The Process of Express Delivery Service of Indochina Domestics and International Shipping Joint Stock Company
The Process of Express Delivery Service of Indochina Domestics and International Shipping Joint Stock Company
The Process of Express Delivery Service of Indochina Domestics and International Shipping Joint Stock Company
CONTENTS
INTRODUCTION.............................................................................................................4
CHAPTER 1: GENERAL INTRODUCTION TO THE INDOCHINA
INTERNATIONAL POST JOINT STOCK COMPANY..................................................6
1.1. Introduction..........................................................................................................6
1.2.3. Achievements..............................................................................................8
2.1. Characteristics and roles of express delivery service at Indochina Domestics and
International Shipping Joint Stock Company...............................................................17
2.3.1. Strengths...................................................................................................21
CONCLUSION................................................................................................................ 23
In accordance with the curriculum of the subject Freight Logistics Management, the
students majoring in Logistics and Supply Chain Management of Foreign Trade
University are tasked with doing a short internship at a Logistics company. The goal of
this internship is to help students understand the current situation as well as the operating
procedures of logistical services of businesses. In addition, students also need to have the
opportunity to work in a business in a professional, serious and proper manner to bridge
the gap between studying theories and doing practical work.
As one of the two core services of the company is express delivery, Indochina has had
years of experience in operating this service. We have chosen the topic "The Operating
Procedures of the Express Delivery Service of Indochina Domestic and International
Shipping Joint Stock Company" for the internship report.
The purpose of this topic is to research the current situation and the operating procedures
of the Express Delivery Service that Indochina provides to its customers. The report also
tries to analyze the advantages and disadvantages of this procedure and propose some
solutions to overcome the limitations.
In addition to the introduction, conclusion, references and appendices, the report includes
2 main parts:
Chapter 1: Introduction about Indochina Domestic and International Shipping
Joint Stock Company;
1.1. Introduction
1.1.1. General information of the company
Headquarters: No. 22, Lane 157/29 Chua Lang Street - Lang Thuong Ward –
Dong Da District - Hanoi
USA Office: 15201 Beach Blvd, Suite C, Westminster, CA 92683
The company also has offices in Ho Chi Minh City and 3 offices in the UK, Japan
and Korea.
Mr. Dang Dinh Duc, after 8 years working at the Ministry of Industry and Trade, decided
to establish Indochina Domestic and International Shipping Joint Stock Company on
January 12, 2015 at house No. 22, alley 157/29, Chua Lang Street, Lang Thuong Ward,
Dong Da District, Hanoi. From the very beginning, the company has made commitments
to customers as follows:
In the first year of operation, Indochina only provided two main services: express
delivery and sea shipping, with the first year revenue of nearly 3 billion VND.
In 2016, the company officially became the agent of the world's largest express carriers,
which are DHL, FedEx, UPS and TNT. In addition, the company also became a partner
of big firms such as Evergreen, MSC, and Yangming and opened an additional office in
Ho Chi Minh City.
2017 marked a milestone in the company's growth when revenue reached more than 10
billion VND for the first time. The company also opened four more foreign offices in the
UK, US, Japan and South Korea. 2017 is also the year the company launch 2 more
services, which were the authorized procurement service and import-export consulting
service.
From 2019 up to now, Indochina has been developing stably with a network of closely
linked branches, their network of partners and customers has been continuously expanded
at home and abroad, while focusing on developing their services to best meet the needs of
and bring sustainable values to partners and customers.
1.2.3. Achievements
1.2.3.1. Revenue and Growth
From the annual Business Results report of Indochina, the fluctuation in revenue and
profit of Indochina from 2017 to 2019 is shown in the following table:
In 2020, due to the complicated development of the Covid-19 pandemic, the demand of
customer for the company’s authorized procurement service decreased significantly. As a
result, the company's percentage of revenue from this service has dropped to around 30%.
Although the company's other services are still developing steadily and still bring profit
to the company, the growth rate of revenue and profit of the company is forecasted to
decrease compared to last year.
After 5 years of operation, Indochina has become a reputable unit in the field of
transportation and import-export, and has become an agent of 4 major express delivery
companies. The world's best are DHL, UPS, FedEx and TNT. In addition, the company is
also a partner of many domestic and international enterprises such as: NYK, Hanjin,
Kline, APL, Evergreen, MSC, Yangming, Tieu Le Chi, TASA fertilizer, etc.
Figure 2: Indochina’s partners
The Board of Directors of the company is composed of the Chairman and four members
of the Board of Directors. As the ones deciding on company management issues, the
Board of Directors has certain rights such as:
1) Decide on issues related to the price of shares and issued bonds. Come up with
solutions to develop the company's short and medium term operations.
2) Decide investment plans and investment projects within their authority.
3) Decide the establishment of subsidiaries, branches or acquisition of shares of
another enterprise.
In addition, the Board of Directors also has the right to decide on the company's
organizational structure, election, dismissal, or dismiss the chairman of the Board of
Directors; appoint, dismiss, sign, terminate the contract of the director or general director
and other important managers as stipulated in the company's rules.
The Board of Managers includes the Director and Deputy Director. Director is the
person who manages and oversees all business activities, people as well as corporate
cooperation activities. At the same time, the Director determines the goals, develops the
development direction of the company in all areas of planning, finance, investment and
development, etc. At Indochina Domestic and International Shipping Company, the
director is also the one who directs the handling of complicated and difficult orders of the
company, advises major customers and directs negotiations with partners. large export
cooperation. Supporting the director is deputy director.
The Sales Division is responsible for the business plan; expanding the company's
customer base; find and reach potential customers while maintaining
relationships with existing customers; advising new customers on new orders
received; report revenue, expenses and actual forecasts to management;
identifying emerging markets, changing markets and full awareness of new
products and competitor status.
Marketing Division is responsible for advising the Director to develop and
implement the marketing strategy; manage and maintain corporate websites, post
on the website to increase engagement; market forecast research; define market
segments for your company's services and target customers; corporate brand
positioning.
The Logistics Department consists of 2 divisions:
Import and Export Division is responsible for advising the Board of Directors on
the fields related to import and export activities. They authorized to participate in
negotiations with partners on issues related to import and export work; coordinate
with other units and departments to study and propose options on product types,
quality and consumption to ensure the highest economic efficiency in import-
export activities; coordinate with the delivery and delivery department to organize
the management, delivery and receipt of goods, to ensure the correct time
according to the signed contract, and at the same time to ensure the goods are in
accordance with regulations.
The Procedure Division is responsible for carrying out all transactions related to
documents of imported and exported goods that are carried on board a ship
operated by the Company and Forwarding tasks such as: requesting the owner /
agent of loading port to provide documents correct, assemble, verify documents,
amend documents if necessary, send arrival ship notice (NOA), issue delivery
order (D / O), issue bill of lading (B / L), manifest cargo (manifest), transmitting
export cargo data to port of discharge, etc. In addition, the department is also
responsible for Ensuring the accuracy of documents on import-export goods on
board before submitting to customs, and ensuring that the delivery of goods to
customers is in accordance with the correct process and compliant to legal
practices.
The Delivery Division is responsible for managing and operating the company's
freight forwarding; packing, loading and unloading and transporting goods of
customers for delivery to the carrier; receive goods from carriers and deliver them
to customers; ensure goods are transported on schedule.
The Truck Crew is responsible for transporting goods according to the
requirements and schedule of the Delivery Division; make sure the goods arrive at
the correct delivery address; ensuring quality of goods during transportation.
In the field of import and export, the company has services such as:
In addition, the company also has a service do customs clearance for goods
transported, exported to foreign countries or transported or exported to Vietnam
Thus, it is possible that the majority of employees of the company (70%) are
young, dynamic, passionate about the export-import industry and logistics, eager to learn,
all of them are at university level, graduated from top economic schools such as Foreign
Trade University, National Economics University, etc.; The rest of the staff from the
department head upwards are all seasoned people who have many years of experience in
logistics, marketing, sales, and import-export. It is these highly qualified personnel that
bring professionalism to the company's services and bring success to the company..
CHAPTER 2: THE CURRENT SITUATION OF THE OPERATING PROCEDURES
OF THE EXPRESS DELIVERY SERVICE AT INDOCHINA DOMESTIC AND
INTERNATIONAL SHIPPING JOINT STOCK COMPANY
The Indochina Company was established with express service as one of the core services.
Therefore, this service has undeniable importance in the service structure of the company.
Since the company was put into operation up to now, express delivery service has always
been in the top of the services with the highest proportion of the company's services. In
the last three years, the proportion of courier services has fluctuated from 38% to 44%,
being the leading service in the company's service structure.
In recent years, the company's courier service has grown very positively. From 2016 to
2019, courier service always kept the growth rate from 8% to 14%. In particular, in the
time the world is experiencing the COVID-19 epidemic, the demand for courier delivery
of customers has increased sharply. Compared to the previous year, the number of courier
orders of the company increased by 20%, the total order value increased by 25% while
the company's other services had negative growth. These are very admirable numbers.
Step 1: Receive information and consult, quote: Customers need to provide all
necessary information such as:
Step 2: Pick up the goods at the customer's warehouse and transfer to the
company's warehouse. At the same time, the customer completes the payment of the
costs.
Customers pack the goods carefully, send them to the company's warehouse
address or the company's staff will come to the place to pack, receive and ship
the goods.
The company's system will then announce the total charge to the customer based
on the initial finalized unit price. Customers need to complete payment of the
costs to ensure the goods are delivered on time as committed.
Step 3: Send the goods through the carrier and notify the customer
After the committed time, the goods are shipped through reputable carriers such
as DHL, TNT, UPS, FedEx... are partners of the company and are sent to the
company's warehouse in Hanoi, Ho Chi Minh City or at its partner warehouses
overseas. The company will also update cargo information of the outgoing
shipment process, customers can track and update where their goods have gone
on the carrier's system through the Tracking Number that the company sends.
The customer will also receive a notification of the goods when the goods are
shipped to the Company's warehouse. The customer can choose to go to the
company's warehouse to pick up the goods or the company will send the goods to
the customer as required by the contract.
2.2.2. Domestic express delivery process
Similar to the international express delivery process, the domestic express delivery
process includes:
Step 3: Inform the customer about the goods or goods. Customers complete the
payment and receive the goods:
The domestic courier goods will be mainly transported by air and road, after the goods
arrive at the local airport or harbor will be transported to the warehouse of company,
where the goods will be controlled and delivered
2.3. General comments on the process of operating CPN services at the company
2.3.1. Strengths
The company has a close network of relationships with not only reputable airlines
such as Vietnam Airlines, Jetstar, Vietjet Air, Cebu Pacific ... but also being an agent of
reputable and famous courier airlines around the world such as UPS, FedEx, TNT,
DHL ... Not only that, the courier services provided by the company are extremely
diverse, including express delivery, conventional express delivery,... Therefore, the
company is always ready to meet all the needs of customers' courier with reasonable cost,
guarantee, prestige and most effectively.
The company's staff are experienced, enthusiastic and always improve their
working methods to bring the most satisfaction to customers, so that is the reason why
feedback from customers who have used the company's service is very positive.
The company has not really diversified its product offerings. Such as bulky
oversized items, the company has yet to support. Since then, the company's revenue as
well as profit will be affected.
The company should check and track their orders more closely so that they can
notify their customers promptly whenever there is a risk arising in the shipping process.
Because the company specializes in import-export and logistics, the internship at the
company has helped us to better grasp the knowledge of the subjects we are studying in
school such as International Trade, International Transport Management, English (Letter
writing) or Global Procurement Management and has helped us apply the knowledge
learned into the tasks assigned by the business.
In addition, because we are able to handle real business orders and participate in business
activities, we have learned a number of skills that the employees of the business have
such as understanding price lists of carrier companies, skills in writing and presenting
articles for the company website as well as better understanding the process of
implementing an international trade contract and related costs.
During the internship, we encountered many difficulties because we were still too green
and lacked both knowledge and experience. Since this is also the first time we interned at
a business for a long time, we were overwhelmed and did not have a specific orientation
in the first days of the internship. All of these factors make it difficult to do the work
assigned to us by the company. Therefore, we have had to try to learn and self-study the
relevant knowledge online in order to meet the requirements of the business.
Although the internship period was not too long, we learned a lot during the practice.
Meeting, learning from the employees of the company has motivated us to push ourselves
and try to learn more in the future. Therefore, we would like to thank the school and the
School of International Economics and Business for facilitating this internship. We would
like to thank the director and employees at Indochina Domestic and International
Shipping Joint Stock Company for giving us the opportunity to intern at the company.
The enthusiastic guidance of the director and employees has helped us to perform the
assigned tasks effectively and to experience the work in the most practical way. We
would also like to thank Ms. Le Minh Tram for her devoted guidance in the making of
this report.
APPENDIX: STUDENTS’ INTERNSHIP DIARY AT INDOCHINA DOMESTIC AND
INTERNATIONAL SHIPPING JOINT STOCK COMPANY