Process of air freight forwarding services for exporting

Over the last few years, the concept of logistics has become lots and more recognized, it has even become a vital part of distant trade activities. Integrating with the trend of globalization, Vietnam has gradually spuded forwarding and logistics industry, created incentives to relegate exportationinging and importation activities in the country. by and by a long stage of while fostering professional cognition, I found this internship program a chance that the university had offered to students to gain actual work practice and apply eruditeness theory.With the experiences in 3 weeks of internship at grow over consultant and Logistics dope and the knowledge accumulated in class, I move over completed the mid-course internship report with the report topic Process of air committal forwarding work for trade extremitying goods at surpass Consultant and Logistics Corporation, which includes the actual suffice of exporting goods by air at the corporation and some reco mmendations to advance this activities.The report consists of three chapters, including Chapter 1 Introduction of overgrow Consultant and Logistics Corporation Chapter 2 Estimating the work out of air loading forwarding services for exporting processing odds Chapter 3 Recommendations to mend the process I would wish to say thanks to Foreign Trade University Ho Chi mini city Campus that has facilitated us in experiencing with the mid-course internship Mr.. balm Tine Hang who has devotedly helped me to gloss this report. I am grateful for the help from Overgrow C. L. Cos Board of Directors and their supplys, in particular Mr..Unguent vanguard Sang General Director and Miss Train NCO Phonon NIH suspensor General Director, who have enthusiastically supported me to approach documents and actual activities in the comp both. However, out-of-pocket to the lack of knowledge and practical experience, the port may birth some inevitable mistakes. I would be really appreciated t o have further comments to improve this subject from the readers. Ho Chi mini urban center, twenty-second August, 2013 Student Tryn HTH HI Line Chapter 1 INTRODUCTION OF OVERGROW CONSULTANT AND LOGISTICS CORPORATION 1. . Rater History Overgrow Consultant and Logistics Corporation was first established on 20/09/2000 at Cote Building, 7 Name Quo Gang, Pam Eng Ala Ward, HCI with the name of Overgrow run Consultant Trading circumscribed Liability Comp either. January 2nd 2008, the family became appointedly quizzed and changed its head section to 853 El Hong Phone, Ward 12, Didst. 10, HCI. In January 2011, the head office was once again go to 273/5 Unguent Throng Tune, Ward 10, PH Nonhuman Didst. , HCI and became official until now. . 2. General Information companys Name OVERGROW CONSULTANT AND LOGISTICS CORPORATION task enterprise Name OVERGROW C. L. C Brand name emailprotected Head side 273/5 Unguent Throng Tune, Ward 10, PH Nonhuman Didst. , HCI City Certificate of Busi ness Number 4103008954 Issued by incision of inventning and investiture of Ho Chi Mini City impose Code 0305416676 initial capital 800. 000. 000 dong Tell 08 38 455 277 Fax 08 38 455494 Website overgrow. Com. Van Email emailprotected Com. Van Chairman of the Board of Directors Mr..Quack Than Dan General Director Mr.. Unguent Van Sang Slogan eer Value Growth 1. 2. 1. Functions Consultancy enthronement funds Consultancy Consultancy on Enterprise Administrative Management Legal Consultancy M&A Consultancy Real E country Consultancy Franchising Consultancy Export Import Customs Broker Logistics Services Packaging, labeling Consolidation Authorized instances of import and export Distri entirelyion Accounting Tax and Financial Services Vocational Training Trading 1. 2. 2. MissionsTo plan and strike away companys business services in conformance with the current regulations to meet the above function To develop and utilize efficiently the companys funds, constantly improve the companys services to preserve and fan out capital To comply with policies and regimes of state law connect to business activities of the company, commit to the generates with customer To fulfill obligations to employees and impose obligations to the state To take legal responsibility for the operations of the company To train and develop the employees of the company, facilitate lags professional using 1. 3.Organizational structure With the number of fewer than 30 employees, Overgrow is a small company whose capital is 800. 000. 000 vend. This figure is quite an not significant during the time when more and more large logistics company has Joined in the market inventive with strong investment funds in scale and infrastructure. However, the dynamic and young team of staff, the enthusiastic and experienced management team, the compact size which is easy to control be the companys advantages. With the slogan of Ever Value Growth for, the company bequeath always be disposed(p ) 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 principal(prenominal) incisions Personnel Department trusty for managing rules and regulations of the company, clerical work, salary administration, compensation and benefits, office, security, conjure fight and prevention, developing human re showtime. Business Development Department Responsible for reoceanrching and developing service intersection points, designing and determining the price of product, pursuing business opportunities, customer c ar and development.Consultancy Department Provide consultancy services in accord with investors requirement and business environment Research and modify systematically related legal information to provide customer with the best investment, commercial, import-export information Plan business projects, investment proposal, obtain investment license. Import-Expor t Department Import-Export Department is the intimately classical department contributing to the companys revenue enhancement. It consists of two sections documents section and playing area section.The of import activities are Provide import and export services in accordance with customers requirement and business environment Deal with customers, receive information and documents, process documents and import-export formality Initiative contact with related State agencies and customers to re compute any problems Carry out customs broker activities, transportation and delivery of goods employ the companys direct transaction and import export activities. 1. 4. Business outcomes from 2010-2012 Table 1. 2 Business Revenue, terms, Profit from 2010 to 2012 Unit Vietnam Dong 2010 2011 2012 final 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 Gross Profit 2. 245. 377. 188 2. 517. 246. 969 1 . 811. 614. 783 Revenu e from pay 2. 185. 735 4. 125. 176 997. 140 Cost from finance 2. 561. 199 58. 210. 523 19. 096. 204 Operating cost 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 after tax (90. 254. 460) 72. 725. 273 14. 373. 160 Source Finance rehearsal 2010-2012 In 2010, the companys business faced a lot of difficulties.Although net revenue growingd by 29. 96 % compared to 2009 (Revenue 2009 was 3. 578. 025. 005 gear) but cost increased significantly. The tot cost in 2010 was 4. 741. 857. 41 VEND, 32. 66 % utmoster than in 2009 which was 3. 574. 409. 473 VEND. This end was partly due to the bad effect of general market, the unstable economy, anele prices sharply rise, in particular financing be 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 event that a number of customers of the company have had their own import and export department along with the introduction or expansion of numerous logistic companies in Ho Chi Mini City may temper to the deduction of the amount of contract. 1. 5. Internship activities at Overgrow C. L. C Research nigh organizational structure, functions and tasks of each department, observe everyones works Approach to some important document required in import- export activities such as contact, bank bill of Lading, Airway Bill, Commercial Invoice, packing list, Booking Note, Certificate of derivation subsequently registered at HCI City Customs Department 2 Ham tight fittinglipped, Ben Nigh Ward, Didst. 1, HCI and within the validity period of the contract, every consignment under this contract will be declared at this Customs Department. After captureting notice from Hong sack Duce about the export consignment, the document processing staff ill Receive information about the consignment from customer comment of Goods Polo Half HAS code 61099020 Quantity 298 pieces = 6 cartons Total cherish $2. 63,14 province of origin Vietnam Country of import Japan Port of export common topaz Son Neat airport, HCI Port of discharge Osaka, Japan Gather the needful documents and translate into English including Commercial Invoice 1 original Packing list Bill of Material Schedule of contract Certificate of Origin Airway Bill 1 copy Table 2. 2. Documents required in process Notes Certificate of Origin and Airway Bill will be obtained after the consignment departs Modes of supply documents Via email, post, MESS or directly pass by in to Overgrow Headpiece.Normally, survey staff will come to customers company to get the documents and signatures. Date on all documents must be the like (June 10th 2013) except for C/O and A/B June fourth 2013 contact the carri er and obtain Booking Note for the flight of June thirty-third 2013 2. 1. 2. Customs Declaration and Clearance Online declaration For processing goods, we will consumption Thai Son soft-Uses EGG. June 10th 2013 Documents processing staff will innovate 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 road and exempt from taxes, documents staff will print out the declaration sheet. June 1 lath 2013 Field staff will submit the 2 Declaration sheet (original) (signed by Hong Pouch Ducks director) to Customs Officer at HCI Customs Department to get the clearance confirmation. In other cases, if the consignment is classified as Yellow or Red lane, the Customs Department will hang-up on the commercial documents or actually inspect of goods and move on to Taxes Department. 2. . 3.Good Delivery June 22nd 2013 Field Staff will bring the 2 Declaration planing machine (confirmed) and Booking Note to TTS warehouse and Hong Pouch Ducks representative will deliver the goods there 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 leveling Report. Field staff will submit the 2 Declaration Sheet to the customs inspector, get the confirmation and take back the sheet so liquidate the goods. After that, he will pay the entire pay 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 Transferring After finishing all customs procedures, field staff returns all the bills and detailed list of relating cost to the accosting department. Accounting department will draw the final balance sheet, settle all remuneration relating to the consignment, bill the service c harges 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 Established for about 10 years, the procedures of Overgrow C. L. C are presently advantageously unquestionable. The connection between each section ensures that the work process is fast and tight. The process is closed to theory and regulations of the state, which minimizes the chances of mistakes and other problems. The company is applying advantages in information technology to develop customer network and execute 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 near the airport, makes it easier for staff to move from off ice to the warehouse and the Customs Department. More over, short outperform helps the company to save a lot of money and time. Staffs with strong knowledge, tumefy-to-do experience and enthusiasm always prove their professionalism, hardly make any mistake at work. After several years of operation, Overgrow has created close relationships with umpteen airline companies and provide the air transport service with a competitive quality 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 strong suit and small scale. The lack of human sources alike constrains the company from expanding the business. Besides, there are still employees whose professional qualifications are not really strong to solve any problems occur at work, especially when they are working with customs histrionics. Moreover, Overgrow does not have any warehouse as well as transportation s. The fact that they must hire other transport agency raises the cost and for worst, they can not control the quality of commitment. Sometimes, due to the oversight 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 tierce RECOMMENDATIONS TO IMPROVE THE PROCESS OF AIR FREIGHT FORWARDING SERVICES FOR exportation PROCESSING GOODS 3. 1 . Outlook of air freight forwarding services in the company 3. 1. 1 . Opportunities The negative impact of the globe time out has clearly affected the import-export market in Vietnam. However, signs of global economic recovery along with the efforts of business community and Ministries will be an important ride force, supporting the recovery of Vietnam market.For logistic sector, growth opportunities are even higher. gibe to some experts in this field, after Joining in WTFO, Vietnam is chosen by many international i nvestors and gradually become a new manufacturing center of the world, after China and India. This is as well as 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 instantly are more appropriated than they were before. The simpler, neater they are, the more convenience for the company.The company is coated in an area with developed economies such as Ho Chi Mini City, Dong Ana and Bin Dong. This area attracts many domestic and foreign investments, change companies to find new customers. In the emerging the company continues to expand the relationships, seeks for investment partners not only domestic but also abroad and possible new customers while maintaining and strengthening goods relationships with the old customers. Besides, the company also developed many types of services other than major import and export activitie s such as consulting, investment, trading bring on more abundant source of profits and stability.Especially for air freight industry, thank to their advantages of quick and safe services, future development of this field is indisputable. The number of export and processing contracts of the company are stable and tend to increase. Besides, customs procedures are more quickly 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 hotshot of the biggest challenges of the companys current situation is the fact that the numbers of logistics companies are increasing leading(a) 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 dec lined somewhat. to the highest degree 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 indication of logistics industry, which makes the company operation results unstable and revenue uneven. Benefits of the employee are also affected.At cover 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 self-in volved enterprises in the country, this will make the competition becomes more intense, when small enterprise like Overgrow confront with the big names in the cosmopolitan market like Marks , PAPAL , NYC , MOL who have wide capital investment, abundant experiences and intend to invade Vietnamese voltage market. belittled infrastructure and limited services companies could hardly compete 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 selectively develop Overgrow Company does not only develop human resources but also desire to bring them professional solid foundation for the future propound and develop brands image to the potential customers Become a closed image services provider in 201 5 3. 3.Recommendations t o improve air freight forwarding services for exporting processing goods 3. 3. 1. To the Board of Director Upgrading information processing system systems to facilitate employees complete task more quickly and accurately decorate in equipping transportation to reduce working with agency with high price and low quality Carefully monitor working raiment of the staffs to ensure seriously inside and outside 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 Criticize 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 find 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 document s to minimize handling time Try to arrange time and places to handle as many consignments as possible to reduce moving time and cost when traveling from the office to the warehouse or to customariness 3. 4. Proposals 3. 4. 1. To the Company Conduct financial stability, balance the costs reasonably and pay attention to the currency market for the price valuation account in providing services to customers Improve