LITERATURE REVIEW ABOUT OCEAN TRANSPORTTATION
Overview
1.1.1 Concept, role of ocean íreight Services. a The concept of forwarding Service.
According to the International Federation of Freight Forwarders Associations (FIATA), forwarding services encompass a range of activities related to the transportation of goods, whether through single or multimodal means These services include consolidation, storage, handling, packing, and distribution, as well as additional advisory and ancillary services Key aspects of forwarding services involve customs and fiscal matters, official declarations of goods, insurance procurement, and the collection or management of payments and documents associated with the goods.
Under Vietnam's Commercial Law, merchandise exchange is defined as a commercial activity in which freight forwarders handle transportation, storage, documentation, and other delivery-related services on behalf of shippers, based on the trust of owners, transporters, or other forwarders.
Forwarding encompasses a range of services and procedures involved in the transportation process, facilitating the movement of goods from the shipper to the consignee Forwarders can provide these services directly or through agents and third-party service providers.
Forwarding services share key characteristics typical of all services, including their intangible nature, which makes standard quality assessment challenging Unlike physical products, services cannot be stored, as they are produced and consumed simultaneously The quality of these services is largely determined by the perceptions of the customers receiving them.
Freight forwarding services do not produce physical products; instead, they facilitate the movement of goods, positively influencing production development and enhancing people's lives.
The service is influenced by customer demand, carrier regulations, and the legal and regulatory frameworks of the exporting country, importing country, and any third countries involved.
Seasonality significantly impacts forwarding services for export and import activities, as these logistics operations are closely tied to the fluctuating volumes of goods being transported The seasonal nature of import and export activities directly influences logistics processes, highlighting the importance of understanding these trends for effective supply chain management.
In addition to paperwork, brokerage, and billing, service providers offer essential services such as consolidation, division, and loading and unloading The successful completion of these tasks heavily relies on the technical capabilities and expertise of the forwarder.
Freight forwarding services lack standardized qualitative criteria for quality assessment; however, they do have specific requirements that must be fulfilled to meet customer needs These essential requirements ensure that the freight forwarder effectively addresses the expectations and demands of their clients.
Efficient delivery of goods is essential, focusing on minimizing the time taken from dispatch to receipt, including loading and unloading durations To achieve this, forwarding agents must understand the technical processes involved, the nature of the goods being transported, shipping schedules, and optimal vehicle arrangements for transportation.
Safe delivery is essential for protecting the interests of both the owner and the carrier High accuracy in delivery plays a crucial role in determining the quality and completion of the logistics process, which includes ensuring the correct quantity and quality of goods as per the owner's specifications By achieving accurate delivery, the risks of misalignment and loss of goods are significantly reduced.
To achieve the lowest delivery costs and enhance competitiveness among forwarders, it is essential to invest in material facilities, establish comprehensive standards, minimize waste, and train skilled professionals.
In today's globalized economy, the transportation of freight goods involves multiple modes of transport and complex export and import procedures Freight forwarders play a crucial role in streamlining these processes, ensuring efficient delivery while minimizing costs Their services extend beyond traditional tasks such as packing and inspection; they also offer professional advice on transportation routes, customs clearance, and specialized packing solutions, making them essential partners in international trade.
The term "freight forwarder" lacks a universally accepted definition, but it is commonly understood to refer to the forwarding business As defined by FIATA, a freight forwarder is responsible for the transportation of cargo under a fiduciary contract, acting in the best interest of the fiduciary Additionally, freight forwarders handle various tasks related to forwarding contracts, including storage, transshipment, customs clearance, and inspection.
In Vietnam, a freight forwarder can be the cargo owner, the ship-owner acting on behalf of the cargo owner, or any registered entity involved in the freight forwarding business, such as loading and unloading companies or professional forwarders According to Vietnamese Commercial Law, providers of goods delivery services must be traders with valid certificates of registration for freight forwarding services.
From the above definitions we can draw a comment:
- Forwarders operating under entrustment contracts signed with goods owners, protecting the interests of goods owners.
Methods to analyse
Comparison serves as a crucial analytical tool that enhances our descriptive abilities and is essential for concept formation by highlighting significant similarities and differences among various cases It is commonly employed in hypothesis testing and can also aid in the inductive discovery of new hypotheses and contribute to the development of theories.
- Determine the original íĩgure for comparison
When analyzing the rate of change, it is essential to evaluate the growth rate of indicators in relation to a comparable object at the same time, ensuring a clear understanding of their correlation.
- Conditions to compare the indicators
+ On the content of the indicator
+ Agreed on methods of calculating and measuring norms
+ Unify the unit of calculation, in terms of quantity, time and value
- Comparative objective in research analysis
+ Determine the degree of absolute and relative íluctuations along the trend of changes in the analysis
+ Absolute variation: The actual data is measured independently
+ Relative volatility: Relational data is calculated based on one original data
Absolute numbers represent the scale or volume of economic indicators at a specific time and location, with calculations expressed in units such as quantity, value, or time.
Relative volatility is the result of the comparison between the actual and the original, adjusted by a relevant indicator in the direction of determining the size of the analytical target.
Average is the quantity expressed in terms of quantity of units by the following:
By all the difference in value between these units, to reílect the general characteristics of each number, part or whole phenomena of the same nature.
The average comparison will assess the general situation, the íhictuation in quantity, quality in the process of production and business, assessment of development trends of enterprises.
In order to better understand the current situation of the company, in the thesis I give some information to compare as follows:
- Comparing the proportion revenue of ocean freight to other Services of the company in 2011-2016 to emphasize the important role of ocean freight in the company.
The literature review highlights the advantages of the shipping company's cargo handling process compared to general shipping practices, showcasing its efficiency and effectiveness in managing shipments.
- Compare the cost of ocean freight beíồre and after applying the new System to demonstrate the role of the System for the company.
In order to provide a better understanding of the current State of ocean freight at
To effectively strategize for DB Schenker, a SWOT Analysis can be employed to assess the Strengths, Weaknesses, Opportunities, and Threats associated with the initiative This strategic planning tool is essential for evaluating various scenarios and making informed decisions By implementing this analysis early in the development of OBIA, we aim to enhance and direct the growth of this emerging discipline, ensuring a solid foundation for future endeavors.
In practice, once an objective has been established, a multidisciplinary team representing a broad range of perspectives should carry out SWOT analysis; which is typically presented in the form of a matrix.
Table 1 SWOT matrix (adapted from Winer, 2006)
Ikipỉid tử achievtng the obĩectiVÉ llarmrul to achieving the obiective
SWOTs are deíined based on the following criteria:
- Strengths are intemal attributes of the organization that are helpful to the achievement of the objective.
- Weaknesses are intemal attributes of the organization that are harmful to the achievement of the objective.
- Opportunities are extemal conditions that are helpful to the achievement of the objective.
- Threats are extemal conditions that are harmful to the achievement of the objective.
In theory, SWOTs are used as inputs to the Creative generation of possible strategies, by asking and answering the following four questions numerous times:
- How can we Use each Strength?
- How can we Stop each Weakness?
- How can we Exploit each Opportunity?
- How can we Defend against each Threat?
To maximize the benefits of SWOT analysis, it is crucial to utilize this tool effectively The analysis should focus on providing actionable insights for decision-making rather than merely listing strengths and weaknesses Meaningful analysis arises when the implications of this information for the organization or discipline are evaluated Additionally, it is most advantageous to examine strengths and weaknesses that are internal to the organization, such as identifying what it excels at, areas for improvement, and perceptions of weaknesses from an external viewpoint.
Opportunities and threats should be assessed from an external perspective, focusing on trends that can be leveraged for advantage, identifying ways to transform strengths into opportunities, and recognizing potential trends that may pose risks.
A SWOT analysis serves as an effective tool for guiding business strategy meetings by facilitating group discussions on the company's core strengths and weaknesses This collaborative approach allows participants to identify opportunities and threats, ultimately leading to a productive brainstorming session Often, the insights gained during the meeting can shift the initial SWOT analysis, revealing factors that may have gone unnoticed without the collective input of the team.
SWOT analysis is a versatile tool that can enhance both overall business strategy sessions and specific segments such as marketing, production, or sales By applying SWOT to these segments, businesses can evaluate how the overarching strategy will influence each area before implementation Additionally, conducting segment-specific SWOT analyses can provide valuable insights that contribute to a comprehensive overall SWOT analysis.
DB SCHENKER VIETNAM CO.LTD AND THE OCEAN
Global DB Schenker
2.1.1 DB Schenker is a leading global provider of logistics Services
For over 140 years, DB Schenker has been a leader in logistics and supply chain management, offering a wide range of shipping solutions tailored to customer needs As one of the top three logistics service providers globally, DB Schenker reported a net profit exceeding $19.8 billion in 2017, highlighting its significant impact and success in the industry.
DB Schenker stands as the premier global logistics provider, facilitating the seamless exchange of goods across industries and trade Our comprehensive services include land transport, international air and ocean freight, contract logistics, and supply chain management, ensuring efficient and reliable logistics solutions worldwide.
Integrated logistics resides at the world’s most important intersections, where the flow of goods creates an effective link between carriers.
The value-added Services of company ensure the flow of goods continues seamlessly and supply chains stay lean and optimized for success.
The company’s business holds top positions in automotive, technology, consumer goods, trade fair logistics, special transports, and special events logistics.
Now, the company employs more than 95,000 people working in more than
2000 DB Schenker offices around the world.
DB Schenker stands out as a leader in contract logistics, boasting a workforce of around 20,000 employees across nearly 750 locations worldwide With a vast warehouse space totaling 8 million square meters, the company operates in over 50 countries on every continent, showcasing its extensive global reach and expertise in the logistics sector.
In 2020, our strategy focuses on achieving sustainability across all aspects of our operations By disrupting traditional practices in the logistics sector, DB Schenker aims to create a balanced approach that integrates economic, social, and environmental considerations in logistics and supply chain management.
By 2020, DB Schenker aims to be a profitable quality leader in its target markets, leveraging long-term financial stability to invest in growth opportunities and employee expertise The company will focus on delivering innovative products through high-performing processes and advanced IT systems, ensuring complete customer satisfaction with its leading networks and industry solutions.
By 2020, DB Schenker aims to be the leading employer in the logistics industry, attracting a diverse workforce of all ages and professions The company is committed to employee development, providing both local and international career opportunities DB Schenker fosters relationships built on mutual trust and a shared leadership philosophy, creating a respectful working environment that values individual contributions and meets the unique needs of each employee.
By 2020, DB Schenker aims to be the eco-pioneer in the logistics industry, leveraging a green product portfolio and eco-consulting expertise as core elements of its sustainable strategy This commitment provides a distinct competitive edge for both customers and the company, positioning DB Schenker as a benchmark for carbon and energy efficiency Additionally, the company is dedicated to minimizing other emissions, including noise, to enhance societal acceptance of its future growth initiatives.
• TARGET: By 2020 DB Schenker will be the leading integrated transportation and logistics provider.
DB SCHENKER VIETNAM CO.LTD
Up to now, DB Schenker has been operating for 27 years in Vietnam.
• Company’s name: DB Schenker Vietnam Co.Ltd.
• Corporate Office: Ho Chi Minh City.
• Employee size: More than 600 employees.
Total Locations: 13 (including 2 agent locations)
- Corporate Office: Ho Chi Minh City
- 1991 o 27 Sep 1991: First gained license to operate as a representative office in
- 2007 o 12 July 2007: SGL is established as a JV between DB Schenker and a local logistics company to provide warehousing and distribution Services o 25 Sep 2007: Schenker Vietnam Co., Ltd (SVN) is established
- 2014 o 10 Apr 2014: SGL is 100% acquired by SVN. o 4 July 2014: SVN is granted 100% íồreign ownership status. o 13 August 2014: Schenker Logistics Vietnam Co., Ltd (SLV) was established.
- 2015 o 1 Jan 2015: SLV officially begins operating as a subcon for SVN.
- Contract Logistics/Supply Chain management.
In global scope through the cooperation with DB Schenker’s branches in all over the world. d Certiíicate:
- 2014 Awardee, Corporate Social Responsibility (CSR) Award for Good
Períồrmance on Social Security & Community Development.
2.2.5 Management organization of DB Schenker Co.Ltd.
Pigure 1: The scheme of DB Schenker Co.Ltd ‘s management organization in Vietnam
Sources: Reíerences from DB Schenker’s Internal Documents.
Punctions by departments a Board of directors.
- The Board of Directors is the General Director and the Deputy General Director
- The General Director is the person who manages the daily Service business of the company on the basis of the following powers and duties:
- Decide the issues related to the daily work of the Company, appoint and dismiss management positions.
- Determining salary and allowances (if any) for laborers in the company.
- Decide the contract for Service business.
- Recruiting, hiring and arranging employment.
- Manage all assets of the Company.
- To take responsibility beíồre law for wrongful acts against the Company. b Finacial - Accouting Department
- The Finance and Accounting Department is a division that has the íìmction of advising the Board of Directors on the management of assets and Capital to meet
- the requirements of providing Services in accordance with the law To promptly advise on the preservation and development of the Company's Capital.
- Check the payment of customer invoices.
- Prepare annual tinancial statements. c Administrative Department.
The Administrative Organization Department serves as the support hub for the Board of Directors, overseeing the company's organizational structure and managing labor and salary implementation This department ensures compliance with state policies and regulations, handles commendation and disciplinary actions, and focuses on the training and development of staff Additionally, it collaborates with the IT Department to enhance operational efficiency.
- The IT department has the following íunctions:
- Set up and install the company's dedicated software Processing System for employee workstations.
- Enhance, innovate the quality of software Systems.
- Corrects errors in terms of computers, equipment such as hardware and software. e Sale & Marketing Department
- Sales and Marketing’s functions include:
- Advise the Director General on the contract of carriage of goods
- Carry out Consulting Service for customers on transportation, quotation Directly in charge of handling and renting means and special-use equipment for loading, storing and transporting goods.
The company is focused on researching and developing both domestic and international markets to understand the requirements for export and import activities, including temporary imports for re-export and transfers at border gates, in order to expand its business and service operations across all branches.
- Develop business Service strategies, market strategies and new customer search strategies and customer care. f Branches in Ho Chi Minh City, Hanoi, Hai Phong,
- Directly managing and operating the transportation vehicles of the Company, exploiting business.
- Advise to the CEO how to manage and use effective means of transportation.
- To plan and implement the monitoring and supervision of the renovation, upgrading and regular repair of means of transport of goods.
- Managing and directly deploy the goods packing Service;
- Carrying out statistics, periodical reports on the exploitation and management of warehouses and yards according to the regulations of the company;
- Scheduling Container loading / unloading, empty Container yards, and cold reefer Container yards;
- Planning the production site; organizing, managing and using efficiently the means of loading and unloading for transportation.
- DB Schenker's long-term strategy in Vietnam is "Vietnam Development" including:
- Outperform market growth and make the business more proíitable.
- Set foundations for process stability and continuous improvement.
- Keep the organization healthy through employee development and community involvement.
- "Vietnam Development" is built to contribute to the success of Schenker Logistics with a Vision to 2020 to become the leading integrated logistics provider in the world.
The leadership team at DB Schenker Vietnam is optimistic about the company's growth prospects in the country, recognizing Vietnam as an ideal environment for the expansion of logistics services.
- The population in 2017 is estimated to be over 96 million.
- The Capital of Hanoi with more than 7.5 million people are living and working
- Ho Chi Minh City Trade Center with more than 9 million residents.
- Real GDP growth rate of 7.5% (2017)
The exportation of diverse commodities such as clothing, footwear, mobile phones, electronics, seafood, crude oil, rice, coffee, wood products, and machinery plays a crucial role in international trade Major export routes connect to key markets in the United States, Japan, China, Korea, and Malaysia, highlighting the global demand for these products.
Vietnam imports a diverse array of products, including machinery, petroleum products, steel, garment accessories, footwear, electronics, plastics, and automobiles The country primarily sources these goods from major trading partners such as China, Korea, Japan, Thailand, and the United States.
- Waterways: 17,702 km (5,000 km are navigable by vessels up to 1.8m draft)
- Major Sea Ports & Terminals: 58 (100+ including small ports)
2.2.7 Warehouse System of the company in Vietnam.
Warehouses serve as essential hubs in the supply chain, storing raw materials, semi-finished products, and finished goods throughout the transportation process They provide crucial information regarding the status and conditions of stored items, ensuring efficient management of inventory By consolidating shipments, warehousing helps customers reduce transportation costs while optimizing production through effective storage practices This minimizes waste and ensures timely supply of materials, fostering favorable conditions for continuous improvement and stable production rhythms.
In today's global economy, many businesses face challenges due to insufficient capital or inadequate locations, often leading to concerns about renting storage spaces for their goods Schenker Vietnam's warehouse rental service addresses this issue by providing secure and reliable storage solutions, ensuring the safety of your products.
- With modem warehouse System DB Schenker Vietnam will meet the needs of customers.
- Table 2: DB Schenker Vietnam’s Warehouse System
12 kms north east of HoChiMinh City.
- area for VAS and small parts
SmokeDetectors Access Control System, CCTV, movement detectors, 24/7 on-site security
25 km from Hanoi and 110 km from Hai Phong Seaport
- area for VAS and small parts
- Access Control System; 24/7 on site security
- Sources: Reíerences from DB Schenker’s Internal
Ocean transport activities of DB Schenker Vietnam Co Ltd
DB Schenker, a top freight forwarder, provides a comprehensive range of high-quality maritime services tailored to meet customer needs for both import and export The company oversees the entire forwarding process, including ordering, sorting, and delivery, ensuring a seamless experience With guaranteed service quality through direct routes and a reliable network of agents, DB Schenker offers competitive pricing and expedited delivery times, all backed by carrier liability insurance Their extensive shipping services are designed to meet diverse logistical requirements.
- FCL Full Container Load Container 20 'feet, 40' feet, 40 HQ, REF (Container for cold storage)
- Less-Than-Container Load LCL - The company's Services include major ports around the world.
Bulk goods, such as oversized construction equipment like excavators and cranes, cannot be stored in containers and must be packed directly on the deck or in the cabin due to their size and weight limitations.
- NVOCC (Non-Vessel Operating Common Carrier), the company always maintain good relations with all major shipping lines.
- Receiving goods from the sender's warehouse.
- Delivering to the destination port.
- Receiving goods from the Departure Port, delivery to the recipient warehouse.
- Receiving goods from the sender's warehouse - Delivery to the recipients warehouse.
- Loading and unloading on request (by íorkliít, crane)
DB Schenker Ltd, part of DB Schenker North Vietnam, specializes in air transport and ocean freight exports It operates alongside two other branches: the Bac Ninh Branch, which focuses on road transport and warehousing, and the Hai Phong Branch, responsible for sea transport imports.
2.3.2 Participants in the shipping process of DB Schenker Vietnam Co.Ltd
- Pigure 2: Participants in the shipping process of DB Schenker Vietnam Co.Ltd
- Sources: Reíerences from DB Schenker’s Internal Documents.
2.3.3 The proportion of ocean íreight at DB Schenker Vietnam
In 2016, ocean freight represented 47% of DB Schenker Vietnam's revenue, highlighting its significant role in the company's operations, despite a decline from 65% in 2011 This decrease is attributed to the rapid growth of Multi-transportation, Land Freight, and Air Freight services, driven by advancements in Vietnam's infrastructure Enhanced roads and airports have improved global connectivity, facilitating the rise of Multi-transportation services Although the international maritime system has evolved, it still lags behind other service types Additionally, the introduction of new software has streamlined ocean freight processes, reducing processing times and allowing for a shift in operations to service departments, which has also contributed to increased revenue from other services.
2.3.4 Ocean íreight procedure at DB Schenker Vietnam
Ocean freight serves as the primary transportation method for DB Schenker Vietnam Co Ltd and is essential for most logistics companies globally In this sector, DB Schenker Vietnam functions as a key intermediary, connecting customers with shipping services effectively.
Figure 4 Services Structure at DB Schenker Vietnam 2011 Figure 3 Services Structure at DB Schenker Vietnam 2016
- carrier In other words, for customers, DB Schenker are their carriers
DB Schenker acts as a key intermediary between shippers' agents and shipping line customers, efficiently managing the entire logistics process This includes consolidating shipments, transporting goods to port warehouses, and overseeing the loading of goods onto vessels for import.
Managing logistics processes requires significant manpower and resources, particularly when dealing with administrative tasks like customs declarations and document verification Errors or missing documents during transportation can lead to increased time and costs To address these challenges, DB Schenker has implemented advanced software systems, including the recently introduced Schenker Tango software, to streamline and enhance the delivery process.
The Tango System streamlines the shipment process for DB Schenker employees by allowing them to receive essential information from the charterer, enabling them to efficiently manage key steps such as sending shipment details, warehouse and port locations, and issuing invoices This comprehensive delivery interface simplifies operations by consolidating all necessary functions into a user-friendly software platform.
The simplification of processes has significantly decreased the processing time for the company and its associated parties A prime example of this efficiency is seen in the two key activities of delivering cargo from the warehouse to the seaport and completing customs declarations.
DB Schenker efficiently manages the delivery of cargo from the warehouse to the seaport by processing shipment requests that include shipper, consignee, and shipment details The company utilizes a system to create a charter based on shipping costs to the designated location, streamlining the application process by allowing employees to select the customer's IP code, which significantly reduces processing time Additionally, customers can choose a container depot at the port, as shipping lines typically have fixed warehouses for inspecting goods prior to shipment Once the process is finalized, an email is sent to the seller, who is responsible for transporting the goods to the warehouse as per the provided information.
- provided All of these operations take an average of 3 minutes, compare with one day of the normal process which is much lower than the normal administrative Processing time.
The company's system is seamlessly integrated with the e-customs system, streamlining the customs declaration process Information entered is automatically transmitted to the customs office, which relies on this data for processing This results in an average processing time of just three minutes, allowing the company to proactively check for errors In contrast, traditional customs procedures can take up to two days, leaving little time to correct any mistakes due to fixed carrier schedules.
- The import process is the same with the export process.
The System enhances security by preventing the loss of important files, as all transactions are securely managed within it Additionally, it strictly regulates the issuance of bills of lading, ensuring that each bill is printed only once to safeguard shipments and protect the owner's interests.
- With its advantages, the System has contributed an important part to the growth of its shipping operations.
2.3.5 Analysis Income Statement of Ocean Preight at DB Schenker Vietnam
- Table 3 : Ocean Preight Income statement 2011-2016
- Sources: DB Schenker Vietnam l-inancial report (2011-2016)
- According to tiie busmess resuits report, we can see some cnaracteristics as follows:
From 2011 to 2016, the company's revenue experienced a consistent increase, averaging 12.56% annually, with growth accelerating over time Specifically, during the years 2011 to 2013, revenue grew by 8%, while by 2016, it surged to 221 billion dong, reflecting a remarkable growth rate of 22% in 2015.
- Pigure 5: Revenue and Cost of Good Sold of Ocean Preight (billion dongs)
- Proíit of the company increased from 45.75 billion in 2011 to 392.1 billion in
2016, reaching 757% compared with 2011 with the average growth rate of 63.9%.
- These successes are the result of many reasons:
- - In globalization trend, logistics is a growing industry in the world Especially
Vietnam is a country with many advantages to develop this Service industry And in fact proved that DB Schenker with the advantages of reputation and quality of
- Service has attracted more and more customers using its transportation Services.
As a result, the revenue of the company has increased continuously over time.
In the early years, the company's income grew steadily at a rate of 4% However, by 2015, this growth surged dramatically to 180%, despite a mere 15% increase in revenue In 2016, the income experienced a decline of 50%, yet it still maintained significant levels.
In February 2015, the official launch of the TANGO software at the Ocean department led to a significant revenue increase to 130 billion dong, up from 15 billion dong in previous periods While costs of goods sold rose at a similar rate in prior years, the introduction of TANGO resulted in an 18% decrease in these costs compared to the previous year, alongside a rise in revenue The new software not only streamlined operations but also enhanced daily workload capacity and customer growth By 2016, revenue is projected to increase by 22% compared to 2015, while costs will remain lower than in 2014, demonstrating the substantial benefits that TANGO provides.
SWOT Analysis
Logistics, particularly maritime transport, plays a crucial role in the distribution of goods from producers to consumers, serving as a vital link in global trade Today, shipping is interconnected with various activities such as warehousing and transportation, optimizing the flow of raw materials from suppliers to manufacturers and ultimately to consumers This integration aims to reduce costs associated with inventory and storage Maritime transport encompasses a range of commercial activities, including receiving, transporting, storing, customs procedures, and customer service, all of which contribute to enhanced service delivery and lower operational costs With the shipping industry generating approximately $20-22 billion annually, it significantly impacts economic integration and efficiency for businesses.
As Vietnam embraces new generation Free Trade Agreements (FTAs), it is essential to focus on the logistics and shipping sectors to capitalize on emerging opportunities and enhance industrial growth To navigate this evolving landscape effectively, companies must conduct a comprehensive analysis of the logistics market.
Vietnam to propose policies in order to help companies promote their strengths, especially shipping Services.
DB Schenker, a well-established leader in the logistics industry, boasts a strong reputation both in Vietnam and globally This esteemed company has cultivated a loyal customer base that includes major brands like Samsung, Apple, and HMD Additionally, DB Schenker has forged extensive partnerships with shipping and logistics companies worldwide, enhancing its service offerings and operational efficiency.
Our company boasts a team of highly qualified professionals skilled in international freight forwarding Proficiency in English is essential for our staff, enabling them to efficiently handle documentation and communicate effectively over the phone As we continue to grow, we anticipate increasing our workforce in the coming years to better serve our customers' needs.
The growing popularity of information technology and e-commerce in logistics, particularly through systems like global supply chain management and radio wave identification technology, enhances efficiency by ensuring faster and more accurate information flow DB Schenker Vietnam Co., Ltd leverages a global information system to facilitate communication among its offices, enabling seamless information exchange with customers, voucher issuance, and real-time updates on commodity status This trend in Vietnam's information technology and e-commerce landscape presents increased opportunities for applying logistics technology in freight forwarding services, ensuring effective management of logistics transport throughout the distribution and processing processes.
- of goods across multiple segments, routes, means and locations timely request timely.
In Vietnam, the company functions as a shipping agency, necessitating the hiring of vessels from shipping lines to conduct operations This reliance on external ships leads to increased costs for charterers, often exceeding the expenses associated with operating their own fleet Moreover, utilizing third-party vessels means that delivery timelines are contingent on the shipping lines, making it challenging for the company to manage and control the journey of the ships Despite employing its own system to update information, several limitations remain.
In today's global business landscape, many major corporations are increasingly outsourcing their logistics and supply chain operations to third-party service providers, contributing to significant growth in the global logistics market This trend presents a valuable opportunity for Vietnam's logistics sector to expand, benefiting both foreign companies operating in the country and local enterprises For instance, DB Schenker Vietnam can enhance its focus on core services like shipping by outsourcing non-core functions such as cargo handling and inland transportation, allowing for deeper investment in personnel and information systems.
Vietnam's shipping industry is poised for significant growth, driven by recent trade agreements like VKFTA and EVFTA, as well as the formal establishment of the ASEAN market in 2016 These developments present abundant opportunities for improvement and expansion within the sector.
Vietnam is rapidly enhancing its integration into the global economy by reforming its mechanisms, policies, and administrative procedures, while developing a legal and financial system that aligns with international standards By participating in new-generation Free Trade Agreements (FTAs), Vietnam is set to deepen its economic integration, facilitating increased trade in goods and boosting both imports and exports.
Vietnam has enhanced its mechanisms and procedures, enabling companies to expedite goods clearance and lower costs This improvement presents a significant opportunity for shipping companies, as the majority of the nation's import and export goods are transported by sea.
Vietnam's favorable geographical position, with over 3,200 km of coastline and a diverse seaport system along international maritime routes, is crucial for logistics development This natural advantage not only enhances trade opportunities with global markets but also positions Vietnam as a potential regional commodity hub Additionally, the country's rich river system, particularly in the Southern delta, supports the growth of inland waterway transport, allowing goods to be efficiently transported from seaports to the mainland Furthermore, the improved road and rail transport infrastructure serves as a vital link in multimodal logistics These factors provide DB Schenker Company Limited with excellent conditions to expand its logistics business in Vietnam, including shipping and warehousing services.
Foreign investment, primarily through Official Development Assistance (ODA) and public-private partnership (PPP) projects, is crucial for enhancing Vietnam's transport infrastructure This improved infrastructure will boost connectivity between seaports and production zones Additionally, state planning and support, along with the gradual enhancement of customs procedures, are contributing positively to this development.
The rapid advancement of information technology is a crucial factor in the growth of Vietnam's shipping industry, enabling it to adapt to the demands of deeper international economic integration As a result, DB Schenker Ltd can swiftly connect with and respond to feedback from both domestic and international customers, allowing for timely and effective policy adjustments.
DB Schenker is a leading global logistics company, and many of its affiliates in Vietnam are subsidiaries located abroad As a result, when goods are processed, DB Schenker Vietnam still retains a share of the profits.
- known as DB Schenker Global Support Fee (Proíĩt Share) Especially with the export volume of Vietnam in 2017 reached 400 billion us dollars, the revenue is not a small number.
- The System of laws and policies is not synchronous
Vietnam lacks a comprehensive and coordinated legal system for logistics, despite the existence of some fundamental legal documents While regulations concerning logistics and legal entities in the sector have been established, their scope remains limited The 2005 Commercial Law recognizes logistics as a commercial act, but its definition is simplistic, potentially resulting in misunderstandings and a tendency to conflate logistics with freight forwarding activities.