Research purpose and tasks
Research purposes
This thesis evaluates the current logistics service quality at JSC Part of Vinalines Logistics and proposes strategic solutions aimed at enhancing and optimizing the quality of logistics services offered by the company.
Research mission
(i) Clarifying the theoretical basis for the quality of logistics services of enterprises.
An analysis of the logistics service quality at Vinalines Logistics Joint Stock Company reveals both strengths and weaknesses The company has successfully implemented certain aspects of its logistics services, showcasing efficiency and reliability However, there are notable shortcomings and limitations that need to be addressed to enhance overall performance Identifying the root causes of these limitations is crucial for developing effective strategies for improvement.
(iii) Proposing solutions to improve the quality of logistics services in the company Vinalines Logistics Joint Stock Company in the coming years.
Object and scope of research
Research object
Quality of logistics services at Vinalines Logistics Joint Stock Company.
Research scope
Time range: Statistical data and surveys for research were collected from 2018 to the end of 2020 Vision of specific solutions to 2030.
Spatial scope: The topic focuses on in-depth research on the quality of logistics services at Vinalines Logistics Joint Stock Company.
Research Methodology
Using dialectical methods, methods of information collection, statistics, analysis, comparison and contrast, actual survey, synthesis, to clarify the content of analysis Primary data was collected by survey method.
Structure of the thesis
In addition to the introduction and conclusion, the thesis has three chapters:
Chapter 1: General theoretical basis of logistics service quality
Chapter 2: The quality of Logistics services at Vinalines Logistics Vietnam Joint Stock Company
Chapter 3: Some solutions to improve the quality of Logistics services at Vianlines Logistics Vietnam Joint Stock Company in the future
GENERAL THEORETICAL BASIS ON LOGISTICS
Overview of Logistics services
Logistics, derived from a Greek term, encompasses the distribution and scientific management processes involved in planning, organizing, implementing, and controlling the flow of goods and services It ensures that products move efficiently from the production point to the final consumer at minimal cost, facilitating a smooth and continuous social production process that meets customer needs effectively.
Logistics plays a crucial role in various sectors of the economy, driving the success of numerous renowned companies globally Prior to the 1950s, logistics was primarily viewed as a single functional activity, lagging behind advancements in marketing and production management However, the technological and managerial innovations of the twentieth century marked a significant turning point, leading to what can be described as a renaissance in logistics management.
Logistics has progressed through three stages, according to the Economic and Social Commission for Asia and the Pacific (ESCAP):
In the late 1960s and 1970s, logistics emerged as a crucial activity focused on output logistics, which involves the systematic management of processes that ensure the efficient delivery of products and goods to customers.
In the 1980s and 1990s, the logistics system evolved by integrating two key stages: material supply and product consumption, aimed at reducing costs and enhancing efficiency.
Logistics management stage (Supply chain management): This is the development stage of Logistics at the end of the twentieth century.
Logistics encompasses various concepts shaped by industry needs and research objectives Key concepts in logistics include supply chain management, inventory control, transportation, and warehousing, all of which play a crucial role in optimizing the flow of goods and services Understanding these fundamental aspects is essential for enhancing operational efficiency and meeting customer demands in a competitive market.
Logistics involves the strategic planning and selection of the most efficient methods for managing and controlling the movement and storage of raw materials, semi-finished goods, and finished products This process ensures cost-effectiveness and timely delivery from pre-production to the end consumer, ultimately fulfilling customer demands.
Logistics involves the strategic planning, execution, and management of the movement and storage of raw materials, inventory, and finished products, along with associated information, from their origin to the end consumer, all aimed at meeting customer needs efficiently and cost-effectively.
Logistics involves the management of material movement through various stages, including storage and production, to deliver products to consumers based on customer demand.
In Vietnam, as outlined in Article 233 of the Commercial Law 2005, logistics services encompass a range of business operations where traders manage tasks related to goods These tasks include receiving, transporting, storing, and handling goods, as well as customs clearance, additional documentation, client consultation, packaging, labeling, delivery, and any other goods-related services agreed upon with customers for a fee.
Logistics services encompass a range of commercial operations that are systematically organized and scientifically managed, addressing the various stages of production, distribution, circulation, and consumption within the economy (Dang Dinh Dao, 2012).
Logistics services encompass a range of commercial activities that integrate shipping, forwarding, warehousing, customs, and customer consultation into a cohesive package These services provide a systematic approach to ensure efficient distribution and circulation of goods while effectively addressing client needs (Dang Dinh Dao, 2012).
1.1.2 Some characteristics and classification of Logistics services 1.1.2.1 General characteristics of logistics services
Logistics plays a crucial role in supporting business operations by managing the movement and storage of materials and semi-finished goods It ensures that products flow seamlessly from the production line to the consumer, thereby enhancing overall efficiency and effectiveness in corporate activities.
Secondly, Logistics is the synthesis of business activities on three aspects: Survival Logistics, Operational Logistics and System Logistics, specifically:
Survival logistics focuses on fulfilling the fundamental needs of life, driven by the human instinct for survival It addresses critical questions such as what is necessary, the quantity required, the timing of needs, and the locations where these needs arise As a core element of logistics activities, survival logistics serves as the foundation for effective resource management.
Operational logistics, an evolution of survival logistics, encompasses the complete production process of an enterprise's products It involves the management of logistics activities related to the movement and storage of raw materials, facilitating their flow into, through, and out of the organization, ultimately ensuring that products reach distribution channels and, subsequently, the final consumer.
(iii) System logistics helps to keep the system running The elements of system logistics include machinery and equipment, human resources, technology, factory infrastructure, etc.
Survival logistics, operations and systems are closely related, creating the basis for the formation of a complete logistics system.
Logistics has evolved into a comprehensive freight forwarding service that goes beyond traditional roles It now encompasses a wide range of activities, including chartering, storage, packaging, customs clearance, and full-service delivery from warehouse to warehouse Modern freight forwarders have transitioned from mere agents to key players in transportation and logistics, taking on responsibilities governed by legal frameworks To effectively fulfill their roles, forwarders must manage an integrated system that includes forwarding, transportation, raw material supply, goods preservation, and timely distribution, all while utilizing electronic information for tracking and verification Consequently, freight forwarders have become essential logistics service providers.
Overview of the quality of Logistics services
A service is an intangible activity or benefit exchanged without transferring ownership, which may or may not be linked to a physical product (Kotler, 2003) The concept of service quality is complex and often debated, with researchers struggling to define and measure it consistently (Wisniewski, 2001) Various definitions emerge depending on the research context, with Lehtinen and Lehtinen (1982) emphasizing the importance of assessing both the service delivery process and its outcomes Gronroos (1984) further categorized service quality into technical quality, representing what the customer receives, and functional quality, focusing on how the service is delivered Additionally, service quality can be viewed as the extent to which a service fulfills customer needs and expectations (Lewis & Mitchell, 1990; Asubonteng et al., 1996; Wisniewski & Donnelly, 1996), with Edvardsson et al (1994) asserting that it is defined by its ability to meet customer expectations and satisfy their needs.
Service quality, as defined by Parasuraman et al (1988), refers to the gap between consumers' expectations of a service and their actual perceptions of the service outcomes This distinction highlights the importance of meeting or exceeding customer expectations to achieve high service quality.
The concept of service quality, as utilized in this thesis, defines the quality of logistics services as the gap between customer expectations and their perceptions of the logistics services delivered by the company.
1.2.2 Evaluation of logistics service quality
Logistics service quality, like overall service quality, can be evaluated through customer satisfaction Bachelet (1985-1991) defines customer satisfaction as an emotional response to a customer's experience with a product or service Philip Kotler further explains that satisfaction reflects a person's emotional state resulting from comparing the outcomes of a product with their expectations.
Customer satisfaction is determined by the gap between expected and actual results: if outcomes fall short of expectations, customers are dissatisfied; if they meet expectations, satisfaction is achieved; and if they exceed expectations, customers are highly satisfied These expectations are shaped by past shopping experiences, recommendations from friends and colleagues, and information from sellers and competitors To enhance customer satisfaction, businesses must invest in marketing programs and other initiatives In a competitive market, achieving higher customer satisfaction than rivals is crucial, as it aligns customer interests with business profitability Ultimately, customer satisfaction significantly influences brand loyalty.
Customer satisfaction is often fleeting and challenging to measure, making customer value the true driver of loyalty To maintain a competitive edge, businesses must assess their customers' satisfaction levels alongside those of their rivals, potentially through surveys or mystery shopping A decline in customer satisfaction relative to competitors can signal impending customer loss and reduced market share Establishing effective channels for customer feedback is essential, as many dissatisfied customers may not voice their complaints This article employs the RATER model, which evaluates logistics service quality based on customer perceptions across five key criteria.
(Source: Group of authors Zeitham V.A.Parasurama and Leonard L.B, 2003)
Figure 1.2: Rater service quality measurement criteria
1 Reliability: The ability to perform the promised service accurately and reliably A service can be trusted if it does it right the first time.
2 Responsiveness: Respond to customer requests for services and information in the fastest and most professional manner.
3 Assurance: Provide customers with confidence in the capabilities of the business The qualities of employees that will create trust for customers such as politeness, professionalism, respect for customers, ability to communicate
4 Empathy: Efforts to understand the needs of customers, show concern and care for each individual customer.
5 Tangibility: Including elements of means, facilities, employee appearance, equipment used in providing services, documents serving communication
The meaning of improving the quality of Logistics services
Improving the quality of Logistics services is an urgent and important issue for businesses doing business in the field of Logistics today for the following reasons:
Firstly, high service quality helps increase profits for businesses
Enhancing the quality of logistics services not only fosters customer loyalty among existing clients but also attracts potential new customers This strategic improvement yields significant benefits for businesses, ultimately leading to increased profitability.
(i) Minimizing marketing costs, advertising costs this means minimizing other costs for the company.
(ii) Increasing market share and maintaining a high growth rate in customer targets will increase revenue for the company.
Boosting customer loyalty is essential for enhancing a company's brand reputation, a goal that every business aims for in today's fiercely competitive logistics market.
The logistics industry, contributing 25% to Vietnam's GDP and generating approximately 25 billion USD, is experiencing significant growth; however, it faces challenges as 80% of the market is dominated by foreign companies High logistics costs, driven by outdated infrastructure, hinder competitiveness, and the potential of the East Sea gateway remains underutilized Enhancing logistics quality requires businesses to address weaknesses in infrastructure, resources, and workforce, ultimately leading to improved competitiveness in the market.
Many logistics companies today overlook the importance of enhancing their service quality By leveraging opportunities and consistently improving their offerings, businesses can boost their competitiveness in the market Investing in service quality not only helps retain existing customers but also attracts new ones without incurring additional advertising costs Furthermore, it enables companies to raise their product prices while preserving their reputation and solidifying their market position.
Thirdly, improving the quality of Logistics services helps to reduce business costs for businesses
To effectively reduce overall business costs, companies should focus on minimizing marketing and advertising expenses while continuously enhancing service quality By ensuring high-quality service, businesses can significantly lower the likelihood of errors during service delivery, leading to improved efficiency and customer satisfaction.
(i) Minimize the waste of time and costs for inspection and monitoring of service provision;
Minimizing costs associated with error correction is crucial for businesses This includes reducing expenses related to customer compensation, managing negative public perception, and addressing customer complaints effectively By focusing on these areas, companies can enhance their reputation and improve overall financial performance.
High service quality will reduce unreasonable costs of human resources because:
Maintaining high service quality in enterprises fosters a positive working environment, leading to increased employee loyalty and retention Consequently, this reduces the labor turnover ratio in hotels, ultimately lowering the costs associated with recruitment and re-selection due to frequent staff changes.
Employees take pride in working for a reputable company, recognizing that the organization's success directly benefits them This realization motivates them to enhance their professional skills and address any gaps in their abilities to meet evolving demands Consequently, by improving the quality of logistics services, businesses can reduce training and development costs for their workforce.
Factors affecting the quality of logistics services
The global economic landscape greatly influences the Vietnamese economy and specifically the logistics service sector Currently, the logistics industry faces substantial challenges due to the ongoing effects of the pandemic on the world economy, as highlighted by a study conducted by the Central Institute for Economic Management.
In 2020, the global economy encountered significant challenges due to the Covid-19 pandemic, which disrupted supply chains and reduced both aggregate supply and demand This situation heightened financial risks and led to a downward spiral in economic activity The pandemic remains unpredictable in various regions, including Europe, America, and India According to the World Bank, the world economy is projected to contract by 4.3% in 2020.
The Covid-19 pandemic, which emerged in January 2020, led to significant economic, cultural, social, and human losses globally It exerted immense pressure on global production and supply chains while simultaneously creating new growth opportunities for the logistics industry The transportation and warehousing sectors were particularly impacted, with Vietnamese airlines experiencing an estimated revenue loss of VND 30,000 billion, reflecting a 60% decline compared to the previous year, and the railway and road industries facing a drop of over 20 billion VND in revenue.
Logistics functions within the framework of national and international legal systems, which have evolved alongside the industry's growth Numerous international treaties, regional agreements, and practices have emerged to facilitate shipping, warehousing, insurance, customs procedures, and dispute resolution globally In Vietnam, the legal framework governing logistics includes the Commercial Law (2005), the Law on Customs (2014), the Law on Import and Export Tax (2016), and the Tax Administration Law (2019), along with various decrees, circulars, decisions, and official letters that provide guidance on specific cases and inquiries.
1.4.1.3 Infrastructure system for Logistics activities
The rapid growth of international trade and logistics necessitates a robust infrastructure system to ensure safe and efficient economic activities Globally, there is a continuous enhancement of the essential conditions for logistics operations, which include a comprehensive seaport system, road transport networks, railways, waterways, and pipelines Additionally, gateway ports integrated with international transshipment facilities have been established in both the Northern and Southern regions, further strengthening the logistics framework.
Vietnam has developed a total of 32 shipping routes, including 25 international and 7 domestic routes In addition to its intra-Asia connections, the Northern region operates two routes to North America, while the Southern region has established its own shipping routes as well.
North America and Europe boast 16 long-distance train routes that surpass those of Southeast Asian countries, trailing only behind Malaysia and Singapore Additionally, a comprehensive maritime infrastructure has been established, including 44 public navigation channels, 34 specialized channels, and 94 lighthouses from Quang Ninh to Kien Giang The region is also equipped with 32 radio stations from Mong Cai to Ha Tien, along with a robust receiver system for ship identification and tracking (LRIT) and VTS systems at major seaports, enhancing the management and oversight of maritime activities in port waters.
Firstly, social culture is a fast-acting and sensitive factor for businesses.
Each country has general standards, but regions and various classes also establish their own specific criteria Businesses can leverage these regional standards to enhance the quality of their logistics services, minimizing negative market impacts Key sociocultural factors to consider include local customs, consumer behavior, and regional economic conditions.
1) Perspectives on ethics, aesthetics, profession, lifestyle;
4) Level of education and awareness.
Logistics costs encompass several key components, including transportation expenses, which can represent one-third to two-thirds of the total circulation and distribution costs Additionally, the opportunity cost of capital reflects the minimum return a company forgoes when capital is tied up in inventory rather than invested elsewhere Furthermore, the costs associated with goods preservation involve warehouse rental, handling and storage of goods, insurance, and potential damages, as well as customs clearance fees for shipments.
Competitors in the logistics industry play a crucial role in driving businesses to enhance their service quality and achieve customer satisfaction External factors significantly influence the quality of logistics services, making it essential for companies to establish a comprehensive and current external information system By leveraging this system for analysis, businesses can effectively capitalize on external opportunities to improve their logistics services.
The logistics industry is rapidly expanding, boasting an annual growth rate exceeding 10% and contributing around 5% to the national GDP, highlighting its significant growth potential However, to fully realize this potential, the sector must address its critical shortage of human resources, as skilled personnel play a vital role in the success of logistics services Despite advancements in technology and automation, the importance of human involvement in management, administration, and execution remains irrefutable.
The Vietnam Logistics Research and Development Institute reports that logistics service companies will require an average of 18,000 additional employees over the next three years Additionally, manufacturing, trading, and service enterprises are projected to need over one million skilled workers in logistics, as estimated by the Vietnam Logistics Association (VIFFAS).
Currently, 140 member companies employ approximately 4,000 professionals, alongside an additional 4,000 to 5,000 semi-professionals According to the Vietnam Logistics Business Association (VIFFAS), the labor supply in the logistics industry only meets about 40% of the demand Given that logistics forwarding and operations require advanced technical skills, it is essential for workers in this sector to receive systematic training and comprehensive knowledge akin to that of international forwarders However, many logistics service providers in Vietnam report a significant shortage of highly qualified personnel.
Vietnam's logistics sector faces significant challenges in human resources, as many logistics companies struggle with a management team that often lacks essential business knowledge and experience Continuous training and retraining efforts are necessary to address these gaps, yet a substantial portion of the workforce remains uninformed about new developments, leading to unsatisfactory leadership and management styles Research indicates that not only is there a shortage of logistics professionals, but the quality of existing personnel is also inadequate A survey by the Institute for Research and Development of Ho Chi Minh City revealed that 53.3% of businesses lack staff with the necessary professional qualifications and logistics expertise, while 5.3% have to invest in retraining employees, and only 6.7% express satisfaction with their employees' expertise.
Logistics has evolved significantly from its early military applications to become a crucial component of the global economy, emphasizing the management of physical distribution systems among production units As economic experts increasingly focus on logistics, a wealth of specialized literature and technical articles has emerged, enhancing awareness across various sectors However, further development in logistics necessitates a deeper understanding of market needs, particularly in regions where logistics is underdeveloped, highlighting the urgent need for a comprehensive shift in perception regarding this vital industry.
SITUATION OF LOGISTICS SERVICE QUALITY AT
General introduction about Vinalines Logistics Vietnam Joint Stock Company
2.1.1 General information about the Company
Vinalines Logistics Vietnam Joint Stock Company operates as a legally recognized entity under Vietnamese legislation, adhering to the Law on Enterprises and its own charter Specializing in logistics, Vinalines Logistics serves as a subsidiary of Vietnam National Shipping Lines, exercising rights and obligations in accordance with the parent company's organizational and operational terms.
+ Name written in Vietnamese: VINALINES LOGISTICS VIETNAM CORPORATION
+ Name written in English: VINALINES LOGISTICS - VIETNAM JOINT STOCK COMPANY
- Company headquarters: Room 405 4th Floor, Ocean Park Building, No.
2 Dao Duy Anh, Phuong Mai Ward, Dong Da District, Hanoi
- Email: info@vinalineslogistics.com.vn
- Website: http://www.vinalineslogistics.com.vn
2.1.2 The process of formation and development of the Company: 2.1.2.1 Formation process
Vietnam is home to approximately 3,000 logistics enterprises, a significant figure; however, the majority are small or micro-sized businesses This prevalence of smaller firms results in limitations regarding human resources, capital, and technology Consequently, there are few companies in Vietnam that can effectively manage and operate the entire logistics process.
✓ With the status and characteristics as above and based on current legal bases such as:
✓ Commercial Law No 36/2005/QH11 passed by the 11th National Assembly at the 7th session on June 14, 2005.
✓ Investment Law No 59/2005/QH11, approved by the 11th National Assembly at the 8th session on November 29, 2005.
✓ Enterprise Law No 60/2005/QH11 passed by the 8th National Assembly Xi session on November 29, 2005.
✓ Other documents stipulating conditions for inland port business (ICD), multimodal transport, bonded warehouses
On August 3, 2007, Vietnam National Shipping Lines held a general meeting of shareholders to establish Vinalines Logistics Vietnam Joint Stock Company The company was officially registered with the Department of Planning and Investment of Hanoi under business registration certificate No 0102345275 on August 10, 2007, with a charter capital of 158 billion VND.
The company was established for the following purposes:
Vinalines Logistics aims to be a central hub for member companies involved in logistics, creating a robust logistics network under the Vietnam National Shipping Lines This initiative is designed to enhance competitiveness in the global market while actively promoting the utilization, transportation, and management of domestic containers to dominate the market.
To build a robust operational network, it is essential to engage with international partners in key regions including Hong Kong, Taiwan, Singapore, China, and Thailand, while also expanding into developed markets like Europe, Japan, and the United States.
Secondly, the Company implements the policy of not competing with member companies of the Corporation, but the main activity is investment and development of infrastructure at key focal points.
As for 2021, Vinalines Logistics Vietnam Joint Stock Company has 14 years of experience in the Logistics industry Here are some development stages of Vinalines Logistics Joint Stock Company until now:
❖ August 10, 2007: Established Vinalines Logistics Vietnam Joint Stock
❖ 2008: Established a branch in Hai Phong and a branch in Quang Ninh
❖ 2009: Established Ho Chi Minh Branch and Representative Office in Mong Cai
❖ 2010: Established Lao Cai branch - Inland port (ICD Lao Cai)
❖ 2011: Established representative offices in: Noi Bai, Lang Son, Cao Bang
❖ 2012: Connecting the national railway to the Lao Cai ICD Inland Port and establishing a joint venture company named Vinalines Honda Logistics (VHL)
❖ 2013: Deploying shipping agency activities to sign a contract with CCL Shipping Agency (Vietnam) Co., Ltd
❖ May 2014: Established a freight forwarding team in Ha Tinh
❖ September 18, 2015: The company was officially listed for trading on
UPCOM with the reference price of the stock of 12,600 VND.
❖ 2016: Obtained a quality management certificate according to ISO 9001-
2008 and established a freight forwarding team of Texhong - Mong Cai factory cluster
❖ 2017: Received Government flags for excellent units in emulation movement and 10th anniversary of construction and development.
In 2018, a joint venture was formed between Happy Land Viet Nhat and Vinalines to invest in the Cai Lan Port administrative service area, leading to the establishment of Vinalines Hoa Lac Logistics Joint Stock Company (VLHL).
❖ In 2019: Receiving 16.2ha of warehouses at Dinh Vu Industrial Park of Vietnam National Shipping Lines for Vinalines Logistics - Hai Phong Branch for management and exploitation.
In 2021, the company is in the process of finalizing the necessary procedures and documentation to officially change its name to VIMC Logistics Vietnam Joint Stock Company, with the completion of all legal paperwork anticipated by early June 2021.
2.1.3 Company's field of business a) Business areas of the Company
- Delivery of domestic goods, import-export goods;
- Transport agency services by sea, road, railway, air;
- Import and export of goods, commercial brokerage, buying and selling agents, and consignment of goods are some of the services available;
- Entrusting services and receiving investment entrustment;
- Customers receive advice on transportation, distribution, storage, and other goods-related services;
- Leasing specialized equipment and vehicles for loading, unloading, conserving, and transporting products;
Vinalines Logistics is investing in the logistics industry to expand its multimodal transport services.
27 b) The main logistics services provided by the Company
• Airline and shipping agency field
Vinalines Logistics Vietnam Joint Stock Company, a subsidiary of Vietnam National Shipping Lines, is dedicated to enhancing multimodal transport services within its logistics offerings With an extensive network of air and sea service agents across Vietnam, the company ensures that customers receive optimal benefits globally Clients can choose from a variety of transportation options, including sea, road, and air, all backed by exceptional service The company’s strong partnerships with multimodal transport agents enable efficient "door to door" delivery services worldwide, featuring high-quality and competitive freight solutions tailored to meet customer needs.
The Company offers high-quality domestic transportation services with a team of skilled drivers and operators Equipped with a diverse fleet, we efficiently connect the North, Central, and South regions Our services include North-South freight transportation and border transport in the Northern region, as well as goods distribution from warehouse to warehouse or to agents and distributors Additionally, our professional logistics staff specializes in container transportation, particularly for super-heavy goods, ensuring a reliable and effective service for our customers.
• Customs brokerage and value-added services
Vinalines Logistics Vietnam offers a comprehensive range of services, including import, export, brokerage, and customs declaration Additionally, the company provides essential support services such as shipping agency, container agent, maritime brokerage, and freight forwarding, ensuring that it meets the growing demands of customers for efficient logistics solutions.
• Inland port operation and warehousing business
The company, staffed by a team of experienced professionals, is developing state-of-the-art warehouses in Cai Lan, Mong Cai, Dinh Vu, Lao Cai, and Vinh Phuc These facilities are designed to meet all technical standards for the storage of various goods and containers Additionally, the company is investing in the construction and efficient operation of CFS bulk warehouses, bonded warehouses, and distribution centers in these regions With a dedicated trucking team, the company also offers reliable container transportation services to industrial zones across Vietnam.
Vinalines Logistics is committed to strategically distributing capital across various sectors, including container repair and leasing, as well as financial investment, ensuring optimal benefits for customers The company plans to enhance its fleet to meet regional and national transportation demands With over a decade of experience, Vinalines Logistics has supported thousands of import-export businesses, facilitating major exports such as garments and raw materials for industrial parks and export processing zones Additionally, the company imports essential raw materials for factory production and wind power projects, while also offering logistics services to individual businesses.
At Vinalines Logistics, we prioritize direct communication with our customers for all consulting, solution provision, and quoting processes This approach ensures the fastest and most accurate information, minimizing the risk of misinformation that can arise from intermediaries Upon receiving orders, we diligently adhere to customer requirements and engage in discussions to develop the most cost-effective transportation and distribution solutions, ultimately aiming to fully satisfy our customers' needs.
Vinalines Logistics tailors its shipping processes for each order to accommodate the specific needs of customers An example of this can be seen in the shipping process utilized for the Billion factory.
Receive shipment records from customers
Check the information to get the shipping line order, electronic customs declaration Make payment procedures for shipping lines
Receive delivery plan from Customer
Declare Eport- pay lifting fees for ports
Procedures for making orders and towing goods at the port
Send payment records to customers and reconcile shipping-pay with freight
Send payment records to customers and for shipping- pay with freight
Figure 2.1: Flowchart of Billion factory's production process
2.1.4 The organizational structure of the company
Figure 2.2: Organization chart of Vinalines Logistics Vietnam Joint
- To decide whether the Company or any of its branches or affiliated units enter into contracts and transactions with the subjects specified in Clause
Article 120 of the Law on Enterprises stipulates that companies can offer shares for sale, provided that the total asset value of the company, including its branches and affiliated units, does not exceed 50%.
- Decide on solutions for market development, marketing and technology;
Factors affecting the quality of Logistics services of Vinalines Logistics
Vietnam's favorable geographical conditions significantly contribute to its logistics development, boasting a coastline of over 3,200 km and a diverse network of seaports along international maritime routes This natural advantage positions Vietnam as an ideal hub for sea transport, facilitating trade with countries worldwide and enabling the nation to serve as a transshipment point for regional goods Additionally, Vietnam's extensive river system, particularly in the Southern Delta, enhances the potential for inland waterway transport The two major flat deltas, Northern and Southern, connected by central land, further support the development of essential railway and automobile traffic, which is crucial for multimodal transport.
Vietnam boasts a network of 266 seaports across 24 coastal provinces and cities, with 9 ports capable of accommodating ships up to 50,000 DWT and container vessels of 3,000 TEU In the northern region, Hai Phong and Cai Lan ports serve as the primary hubs for goods transportation, with Hai Phong port experiencing a remarkable 25% growth rate in cargo transport over the past five years, the highest in the country, and is expected to continue its upward trajectory in the near future.
The southern port system, including Cat Lai, Saigon, Ben Nghe, ICP Phuoc Long, New Port ICP, Cai Mep - Thi Vai, Vung Tau, and Hiep Phuoc, is currently facing significant overload, handling 72% of the country's cargo volume as of 2008 Since early 2009, these ports have transported 2.7 million TEUs, with a goal of reaching 3 million TEUs by the end of the year In contrast, the central region's major ports, Da Nang and Quy Nhon, account for only 2% of the national cargo volume, with Da Nang port averaging just 40,000 TEUs per year and Quy Nhon port 50,000 TEUs, highlighting the limited capacity of the central port system.
Established on February 28, 1977, the North airport cluster has evolved significantly over the past 30 years, achieving remarkable advancements in production and business activities while ensuring aviation safety and security Continuous innovation and infrastructure development have been prioritized to meet the demands of the rapidly growing domestic and international aviation markets Currently, the cluster is in the process of submitting planning and investment projects for the construction of Gia Lam Airport in Hanoi, as well as airports in Mong Cai, Quang Ninh province, and Lao Cai.
- Lao Cai province… Over the years, Cat Bi Airport - Hai Phong city has effectively exploited domestic routes.
The Central Airport Cluster, established by Prime Minister's Decision No 113/1988/QD-TTg, operates as a state-owned enterprise focused on serving the public interest by providing both aviation and non-aviation services Authorized by the Civil Aviation Administration of Vietnam, it is responsible for executing various state management functions related to civil aviation at airports in the central region of Vietnam.
The Southern Airports cluster, established under the Civil Aviation Authority of Vietnam after April 1975, is responsible for managing and operating airports in the southern region Over the past 30 years, this agency has made significant progress in development and integration, effectively supporting the country's industrialization and modernization efforts, and contributing to Vietnam's overall growth and development.
Vietnam Railways has a rich history spanning over 120 years, featuring a comprehensive network that stretches 2,632 km across the country, linking residential areas and key agricultural and industrial centers, excluding the Mekong Delta The railway system includes not only the extensive rail network but also a variety of infrastructure such as bridges, tunnels, locomotives, and wagons for transporting goods and passengers Currently, the railway consists of 2,632 km of main lines, 403 km of station lines, and 108 km of branch roads, with the majority (85%) utilizing the 1,000mm gauge, followed by 6% using the 1,435mm gauge, and 9% featuring a combination of both gauges.
Table 2.2: Length of sugars in Vietnam Main road and branch road
- Cage line Bypasses and side roads Total
(Source: General Statistics Office of Vietnam) Some other infrastructure of the industry
The railway system features 1,790 bridges totaling 45,368 meters in length, including 31 rail-road bridges measuring 11,753 meters Notably, the Hanoi - Ho Chi Minh City route comprises 36,056 meters of bridges, representing 63% of the railway's total bridge length Additionally, there are 180 temporary steel girder bridges spanning 18,084 meters, which account for 31% of the overall bridge length The total length of concrete bridges is 13,274 meters, with 9,179 meters located on the Hanoi - Ho Chi Minh City route The railway infrastructure also includes 5,128 culverts, totaling 80,850 meters, and 39 tunnels with a combined length of 11,512 meters, of which 27 tunnels measuring 8,335 meters are situated on the Hanoi - Ho Chi Minh City route.
Vietnam Railways relies on a variety of communication technologies, primarily utilizing 3-channel and 12-channel loader machines manufactured in Hungary from 1972 to 1979 High-frequency radio systems are implemented for emergency reserves in specific railway areas, while bare wiring facilitates long-distance communication Local signal communication is managed through copper pair cables Since 1998, the Vietnam Railways Corporation has adopted a channel multiplier system over a 64 kbps data transmission channel leased from the Vietnam Posts and Telecommunications Corporation, connecting Hanoi to Ho Chi Minh City and Hanoi to Da Nang, to support data and telephone transmission using Microband ATM technology.
Effective logistics technology implementation relies on favorable geography and secure infrastructure, but its success ultimately depends on an adequate and open legal framework Modern businesses need a robust legal structure to safeguard their interests in production and commerce, with clear laws governing trade, forwarding, transportation, and customs regulations Without a well-defined legal system, enterprises struggle to achieve their desired outcomes in logistics activities.
The development of Vietnamese law has seen significant progress, particularly in areas such as production, business, international economic relations, and transportation, which have garnered considerable attention from the State and the National Assembly In a relatively short time, various laws, including civil, commercial, investment, and insurance laws, have been institutionalized to govern societal activities In addition to these specialized laws, there are also sub-law documents like ordinances and regulations that provide guidance for the implementation of current legislation Furthermore, several other laws are currently being drafted or revised and are expected to be enacted soon.
The Vietnamese government is actively enhancing its domestic legal system while engaging in international and regional agreements to promote economic growth and facilitate integration into the global economy Although Vietnam's legal framework has its shortcomings, ongoing reforms will align with the evolving social economy, creating a supportive legal environment for socio-economic activities, including logistics Additionally, the development of information technology plays a crucial role in this transformation.
Information technology and e-commerce are rapidly advancing in Vietnam, outpacing many other countries in the region and globally The increasing number of computer users and internet connections highlights this growth Training programs at various educational levels, from elementary schools to universities, focus on enhancing computer literacy Both administrative and production sectors are leveraging information technology to improve management and operational efficiency Consequently, more Vietnamese businesses are utilizing the internet to enhance their production and business activities, leading to significant economic benefits E-commerce is becoming integral in marketing, executing contracts, freight forwarding, insurance, and payment processes.
The evolving landscape of information technology and e-commerce in Vietnam presents significant opportunities for the integration of logistics technology in business operations, particularly for transportation and forwarding service companies Logistics plays a crucial role in the physical distribution process, utilizing information to effectively manage the movement of goods across various segments, routes, and locations, ensuring timely responses to customer demands.
After nearly a decade of integration with Vietnam, foreign enterprises have significantly contributed to the growth of the country's logistics industry while also intensifying competition for domestic firms With superior management skills and ample capital, these foreign companies hold a competitive edge The Vietnamese Ministry of Industry and Trade highlights that logistics has become essential for international trade and poses challenges for the ASEAN economy Deputy Minister Nguyen Cam Tu emphasizes the importance of rapidly integrating logistics services to enhance liberalization and facilitate sub-sectors, aiming to establish ASEAN as a logistics hub in the Asia-Pacific region ASEAN economic officials propose four key steps for swift integration: trade liberalization, elimination of tax and non-tariff barriers, creation of business opportunities in logistics, and enhancement of management capacity and human resources By 2017, the ASEAN free trade area had achieved 99.1% completion of tariff lines at 0% for six founding member countries and 97% for Laos, Myanmar, and Cambodia, with a target of reaching 0% internal tax lines by 2022.
Logistics service business situation of Vinalines Logistics Vietnam Joint
2.3.1 The current state of infrastructure and human resources for the Company's Logistics activities
Facilities play an important role in building service quality The facilities here are the transportation system, the quality of the warehouse and the human resource factor. a) Bonded warehouse
Warehousing serves as a crucial hub for storing and safeguarding goods, significantly contributing to the company's revenue The company offers comprehensive warehouse rental services for Texhong at various locations, including VMSC - Hai Phong (3480m²), Hai An - Hai Phong (4000m²), Hung Yen (2700m²), and Cai Lan - Quang Ninh (5800m²) Additionally, the Lao Cai ICD port features a substantial container storage area of 65,000m² and a 9,000m² CFS warehouse, functioning as a goods distribution center This facility provides essential logistics services, including transportation and forwarding, and acts as a domestic customs clearance point for import/export activities It plays a vital role in freight transport within the logistics network of Northeast and Northwest Vietnam, facilitating the transit of goods from China's Yunnan province through Hai Phong and Quang Ninh ports The company also maintains a network of warehouses across the country to meet the storage and preservation needs of its customers.
The quality of Vinalines Logistics' services is significantly influenced by its fleet of approximately 20 trucks Despite facing a temporary shortage of delivery vehicles that threatened timely deliveries, the company adeptly addressed the issue by partnering with other logistics providers and actively seeking additional suppliers with experienced fleets Additionally, Vinalines operates two crane trucks, one of which has been leased and is currently functioning at ICD Thakhet in Laos since May, further enhancing its operational capabilities.
2019 45-ton bridge truck for rent at Quy Nhon Port from June 2020 Currently both vehicles are operating and operating stably. c) Electronic information system
Vinalines Logistics has developed a comprehensive information system that facilitates direct communication between customers and the dispatching and vehicle management departments The company offers round-the-clock support via an open phone line, available 24/7 Their website, vnll.com.vn, features essential information about the company's history, products, services, annual reports, and financial statements However, it lacks a dedicated section for direct customer inquiries Currently, Vinalines provides only phone numbers and email addresses for customer contact when needed.
Vinalines Logistics guarantees exceptional service quality, largely attributed to its highly trained and proactive employees who demonstrate a strong sense of responsibility in their work.
Table 2.3: Statistics of personnel at Vinalines Logistics Joint Stock
According to data from the Human Resources Department, Vinalines Logistics Vietnam Joint Stock Corporation has experienced little change in overall employee numbers However, there is a notable increase in highly qualified workers, indicating an improvement in labor quality.
The workforce predominantly consists of experienced older employees, particularly in sales and customer service roles, which are crucial for delivering excellent customer service Additionally, the leadership team is highly qualified, with all members holding master's degrees or higher and possessing substantial practical experience They frequently conduct training and exchange sessions aimed at enhancing the professional knowledge and skills of lower-level employees in the logistics sector.
2.3.2 Logistics service business results of Vinalines Logistics Vietnam
Joint Stock Company in the period of 2018 - 2020
2.3.2.1 Profit from logistics service business
Table 2.4: Profit from logistics service business
(Source: Financial statements for the year 2020 - audited figures)
Transportation by airplanes Transportation by railways Transportation by sea lines
Graph 2.3: Percentage of revenue by business method
The logistics department's revenue primarily relies on three key business methods: sea transport, air transport, and rail transport These strategies significantly contribute to both the overall revenue of the company and the specific earnings of the logistics division.
Sea transport generated significant revenue, achieving VND 10.2 billion in 2019 and VND 12.1 billion in 2020, representing 39.96% and 43.93% of total income, making it the leading business segment in terms of revenue growth.
In 2020, marine transportation is expected to account for about 25% of total revenue, highlighting the significance of VIMC's Logistics business strategy The company boasts a substantial fleet of 104 vessels, including container ships, bulk carriers, and oil tankers, with a total cargo capacity of approximately 1.2 million DWT Additionally, VIMC prioritizes seaport development, investing in a coordinated manner to optimize shipping operations Key port clusters include the northern ports in Hai Phong and Quang Ninh, as well as the southern ports in Cai Mep, Thi Vai, and Ho Chi Minh City.
Rail transport plays a crucial role in the overall transportation sector, generating VND 8.9 billion in revenue in 2019, which accounted for 35.36% of total income, making it the second-largest mode of transport after maritime By 2020, this revenue rose to VND 11.09 billion, closing the gap with marine transport by only VND 1 billion With advantages such as the ability to handle large volumes of freight, enhanced safety, and cost-effectiveness, rail transport is a key focus for VIMC However, it is important to note that rail transport typically involves longer shipping times compared to other transportation methods.
Air freight: The revenue structure only accounts for a minor fraction of the total Air Transport revenue fluctuated between VND 6.3 billion in
In 2019, air freight revenue reached VND 4.3 billion in 2020, despite its shorter transit times compared to other transportation methods However, this mode is limited to medium and small volume shipments and is associated with high costs The Covid-19 pandemic in 2020 exacerbated challenges, as airlines implemented stricter quarantine and security measures, leading to increased complexity and higher expenses, ultimately resulting in a decline in air transportation revenue.
2.2.1.3 Profit from logistics service business by market structure
Table 2.5: Profit from logistics service business breakdown by market structure Markets
(Source: Financial statements for the year 2020 - audited figures)
Graph 2.4: Proportion of revenue by market structure
The company's revenue is significantly influenced by its primary operational market, characterized by a steady flow of goods moving from the north to the south Additionally, strong domestic revenue supports the company's business operations, thanks to its numerous branches that facilitate effective service delivery.
The company has established a strong presence with numerous branches across the country, earning significant trust from domestic customers While revenue from the Asian market is relatively high, overseas regions, particularly in Europe and America, present more challenges, resulting in lower income Despite this, the company reported revenues of VND 4.01 billion and VND 4.55 billion in these markets, indicating their viability Additionally, the African and Middle Eastern markets remain underexplored, contributing only 10% to total sales In 2019, logistics activities generated an impressive VND 25.43 billion in revenue, marking a milestone for the company Furthermore, VIMC was awarded 16.2 hectares of warehouse space at Vietnam National Shipping Lines' Dinh Vu Industrial Park for its Hai Phong Branch, enhancing its operational capacity The establishment of the Vinalines Hoa Lac Logistics Joint Stock Company (VLHL) is anticipated to further boost growth in the logistics sector, reflecting VIMC's adaptability to market trends and commitment to stabilizing revenue levels.
The Covid outbreak significantly impacted global trade security, leading to income declines in Europe, Africa, and America by 17%, 10%, and 15%, respectively, down to 12%, 7%, and 9% by 2020 While the pandemic disrupted the global economy and logistics sector, effective management allowed markets in Asia, the Middle East, and Vietnam to stabilize quickly, achieving revenue growth despite the challenging global landscape.
Both East regions experienced slight revenue increases of VND 1.5 billion and VND 1 billion, respectively, while domestic revenue rose from VND 6.5 billion to VND 8.6 billion VIMC has diligently implemented the Government's epidemic prevention measures while aligning them with business operations to achieve growth during this challenging time Nevertheless, the growth rate remains modest due to ongoing restrictions from the epidemic.
2.3.3 Some indicators on the results of the Company's logistics activities
Table 2.7: Some indicators of VIMC's logistics business results Targets
Net profit from business activities
Actual situation of logistics service quality at Vinalines Logistics Joint
To evaluate customer perceptions of the logistics service quality at Vinalines Logistics Vietnam Joint Stock Company, a survey based on the RATER model was developed This study aims to identify customer satisfaction levels and pinpoint areas of dissatisfaction, along with the underlying causes and requirements for improvement Given time and distance constraints, the survey was conducted via email To ensure information security, specific customer details will not be disclosed, but the overall evaluation results will be shared following data collection.
The survey process is as follows:
Step 1: Set up the survey;
Step 2: Determine the overall sample of the study There are more than
150 businesses already using Logistics services of Vinalines Logistics Vietnam Joint Stock Company;
Step 3: Conduct the survey: Contact businesses before sending the form and Send the survey by email to the businesses, the person in the survey is the authorized person and is related to the use of Logistics services of Vinalines. The survey was carried out for 1 month from May 1, 2021 to June 1, 2021
Step 4: Synthesize the survey: After withdrawing the votes, conduct a vote count and select valid votes;
Step 5: Use the survey results for analysis;
2.4.2 Research scale design and research model
To effectively evaluate customer satisfaction regarding the quality of the Company's logistics services, a questionnaire has been developed that focuses on five key factors: reliability, responsiveness, assurance, empathy, and tangible elements.
Specifically, the questionnaire will be built as follows:
• Reliability component: Reliability represents the ability to perform services accurately and safely of goods to meet customer requirements The scale consists of 4 questions:
• Component responsiveness: Responsiveness is expressed in responding to customer requests for services and information in the fastest and most professional manner The scale consists of 3 questions:
Table 2.9: Scale of responsiveness Serial
1 The company solves customer queries quickly
2 The company always performs the service consistently
The Company's services are always diverse and available
• Assurance component: Being able to brand assurance is providing customers with confidence in the capabilities of the business The scale consists of 4 questions:
Table 2.10: Scale of assurance ability
• Empathy component: Empathy is expressed in making efforts to understand the needs of customers, showing concern and care for each individual customer The scale consists of 3 questions:
• Components of tangible means: Tangibles include elements of vehicles, facilities, employee appearance, equipment used in providing services, documents serving communication The scale consists of 4 questions:
Table 2.12: Scale of tangible media
• Components of the overall satisfaction rating:
Customers are completely satisfied with the service provided by
Customers will continue to transact with the Company in the
The author will utilize the Likert scale to gauge the attitudes of respondents, allowing them to express their feelings from "very dissatisfied" to "very satisfied," with responses rated on a scale from 1 to 5.
Survey method: send the evaluation questionnaire to 115 customers of the Company during the period from May 1, 2021 to June 1, 2021 and receive
Due to the circumstances surrounding the disease outbreak, the survey was conducted online, gathering feedback from 101 of Vinalines Logistics' most frequent customers This feedback provides valuable insights into the current quality of the company's logistics services.
2.4.2 Survey results on the quality of logistics services of the Company
Based on 101 survey questionnaires obtained, the results of customers' evaluation of the Company's logistics service quality are analyzed below. a) Reliability:
Completely satisfied Satisfied Normal Unsatisfied Completely unsatisfied
Graph 2.5: Customer satisfaction on reliability of the company VIMC Note:
(1) The company always provides goods reliably (to fulfill its commitment to deliver and receive goods on time)
(2) The company always ensures safe goods
(3) The company always ensures the accuracy of documents
(4) The company always conducts the documentation procedures quickly
The company consistently ensures reliable delivery of goods, adhering to its commitments for timely receipt and dispatch A recent survey indicates that 70% of customers rate the service quality as average during delivery Despite various challenges that can arise, such as inclement weather, accidents, or issues with documentation and payments, the company remains dedicated to meeting delivery schedules as accurately as possible.
The company prioritizes the safety of its goods, with 85% of surveyed customers expressing positive feedback regarding their product guarantees Quality assurance is maintained throughout the entire process, from packaging to transportation and warehousing, all managed by the company’s dedicated employees However, there are occasional instances where goods may not arrive in their original condition due to handling by third-party loading staff, including rare cases of wet shipments that can impact product quality Despite these infrequent occurrences, they have the potential to affect the company's reputation.
Vinalinas Logistics is renowned for its swift documentation procedures, receiving positive feedback from 94% of customers who express satisfaction with the timely completion of their documents As a subsidiary of Vietnam National Shipping Lines, a reputable name in the maritime industry, Vinalinas enjoys strong ties with customs branches, ensuring that customs declaration processes are executed efficiently and any arising issues are resolved promptly.
Graph 2.6: Level of customer satisfaction with the response of VIMC Company Note:
(1) The company solves customer queries quickly
(2) The company always performs the service consistently
(3) The Company's services are always diversified and available
The company excels in addressing customer inquiries promptly, with 90% of clients expressing satisfaction with its customer care services Dedicated staff consistently provide assistance whenever customers encounter questions or issues related to logistics This commitment to effective support has led to overwhelmingly positive feedback from surveyed customers regarding the company's customer service.
The company consistently delivers logistics services, with 70% of customers expressing positive feedback on its reliability and commitment to service development However, a minority of customers remain dissatisfied, citing inconsistencies in processes and procedures that lead to delivery delays and extended timelines This has raised concerns among some customers regarding the overall effectiveness of the company's logistics services.
The Company offers a diverse range of logistics services that are readily available to customers According to a recent survey, approximately 65% of customers expressed satisfaction with the current logistics offerings However, 35% indicated that the services do not fully meet their diverse logistics needs Many respondents suggested that the Company should enhance its offerings by incorporating additional services, such as the ECUS5 VNACCS customs declaration software, to better align with customer expectations.
Completely satisfied Satisfied Normal Unsatisfied Completely unsatisfied
Graph 2.7: Customer satisfaction on the assurance factor of VIMC Note:
(1) Customers know a lot of information through the advice of the Company's staff
(2) The company's ability to track freight is good, always guaranteed
(3) Attitude and service of the company's employees are professional, polite, good communication
(4) Customers feel confident in the professional qualifications of the Company's employees
A recent survey reveals that 90% of customers are satisfied with the comprehensive and high-quality information provided by the company's dedicated staff However, a small percentage expressed dissatisfaction, noting that some employees did not fully meet their informational needs.
The Company excels in freight tracking, with 80% of surveyed customers expressing satisfaction with the process However, some customers remain dissatisfied due to a lack of trust in the professional qualifications of the Company's employees.
Vinalines Logistics staff are recognized for their professional and polite attitude, with 85% of customers expressing satisfaction with their communication skills However, there are occasional instances of employee behavior that may lead to customer dissatisfaction To maintain high service standards, the company should continue to remind employees to uphold a positive attitude and demonstrate skillful interactions with all customers.
Approximately 75% of customers express confidence in the professional qualifications of the Company's staff, highlighting their logistics expertise However, 25% of customers reported dissatisfaction with the Company's guarantees, indicating a lack of trust in its logistics capabilities Empathy plays a crucial role in addressing these concerns.
Graph 2.8: Level of customer satisfaction on the empathy factor of
(1) Company employees are always ready to respond to customers' requests and questions as quickly as possible
(2) Employees have good knowledge of customer requirements and needs to serve each type of customer
(3) The company understands the needs and requirements of customers
Overall assessment of logistics service quality at Vinalines Logistics
2.5.1.1 Advantages of the trust factor
Vinalinas Logistics benefits from a substantial fleet of vehicles and ships, along with a large warehouse, enabling proactive and timely delivery of goods to customers As a subsidiary of Vietnam National Shipping Lines, a highly reputable entity in Vietnam's maritime industry, Vinalinas Logistics maintains strong relationships with customs branches, ensuring that customs declaration processes are efficient and that any issues are resolved swiftly.
Vinalines Logistics implements a robust quality plan and standardized process design, enabling employees to quickly understand their tasks and maintain high accuracy while consistently executing services A key advantage of Vinalines Logistics is its extensive agent network, which spans most major ports globally By recognizing the needs of domestic import and export businesses, the Company has strategically established agents in key market areas Additionally, the growing number of international firms partnering with Vinalines Logistics enhances its worldwide coverage As a result, the Company offers a diverse range of services that are readily available to meet the varied needs of customers at any time and place.
Establishing strong relationships with key stakeholders is crucial for Vinalines Logistics, enabling efficient service delivery and quick resolution of customs issues By negotiating favorable rates with various shipping lines, Vinalines leverages the strengths of each carrier on specific routes For instance, while Maersk offers excellent service to Europe at a premium price, alternatives like MISC, COSCO, and MSC are recommended for CIF goods Additionally, Vinalines optimizes its partnerships for routes to Africa and other competitive markets, ensuring high service quality through collaboration with trusted agents.
2.5.1.3 Advantages of the element of assurance
Vinalines Logistics is enhancing its service quality by leveraging its internal strengths, including a steadily growing workforce The company prioritizes the continuous improvement of employee qualifications through short-term professional training courses, ensuring that staff skills evolve alongside the demands of the industry.
Vinalines Logistics prioritizes customer service by ensuring that all staff, in addition to their professional qualifications, receive comprehensive training in customer psychology This training fosters a friendly and enthusiastic demeanor among employees, whether they interact with customers via phone, email, or in person Every team member consistently demonstrates a cheerful and open attitude, even when a customer declines a service, expressing gratitude and maintaining a positive relationship for future opportunities Customers have noted the enthusiasm of everyone from the General Director to the staff, which significantly contributes to customer loyalty and the attraction of new clients.
Empathy plays a crucial role in the service quality appreciated by customers of Vinalines Logistics The company prides itself on having dedicated and enthusiastic staff, organized by region to better understand and meet customer needs Each client is assigned a specific employee who oversees their contract from start to finish, ensuring personalized attention throughout the transportation and delivery process This approach allows customers to stay informed about their goods and know exactly who to contact for any inquiries.
2.5.1.5 Advantages of the tangible element
Vinalines Logistics prioritizes the use and innovation of technological equipment, enhancing its infrastructure to ensure sufficient operational resources The company has made strategic investments in key ports and hubs, such as Cai Lan and ICD Lao Cai, to improve its system of wharves and warehouses These advancements in logistics services have strengthened Vinalines Logistics' position in both the Vietnamese and global logistics markets.
While Vinalines Logistics has notable advantages, it also faces certain limitations in service quality In light of significant advancements in the logistics market, Vinalines Logistics Vietnam Joint Stock Company must identify its core competitive strengths To thrive in the expanding logistics sector both domestically and internationally, the company should invest in strategic development and infrastructure improvements to enhance its market share.
2.5.2.1 Limitations on the trust factor
Vinalines Logistics boasts a large agent system, yet faces challenges in effective control, leading to occasional slow deliveries due to paperwork issues Instances of scratched goods and discrepancies in delivery quality caused by loading staff, as well as wet shipments affecting product integrity, have been reported While these occurrences are rare, they pose a risk to the company's reputation.
Timely and accurate customs operations have not met customer expectations due to inadequate preparation of valid and legal shipment documents This oversight in completing customs declarations before visiting the customs office leads to mistakes and delays in the import and export procedures.
2.5.2.2 Limitations on the responsiveness factor
A recent survey based on Rater measurement criteria indicates that customers remain dissatisfied with the Company's ability to meet their service and order information needs In today’s fast-paced information technology era, effective information management is crucial for businesses to minimize shipping times, accurately confirm order types, and fulfill customer expectations while reducing risks Given the complexities and challenges of international trade, the Company must prioritize investment in its foundational information system to enhance operational efficiency and customer satisfaction.
2.5.2.3 Limitations on the guarantee factor
The company's human resources possess a certain level of qualifications and a courteous attitude towards customers; however, they struggle to fully comprehend each customer's unique wishes and requirements Survey results indicate that some customers remain dissatisfied with the staff's knowledge and empathy Furthermore, the staff's expertise is insufficient to ensure a consistently high-quality service, and there is a lack of prompt responses in handling emergencies.
2.5.2.4 Limitations on the empathy factor
Despite the completion of human resource management processes, the Company's HR team has not fully addressed customer needs and expectations While they possess fundamental knowledge, their expertise in specialized areas such as legal terms, insurance, costs, and risk management remains inadequate Consequently, the team's limited advisory capabilities contribute to ongoing customer dissatisfaction with the professional qualifications of the Company's employees.
2.5.2.5 Limitations on the tangible element
Despite a well-evaluated infrastructure, the Company faces challenges in ensuring complete information security during goods delivery With numerous domestic and international competitors in the logistics sector, all benefiting from various state incentives, market competition is intensifying As a result, businesses must prioritize customer relationships and reassess their marketing strategies to enhance service consumption and strengthen brand visibility.
Through the process of reviewing and re-analyzing the survey table and the actual situation of the Company, we can point out some subjective reasons as follows:
The company currently lacks an effective quality management model, despite having established a quality planning system and prioritizing service quality among employees While there is a logistics process in place, it is essential to develop a comprehensive quality management model to ensure that all stages of the logistics process operate smoothly and reliably The absence of a professional quality management system results in implementation challenges and ongoing issues, including excessive paperwork.