Recommendations to improve return cargo process at branch of GE viet nam limited in hai phong

MINISTRY
TRANSPORTATION

OF

MINISTRY OF EDUCATION &
TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: TA THI HUONG THAO

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATION TO IMPROVE CARGO RETURN
PROCESS AT GE HAIPHONG

HAI PHONG – 2015

Comment [A1]:
Comment [A2]:

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MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: TA THI HUONG THAOTA THI HUONG THAO
CLASS:

GMA02

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATION TO IMPROVE CARGO RETURN PROCESS
AT GE HAIPHONG

Supervisor:

Đoàn Trọng Hiếu

Division:
Faculty:

HAI PHONG 2015


Formatted: Section start: New page, Width:
8.27", Height: 11.69"

PREFACE

As one of the most popular trend nowadays is globalization, economic
integration

has

increasing

rapidly.

However

the

transaction

among

nations/companies is not only buying and selling which known as forward logistic.
During the process, there will be defective items shipped to importer. In this case, it
is necessary to return defect cargo back to vendor. Although the defect cargoes only
account for small percentage of all imported goods they play an important role in
manufacturing process. Understand the importance of returning cargo, this research
not only provide an overview about GE Haiphong process to return cargo to vendor
but also giving recommendation to improve the process.
I declare that this report is my own unaided work. It has not been
submitted before.
If violated, I am solely responsible for and bear the punishments of the
Institution and University.

Student Name and Signature


TABLE OF CONTENTS

LIST OF ABBREVIATIONS ...................................................................................... iv
INTRODUCTION ......................................................................................................... 1
1. The important of the topic .................................................................................. 1
2. Research Structures ............................................................................................ 1
3. Research Object .................................................................................................. 1
4. Research Scope ................................................................................................... 2
5. Research Method ................................................................................................ 2
6. Research Results ................................................................................................ 2
Chapter 1: LITERATURE REVIEW ........................................................................... 3
1.1. Exporting activities .......................................................................................... 3
1.1.1. Definition ............................................................................................... 3
1.1.2. Responsibility of different parties in exporting transaction ............... 3
1.1.3. Documents in an exporting transaction ............................................... 4
1.1.4. Customs regulations .............................................................................. 5
1.2. Returning cargo ............................................................................................... 7
1.2.1. Definition ............................................................................................... 7
1.2.2. The reason to return cargo .................................................................... 7
1.2.3. The procedure to return cargo .............................................................. 7
Chapter 2: EVALUATION OF RETURN CARGO PROCESS AT GENERAL
ELECTRICS HAIPHONG ..................................................................................... 9
2.1. Company Overview ......................................................................................... 9
2.1.1. General Information of GE Haiphong ................................................. 9
2.1.2. Organization ........................................................................................ 11
2.1.3. Personel ................................................................................................ 15
2.1.4. GE culture ............................................................................................ 15
2.2. Evaluation of Return Cargo Process at GE Haiphong ............................... 16
2.2.1. Reasons to return cargo and related parties in process ..................... 16
2.2.2. The general return cargo process ....................................................... 18
2.2.3. Two detailed return cargo process ..................................................... 25

2.2.4. Issues that can arise during process .................................................. 28
2.2.5. Strengths and drawbacks of return cargo process ............................. 29
Chapter 3: Recommendations to return cargo process .............................................. 33
3.1. Supportive GE staff ....................................................................................... 33
3.2. Using one forwarder: ..................................................................................... 33
3.3. Updating workflow: ...................................................................................... 33
3.4 Systemized process: ....................................................................................... 37
CONCLUSIONS .......................................................................................................... 42
Bibliography ................................................................................................................. 43


Recommendations to improve cargo return process at Branch of GE Vietnam
limited in Haiphong

LIST OF FIGURES
Figure 1 Organization chart of GE Haiphong .......................................................10
Figure 2 The workflow of return cargo process ....................................................18
Figure 3 Tracking files of return cargo ..................................................................21
Figure 4:Process to open CDs ................................................................................22
Figure

5:

Custom

software

to

open
Formatted: Hyperlink, English (United
States), Do not check spelling or grammar

CDs……………………………………….23
Figure

6:

Tracking

file

of

return

cargo

Thami

Shipping

to

Jabol………………………………..25
Figure

7:

Booking

note

of

&

Airfreight
Formatted: Hyperlink, English (United
States), Do not check spelling or grammar

copr………………...27
Figure

8:

Tracking

list

of

buyers………………………………………………30
Figure

9:

Tracking

list

of

LOG…………………………………………...……31
Figure

10:

The

workflow

of

return

cargo

process

by

sea…………………...…34
Figure

11:

The

updated

workflow

to

open

CD………………………………...36
Figure

12:

The

suggested

process

to

return

cargo

to

vendor…………….……37
Figure

13:

Display

of

the

new

system………………………………………….38
Figure

914:

The

vendor……………………40
Figure 1105: The

current
systemized

process
process

to

return

to

return

cargo

to

cargo

to

of

GE

vendor………………41

LIST OF TABLE
Table

1:

Departments

and

numbers

of

staff

Haiphong…………………16

Ta Thi Huong Thao
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or grammar


Recommendations to improve cargo return process at Branch of GE Vietnam
limited in Haiphong

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Recommendations to improve cargo return process at Branch of GE Vietnam
limited in Haiphong
LIST OF FIGURES
Figure 1-Organization chart of GE Haiphong ....................................................... 11
Figure2:The general return cargo process ............................................................. 18
Figure 3:Tracking files of return cargo.................................................................. 21
Figure 5:Custom software to open CDs ................................................................23

Figure 6:Tracking file of return cargo to Jabol ..................................................... 25
Figure 7:Booking note of Thami Shipping & Airfreight copr ............................. 27
Figure 8: Tracking list of buyers ............................................................................ 30
Figure 9:Tracking list of LOG ............................................................................... 31
Figure 10: The workflow of return cargo process by sea ..................................... 34
Figure 11: The updated workflow to open CD ..................................................... 36
Figure 12: The suggested process to return cargo to vendor ................................37
Figure 13: Display of the new system ................................................................... 39
Figure 14: The current process to return cargo to vendor .................................... 40
Figure 15: The systemized process to return cargo to vendor.............................. 41

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Recommendations to improve cargo return process at Branch of GE Vietnam
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LIST OF ABBREVIATIONS
GE

General Electrics

GW

Geodis Wilson

CD

Custom Declaration

RMA

Return Material Authorization

LOG

Logistic

WH

Warehouse

RTV

Return to Vendor

GM

General Manager

EHS

Environment, Health and Safety

FIN

Finance

WTG

Wind Turbine Generator

QC

Quality Control

ELA

Electrical Assembly

SOU

Sourcing

MM

Material Management

NCR Non-claim return
AWB Airway Bill
PIC

Person in Charge

ETD Estimated Time of Departure

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Recommendations to improve cargo return process at Branch of GE Vietnam
limited in Haiphong

INTRODUCTION
1. The important of the topic
As one of the most popular trend nowadays is globalization, economic
integration

has

increasing

rapidly.

However

the

transaction

among

nations/companies is not only buying and selling which known as forward logistic.
During the process, there will be defective items shipped to importer. In this case, it
is necessary to return defect cargo back to vendor. Although the defect cargoes only
account for small percentage of all imported goods they play an important role in

manufacturing process. Without the replacement for the defective parts, production
may have to stop. As the matter of fact, if production stops for only one hour, the
consequences can be massive. In RTV (Return to vendor), quick transaction through
reverse logistics is highly important in order to keep trust intact. Otherwise, it spoils
the relationship between vendor and seller. Paying close attention to return cargo
can help to improve customer satisfaction and loyalty. Reverse logistics also
includes gaining feedback to get improvement to both seller and buyer.
Understand the important of returning defective cargoes to vendors; I would
like to choose the topic: “Recommendation to Return Cargo Process at Branch of
GE Vietnam limited in Haiphong” to write in this dissertation.
2. Research Structures
1.

Introduction

2.

Chapter 1: Overview About Return Cargo

3.

Chapter 2: Company Overview

4.

Chapter 3: The Process to Return Cargo

5.

Chapter 4: Recommendation to Return Cargo Process

6.

Conclusions

3. Research Object
Not only to give an overview about GE Haiphong, the objective of this
research is to clarify the current return cargo process. Moreover, strengths and
drawbacks of this process are pointed out with recommendations to improve some
steps.

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Recommendations to improve cargo return process at Branch of GE Vietnam
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4. Research Scope
Research Subject: Recommendation to return cargo process at Branch of GE
Vietnam limited in Haiphong
Research Scope: The reality and current process of returning cargoes
activities at Branch of GE limited in Haiphong
5. Research Method
Analysis: Data of the research is collected by many ways. The method to
conduct this research is mainly interview with GE’s staff in different department to
ask for information and process.


Interviewing the staff directly



Observation from practical cases or in daily works

6. Research Results
The research presents a detailed process to return cargo to vendor with examples.
Moreover, strengths and drawbacks of this process are also pointed out with
recommendations proposed.

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Recommendations to improve cargo return process at Branch of GE Vietnam
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CHAPTER 1: LITERATURE REVIEW
1.1. Exporting activities
1.1.1. Definition
Exporting cargo is sending goods or services across national territorial for
the purpose of selling and realizing foreign exchange.
1.1.2. Responsibility of different parties in exporting transaction
-

Exporter: (A Basic Guide to Exporting, 1998, pp. 4-6)When exporting

goods to another country, the exporter must be aware of packing, labeling,
documentation, and insurance requirements. It is important that exporters make sure
that the cargo is:





Packed correctly so that it arrives in good condition
Labeled correctly to ensure that the goods are handled properly and
arrive on time at the right place;
Documented correctly to meet domestic and foreign government
requirements, as well as proper collection standards; and
Insured against damage, loss, pilferage and delay.
Most exporters rely on an international freight forwarder to perform
these services because of the multitude of considerations involved in
physically exporting goods

-

Importer:
 Declaring your merchandise that is imported
 Completing and accurate documents
 Compliance with all legal requirements
 Pay duties on time
 Maintaining accurate records

-

Forwarder: (A Basic Guide to Exporting, 1998, pp. 12-15) People

who conduct the forwarding services called as the forwarders or freight forwarders,
forwarding agents.
Services that forwarders often serve are following:
 Preparing goods for transportation
 Organizing cargo transportation within the port
 Organizing cargo handling
 Consulting customers about cargo transportation
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Recommendations to improve cargo return process at Branch of GE Vietnam
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 Carrying out there procedure of sending or receiving goods
 Custom clearance services
 Paying the costs
 Consolidating, packing
 Checking the document related to cargo transportation
1.1.3. Documents in an exporting transaction
-

Commercial Invoice

A commercial invoice is a bill for the cargoes issued by the seller to the buyer.
Government uses these invoices to determine the true value of goods when
assessing customs duties. Governments that use the commercial invoice to control
imports will often specify its form, content, number of copies, language to be used,

and other characteristics.
-

Export Packing List
Considerably more detailed and informative than a standard domestic packing list,
an export packing list lists seller, buyer, shipper, invoice number, date of shipment,
mode of transport, carrier, and itemizes quantity, description, the type of package,
such as a box, crate, drum, or carton, the quantity of packages, total net and gross
weight (in kilograms), package marks, and dimensions, if appropriate. Both
commercial stationers and freight forwarders carry packing list forms. A packing
list may serve as conforming document. It is not a substitute for a commercial
invoice. In addition, U.S. and foreign customs officials may use the export packing
list to check the cargo.

-

Airway Bill

Air freight shipments require airway bills. Airway bills are shipper-specific (i.e.,
USPS, Fed-Ex, UPS, DHL, etc.).
-

Bill of Lading

A bill of lading is a contract between the owner of the goods and the carrier. For
vessels, there are two types: a straight bill of lading, which is non-negotiable, and a
negotiable or shipper's order bill of lading. The latter can be bought, sold, or traded
while the goods are in transit. The customer usually needs an original as proof of
ownership to take possession of the goods.

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Recommendations to improve cargo return process at Branch of GE Vietnam
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-

Export Licenses

An export license is a government document that authorizes the export of specific
goods in specific quantities to a particular destination. This document may be
required for most or all exports to some countries or for other countries only under
special circumstances.

-

Certificate of Origin

The Certificate of Origin (CO) is required by some countries for all or only certain
products.
Customs export declaration form:
Customs form completed and submitted by an exporter at the port of export, it is
meant to serve two major purposes: (1) to provide information on amount, nature,
and value of exports to the statistical office for compilation of foreign trade data,
and (2) to serves as an export control document. In some cases, an export
license and/or a certificate of origin is also required to be attached.
1.1.4. Customs regulations


Procedures
( 2015)Customs procedures are completed at
customs offices established at international seaports, international river ports,
international civil airports, international railway stations, international post offices,
or land border gates or at customs offices established elsewhere under the decision
of the Minister of Finance.

Examination
The head of the customs office that receives customs declaration shall determine
whether to examine the merchandise or the extent of examination. Vietnam has
adopted a system of minimum customs inspection. Under the newly amended Law
on Customs, whether a consignment of goods is examined or not depends on the
result of analysis of information, records of compliance with law by the owner, and
the level of risk of breach of the customs law. Instead of actual customs
examination before clearance of goods, the customs now relies more on post-entry
auditing to enforce the law.


Examination exemption :The actual customs inspection is exempted for:

-

Goods being imported or exported by owners with good observance of the law;

-

Export goods, except those produced from imported materials and those subject

to conditional export;

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Recommendations to improve cargo return process at Branch of GE Vietnam
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-

Import goods which are machinery and equipment to form fixed assets and

which are tax exempt as part of an investment project ;
-

Goods imported into free trade zones, transit ports and customs bond

warehouses, goods in transit, emergency relief goods, specialized goods directly
servicing national defense and security, humanitarian aid goods and goods
temporarily imported for re-exported within a specified time;
-

Goods in other special cases as may be decided by the Prime Minister;

-

Goods other than the above mentioned may be exempted from actual customs

examination if the analysis of information from various sources and from a
reconnaissance by Customs establishes that there is no possibility of a breach of

custom law.
Random examination of no more than 5% of merchandise may be conducted by the
customs to assess the goods owner’s compliance with the customs law.
Whole –Lot Examination shall be applied to goods whose owners have bad customs
records or where customs violation is suspected.

Clearance
In general, goods are released after customs procedures have been completed and
taxes have been paid. However, there are some exceptions to this rule. For example,
where there is an appropriate reason, declarers may be allowed to submit certain
documents in delay. Deferred tax payment may also be applicable to certain type of
merchandise such as inputs imported for export manufacturing etc. Goods imported
in emergency cases are released immediately without waiting for the completion of
customs procedures or paying taxes

.

For import or export goods which must be appraised in order to as certain if they are
permitted to be imported or exported, if the goods owner requests to hold the goods
for preservation, the customs office shall accept such request only in the case where
all conditions for customs control have been satisfied. For goods which are
permitted to be imported or exported but their value must be verified or they must
be appraised, analyzed and classified in order to determine the amount of duty
payable, such goods shall be cleared by Customs only after the goods owner has
discharged the obligation to pay duty on the basis of a self –declaration and
assessment of duty and has provides sufficient guarantee in the form of a surety, a
deposit or some other appropriate instrument, covering the ultimate payment of
customs duties for which the goods may be liable as the results of the verification of
the value of the goods and of the appraisal, analysis and classification of the goods.
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1.2. Returning cargo
1.2.1. Definition
Return cargo to vendor (RTV) refers to the process of return of goods that takes

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place between a user or retailer and a vendor. It may consist of return between user
and retailer that sends it back to vendor. In some cases, user may directly send the
goods to the vendors. It involves following activities:


Return of goods



Repair



Resend replacement, Otherwise refund for the good

(Handling In & Outbound Product Returns)In order to get a Return Material

Formatted: Heading 3

Authorization (RMA) issued, buyer need to gather and submit a large amount of
documents, such as the original PO number, packing slip number, invoice number,
items, quantities, reason for the return and contact information. Vendors often
require documents before issuing an RMA number. In the meantime, buyer is still
responsible for the inventory and must account for both the quantity and value of
the defective goods. After the vendor has approved the request and issued an RMA
number, the RTV transaction is shipped to the vendor.

Formatted: Heading 3

1.2.2. The reason to return cargo
When finding defect items in the shipment imported, importer need to return
these item to vendor. The defect cargo has to be shipped back to vendor so they can
be repaired and transferred back to importer. Importer then uses repaired ones to
continue manufacturing. Therefore, without replacement items, production can be
affected. As a result, returning cargo plays an important role for a company.

Formatted: Heading 3

1.2.3. The procedure to return cargo
The Sub-department of Customs where import procedure was carried out
shall carry out the export procedure. If goods are exported at another checkpoint,
the procedure for moving goods to the checkpoint of export shall be carried out.
According to chapter 2 circular 22/2014/TT-BTC published by The Ministry
of Finance, before making customs declaration, customs declarants shall register
with customs offices information relating to the exports.

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Recommendations to improve cargo return process at Branch of GE Vietnam
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(Finance)Pre- registered information is valid and shall be preserved on the
system for 7 day at most, counting from the time of registration or the time of final
change. Customs declarations may themselves correct information pre-registered.
According to article 56 of circular 128/2013/TT-BTC published by The

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Ministry of Finance, the customs dossier for return cargo consists of:

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-

The written explanation of the company for the export;

-

The declaration of exported goods: 02 original copies;

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-

The declaration of previously exported goods: submit 01 photocopy and

present the original;
-

The written acceptance to take back goods made by the foreign seller (if

exported goods are returned to the seller): 01 original copy or photocopy;
-

The contract to sell goods to a third country or to export goods to a free trade

zone (if goods are exported to a third country or a free trade zone).
-

A decision on compulsory re-export made by a competent authority (if any):

01 photocopy.
All the return cases’ CDs are belongs to lane 3 therefore the defect items has
to undergo physical verification. The customs officer in charge of goods inspection
shall compare the exported goods with the samples taken when they were import (if
any) and with the description on the import declaration; specify the quantity,
quality, categories of exported goods, and consistency between the imported and

exported goods.
About the tax regulation on return cargo, the customs authority shall decide
not to collect tax on goods that are returned or exported to a third country or a free
trade zone if the declarant submit a sufficient application for tax cancellation when
following the procedure for returning goods, exporting goods to a third country or a
free trade zones as guided in Article 117 of Circular 128/2013/TT-BTC, and the
customs authority has ample evidence that the exported goods are the goods
previously exporter.

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Recommendations to improve cargo return process at Branch of GE Vietnam
limited in Haiphong

CHAPTER 2: EVALUATION OF RETURN CARGO
PROCESS AT GENERAL ELECTRICS HAIPHONG
General Electric (GE) which was established by Thomas Edison in 1892 is
an advanced technology, services and finance company taking on the world’s
toughest challenges. Dedicated to innovation in energy, health, transportation and
infrastructure, GE operates in more than 100 countries and employs about 300,000
people worldwide. GE was one of the first American companies established in
Vietnam since 1993 even before the US Embargo was lifted. GE first set up a
representative office in Hanoi in 1993, and subsequently in HCM City in 2001,

working in partnership with local organizations. In 2003, GE established GE
Vietnam Ltd, a 100% GE capital investment that offers a wide range of after-sales
services in the fields of medical, electrical and energy equipment. GE Vietnam now
employs approximately 6600 people and offers products and services in Oil & Gas,
Power & Water, Energy Management, Healthcare and Aviation.
2.1. Company Overview
2.1.1. General Information of GE Haiphong
- History: GE Power & Water Haiphong (GEHP) is under GE Power &
Water, the biggest business of GE. The factory obtained Investment Certificate in
2008, started construction in May 2009 and launched first product in May 2010.
Target of this project to build a world-class factory in Vietnam specializing on
manufacturing major wind turbine components and accessories like generators,
converters,…GE has invested more than US$110 million in its Hai Phong
manufacturing facility which employs more than 500 engineers and skilled workers.
Wind turbine generators and other energy products manufactured in Hai Phong are
exported to GE’s manufacturing and service centers around the globe. Total export
volume stands at around US$278 million since inception and is the highest amongst
industries in Hai Phong.
Working for GEHP, besides the competitive compensation & benefit policy,
excellent working conditions, employees will have great opportunity in professional
trainings and expand career growth globally by joining Technical excellence,
leadership, and soft skills trainings; operational management leadership program
(OMLP); human resource leadership program (HRLP); financial management
program (FMP)…
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Recommendations to improve cargo return process at Branch of GE Vietnam
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- Address: Lot H1-H6 and F13A, F13B,F14, F15 Nomura- Haiphong
Industrial Zone, An Duong district, Haiphong City, Vietnam
- Using square: 84.220,90 m2
- Fields of business:
+

Manufacture, install components and part for machine, equipment of

generating power system, power plant, component, spare part for power
transmitting system
+

Provide service of installing, warranty, maintaining and repairing for

machine, equipment said above
+

Constructing workshop for rent

+

Manufacture, install spare part, component for machine, equipment

belonging to system of water supplying industry and petrol industry
- Chief of Branch: Ms Vu Thu Trang, born on 13/12/1978
- Total capital of investment: 2,320,455,000,000 (two thousand three
hundred twenty billion four hundred fifty five million) dongs equivalent to
111.000.000 (one hundred eleven million) USD

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2.1.2. Organization

Figure 1-Organization chart of GE Haiphong
On top of the organization chart is General Manager (GM) with following
responsibility:
- Participates in formulating and administering company policies, directing and
coordinating all divisional department activities to develop and implement longrange goals and objectives to meet business and profitability growth objectives.
- Reviews analyses of activities, costs, operations and forecast data to determine
department or division progress toward stated goals and objectives.
- Develops, reviews, updates and implements business strategic planning,
including sales, financial performance and new product development.
- Oversees manufacturing and materials departments to review production and
operating reports and resolve operational, manufacturing and facility problems to
ensure minimum costs and prevent operational delays and to meet future growth.
- Oversees key projects, processes and performance reports, data and analysis.

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Recommendations to improve cargo return process at Branch of GE Vietnam
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- Reviews and supports engineering and sales to oversee design concepts with
fundamental or new technology used for new or existing products or
improvement to provide cost reduction, safety, customer requirements and
market growth.
- Reviews operations and plans to meet requirements for sales planning and to
ascertain manufacturing or outsourcing requirements to develop new markets.
- Reviews and approves preparation of accounting analysis for budgetary planning

and implementation, production efficiency, financial reporting, budgetary
planning and submittal for capital expenditures.
GE Haiphong includes the following departments:


Admin:

- Provide Logistic Support for all EEMs and Visitors

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- Liaise with vendors such as car supplier, travel agencies, couriers, cleaners,
stationery, staffs, and many others.

- Organize, assist and coordinate for all office Events, Meeting, Conference,
Seminars, Trainings
- Handle and monitor monthly Admin expenses: stationery, canteen, bus
transportation, accommodation ….
- Detail schedule for Visitors who have business at GE Haiphong
- Interpret and translate if required
- Follow up and make payment to suppliers
- Assist and do others tasks assigned by General Manager (GM)


Environment, Health and safety (EHS): This department is responsible for
environmental protection, occupational health and safety at work.



Finance (FIN):

- Prepare and create financial papers – such as Trading, Profit and Loss Account
and the Balance Sheet.
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Recommendations to improve cargo return process at Branch of GE Vietnam

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- Keep and maintain financial records – sales and expenditures figure and record
would be kept by Finance department. Other departments also use these
documents.
-

Prepare and plan internal financial information – this would mainly be
performed in the case of a budget, which is a financial plan and can help
managers take corrective action.

- Analyse current financial performance – how the firm has done in trading or
expenses would be analysed primarily using ratio analysis tools.


Wind turbine Generator (WTG):

- Manufacturing engineer (ME): These engineers are in charge of controlling daily
production. They also make work instruction. If there is any issue during

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manufacturing process, ME is also person in charge.
- Planer: Planer is in charge of accepting or rejecting orders. Besides, this
department also makes plan to import material and control material inventory
level.
- Quality control (QC): The engineers in Quality control take responsible for
quality framework, product quality control. Processing quality plan is also a task
quality control engineers have to complete. They have the right to stop any noncompliance quality-related actions.



Electrical Assembly (ELA):

- Manufacturing engineer (ME): These engineers are in charge of controlling daily
production. They also make work instruction. If there is any issue during
manufacturing process, ME is also person in charge.
- Planer: Planer is in charge of accepting or rejecting orders. Besides, this
department also makes plan to import material and control material inventory
level.
- Quality control (QC): The engineers in Quality control take responsible for

quality framework, product quality control. Processing quality plan is also a task

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quality control engineers have to complete. They have the right to stop any noncompliance quality-related actions.


Material Management (MM)

- Warehouse: Warehouse staffs are in charge of keeping material under suitable

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conditions, delivering and receiving cargos. For daily task, warehouse staff input
quantity data in the system.
- Logistic: Logistic staff receive plan from planer and arrange the shipments to

meet the deadline of planer. Besides, logistic also takes responsible to carry out
the procedure to export products.


Sourcing (SOU): This department consists of 2 parts: Buyer and Supplier
Quality Control(SQE). This department is in charge of working with
suppliers.

- Buyer: responsible for defined work or projects with moderate complexity. Buyer task
consists of identify and qualify new suppliers, assess supplier capabilities and make

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recommendations on supplier acceptability, implement sourcing standards
including process & execution,write reports to track PO activity and supplier
performance, analyze and track Supplier promise date accuracy and develop
reports to ensure Supplier promise date accuracy.
- SQE (Supplier quality control engineer): SQE are engineers who take responsibility
of checking imported cargo’s quality.



Information Technology (IT): Besides workers, every employee in GE has
laptop and work mainly with emails. Therefore, information technology plays
an important role to support with laptop issues. Besides, IT helps to work on
projects.



Human resource (HR):

- They advertise job postings, filter candidates, screen applicants, conduct
interviews and coordinate hiring efforts with managers responsible for making
the final selection of candidates.
- Employee’s relations is the HR discipline concerned with strengthening the
employer-employee relationship through measuring job satisfaction, employee
engagement and dealing with conflicts in workplace
- HR needs to provide employees with the tools necessary for their success which

can be support, orientation
- HR also conducts trainings, courses for employees

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Recommendations to improve cargo return process at Branch of GE Vietnam
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2.1.3. Personel
Table 1: Department and number of staffs/workers of GE Haiphong
No

Departments

Number of staff

1

Administration

8

2

Environment, Health and Safety

6

3

Finance

10

4

Electrical Assembly

57160

5

Wind Turbine Generator

48229

6

Material Management

37

7

Sourcing

21

8

Information Technology

5

9

Human Resource

7

The total employee of Brach of GE Vietnam limited in Haiphong is 200483.
Human resource plays an important role in company’s success. GE Haiphong is
famous for its solid human capital strategy. HR manages to do things to reach out to
employee, tries to give them strong leadership support. Working for GEEHP,
besides the competitive compensation & benefit policy, excellent working
conditions, employees will have great opportunity in professional trainings and
expand career growth globally by joining Technical excellence, leadership, and soft
skills trainings; operational management leadership program (OMLP); human
resource leadership program (HRLP); financial management program (FMP)…

2.1.4. GE culture
GE culture is about providing everyone who works here with opportunities to
exercise their responsibility, integrity, and creativity.GE is famous for investing in
human resource. Every year there are many courses, trainings taken place in GE to
improve employee’s working productivity and soft skill. All GE’s employee are
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taught about influencial, presentative skill and how to interact with co-worker, how
to avoid stress. All the courses are free and optional for GE’s employee. Besides,
GE also has tried to apply the GE Belief through all company. GE belief consists of
5 components (Customers determine our success, stay lean to go fast, learn and
adapt to win, empower and inspire each other, delivery result in uncertain world).
GE Haiphong is also very active in social activities. Every year GE Haiphong
usually takes part in at least one social activities, volunteer work to help
community. For example in September, 2015 GE employee came to Cat Ba island
to give gifts for 2 primary school here.
2.2. Evaluation of Return Cargo Process at GE Haiphong
2.2.1. Reasons to return cargo and related parties in process
In a shipment to GE Haiphong, there can be defect cargo. The mistake was
caused by vendor. There are some vendors who usually delivery defect cargoes such
as Jabol (China), Plexus (China), GE Pacific(USA)…
The defect cargo has to be shipped back to vendor so they can be repaired
and transferred to GE Haiphong. These defect items after reach vendor’s address
will be repaired and shipped back GE Haiphong. Therefore, if GE Haiphong does
not return the defect items it will not have component to continue manufacturing.
 Vendor
In order to manufacture a complete products, GE Haiphong need to
purchase material, components from both local and oversea suppliers. Within
Vietnam, there are more than GE’s vendors such as PAC Components, 3C,
Airliquid… Moreover, GE also imports components from various suppliers
worldwide, for example, Jablil (China), GE Pacific (Germany)….
To start the returning cargo process, vendor approval is important. They have
the following task:
- Agreeing to pay for all the charge to return item back and signing agreement
- Giving account or booking remotely
- Keeping track with the shipment

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