VNU- UNIVERSITY OF ECONOMICS AND BUSINESS FACULTY OF BUSINESS AND ADMINISTRATION LOGISTICS MANAGEMENT: THE CASE OF VINH VAN MINH VAN INTERNATIONAL TRANSPORT AND TRADE JOINT STOCK COMPANY Supervisor’s name: Dr Nguyen Anh Thu Student’s name: Nguyen Thi Thao Student ID: 11050159 Intake: QH2011-E Program: International standard Hanoi — May, 2015 TABLE OF CONTENTS ACKINO WILEDIGE MIEN US sicesosssqnnsiesisssanineionmenaseussvthsinsnemreentannmeyvorsnsicastwnr sivtev ert kerwuanth iil LEST CP Ay eeaaeeieriieiiễdeeiibeeeemeevesecaboEsalbee iv LEST CHP POC AL Đa ejie-asSsransd V HT. deiner evince pn &nnauesesandtassos bi lssssssasgsgiieiossp sseaniElgiussggcdilsamaaismsnsi vi DI ET hcp. laste a lic lpn ek aia ecto | CHAPTER | THEORETICAL BACKGROUND AND LITERATURE REVIEW ._ LOi111ssexevdetineseororiddiaresgleodbsoleoeidpoesdaensdhiaanltesessiod ig lee 4 11,1 : - HO SiStOSCEMAIMIONS | 55105553 oie 1502601222100 a851021710005 8xx n1 8yepltto 4 1113 mm@ifalbtfil I cauisdeseibsensandibdnsnbiisleisnosbdleeadinbkdslbrldsosnee 6 [¿J]. Gll55TieationiO110615ElGSisisssrsyaeootbeeeisolitpbsicdrbltsisdtp1o cn tie 6 De ĐC.
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- DING Ct ODSERV AON setdenssissasserdeonciidanuebenndedugesiaserieatvlneSis tend dendin Silane 20 2. LD GGNBEUTfEuoesasssmmmeeeeneense=ersedsheiddeskeeesevieileMeesieedeendbd 20 2.jnecesasesnneiseices sasidg saat fan avausnwesausa sn 3gg585 438.088 S58 suE lG15S9E8 21 CHAPTER 3: LOGISTICS MANAGEMENT IN VINH VAN MINH VAN JOINT Late) See) a ne 22 ii 3.1 Vinh Van Minh Van Joint Stock Company .1 Overview about Vinh Van Minh Van Joint Stock Company.2 The organizatior4lSEUGfUTE‹::. General assessment of the business situation of company.2 Assessment of logistics management of VVMV ]SC.---- 30 32:1 'CUS(OHIEF S€FEVIEGLcanseretiniieolsdirersieaoeoolidkstirdindtarrusagspiiel 30 S22 - THẼPENHHÍGHOWYSIGTB::.ssiskeceeseneessnseernnuerrnentdannnsistdeissystanitifssiatdlaergiese 35 CHAPTER4EESHRARECHEETTIIHITESS5.1 Indicator of Logistics Activities: the case of Vinh Van Minh Van Joint Bh OT AI? cua ca bỷedpseasoda.easseessbieesceeguingisivoldietogbakl mridligipala ssskelielsea Sloss 40 AL. ‘General Wea coaceisaesendinisesdipdbsardpbabsios seldasùseiuoddbebisloDl 40 4.2 Transportation: RPI sscccsiesstciterae cond dntetadaacdatet tikitldskdtdieddldiokiee 42 4.3 General appraisal of]oelstlC8 40V11l65:.2 Suggestion to logistics management in VVMV Company .1 Micro SolutionS«inuuceickci eaten copies ceocu eet ean scence 46 1.
“Suggestions tothe GovermmMents 0.20071100012152 7104772151010 eet aes 47 CHAPTER 5 CONCLUSION AND LIMITA TIONS 0. sssivscsaccsessiassckoosien daoqusvecy cant | SH. ÍamiNfifldvisaaoieaarrmieidtoioesbiocga Radio diane esas Si %3 lLmEnlu aE RSHSIRasieeaircagiesesbdikeeleedokedeisseseseiEoUwE coe 52 5:3 Recommendation, for fUFUT€TGSCAITGH-. sec Đ- S222 Svan yi wale liRu doi ks hàpRa mũmotualiiisagistneiadsan3Silap2ÄeB 54 APPENDICES :cááoiseecreesssreeaendibdbsindnaessotstseaasiassrsandib400525E2/S5UDSu15-Exsliss s6 cause 58 ili ACKNOWLEDGEMENTS There are lots of people involved in the process of accomplishing this report.
It is my pleasure to acknowledge those people who helped me during the time of writing it. First of all, I would like to give my special thanks to my supervisor, Dr. Nguyen Anh Thu, University of Economics and Business for supporting and providing me with valuable recommendations and helpful expert guidance. In spite of her busy work, she spent extra time on helping me have clear objectives and structure for my thesis, then, correct the mistakes carefully.
Secondly, I would like to thanks to Vinh Van Minh Van International Transport and Trade Joint Stock Company and its staff for kindly supporting of the case study through participating in direct and phone interviews. I would like to extent my thanks to Ms. Tran Thi Hang who helped me to contact other staff of the company and conduct the interviews as well as providing necessary data for this report. Additionally, my sincere thanks are devoted to University of Economics and Business, lecturers and staff in Faculty of Business Administration with useful advice.
Finally, | would like to dedicate this thesis to my parents, without their support | would have never made it this far. They have usually been a source of love and encouragement for me to continue moving on. IV LIST OF ABBREVIATION GDP Gross Domestic Product USD United States Dollar VVMV JSC Vinh Van Minh Van Joint Stock Company CSCMP The Council of Supply Chain Management Professionals PL Party Logistics GOH Garment Hangers CIF Cost, Insurance & Freight (shipping) ICTs Information and Communication Technologies IT Information Technology KPIs Key Performance Indicator C/O Care Of EDI Electronic Data Exchange RFID Radio Frequency Identification LSPs Logistics Service Providers CEO Chef executive office HR Human Resource Dep’t Department LCL Less than Container Load FCL Full Container Load EXW EX Works DAP Delivered at Place DDP Delivered Duty Paid HS Code Harmonized Commodity Description and Coding System SMS Shipping Management System FIATA International Federation of Freight Forwarders Associations IATA International Air Transport Association ASEAN Association of Southeast Asian Nations ESCAP Economic and Social Commission for Asia and the Pacific LIST OF FIGURES AND TABLES List of Table Table 1-1: Activities of logistics service providers (based on Sink et al, 1996). 16 Table 3-1 Network of VVMV JSC.
Q1 1S SE ke 25 Table 3-2 Income Sfatermern(. - - - - - - - - SE 11010 3 1 1111111111 v vn n1 ng 29 Table 4-1 Number of truck of VVMV JSC through years from 2008 and 2014. 42 Table 4-2 Number of truck of some competitors in Hochiminh City 2014. 43 Table 4-3 Number of truck and driver through years from 2008 and 2014.
44 List of Figures Figure 3-1 Organizational structive Of VVIMMIV JSC .cccsccsscsosesennrsansecacssenscranacenenceces 26 Rigure 3-2 Revenue and Net Incomeé of VWMV JSC ¿các cccsnixcssvoseciesgleedek do 29 Hicure 3-3 Information flow by using: VN. kee, scent Go 34 Figure 3-4: LCL shipments from the port of 2 large city of Vietnam are Ho Chi Minh and Hai Phone: (Source: VU Dan scos.csesececcesseveds casi coudeeveetosetasseueceesevcldeds Si Figure 3-5 Flow of information in delivery Process .0cssennseassencsanssensarnsesens 39 Figure 3-6 Simplified process Of (GlÏVBY vccscksccnascosenssscnssnnentesinsgisnasicnetsneusnsionkcunesinnl 39 vi ABSTRACT In the world economy, logistics has been growing significantly role in business because of its huge influence. A plenty of corporations are outsourcing its logistics activities that the reason why there is considerable increase in the number of logistics service provider. The research is aimed to study the management of logistics activities in the case of a logistics service provider.
Based on literature review of logistics and logistics management, a theoretical background for analyzing logistics activities has been established. The study is considered as qualitative single-case study. Data is collected from the interviews from VVMV‘s employees and from the information system as well as internet sources. A case study of VVMV JSC — a medium-sized company in Vietnam with fast growth in size has been carried out to understand its logistics management when it operates in domestic market.
The findings show some indicators that help the organization to evaluate its capacity, also suggest some solutions to VVMV JSC to be more successful in future and to the government in general for the strong development of logistics service industry. Although he results also contribute a crucial evidence for further application of the framework to manage activities of logistics of other companies, there are several limitations of the research that need to improve. Further research should be conducted as multiple-case study of the same or different sectors. I INTRODUCTION Define the significance of research In almost 5,000 years, logistics has been playing a growing role in global development.
Since the construction of the pyramids in ancient Egypt, logistics has made remarkable strides. Time and again, logistics solutions have formed the basis for the transition to a new historical and economic era. Efficient logistics creates a crucial competitive advantage for those companies that have been expanding in global markets. Successful logistics efforts in international supply chains can fuel the development of global markets.
In the countries like Holland, Sweden, United States of America or United Kingdom, logistics has developed and gained considerable success in profit, also in Asia, Singapore and Taiwan which have achieved accomplishments in term of logistics. Nowadays, Vietnam is in the process of changing itself to integrate into the world’s economy, so Vietnam enterprises not only need to increase competitiveness but also supply to the market suitable products. This requires carriers to guarantee the reasonable, accurate costs to take advantages and to compete with potential and available competitors. Therefore, businesses that provide the services of shipping have to apply logistics in their operations in order to enhance the quality of service, especially in maritime transport activities, airfreight, warehousing, etc.
With desire to contribute a small part of my effort in the development of Vietnam logistics services in collaboration with other sectors in the economy, I have decided to choose the topic of thesis is "Logistics management: the case of Vinh Van Minh Van International Transport and Trade Joint Stock Company (VVMS JSC) “. After working time in Vinh Van Minh Van Company, with accumulated knowledge and practical experiences, I want to contribute it to the company and expect it will be the source of helpful information to improve the circumstance of VVMV JCS in the future. In addition, the thesis introduces the advantages that logistics operations can bring in the term of service and operation, and propose several solutions to enhance it. Aims of the research The main purpose of the research is to study management of logistics activities focusing on logistics services, information system, and transportation, then evaliating capacity of the company and figure out solutions to strength capacity of competition between domestic enterprises and foreign ones Research Questions This thesis aimed to answer the main question: “How logistics activities was managed in the case of VVMV JSC” To better answer the key question, some sub-questions need to be addressed: (\) What is logistics and logistics management (2) What is content of logistics management? Wha‘ is the current situation of logistics operation of VVMV Company? Research Scope Focus on single case + Time: in the years of 2011 — 2014 + Space: Vinh Van Minh Van Joint Stock Company Outline of the thesis Besides this introduction part, the thesis is divided into 5 main chapters: e Chapter |: Theoretical background and Literature review This chapter will provide theoretical framework for the research.
It includes fundamental concepts about logistics and logistics management and its tools used in this research to evaluate the performance of the firm. e Chapter 2: Research methodology This chapter will provide detail research method and activities from preparing for collecting data to analyzing data. 3 ° Chapter 3: Logistics management in Vinh Van Minh Van international transport and trade joint stock company This chapter will describe the context where the research is conducted and give description of information that was collected, and then show analysis, comparison of information e Chapter 4: Findings and discussion This chapter will show some analysis, comparison of information collected and indicators applied. Besides, it will also give some suggestions to further improve logistics management at VVMV JCS.
e Chapter 5: conclusion and limitation This chapter will conclude what the thesis gain to answer the research questions, also show the limitation that the author have to meet during doing the research and then suggestion for further research. 4 CHAPTER 1 THEORETICAL BACKGROUND AND LITERATURE REVIEW Logistics management is a popular topic that attracts many researchers’ concern due to its interesting and importance. There have been various studies on logistics management in different sectors, such as retail industry in Thailand [14], medical forest industry [7. p 303-318] or food industry [9.
The main focus of those research are for the purpose of reducing cost, improve service to take the advantages to the competitors. Besides, a plenty of papers, books, studies that related to logistics management or logistics has been published.