CHAPTER 3: SOME POWERFUL SOLUTIONS FOR TRANSPORTATION
3.2. Analysis of the company's opportunities and challenges
Simple personnel organization: Currently, Bach Viet's personnel structure includes 1 director, 1 deputy director and departments. This single-person organization shows how a dynamic structure can quickly capitalize on market opportunities. The structure with few intermediate layers allows for direct and fast communication. Therefore, new strategies can be implemented quickly. The simplicity of the structure allows to eliminate the troubles in cooperation between departments and individuals that often occur in complex organizations.
The company's reputation in the shipping industry is because Bach Viet always focuses on improving the quality of services as well as professional services such as customs consulting, import and export entrustment, receipt and delivery of documents ...
Article This helps Bach Viet always provide the best service to customers.
The company recognized company image. Through 16 years of establishment and development of logistics activities, the company has created a continuous value-added chain for customers. The company provides logistics solutions including sea and air transportation, supply chain management services, warehousing, cargo clearance, road transport... Thanks to that, with strong operations . Here, the company has proved its position in the market.
The ability to capture information: Along with the outstanding development of information technology, technology affirms the important role of information. With a young, dynamic workforce, capable of quickly grasping information on import and export markets as well as customer needs and competitive prices of rival companies, Bach Viet quickly dominates the market market in terms of price and service quality.
The company's technology level is quite good, there is wifi covering the whole company. Everyone works on the company's system website, easily managing their own customer system, closely linked with other departments. Customers always know where their goods are, when the goods leave the port of departure, there will be a notice to leave the port and when the goods arrive at the port of destination, there will be a notice of arrival, in addition, customers can go to Bach Viet's website to follow up REF number or container number.
There are great resources for suppliers: With a large volume of import and export goods each month, the company springs up with very good contracts with shipping lines such as Maersk, One, COSCO ..., with better prices than the market. The diversity of suppliers helps Bach Viet diversify prices and services, promote the uniqueness of products, thereby easily meeting the needs of customers.
3.2.2. Weaknesses
Besides the advantages, Bach Viet still has disadvantages in delivery and receive import and export goods that need improvement. Firstly, the application of science and technology in many forwarding procedures is still slow, especially in electronic customs declarations, sometimes with errors in tax codes, declaration data . Secondly, in the process of checking and preparing documents is sometimes a bit difficult because there are many types of documents, especially for large and complicated orders: contracts, commercial invoices, customs declarations. customs, packing slip, certificate of origin, ...
or wrong, invalid, conflicting documents with the goods, sometimes leading to delays in completing customs clearance. Thirdly, although the company has a large, dynamic and high-pressure workforce…. But most of them are young, do not have experience and expertise in solving the difficulties encountered, need a lot of time and effort to practice.
Fourthly, the company's import entrustment service often encounters many difficulties.
Every year, the company always renews the source of imported goods. The constant innovation makes the company unable to clearly grasp each commodity market, failing to create a high reputation in the international trade market.
3.2.3. Opportunity
In the context of the growing economy, under Prime Minister Nguyen Xuan Phuc, the logistics industry in general and freight forwarding by sea in particular are being focused and promoted. In particular, the bright spots when participating in the CPTPP Agreement (Full name: Comprehensive and Progressive Agreement for Trans-Pacific Partnership) took effect from January 14, 2019. Vietnam is fortunate to be one of 11 countries participating in this agreement, opening up many new opportunities for international business enterprises. In addition, with the Vietnam - Europe Trade Agreement (EVFTA) after a period of consideration, it will officially come into effect in 2020, which is a "bump" for the import-export sector and Logistics in our country.
Summary of the agreement, the EU will apply 0% import-export tax incentives for more than 90% of goods originating from Vietnam. And Europe is one of the company's key markets (after China and Asia) and brings great profits. Therefore, the industry's development potential is huge, and the Government creates favorable conditions for development, so this is a good opportunity for businesses to break through in the domestic and international markets.
In fact, most Vietnamese enterprises today have not completed transportation and forwarding services in the true sense, most of them only take on the role of satellites for foreign countries, performing single operations such as carrying out procedures. customs or leasing means of transport, etc. Therefore, with the company's resources, Bach Viet completely holds the right to decide its own future destiny.
Human resources of Bach Viet company compared to competitors, although not rich in expertise, have gained a lot of valuable experience. However, when the market explodes, the attraction of good human resources also increases, with the scale and professional training process of Bach Viet, this will be an advantage of the business compared to competitors. compete.
3.2.4. Challenges
Low freight rates are always a request from customers, but at the same time, constantly improving the quality of delivery services is always a headache that the
management has to solve. In general, this is not a problem that Bach Viet alone
encounters, but also a pressure that any Logistics business must face. Therefore, the company needs to take measures to harmonize the interests between the business and the customer, satisfy the customer but still have to ensure the profit to be able to maintain the company's business ability. company. And of course, in practice, these two things are very difficult to apply in parallel.
Challenges on management mechanisms and policies and infrastructure: the management of agencies and sectors is still overlapping and inconsistent, so it sometimes causes difficulties for businesses. For example, at the time of customs declaration for retail goods, the customs authority requires the goods to arrive at the port to enter the warehouse before making the declaration, but the warehouse side requires a new declaration for the goods to enter the warehouse. .
Logistics market is more and more exciting with many new names appearing, bringing more intense competitive pressure. In the situation that the market is heating up, if businesses do not keep up with the trend and constantly improve the quality of their services, it will be very easy to be put down by new names and fall behind.
The serious shortage of logistics personnel is also one of the challenges of Bach Viet in particular and enterprises in the industry in general. The Vietnam Logistics Business Association forecasts that it may take about 250,000 highly qualified and qualified workers to meet the upcoming demand. However, due to the lack of investment in specialized education in Logistics, the number of people working in the logistics industry and knowledgeable about the law as well as specialized knowledge is still quite small, mainly still doing the wrongdoers. industry, not properly trained.
The US-China trade war offers an opportunity for Vietnam to dominate the export market share to the US, but it also causes some disadvantages to the import-export market of Vietnam. There are concerns about China's ability to assemble products and label them
"Made in Vietnam" to avoid US tariffs. If Vietnam does not strictly control this issue, it is likely that the US will apply similar sanctions as against China or may have stricter
inspection regulations for Vietnamese goods. , causing difficulties for import and export enterprises and affecting logistics service enterprises