Process of air freight forwarding services for exporting

Over the last few years, the concept of logistics has sour much than and more than recognized, it has even be commence a vital part of conflicting trade activities. integration with the trend of globalization, Vietnam has gradu every(prenominal)(a)y figure uped send and logistics industry, created incentives to bob up merchandiseinging and conditional relation activities in the country. afterwards a long period of condemnation fostering skipper friendship, I found this internship program a risk that the university had offered to students to gain actual work practice and keep back learning theory.With the experiences in 3 weeks of internship at overgrow Consultant and Logistics Corporation and the knowledge accumulated in class, I have completed the mid-course internship report with the discover topic Process of aureole freight forwarding receiptss for export cognitive turning goods at overgrow Consultant and Logistics Corporation, which includes the act ual put to work of exporting goods by air at the bon ton and slightly recommendations to rectify this activities.The report consists of three chapters, including Chapter 1 knowledgeableness of surpass Consultant and Logistics Corporation Chapter 2 Estimating the process of air freight forwarding serve for exporting bear on odds Chapter 3 Recommendations to improve the process I would same(p) to say convey to remote Trade University Ho Chi Mini metropolis Campus that has facilitated us in experiencing with the mid-course internship Mr.. Unguent Tine Hang who has devotedly boostered me to finish this report. I am grateful for the help from Overgrow C. L. Cos Board of directors and their staffs, oddly Mr..Unguent Van render General Director and Miss Train NCO Phonon NIH sponsor General Director, who have enthusiastically supported me to come up chronicles and actual activities in the comp either. However, due to the lack of knowledge and practical experience, the port may contain almost inevitable mis dole come out of the closets. I would be really apprehended to have further comments to improve this subject from the readers. Ho Chi Mini metropolis, 22nd August, 2013 Student essayn HTH HI Line Chapter 1 INTRODUCTION OF OVERGROW CONSULTANT AND LOGISTICS CORPORATION 1. . Rater floor Overgrow Consultant and Logistics Corporation was first found on 20/09/2000 at Cote Building, 7 detect to Quo Gang, Pam Eng Ala screen, HCI with the name of Overgrow Services Consultant profession Limited Liability Comp both. January 2nd 2008, the company became officially quizzed and changed its head office to 853 El Hong Ph star, Ward 12, Didst. 10, HCI. In January 2011, the head office was once again go to 273/5 Unguent Throng Tune, Ward 10, PH Non benignant Didst. , HCI and became official until now. . 2. General Information companys cry OVERGROW CONSULTANT AND LOGISTICS CORPORATION agate line appoint OVERGROW C. L. C Brand name emailprotecte d percentage point Office 273/5 Unguent Throng Tune, Ward 10, PH Non human being Didst. , HCI City Certificate of melodic phrase Number 4103008954 Issued by subdivision of Planning and enthronisation of Ho Chi Mini City tax income Code 0305416676 Initial chapiter 800. 000. 000 dong attest 08 38 455 277 Fax 08 38 455494 Website overgrow. Com. Van electronic mail emailprotected Com. Van Chairman of the Board of Directors Mr..Quack Than Dan General Director Mr.. Unguent Van Sang Slogan invariably Value harvest-festival 1. 2. 1. Functions Consultancy Investment Consultancy Consultancy on opening move Administrative Management Legal Consultancy M&A Consultancy Real Estate Consultancy Franchising Consultancy Export Import custom duty Broker Logistics Services Packaging, labeling Consolidation Authorized representatives of here and now and export Distri barelyion Accounting Tax and financial Services Vocational Training Trading 1. 2. 2. MissionsTo computing device program me and carry out companys production line go in accordance with the flowing regulations to execute the above righteousness To develop and utilize efficiently the companys funds, constantly improve the companys table operate to preserve and stretch forth capital To acquiesce with policies and regimes of state law related to line activities of the company, seat to the contracts with customer To fulfill obligations to employees and tax obligations to the state To take jural responsibility for the operations of the company To draw a bead on and develop the employees of the company, facilitate staffs professional person ripening 1. 3.organisational expression With the number of fewer than 30 employees, Overgrow is a small company whose capital is 800. 000. 000 vend. This figure is rather an not bell ringerificant during the measure when more and more large logistics company has Joined in the food marketplace inventive with wet enthronement in ordered series and i nfrastructure. However, the dynamic and young team of staff, the enthusiastic and go through management team, the compact size which is easy to mold ar the companys advantages. With the slogan of Ever Value Growth for, the company lead always be watchful for the long-term oriented development and sustainability. . 3. 1 . Organizational Hierarchy chart Chart 1 . 1 Organizational Structure Source website 1. 3. 2. Functions of meaning(a) discussion sections personnel Department Responsible for managing rules and regulations of the company, clerical work, salary administration, salary and benefits, office, security, fire fight and prevention, developing human resource. Business Development Department Responsible for researching and developing value products, designing and determining the bell of product, pursuing business opportunities, customer c ar and development.Consultancy Department Provide consultancy gains in accordance with investors admitment and business purlie u Research and update systematically related legal t for distributively oneing to provide customer with the best enthronisation, commercial, instant-export information Plan business projects, investment proposal, obtain investment license. Import-Export Department Import-Export Department is the most important department contri stilling to the companys revenue. It consists of two sections inscriptions section and field section.The main activities are Provide import and export operate in accordance with customers requirement and business surround Deal with customers, receive information and documents, process documents and import-export formalness Initiative contact with related State agencies and customers to take apart any problems Carry out tradition circumstanceor activities, transport and allowy of goods Operate the companys direct business and import export activities. 1. 4. Business outcomes from 2010-2012 Table 1. 2 Business Revenue, Cost, Profit from 2010 to 2012 Unit Vietnam Dong 2010 2011 2012 crystalise Revenue 4. 650. 094. 413 4. 185. 920. 237 3. 25. 444. 644 Cost 2. 404. 717. 225 1 . 668. 673. 268 1 . 613. 829. 861 everlasting(a) Profit 2. 245. 377. 188 2. 517. 246. 969 1 . 811. 614. 783 Revenue from finance 2. 185. 735 4. one hundred twenty-five. 176 997. cxl Cost from finance 2. 561. 199 58. 210. 523 19. 096. 204 Operating equal 2. 190. 445. 214 2. 357. 866. 622 1 . 799. 491 . 875 Net profit (15. 443. 490) 105. 295. 000 (5. 976. 156) Other profit (74. 133. 603) (14. 143. 102) 25. 842. 125 Profit before tax (89. 577. 093) 91. 151. 898 19. 865. 969 Profit later on tax (90. 254. 460) 72. 725. 273 14. 373. 160 Source Finance relation 2010-2012 In 2010, the companys business seemd a potbelly of difficulties.Although net revenue increased by 29. 96 % compared to 2009 (Revenue 2009 was 3. 578. 025. 005 huckster) but costs increased significantly. The total cost in 2010 was 4. 741. 857. 41 VEND, 32. 66 % higher than in 2009 which wa s 3. 574. 409. 473 VEND. This consequence was partly due to the bad essence of general market, the unstable economy, oil prices sharply rise, particularly financing costs which increased significantly from 5. 153. 310 VEND in 2009 to 72. 561. 199 VEND 2010. Over the years 2011-2012, the business situation was much more positive thanks to costs reduction. However, the companys net revenue has declined.The fact that a number of customers of the company have had their own import and export department on with the introduction or expansion of some logistic companies in Ho Chi Mini City may run short to the deduction of the amount of contract. 1. 5. Internship activities at Overgrow C. L. C Research about organizational structure, functions and tasks of each department, keep up everyones works Approach to some important document required in import- export activities such as contact, measuring rod of Lading, Airway schnozzle, Commercial Invoice, Packing list, interlocking name, C ertificate of OriginAfter registered at HCI City usance Department 2 Ham tight, Ben Nigh Ward, Didst. 1, HCI and within the validity period of the contract, every freight under this contract ordain be tell at this customs Department. After getting admit from Hong sacque Duce about the export consignment, the document processing staff ill Receive information about the consignment from customer Description of Goods Polo Half HAS autograph 61099020 Quantity 298 pieces = 6 cartons Total value $2. 63,14 awkward of origin Vietnam Country of import Japan appearance of export Tan Son Neat airport, HCI port wine of discharge Osaka, Japan Gather the necessary documents and read into English including Commercial Invoice 1 received Packing list Bill of Material chronicle of contract Certificate of Origin Airway Bill 1 copy Table 2. 2. Documents required in process baffle ups Certificate of Origin and Airway Bill bequeath be obtained after the consignment departs Modes of gran t documents Via email, post, MESS or directly hand in to Overgrow Headpiece.Normally, field staff leave alone come to customers company to get the documents and signatures. Date on all documents must be the same (June 10th 2013) just for C/O and A/B June quaternate 2013 contact the carrier and obtain Booking Note for the flight of June 33rd 2013 2. 1. 2. Customs result and head Online declaration For processing goods, we will use Tai Son soft-Uses EGG. June 10th 2013 Documents processing staff will insert the information of the consignment, attach documents such as Commercial Invoice After information is submitted inline, Customs officer accepts customs declaration and give out declaration number.This consignment of Hong Pouch Duce is classified as Green lane and exempt from taxes, documents staff will print out the declaration pall. June 1 lath 2013 theater staff will submit the 2 Declaration Sheet (original) (signed by Hong Pouch Ducks director) to Customs incumbent at HC I Customs Department to get the headway confirmation. In another(prenominal) cases, if the consignment is classified as Yellow or Red lane, the Customs Department will check on the commercial documents or actually inspect of goods and move on to Taxes Department. 2. . 3.Good economy June 22nd 2013 Field Staff will carry the 2 Declaration Sheet (confirmed) and Booking Note to TTS warehouse and Hong Pouch Ducks representative will deliver the goods in that respect to the representative of the carrier along with a forwarding instruction from the shipper. Staffs of the airline warehouse weights the goods and sign in the Scaling Report. Field staff will submit the 2 Declaration Sheet to the customs inspector, get the confirmation and take back the sheet then liquidate the goods. After that, he will make the entire fee to TTS and transfer documents to the carriers representative.A ay or two, he will come to the carriers office to get the airway bill. 2. 1. 4. Documents Storage and Tr ansferring After finishing all customs procedures, field staff returns all the bills and flesh out list of relating cost to the accosting department. Accounting department will draw the final balance sheet, settle all payment relating to the consignment, bill the service charges and transfer the document to customer. Documents Processing staff will obtain the C/O and then transfer the final documents to Hong Pouch Duce, including C/ o Airway bill And other necessary documents Overgrow will keep one copy of each document. 2. Summary of strengths and weaknesses 2. 2. 1 . Strengths naturalized for about 10 years, the procedures of Overgrow C. L. C are currently well veritable. The connection between each section ensures that the work process is fast and tight. The process is unlikeable to theory and regulations of the state, which sullys the chances of mistakes and other problems. The company is applying advantages in information technology to develop customer interlocking and ex ecute the import and export procedures. The usage of electronic customs declaration software USES-EGG lasted update enables all processes to become more convenient and simple.The current headpiece, which is uprise the airport, befuddles it easier for staff to move from office to the warehouse and the Customs Department. More over, short distance helps the company to notwithstanding a lot of money and time. Staffs with strong knowledge, rich experience and enthusiasm always prove their professionalism, merely make any mistake at work. After several years of operation, Overgrow has created close relationships with many airline companies and provide the air transport service with a competitive look and price. 2. 2. 2. Weaknesses Firstly, investment and development of services is limited due to lack of capital sources.Overgrow mostly work with customers whose company is in the culture strong point and small scale. The lack of human sources in addition constrains the company fro m waveing the business. Besides, there are s process employees whose professional qualifications are not really strong to solve any problems occur at work, especially when they are workingss with customs action. Moreover, Overgrow does not have any warehouse as well as transportations. The fact that they must hire other transport agency raises the cost and for worst, they can not control the property of shipment. Sometimes, due to the carelessness of the supervising staff, goods are lost, stolen or damaged.This situation affects the companys credit as well as financial status since the value of compensation quite high. Chapter Three RECOMMENDATIONS TO IMPROVE THE PROCESS OF AIR committal FORWARDING SERVICES FOR EXPORTING PROCESSING GOODS 3. 1 . Outlook of air freight forwarding services in the company 3. 1. 1 . Opportunities The negative come to of the globe recession has clearly affected the import-export market in Vietnam. However, signs of global economic recovery along wi th the efforts of business community and Ministries will be an important driving force, supporting the recovery of Vietnam market.For logistic sector, outgrowth opportunities are even higher. According to some experts in this field, after Joining in WTFO, Vietnam is chosen by many foreign investors and piecemeal become a new manufacturing center of the world, after China and India. This is as well a good sign for Overgrow as the situation is gradually better. The export and import activities in many manufacturing companies have recently promoted, which lead to more and more customers. Customs regulations nowadays are more appropriated than they were before. The simpler, neater they are, the more convenience for the company.The company is coated in an field of battle with developed economies such as Ho Chi Mini City, Dong Ana and Bin Dong. This area forces many domestic and foreign investments, enabling companies to harness new customers. In the future the company continues to expand the relationships, seeks for investment partners not only domestic but also abroad and potential new customers slice maintaining and strengthening goods relationships with the old customers. Besides, the company also developed many types of services other than major import and export activities such as consulting, investment, trading bring on more immense source of salary and stability.Especially for air freight industry, thank to their advantages of quick and just services, future development of this field is indisputable. The number of export and processing contracts of the company are stable and move to increase. Besides, customs procedures are more cursorily than the sea freight plus the competition between air transport companies which leads to costs reducing tend to be the deciding factors for customers to choose this type of freight. 3. 1. 2.Threats nonpareil of the biggest challenges of the companys current situation is the fact that the numbers of logistics com panies are increase leading to fierce competition in annuity, quality and services price. In addition, the trading and manufacturing companies are gradually investing themselves a separate import and export division, making the number of contracts and the number of customers using the service also declined somewhat. Most of the companys customers are small and medium enterprises, exports and imports volumes are not large and the value of service contracts is not high.The expansion of the market may face many problems due to financial instability and human resources are increasingly scarce, especially qualified staff, strong expertise who meet the requirements of companies. The research and develop product activity requires skilled, professional and strong acknowledged of market employees, who are also the target talent of others competitors. One other difficulty is the seasonal characteristic of logistics industry, which makes the company operation results unstable and revenue uneve n. Benefits of the employee are also affected.At peak season, they have to work overtime till midnight to wait for a shipment but at the opposite one, workload reduces and so does their income. Last but not least, in 2012 , Vietnam government has permitted 100 % foreign owned egoistic enterprises in the country, this will make the competition becomes more intense, when small enterprise like Overgrow confront with the big names in the worldwide market like Marks , overblown , NYC , MOL who have huge capital investment, abundant experiences and intend to invade Vietnamese potential market. mild infrastructure and limited services companies could hardly contend with those giants. . 2. The companys oriented development for air freight forwarding services Develop direct foreign investment and enterprise investment consulting services, erectly invest if there is a good opportunity Develop customs broker service and freight forwarder, specialize each stage, diversify fields and selectiv ely develop Overgrow Company does not only develop human resources but also desire to bring them professional solid foundation for the future Advertise and develop brands image to the potential customers Become a closed chain services provider in 201 5 3. 3.Recommendations to improve air freight forwarding services for exporting processing goods 3. 3. 1. To the Board of Director Upgrading computer systems to facilitate employees complete task more quickly and accurately Invest in equipping transportation to reduce working with agency with high price and low quality Carefully monitor working habit of the staffs to ensure seriously inside and international the office Consider investment in marketing activities and advertising companys image in order to expand customers network as well as to attract more potential employee 3. . 2. To the Personnel Department pink and create sanction regime for workers to increase work efficiency Foster knowledge and soft skills of staffs, especially field staffs working directly with the customs officers, require high flexibility Limit the costs and time when handling the shipment, and time off of employees 3. 3. 3.To the import and export staffs Avoid unnecessary mistakes in processing documents to minimize handling time Try to arrange time and places to handle as many consignments as viable to reduce moving time and cost when locomotion from the office to the warehouse or to customariness 3. 4. Proposals 3. 4. 1. To the Company express financial stability, balance the costs reasonably and pay attention to the currency market for the price valuation account in providing services to customers Improve