Foreign Trade University
Foreign Trade University
Hanoi, 2024
INTRODUCTION
1.1General introduction
1.2Vision, mission and core value
1.3The process of development
1.4Organizational Structure
1.5Business results from 2022-2024
1.6
CHAPTER 2.
CHAPTER 3. RECOMMENDATIONS
Establishment
01/18/2017
Head office
14F Ngoc Khanh Plaza, No.1 Pham Huy Thong Street, Ngoc Khanh Ward, Ba Dinh
District, Hanoi City, Vietnam
Line Of Business
Logistics Service
Customs Clearance Consulting Service
Number of Employee
70 members (May 2023)
Scope of Work
- Integrated Global Logistics
- Global LCL Consolidation
- Domestic Transportation
- Customs Agency
- Warehousing
- Consulting service on customs clearance formality
- License Acquisition
C.E.O
Mr. Luong Quoc Anh
MISSION
Bring value to customers and the community by providing comprehensive solutions for
logistics operations with the high expertise and dedication of staff.
VALUES
PROACTIVITY
In the face of any problems, I always regard myself as the first cause and use resources to
fix the problem rather than waiting. If the problem is beyond my ability or authority, I
guarantee that it will be forwarded to someone who has the ability and authority to
actively handle it using my proposed solution.
COMPANION
Customers, suppliers, and colleagues are the three themes I always choose to accompany.
With customers, accompanying means delivering the finest solution at the lowest
possible cost for all problems. Companionship with suppliers means developing together
sustainably, expanding together, and growing together to reach maximum service
stability. Together with my coworkers, I contribute to the creation of a work atmosphere
conducive to self-development and income growth, allowing everyone to stay for a long
period.
SHARING
I attempt every day to develop an environment in which I can share and be shared in my
job experience, professional knowledge, difficulties faced, and unresolved work issues. I
always share my income transparently based on my contribution to the company's
production and business activities, and I am always willing to contribute a portion of my
income to activities that benefit the community and society.
2018
2019
Continued to develop projects in order to support FDI customers for importing and
installing factory machinery
Handled logistics for sports events – Formula 1 Hanoi 2020.
Joined the 2nd LOGIX INDIA conference in New Delhi, India.
2020
2021
2022
2023
GKLV BOD
• Board of Directors
In GK Logistics Co., Ltd, the Board of Directors is responsible for overseeing and
directing the company's overall strategy
Strategic orientation: The board of directors plays an important role in determining the
overall strategy of GK Co., Ltd. They must ensure that the company is on the right track,
in line with the goals and core values of the business.
Monitoring and managing logistics activities: GK Co., Ltd often carry out many
activities related to transportation, storage and distribution of goods. The Board of
Directors must monitor these activities to ensure that they are carried out efficiently and
meet customer requirements.
Protection of shareholder interests: The Board of Directors must ensure that the
company's decisions and actions are geared towards protecting the interests of
shareholders and maximizing the value of the company's shares.
Company representation: The Board of Directors represents the company in meetings
with government agencies, business partners, shareholders and other stakeholders.
Building and maintaining corporate culture: The Board of Directors is responsible for
promoting and maintaining a positive corporate culture in GK Co., Ltd, ensuring
professionalism and respect for employees and business partners
• The Admin Office:
In GK, the Admin is the operational backbone of our company, overseeing the entire
shipment process. From strategizing shipment plans based on product availability and
customer needs to coordinate logistics and ensuring timely deliveries, this department
plays a crucial role. Their responsibilities encompass order tracking, documentation
preparation, supply chain optimization, workforce management, inventory control, and
customer communication, all working in tandem to guarantee efficient and effective
fulfillment of customer orders.
• Customer Consulting
Logistics consultants analyze information to identify and solve any logistics and supply
chain operation problems for their clients. Through strategic planning, information
technology advances, and re-engineering processes, logistics consultants improve the
company's supply chain performance. GK always give advice on productivity, materials
management, transportation of goods, packaging, order processing, manufacturing
procedures, and quality control.
• Customer Service
Logistics customer service is a critical component of overall customer satisfaction,
encompassing the entire order fulfillment lifecycle. From order placement to delivery
and beyond, logistics operations directly impact speed, quality, and cost. To excel in this
area, companies leverage technology to automate processes, provide real-time updates,
and enhance customer engagement. By prioritizing security, data analysis, and mobile
accessibility, logistics providers can optimize operations, meet customer expectations,
and build lasting relationships through consistent and reliable service delivery.
• Inbound
Supply chain management encompasses a complex network of interconnected processes.
From the initial procurement of raw materials and goods to the final delivery of finished
products, each stage is crucial. Effective supply chain management involves strategic
sourcing, efficient transportation, meticulous inventory control, and precise warehousing
operations. Balancing cost, speed, and quality is essential to optimize the flow of goods,
meet customer demands, and ensure GK business continuity.
• Sale
The Sales team is dedicated to driving revenue growth and expanding market share
through strategic customer acquisition and retention. By closely collaborating with
product and operations teams, GK optimize sales strategies to achieve team targets and
maximize profitability. Upholding the highest level of integrity and compliance, the sales
team ensures customer satisfaction by providing timely responses and maintaining a
strong company image through professional conduct.
• Consolidation
A consolidator is a business that combines cargo consignments belonging to multiple
shippers into full container loads. This economical way to transport goods internationally
helps the shippers by giving them a cost-effective way to do so. By eliminating the costs
associated with renting and transporting a shipping container that they cannot fill,
individual exporters are spared the expenses. The consolidators play an important role in
the logistics process, while serving both the interests of the shippers or consignors and
the carriers. They work with a wide range of manufacturers, businesses, and shipping
companies to identify shipment requirements and connect consignors to the right
shipping companies on account of their budget and transport requirements.
Disadvantages
- The skill of synthesizing and making reports still has some limitations such as:
Information is a bit long and lacks concentration, and it is still rambling.
- Limited in telesale skills, need to be improved when calling customers to increase the
possibility of closing contract
2.1.3 Carry out the necessary procedures for the delivery of goods
Immediately upon receipt of the Notice of Arrival or Export Documents, the
customer must meet the customer to obtain the original documents (for imported
goods), or obtain the signature of the competent person on the customer's side (for
exported goods) to complete the dossier customs declaration. When handing over
and receiving original documents with customers, there must be a Document
Delivery Note, signed by both parties and each party keeps a copy.
When handing over and receiving original documents with customers, there must
be a Document Delivery Note, signed by both parties and each party keeps a copy.
The forwarder must make a final check of the dossier before submitting it to
Customs, and be the signatory of the "Last checked on" section of the
Import/Export clearance form.
– Cover page and Check list. The forwarder and the documenter are jointly
responsible for the legality of the dossier, especially financially if it arises due to an
error in the preparation of the document. The original documents of the shipment
must be copied and saved before being presented to the Customs.
The forwarder coordinates with the transport provider to request the vehicle, track
the arrival time, and the vehicle number to be recorded in the Cargo Delivery Note
when coming to deliver goods to customers or load goods for export. The record
must also show the time of pick-up or delivery, signed between the forwarder and
the customer's servant. Any delay that causes storage costs or other incurred costs,
the forwarder must be responsible for notifying the customer of the situation and
reason for the delay, and at the same time immediately notify the department
supervisor. In case the supervision of the department cannot be determined, it must
be reported to the director of the department for advice.
When requested by customers for assistance in the process of importing and
exporting goods within the ability of the forwarder, the forwarder will
wholeheartedly serve the customer.
Forwarders are responsible for maximizing their professional skills when working
with Customs and Ports to ensure the progress of opening customs declarations as
well as importing and exporting goods for passengers. If there is a professional
problem, the forwarder must contact the department supervisor to find a solution.
Only when it cannot be solved and needs the support of the customer, the employee
will notify the customer of the problem.
The time to perform a normal shipment is allowed at the latest when all documents
(Declaration, Bill, D/O...) have been received as follows:
- Air Delivery: 1/2 day
- Air entry: 1 day
2.1.4 Raise shipment costs
The cost of making a shipment is applied according to the Company's Cost Price List
approved by the Company's Director. Forwarders make the most of their professional
experience and limit costs within the aforementioned price list. For expenses with
invoices, the forwarder must present them fully and validly or explain them in a
reasonable manner. If not, the expense will not be approved. Any costs incurred in the
process of making goods must be approved by the Department Manager, approved by the
Department Supervisor in advance and consulted by the Department Director and must
also be responsible for accountability when paying. The department supervisor is
responsible for understanding the employee's compliance and confirming those incurred
costs. Expenses incurred must be promptly notified to the customer (in case of arising
from the customer's side) or the department supervisor must report to the Director of the
department (if incurred by GK Company and GK Company bears such incurred).
2.1.5 Complete delivery - receipt of goods and import and export procedures
When completing the procedures for listing goods for import and export, the
forwarder must inform the customer of the situation so that customers can rest
assured about the shipment procedures. Upon completion of delivery, the Cargo
Delivery Note must be signed with the customer.
Upon receipt of the declaration certified by the Customs (customs clearance dossier
of the shipment), the declaration must be copied and stored in the GK file and
faxed to the customer, then handed over to the customer the original. The delivery
of documents must be represented by a Document Delivery Note.
Finally, the forwarder must notify the staff to document the shipment situation to
close the dossier, and at the same time enter EDI data and issue an invoice to the
customer.
2.2 Comment
Strength
The company approaches and maintains good relationships with customers with a
large output of export/import goods per month: GK's customer base is relatively
large and sales staff always keep in touch and maintain a good relationship with
their customers, from which customers always trust the services that GK provides.
GK's loyal customers are: CMC Software, Samsung, LG, Ferroli,...
Weakness
Market share is still limited:
Due to the concentration of most customers in the North, it is not possible to
approach and provide good services to customers in the South, where export/import
activities are equally busy outside the North.
This seasonality makes the company's operations unstable, and monthly business
results are uneven. This directly affects the employment and income of employees.
Moreover, during periods of low seasons, the company still has to pay salaries to
employees, causing profits to decrease.
3 Measures to develop air freight forwarding services at GK Logistics
There are 2 forms of market expansion, namely market expansion in width and
market expansion in depth:
- Expanding the market by breadth is understood as expanding the market by
geographical scope. So far, GK has reached out to many international markets,
operating on almost all continents such as Asia, America, Australia. However, there
are still some markets where the company has not yet exploited its full potential,
such as the African region, the South American region (Mexico, Brazil, ...) and
Europe.
- Expanding the market in depth is on the same existing market, but the company
can attract more customers, strengthen and establish long-term relationships with
traditional customers by service quality, by expanding the scope of its services
3.2.2 Improving service quality
For a service business, improving service quality is very difficult because the
concept of "service quality" is still very vague, there is no standard to evaluate. In
the process of freight forwarding, the quality of the service gives customers
confidence and peace of mind that their goods are safe and arrive at the exact
destination in the hands of the most diligent forwarders.
We see that GK has only captured a very small market share in the air freight
forwarding market, partly because the quality of service is not high, some
customers when entrusting GK to deliver a shipment due to too many problems
have not returned to the company. Therefore, competing by quality is very
necessary, it helps the company reduce the burden of price competition because in
the price war, GK cannot compete with foreign companies with capital potential.
With the type of freight forwarding for import and export by air, the quality of
service is sometimes reflected in very small things. For example, with special
products such as hanging containers that require high hygiene requirements, the
company should choose clean containers, and the equipment should also ensure
that the goods are evenly stacked and not crumpled. If you just pay attention to
such small details, the way customers perceive and evaluate the company's services
will be completely different
In addition, creating good services also means advising customers on the
competitive situation in the market, the situation of foreign trade activities, and
international law. Providing customers with information about import and export
partners, giving advice on the terms of foreign trade purchase contracts, explaining
complex terms in detail so that customers do not misunderstand, leading to disputes
when disputes occur.
These additional services act as a kind of catalyst to maintain and strengthen
relationships with customers as well as enhance the company's position in the
competition.
3.2.3 Solutions for trade promotion
Trade promotion is an extremely rich activity. Every company knows the
importance of this activity, but it is very difficult to implement an effective
promotion plan because most Vietnamese companies do not have strong enough
capital to pursue a long-term promotion strategy. But for sustainable development,
GK needs to promote this activity.
Trade promotion with a service business includes the following main activities:
advertising and customer relations, of which the important thing is the customer
care policy.
In terms of advertising media, GK can advertise in newspapers, make billboards
and advertising posters. These are easy measures that are not too expensive because
unlike manufacturing enterprises, which have to launch a massive advertising
campaign when launching a new product, as a service business, GK only needs to
advertise regularly without being too ostentatious. In addition, increasing
advertising at trading establishments is also a common measure for a small budget
of companies like GK.
Currently, the company also uses many types of marketing such as: printing
publications introducing the company with beautiful forms, participating in
exhibitions, etc. However, the most popular form seems to be that the company's
employees go to the import-export units to build relationships by giving quotations,
leaflets, and convincing customers.
In addition, in order to win the support of customers, GK can apply some of the
following ways: let customers enjoy satisfactory commissions, with large
customers with a stable volume of goods to enjoy preferential prices, care about
customers when sick, maternity, joyful, etc ... These things may sound ineffective,
but they have been adopted by many companies and achieved a lot of success.
3.2.4 Train human resources to suit the new situation
A company needs good people but how to combine them into a strong team is even
more important. This depends a lot on the company's management organization.
Each company has its own organizational model and has its own management
method, which is in accordance with that organizational model. Although GK has
made a lot of improvements to gradually improve its management model, it must be
frankly admitted that the company is still operating cumbersomely, not really
creating links between branches and departments. Coordination of activities
between
the parts have not achieved the desired efficiency, not creating the
collective strength of a large enterprise in the field of freight
forwarding. Therefore, the company needs to innovate the
management form and organizational model to suit the company's
current business conditions.
Currently, although GK has a department in charge of marketing and departments
specializing in air and sea,.. but have not been fully effective. That is because the
marketing department has not been created the most favorable conditions in
activities, departments when receiving inconsiderate conduct discredit of the
Marketing Department. The immediate measure is to immediately correct the
operation of departments, each department only operates in accordance with its
function. The Marketing Department plays a leading role in customer relations,
conducts research and forecasting of market demand, performs the function of
guiding other departments, and encourages other departments to establish and
expand customers.
Specialization in the above direction not only clearly delineates the responsibilities
and powers of each department, but also ensures the creation of close links between
branches and departments in the process of performing different stages of a
business. That is not easy to implement, requiring a lot of time, money, and effort.
But only by doing those things, GK can fully promote the strengths and potential of
a large and leading company in the field of freight forwarding in Vietnam.
3.2.6 Limit the influence of seasonality