse - Regarding the process of service provision, notably in the IT system is applied in the process of providing warehousing services is weak The IT applications stop at equipping the computer system to enter data on common goods without using any inventory management software, which delay the process of providing services - Sometimes cargoes of different vessels but similar type of items such as Brazil corn, the supervisor of warehouse will guide to pour into a pile When supplying products to customers, the case of wrong quality of cargo would be appeared and customers will require changing cargo This leads to loss of time and cost for both customers and the company providing warehouse services - Drivers not comply with the direction of the warehouse supervisor designating unloading position, leading to indiscriminate discharge in warehouse This leads to the loss of useful area to storage goods in warehouses and causing traffic congestion in warehouse, moreover, the capacity of the car with long loader having to work would be higher, has caused loss of time as well as waste more fuel - There is no device to control temperature and humidity in the warehouse, causing difficulties in controlling the volume of cargo loss due to the change of weather conditions - Due to the subjectivity of the warehouse supervisor, sometimes she has not calculated in advance the suitable position for unloading cargo in cases there are Vu Thi Luong – GMA 02 Page 35 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company two or three types of category needing to unload, this is also the cause also cause of congestion in warehouse and cannot maximize the useful area of warehouse - The lack of enthusiasm for the job, namely the workers work by day, their salary ranges from 70,000 VND to 95,000 VND per shift with 6-hours, therefore they not have diligence in work, causing delays for the operation of the warehouse - For input cargo, delivery people just need to get scale papers from drivers then designating for drivers the suitable position to unload cargo in the warehouse, but for output cargo, delivery people has to follow the car coming to the weighbridge in order to avoid the loss of goods due to many reasons, thus if there is only one staff arranged for each warehouse in each shift, the work efficiency is not high 3.2 Recommendations Recommendations to Quang Ninh Port Joint Stock Company Invest and promote marketing strategies of the whole company because the main purpose of marketing is sourcing, potential customers, who have large volume of cargo through the port and use the storage services of the business This can help business taking full advantage of space as well as surface area of warehouses for storage cargo, factors directly impact on revenue of the business In addition, the development of reputation and increase competition are also an essential goal of marketing Additionally, reviewing the major customers, who used the services of company, has moved to other ports or clients with reduced output than was done previously Basing on that, making analysis, assess the causes and take measures to overcome difficulties in order to attract customers returned to use company's services Recommendations to Logistic and Warehousing Enterprise - Investing handling equipment in warehouse like car loader with the desire to respond promptly the needs of customers, increase the efficiency of warehouse operators Moreover, customers will not waste time in order to wait equipment coming in case equipment of technology department is used up Vu Thi Luong – GMA 02 Page 36 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company - Recruit more delivery people and there is preferential treatment regime for workers, who work by shift Specifically, supervisor of warehouse should arrange two delivery persons managing at each warehouse for each shift This ensures the time of shipment as well as reducing the volume of cargo loss In addition, workers should be received the reward for those who are enthusiastic and responsible in their work This helps to encourage voluntary spirit of each worker, simultaneously also creating competition in the work to improve the efficiency of warehouse operations - Increasing the concentration of security guard avoids the loss of the goods, besides, companies should allocate extra surveillance cameras to control, minimize the volume of cargo loss by workers who respond directly in that shift - Equip measurement and control system the temperature and moisture in order to have remedial measures the changes of weather conditions that caused the loss of goods Besides that, there are plans to upgrade infrastructure in warehouse to make sure that the temperature and humidity are suitable for storing goods - Although the fire protection system is fully equipped but staff have no experiences to solve problems in an emergency Therefore, companies should have a plan to hold rehearsals fire protection for employees so that they know how to handle in case of emergency fire alarm, reduce risks for cargo - Currently, the number of people responding for forwarding activities are young but weak qualifications and training are not regular, no updates new expertise Consequently company should hold training course to raise professional qualifications of warehouse staff, enhance the sense of responsibility of staff for providing warehouse services to operate in the long term - Although the useful area of warehouse is quite large but company has not fully utilized the useful area as well as the space capacity of the warehouse Therefore, supervisor of warehouse needs to have prompt direction to worker who drives car loader in order to push cargo pile to maximum height to take advantage of space utilization of warehouse Vu Thi Luong – GMA 02 Page 37 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company CONCLUSION Quang Ninh Port Joint Stock Company is a great business transport forms and business services of general relativity Through many years of building and growth, Quang Ninh Port JSC has achieved encouraging success in different services Production activities are going on orbit operation of the market economy Quang Ninh Port JSC is gradually asserted its position on the domestic market and international market With the relatively wide activities include providing various services for the individuals and organizations that use direct or indirect service of the port, in order to best cater the needs of customers Over the process of studying the topic, I find that the study of warehouse operations efficiency is very necessary and essential for the development of enterprises From the analysis of efficiency of warehouse operations, we can see the warehouse business situation of enterprises over the years, the achievements and shortcomings Therefore, we can set out remedial measures to improve the efficiency of warehouse operations in the next few years It is also the basis for managing warehouse in a more efficient and premise for strategic planning, direction for the company in the future Vu Thi Luong – GMA 02 Page 38 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company Dissertation has addressed the following issues: • Introduction of company: time of establishment, the owner, business lines, company structure, equipment, number of employees and contacts • Literature overview: basic theories about warehouse operations efficiency of seaport, the indicators to evaluate the efficiency of warehouse operations • Assess indicators to evaluate warehouse operations, including cargo throughput and revenue, average dwell time, storage capacity, cargo preservation and the usage of warehouse's area • Point out the strengths and weaknesses of enterprise and propose a number of measures to improve warehouse operations, including measures concerning the human resources, equipment, warehouse management However, because of the short time of doing internship in Logistics and Warehousing Enterprise as well as lacking of qualifications and practical knowledge, the dissertation still has some limitations, such as lacking in depth analysis, and the measures are also qualitative Therefore, the comments of the teachers to be completed this dissertation is really necessary Vu Thi Luong – GMA 02 Page 39 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company References Vietnam Standard 48 (1996) Fire protection for commerce and service enterprises Jared S.Palmer (2010) The cargo theft threat PhD Nguyen Van Son & Master Le Thi Nguyen (n.d.) Warehouse classification QUAN LY VA KHAI THAC CANG, page 48 Colson, G & Dorigo, F (2004) A Public Warehouse Selection Support System European Journal of Operational Research Dr Nguyen Thanh Thuy (2015) Warehouse operations Frazelle EH (2002) World Class Warehousing and Material Handling Mc Graw Hill New York German marine insurers (n.d.) Cargo loss preservation information TIS Transportation Service Gwynne Richards (2013) Warehouse KPIs: what’s relevant Jackie Lohre (n.d.) The Importance of Warehousing in a Logistics System Demand Media Jesper Lilelund (2015) Key Performance Indicators for The supply chain Vu Thi Luong – GMA 02 Page 40 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company Krauth, E., Moonen, H., Popova, V & Schut, M (2005) Performance Indicators in Logistics Service Provision and Warehouse Management A Literature Review and Framework Kyle Lau (2011) Warehouse Ownership Classification in the Interlining Industry Lohre, J (n.d.) The Importance of Warehousing in a Logistics System Demand Media Swift technologies – Warehouse operation (n.d.) Swift technologies Sruart Emmett Excellence in Warehouse Management – How to Minimise Costs and Maximize Value Vu Thi Luong – GMA 02 Page 41 ... warehouse operation of Quang Ninh Port Joint Vu Thi Luong – GMA 02 Page Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company Stock Company in order to understand specifically... Page Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company CHAPTER 2: EVALUATION OF WAREHOUSE OPERATION IN QUANG NINH PORT JOINT STOCK COMPAY 2.1 Overview of Quang. .. transferred to the T & T Group Vu Thi Luong – GMA 02 Page 10 Recommendations to improve warehouse operations in Quang Ninh Port Joint Stock Company Quang Ninh Port Joint Stock Company is located in the