analysis of logistics management in yen vien container station a branch of indo trans logistics corporation

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School of Economics and Management---

<b>INTERNSHIP REPORT I</b>

Topic:

<b>Analysis of Logistics Management in Yen Vien Container Station, a branch of Indo Trans Logistics Corporation</b>

Name: <b>Tran Nhat Minh</b>

<b>Major: Industrial Management (Logistics and Supply Chain)Class: EM-NU17B</b>

<b>Instructor: MSC. Vu Dinh Nghiem Hung </b>

HA NOI, 2022

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<b>Table of Contents</b>

<i><b>LIST OF FIGURES... iii</b></i>

<i><b>FOREWORDS... iv</b></i>

<i><b>ACKNOWLEDGEMENTS... iv</b></i>

<b>CHAPTER I: GENERAL INTRODUCTION ABOUT THE ENTERPRISE...1</b>

1.1 Overview and development of enterprise:...1

1.2 Service of the enterprise...3

1.2.1 Indo Trans Logistics Corporation...3

2.2 Analyze inbound logistics...16

2.3 Analyze outbound logistics...20

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<b>LIST OF FIGURES</b>

Figure 1. 1 ITL’s hierarchy map...6

Figure 2. 1 Flowchart operation of Indotrans...11

Figure 2. 2 Geographic location of Yen Vien Station...12

Figure 2. 3 Example for flowchart inbound logistics...13

Figure 2. 4 the perspective of ICD Yen Vien...14

Figure 2. 5 Inland area for traffic in container yard...14

Figure 2. 6 Railway for trains to stop for lifting on/off...15

Figure 2. 7 The container lifter...15

Figure 2. 8 The organization structure of ITL corporation...18

Figure 2. 9 Total Container Volume by years (from branch’s data base)...19

Figure 2. 10 Container volume by customers. (from branch’s data base)...20

Figure 2. 11 Container volume by domestic and international shipments ...20

Figure 2. 12 Growth of International shipment (from branch’s database)...21

Figure 2. 13 International over Total Volume (from branch’s data base)...21

Figure 2. 14 Pattern of container volume by seasons (from branch’s data base)...22

Figure 2. 15 SWOT matix... 23

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Logistics is a service that plays an important role in the production and business stages ofmany industries and the economy of a country. The development of logistics servicesensures that the production and business operations of other services are guaranteed ontime and quality. Therefore, logistics is considered the focal point of economic andcommercial development in many countries.

Indo Trans Logistics Corporation (ITL for short) is ITL is positioned to be the premier regional solutions provider for Integrated Logistics, Aviation Services, Warehousing, Freight Management, and Distribution. ITL is committed to delivering the highest qualityservice coupled with the highest level of integrity in everything we do.

In this report, I will give an overview and explain how things work at the Yen Viencontainer of Indotrans, as well as how logistics is performed here.

Before embarking on/ culminating in exploring the topic of the essay, I would like to express my sincere thanks to the instructor, Dr. Vu Dinh Nghiem Hung. During the research process, he spent his precious time answering all questions as well as caring and assisting me in a very wholehearted way so that can acquire valuable knowledge, take approaches to the topic quickly and accurately. Therefore, thanks to the knowledge that he imparted to me these sources, he was able to search and use the right references selectively to support the completion of the topic on his schedule.

In the process of finding/ researching this topic, have tried to complete it well, but perhaps due to limited knowledge as well as other objective factors, my arising problems

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can be inevitable. I am expecting the feedback, and further instructions of teachers and readers so that I can draw on the experience and solve them in the next topics.

Best regards!

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<b>CHAPTER I</b>

<b>GENERAL INTRODUCTION ABOUT THE ENTERPRISE</b>

<b>1.1 Overview and development of enterprise: 1.1.1. General information</b>

<i>About Indo Trans Logistics Corporation</i>

Name: Indo Trans Logistics Corporation

Address: 52-54-56 Truong Son Street. Tan Binh District Ho Chi Minh City,Vietnam

Year of established: 1999

<i>About Yen Vien Branch</i>

Name: Indo Trans Logistics Corporation’s Yen Vien Branch

Address: Yen Vien South Container Station, Yen Vien Town, Gia Lam district,Hanoi, Vietnam.

Year of established: 2017

<b>1.1.2. Development history</b>

In 2015, Vietnam was in the process of re-structuring the body of the whole economy,and the Transportation industry was a part of it. At that time, many government-ownedlogistics facilities did not function well, thus slow-downed the process of deliveringgoods in and outside Vietnam, which affected domestic economic activities andexport/import. Specifically, in the case of Yen Vien Station, quoted from Former PrimeMinister of Transportation. Dinh La Thang: “Through the fact of checking Yen Vienstation, we see that this is not the station of the 21st-century Railway but obviously of theearly 19th century. Yen Vien station is backward, poor, incomplete. Therefore, it isimportant to determine that the objective of this project is to improve production andbusiness efficiency, improve the transport efficiency of railways to create the overallefficiency of the transport industry, connect sea and road to create a logistics center,reduce costs, transportation time.” Therefore, Ministry of Transportation launched theproject to socialize government-owned transporting and logistics facilities. Yen VienStation (Hanoi), Song Than station (Binh Duong), and Dong Dang station (Lang Son)were chosen as sample to run the test of container station socializing project; if theapplied business model, business process, and station functioning management areproved to be successful, impactful, and scalable, Government would approve to launch

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other socializing programs in the future for the sake of the Transportation industry inspecific and of the Vietnam’s economy in general.

Considered as a breakthrough of Railway department, Yen Vien Station socializingprogram attracted investors such as: Vingroup corporation, Bach Dang hotel complextrading – service joint stock company, Indo Trans Logistics corporation, Express TrainsATH company limited. They were invited to examine the capacity of the facility, proposethe right to exploit, thereby synthesize and propose mechanisms for implementation. OnApril 21st, 2015, Former Minister. Dinh La Thang had a meeting with interestedinvestors for the container station socializing project, reviewed their proposal as well asthe legal documents, made needed amendments and supplements with the proposals tosuit the reality.

At last, Indo Trans Logistics Corporation win the bidding to hire land of Yen Vien stationin 23 years (from 2015), to build and operate Logistics Container Center of Yen VienStation. That is how, Yen Vien Station became a branch of the Corporation.

<b>1.1.3. Business strategy </b>

ITL is positioned to be the premier regional solutions provider for Integrated Logistics, Aviation Services, Warehousing, Freight Management and Distribution. By playing an essential role in clients’ businesses and delivering best-in-class value added services throughout the supply chain, ITL always strives for complete customer satisfaction. ITL is committed to delivering the highest quality service coupled with the highest level of integrity in everrything we can do

In addition, ITL is transforming to go a step ahead the future by developing expertise in e-Commerce and shared economies.

ITL endeavors to stay ahead through enabling creative solutions and the development ofnew services and products to provide customers with unparalleled and innovative yetcost-effective solutions.

ITL’s success is attributed to employees and measured by the enrichment of the quality oflife of the people. ITL also continues to aim to fulfill our social and civil responsibilitiesto the communities they serve.

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<b>Vision: To establish ITL as an admired leader in the regional transportation industry.Mission: To provide the most integrated and innovative transportation, aviation and e-</b>

Commerce logistics services with mutual respect and extreme goodwill to those we serve.

<b>Corporate Social Responsibility:</b>

At ITL, maintaining the highest ethical, social, and environmental standards are essential to maintaining the trust of employees, customers, partners, and suppliers. Underpin the decisions made every day.

Whether it is the environment community or employees, ITL knows that they have the responsibility to demonstrate their commitment to these three areas and bring positive change for current and future generations.

<b>1.1.5. Enterprise scale</b>

ITL Corporation has over 1,800 team members inside and outside of Vietnam joininghands for the business functioning and development of the corporation. The Corporationalso owns more than ninety offices, branches, and distribution centers in Vietnam andother countries in the Indochina region, which makes the logistics network of theCorporation wide-spread and easily accessible.

ITL Corp. is in top 10 of the most reputable and reliable logistics companies in 2021 byVietnam Report (Report, 2021).

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<b>1.2.1 Indo Trans Logistics Corporation</b>

<i>Aviation Services: </i>

ITL has been the leader in Aviation services in Vietnam since 2000, benefiting from awealth of market experience and proven success-driven methodology in the region. ITL Aviation and our affiliates operate as both General Sales & Services Agent (GSSA)and General Sales Agent (GSA) offering a full range of services on behalf of the world'smost reputable airlines in Vietnam and Indochina.

<i>Freight Management: </i>

ITL provides Airfreight, Sea freight, LCL Consolidation Service, LCL ConsolidationService – Internal Promotion, LCL Consolidation Service – External Promotion, RoadTransport, Multi Modal Transport, and Cross Border Transport.

<i>Contract Logistics: </i>

ITL provides Total Logistics Solutions, Warehousing and Distribution Services, ProjectCargo, ITL VSIP Bac Ninh Warehouse, ITL Duong Xa Warehouse, and ITL ContractLogistics.

<i>Railway Logistics: </i>

ITL is a leading service provider of rail operations in Vietnam. ITL Railway Logisticsoperates a stable schedule of 5 days a week with offices in Ho Chi Minh City, Hanoi, andDanang specializing in domestic rail-based logistics solutions in Vietnam.

In addition, ITL has invested in and operates the Yen Vien rail terminal in Hanoi. Thiscompetitive advantage enables ITL to offer a one of a kind, best in class rail logisticsoffering. Beyond traditional domestic rail and sea freight services, ITL also offerscustomized and value-add solutions, specializing in solution design for the specific needsof each customer such as high-value goods, heavy goods, emergency goods and rawmaterial flows for manufacturing or project-based requirements.

<i>Last mile delivery and express:</i>

Speed link is an owned subsidiary of ITL, offering market leading last mile delivery andexpress services in Vietnam. Speed link offers a full range of pickup and deliveryservices plus related value-added logistics offerings to complement its last mile andexpress product including warehousing, e-Commerce delivery, pick & pack, mailservices, returns management and cash on delivery (COD) amongst other customerspecific and individualized solutions.

<i>E-Commerce Solutions:</i>

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Speed link was established to provide the local market with innovative, extraordinary,and dynamic E-Commerce solutions while providing consumers with a state-of-the-artshopping experience in Vietnam. Speed link offers a full suite of E-Commerce solutionsfrom Order Management and Fulfilment Solutions, Performance Marketing and LastMile delivery including B2C and C2C delivery, Cash-on-Delivery (COD) services andReturns management.

<i>Yen Vien Branch</i>

Main services of Yen Vien station are:(1) Lift and lower container,

(2) Warehouse/Container Yard for lease,(3) Full-package custom service,(4) Last-mile trucking service.

Yen Vien railway station serves the market of railway transportation companies(Business-to-business). Railway transportation companies lift and lower containers fromYen Vien’s container yard to their trains to transport goods domestically andinternationally. International destination and sources of goods usually comes fromPingxiang Xi, Guangxi and Kunming, Yunnan (China). Yen Vien station operates withcustom in Dong Dang (Lang Son) and Lao Cai city (Lao Cai) to control the inflow andoutflow of containers between China and Vietnam. Moreover, goods or containers notalso are transported from/to China but also through joint railway with China’s railwaynetwork to be transported from/to European countries. Domestically, goods or containersfrom other railway stations in Northern of Vietnam (Hai Phong, Ha Long) or fromtrucking transportation assemble at Yen Vien station before spreading out to other partsof Vietnam.

Besides operating as a railway station for trains to stop to refuel, lift and lowercontainers, Yen Vien station operates as a container yard in which customers can hire aplace for their containers to lie at before doing anything by plan. Yen Vien’s containeryard can store around 1000 40-ft containers at a time. Two cranes with four-crane-driverfleet can conduct a single action with one container (lift or lower from/to trains, trucks, orcontainer yard) within 5~10 minutes. Yen Vien branch has its own trucking fleet whichcan transport customer’s goods or containers directly to their warehouses or from theirwarehouses to the yard to assemble.

Yen Vien branch also conduct the custom clearance service for goods come from/toChina. Therefore, customers no longer must come to custom at border gate in Dong Dangtown or Lao Cai city, which reduces cost and time for customers.

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<b>1.2.2. Functions</b>

Yen Vien Station is a 23-year investment project with total invested capital worth 122.5 billion VND and demanded exploiting capacity of 1.2 to 1.8 million tons. The purposes of this project are:

Reduce the time of transporting and unloading goods at Yen Vien station with themethod of combining railways and roads by concentrating goods and containers atYen Vien logistics center and applying professional loading and unloadingvehicles.

Increase container production through Yen Vien station three times (phase 1) andfive times (phase 2)

Increase rail output, reduce freight pressure by road by reducing the number ofvehicles on National Highways 5 and 18. Thereby reducing road damage due tooverloading, traffic jams and traffic accidents. It is estimated that up to 150-170cars will be reduced per day.

It is expected that the price of transporting railways from Hai Phong Port andQuang Ninh port to customer warehouses in Hanoi by rail will be reduced by morethan 5% and 10% respectively.

The application of Yen Vien logistics center will help proactively reduce the costof package transportation by rail and road combined through the exploitation ofgoods at Yen Vien Logistics Center.

Attract customers to use railway services as a general service center: railway +road transportation + warehousing + customs + seaway... to improve thecompetitiveness of the railway industry compared to other vehicles.

Application of transportation, loading and unloading solutions, specializedsoftware to improve the quality of railway services.

<b>1.3 Organizational hierarchy:1.3.1: Management hirerachy</b>

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<i>Figure 1. 1: ITL’s hierarchy map</i>

Currently, in 2021, Yen Vien Station requires eleven distinguished persons to operate.Each of them has specific tasks to maintain the continuous in and out flow of trains,trucks, and containers…

<b>1.3.2 Function of departments</b>

<i><b>1.3.2.1. Terminal Operator Staff (2 persons)</b></i>

<i>Purpose and Scope:</i>

Responsible for overseeing the plan to lower, save and unload ships at containeryards (CY)

Planning and handling of containers for crane drivers performed at container yards(CY)

Enter loading/unloading data in the software system

Work with other parts to arrange container loading and unloading in goodconditions

Communicate with train lines, stations by phone, email, EDI … to plan thedelivery of containers

Get DO from customers and other documents that need to be delivered/deliveredat the warehouse

Make all documents for customers according to SOP in the system

Coordinate with the accounting department to cross-check the amount forcustomers correctly

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Monitor all vehicles in/out of CY

Supporting and technical inspection of maintenance, repair, and periodic cleaningof cranes

Follow the assignment and arrangement of the manager.

<i><b>1.3.2.2. Technical Staff (1 person)</b></i>

<i>Purpose and Scope:</i>

Responsible for the maintenance inspection of the container crane fleet Perform small repair work for cranes at Yen Vien station

Responsible for the allocation and monitoring of the inflow and outflow ofsupplies for drivers in maintenance

Coordinate with drivers to check the maintenance of cranes

Management and supervision of crane driving operating in accordance withprocedures

Provide procedures for operation, maintenance, and periodic maintenance ofcranes fleet

Follow the assignment and arrangement of management.

<i><b>1.3.2.3. Crane Drivers (4 persons)</b></i>

<i>Purpose and Scope:</i>

Responsible for the safe operation of container cranes

Together with the technical department to conduct small repair work for cranes atYen Vien station

Responsible for the management and monitoring of cranes during operationCoordinate with techniques for inspection of maintenance, repair, and periodiccleaning of cranes

Manage and operate cranes in accordance with the processFollow the assignment and arrangement of management.

<i><b>1.3.2.4. Custom Clearance Staff (1 person)</b></i>

<i>Purpose and Scope:</i>

Declaration of e-Customs via Vnaccs system

Direct customs clearance of goods at Yen Vien sub-department

Manage all declarations and clearance of goods at other HQCK sub-departmentsDeclaration and completion of certificate of origin (CO) registration

Handle services registered on the country of importing country one-stop system,quality of licensed goods

Custom procedure advice and quotes for sales and agenciesFollow the assignment and arrangement of management.

<i>Responsibility:</i>

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Preparing dossiers of import and export documents and conducting customsdeclaration procedures for import and export shipments, transit forexports/imports, processing, investment, export production ...

Customs declarations at ports, airports, and customs sub-departments of industrialzones

Apply for C/O, quarantine, sub-licenses, get D/O... for the declaration of customDirectly conduct customs procedures at Yen Vien border gate...

Monitor and perform deliveries from/to customer warehousesOther jobs assigned by team leader.

<i><b>1.3.2.5. Accounting Supervisor (1 person)</b></i>

<i>Main responsibility: Accounting bookkeeping:</i>

Be responsible for accounting and related activities of the department includingcorporate and statutory reporting, regional reporting and statutory compliance andtaxation, company policies & Vietnam Accounting Standard.

Ensures monthly, quarterly, and yearly reporting package to group and financialstatement for external audit.

Closing bookkeeping on time following company requirement.

Ensures adequate controls and review of all accounting activities and schedulesincluding cash/bank, inventory, debtors, creditors, credit limits, fixed assets, inter-company balances, sales, and expenses, etc.…

Be ensured Policies of Company and Fin. DeptOther tasks assigned by FM & AM.

Control Expenses, Revenue

Control Account Receivable & Payable

Provide management account, costing and analysis reporting to the businessEnsures budgets are followed & under control

Ensures front line documentation & reporting flows followed Company policies.Participates in the annual operation plan and budgeting process.

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<i><b>Others: Follow management's assignment and arrangement</b></i>

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from domestic locations or from international locations stop at Yen Vien’s staion and betransferred into Yen Vien’s container yard.

<b>Stage 1: </b>

Provide information on demand for services

Notify the plan to export/import to the ITL yard for ITL dispatchITL Dispatchers:

Receive and check information

Make a plan, report the plan to the security team to monitor, to deliver/receive containers with the station when the train enters/exiting the ITL yardThe security team:

Check the planning information with the Station to monitor and execute the delivery/receipt plan at the Station.

If the information is correct: Enter the data into the QLBC software, if it is wrong, ask the customer to provide the information again

Transfer relevant documents to OPS department to track, monitor and plan to get in/out of goods at DTHQ

<b>Stage 4:</b>

Customer/Transporters:

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Present the control slip to the ITL guard to let vehicles and goods enter the ITL yard.

Let vehicles and goods enter the ITL yard.ITL Guards:

Put vehicles and goods in the ITL yard if they are eligible. If there is no confirmation mark on the PKS, ask the customer to return to the ITL office to meet the ITL dispatcher for procedures

ITL Operations:

Check the document information to get printed into the HQ monitoring software. If it is incorrect or incomplete, request the dispatcher to update the information with the customer

After checking, being eligible to get in the GSHQ systemNotify the customs team directly at the ITL yard about the shipmentCustoms Branch of Yen Vien:

The customs team at the ITL yard receives information and conducts monitoring. Waiting for customers/carriers to do customs clearance

Customs Branch of Yen Vien:

Complete the procedure and deliver the documents to the customer

Deliver the confirmation that the goods are enough to be exported from the customs office at the ITL yard to the customer. Let customers check-in out of the yard with ITL security team

Report the plan and transfer copy of confirmation that the goods are eligible for export/import at DTHQ for ITL dispatchers

<b>Stage 8:</b>

Customer/Transporters:

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Presenting confirmation that goods are eligible for export/import at DTHQ for ITLdispatch to complete delivery/receipt procedures

Pay all fees related to the shipment to the accountantGet invoices and receipts from ITL accountant

Submit invoice, receipt proving full payment of charges related to shipment for ITL dispatchers

ITL Dispatchers:

Check the voucher to confirm that the goods are eligible to be exported from the customs office. If that is enough, the ITL dispatcher will transfer the information to an accountant

<b>Stage 9: </b>

Receive PGN certified by ITL Dispatcher (Copy 3) and go to the yard to present tothe crane driver to lift and lower the container at DTHQ (If it is a full container)

Keep copy 2 to exist

Following the instructions of the ITL dispatcher for the vehicle, the goods are exported/imported

ITL crane driver:

The ITL crane driver checks whether the PGN has the ITL dispatcher's confirmation. Based on the container PGN (Copy 3) and the order from the ITL dispatcher (Copy 2) to lift/lower the container at the DTHQ (For full containers)ITL Dispatchers:

Based on PGN (Copy 3) to deliver/receive goods at DTHQ (For LTL goods)

<b>Stage 11: </b>

Conduct delivery/receipt of goods with ITL.ITL Dispatchers:

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