FOREIGN TRADE UNIVERSITY

SCHOOL OF ECONOMICS AND INTERNATIONAL BUSINESS

-------***-------

COURSE FINAL EXAMINATION

Course: Freight operations in logistics

TOPIC: FREIGHT OPERATIONS IN LOGISTICS

OF U&I LOGISTICS NORTHERN JSC

Student group: Group 9 /FLO201(1+2.2/2021)CLC.1

No. Student full name Student code

1 Đoàn Ngọc Minh 1915530803

2 Trần Thị Hà Vi 1915530542

3 Vi Thị Hồng Ánh 1815530012

4 Nguyễn Thị Khánh Trang 1915530702

Mentor: Dr. Bùi Duy Linh

Hanoi, June 2021

 1

MEMBER EVAUATION (for lecturers)

First Second
Student full Student Final
No. Workload lecturer lecturer
name code mark
mark mark
Đoàn Ngọc Introduction, chapter 1 (1.1),
1 1915530803
Minh chapter 4, editing report
Trần Thị Hà Chapter 2 (2.2), chapter 3 (3.2,
2 1915530542
Vi 3.3), making & editing slide
Chapter1 (1.2), chapter 2 (2.1,
3 Vi Thị Hồng 1815530012 2.3), collecting figures,
Ánh conclusion
Nguyễn Thị Chapter 2 (2.1), chapter 3
4 1915530702
Khánh Trang (3.1), chapter 4

First lecturer Second lecturer

(signature with full name) (signature with full name)
 1

PRESENTATION PART (as detail as possible)

No. Content Student
Introduction
The urgency of the research
1 Introduction Research situation Đoàn Ngọc Minh
Aims and goals of the research
Research subject and scale
Chapter 1: History Đoàn Ngọc Minh
Introduction Organizational Vi Thị Hồng Ánh
of U&I Structure
Logistics
Logistics service Nguyễn Thị Khánh
provided by U&I Trang
Chapter 2:
Research Vi Thị Hồng Ánh
2
content Main customers Trần Thị Hà Vi
Competitors Vi Thị Hồng Ánh
Planning process Nguyễn Thị Khánh
Trang
Chapter 3:
Process of Trần Thị Hà Vi
Solutions
exporting goods
Evaluations Trần Thị Hà Vi
Chapter 4: Shortcomings Đoàn Ngọc Minh
Recommendations Nguyễn Thị Khánh
Trang
3 Conclusion Vi Thị Hồng Ánh
LIST OF ABBREVIATIONS AND ACRONYMS...................................................2
INTRODUCTION.......................................................................................................4
CHAPTER 1. INTRODUCTION OF U&I LOGISTICS.........................................6
1.1. History of formation and development:..........................................................6
1.2. Organizational Structure of U&I Logistics:...................................................8
CHAPTER 2: BUSINESS ACTIVITIES OF U&I.................................................11
2.1. Logistics services provided by U&I...............................................................11
2.2. Main customers...............................................................................................16
2.3. Competitors and competition.........................................................................17
2.3.1 Competitors................................................................................................17
2.3.2 Competition................................................................................................18
CHAPTER 3: CURRENT SITUATION OF GOODS DELIVERY PROCESS
MANAGEMENT EXPORTING BY CONTAINER AT U & I LOGISTICS
COMPANY................................................................................................................ 19
3.1 Planning process..............................................................................................19
3.2. Process of exporting goods.............................................................................21
3.3 Evaluations of management of the process of delivery and receipt of
exported goods by container at U&I Logistics.....................................................29
CHAPTER 4: SHORTCOMINGS AND RECOMMENDATIONS......................31
4.1 Shortcomings....................................................................................................31
4.1.1 Technology..................................................................................................31
4.1.2 Logistics Services........................................................................................31
4.2 Recommendations............................................................................................32
4.2.1 Enhance technology in logistics services...................................................32
4.2.2 Improve management system of customs procedures...............................33
CONCLUSION.......................................................................................................... 34
REFERENCES..........................................................................................................35

1
 LIST OF ABBREVIATIONS AND ACRONYMS

1. U&I Logistics : U&I Logistics JSC

2. U&I Northern : U&I Logistics Northern JSC
3. B/L : Bill of Lading
4. L/C : Letter of credit
5. FCL : Full container load
6. LCL : Less container load
7. CFS : Container freight station
8. SO : Shipping order
9. HBL : House bill of lading
10. MBL : Master bill of lading
11. C/O : Container yard
12. ROA : Return on assets
13. ROE : Return on Equity
14. D/E : Debt to Equity
15. DC : Dry container
16. HC : High cube
17. 3PL : Third party Logistics
18. WMS : Warehouse Management System
19. FMS : Forwarding Management System
20. TMS : Transport Management System
21. FMS : Fleet Management Software
22. ROS : Road Optimization Software
23. IT : Information Technology
24. EDI : Electronic Data Interchange
25. RFID : Radio Frequency Identification
26. C-TPAT : Customs-Trade Partnership Against
Terrorism
27. CBP : Custom Border Protection

2
 TABLE OF FIGURES

Figure 1. Structure of Unigroup …………………………………………………….8

Figure 2. The organizational structure of U&I Logistics…………………………..9
Figure 3: Process of exporting goods……………………………………………... 21
Figure 4: Commercial Invoice……………………………………………………...23
Figure 5: Bill of Lading…………………………………………………………… 25

TABLES OF TABLES

Table II.1 Business results of U&I Northern JSC period 2018 – 2019....................... 15
Table II.2. Profitability ratios of U&I Northern JSC period 2018 – 2019.................. 15

3
 INTRODUCTION
Vietnam has joined many international trade agreements, creating more
opportunities for Vietnamese enterprises to expand their markets and seek more
customers and partners. However, there are also many challenges. Especially, current
situation had changed dramatically by the COVID-19 pandemic. The COVID-19
pandemic has posed significant challenges for supply chains globally. Multiple
national lockdowns continue to slow or even temporarily stop the flow of raw
materials and finished goods, disrupting manufacturing as a result. The Vietnamese
economy has been hit by the ongoing COVID-19 pandemic but has shown remarkable
resilience.  GDP grew by 2.9 percent in 2020. And the lubrication for Vietnam
economic activities is logistics services industry. The logistics services industry plays
a major role in supporting, connecting, and enhancing the socio-economic
development of the country as well as contributing to enhancing global economic
competitiveness. In Vietnam, logistics services have many opportunities for
development but also face many challenges in terms of labor resources, institutions,
and policies. Moreover, the development of import and export activities in Vietnam
also sets the requirements for logistics services to improve quality to meet practical
needs. Enterprises must innovate themselves to develop strategies and strategies
suitable to the international environment, to improve their competitiveness. Therefore,
it is essential and necessary to learn, identify, and analyze the logistics company in
Vietnam to know about its achievements and shortcomings in its services.
As a business operating in logistics, U&I Logistics is considered one of the
major enterprises in the Vietnamese market working in this field. However, the market
is expanding, and the competition from enterprises is getting more and more fierce.
Besides the advantages for development, the company also faces many difficulties and
challenges in general development conditions. Therefore, I conducted the topic
"Research on the current situation of freight logistics operations in U&I Logistics -
Northern JSC" to learn more about the company's business operations, the problems
that the company still faces from there. Export several solutions to improve the
company's operational efficiency.

4
Research objectives and missions:
- Analyze achievements and limitations in the freight logistics operation of U&I
Logistics – Northern JSC.
- Give some recommendations.
Research object and scope:
- Research object: Logistics management process of the company from 2020-
2021.
- Research scope: The subject is done at U&I Logistics – JSC.
Throughout the internship, we have learned many things about the operation of a
logistics company. We would also like to express my gratitude to my instructor, Mr.
Bui Duy Linh, for his instructions. During the research and completion process, due to
many limitations in knowledge, the essay cannot avoid its shortcomings, so our team
is looking forward to receiving teachers' comments on the research topic in order to
complete it. We sincerely thank you.

5
 CHAPTER 1. INTRODUCTION OF U&I LOGISTICS

1.1. History of formation and development:

U&I Investment Corporation (Unigroup) is the parent company of many
subsidiaries and affiliates, working in many business areas, including Logistics, Real
Estate, Construction, Financial Services, Auditing, Retailing, Farming, and
Manufacturing. U&I is an abbreviation of "You and I."
U&I Logistics is the leading member of Unigroup regarding logistics services.
Being operated by highly experienced Vietnamese entrepreneurs, U&I Logistics is
proud to be one of the leading companies in Vietnam specializing in Customs Broker
Agent, Freight Forwarding Service, Warehouse Operations, Inland Waterways,
Coastal, and Rail Transport. In order to survive and develop, U&I Logistics always
keeps improving itself day by day to provide the best services to its customers.
The companies include the following members:
The subsidiaries:
- U&I Transport Corporation (Unitrans) – Binh Duong
- U&I Logistics – Northern Joint Stock Company
- U&I Warehousing Corporation (U&I Warehouse) – Binh Duong
- U&I Freight Solutions Corporation (Uni Freight) – Binh Duong
The affiliates:
- Rubber Goods Services And Transport – Warehouse Joint Stock
Company (Rusco) – Ho Chi Minh
- An Thoi Investment In Maritime & Postal Exploitation Corporation (An
Thoi Port) – Phu Quoc
Regarding the history of the company:
April 1998: the company was established under the name of limited company U&I
(Unico Ltd), working in the field of investment consultancy, customs clearance, and
freight forwarding with six members and the total initial capital of 200 million VND.
U&I's original head office was in Thu Dau Mot town, Binh Duong province.

6
March 2003: The ownership of the company was transformed into a joint stock
company with the new name called U&I Transport and Forwarding Corporation. The
company also set up tracking by container service.
January 2007: It was inaugurated and put into operation phase 1 of a warehouse with
a total area of 36200 m2.
October 2008: U&I Transportation Joint Stock Company (UNITRANS) was
established.
August 2010: Established U&I Freight Forwarding Joint Stock Company (U&I
FREIGHT) - Ho Chi Minh City.
February 2014: Established U&I Cargo Service Joint Stock Company (U&I
CARGO) - Hanoi.
June 2014: The establishment of Vietnam Shipping Joint Stock Company
(VIETNAM TRUCKING - VTruck).
August 2014: Completed and put into operation phase 5 of the warehouse with a total
area of 10428 m2 and established U&I Warehouse Joint Stock Company (U&I
WAREHOUSE)
May 2015: Renamed to U&I Logistics Joint Stock Company (U&I LOGISTICS) with
a charter capital of VND 215 billion.
March 2017: Established U&I Freight Solutions Joint Stock Company.
September 2017: Completed and put the warehouse of U&I Logistics at VSIP I (First
phase) into operation with a total area of 13500 m2.
December 2017: Established U&I Logistics - Long Thanh Corporation.
February 2018: Established U&I Logistics - Northern Joint Stock Company.
July 2019: The establishment of Northern U&I Transport Joint Stock Company.

7
The chart below shows the structure of Unigroup:

Figure 1. Structure of Unigroup

Source: HR status report, HR department, U&I Logistics

1.2. Organizational Structure of U&I Logistics:

U&I Logistics is one of the members of U&I Investment Corporation (Unigroup)

that has operated in many fields. U&I Logistics is the leading member of Unigroup
regarding logistics service. As the characteristics of Logistics includes many tasks and
activities, U&I Logistics allege to divide into member companies. Each company that
belongs to the U&I Logistics focuses on providing only an activity (a service) in the
Logistics systems. U&I Logistics' organizational structure should be seen as the
divisional structure.

8
 GENERAL
DIRECTOR

MANAGING
DIRECTOR

Accounting Logistics Administrative Sales Operations

Department Department Department Department Department

Figure 2. The organizational structure of U&I Logistics

Source: Administrative Department of U&I Logistics

* Functions of each department

- General Director: is the highest commander in the enterprise, has the task of
comprehensive management, operating the company's activities in accordance
with the set goals and strategies of the company, taking responsibility on behalf
of the company. the state for all its activities
- Manage Director: The person who is responsible to the director for the
assigned work contents, and actively handles the work authorized by the
general director. Assist the director in many fields such as production, sales,
marketing...
- The managing director: is also responsible for assisting the director in
technical terms, directing and monitoring the activities of the departments, and
helping the director directly direct the signing and implementation of business
contracts.
- Accounting Department: Responsible for management, financial organization,
economic accounting, evaluation of the company's production and business
results according to the plan, well-performing financial accounting for the
company to ensure not be stuck in production and business, monitor and pay
economic contracts to direct on debt and debt recovery, do not let customers

9
 owe, settle with superior agencies and relevant agencies, the authority of the
state.
- Administrative Department: Department is the unit that directly performs the
management of records, archives, management of housing and labor equipment
of the company. Second, the department has the function of managing human
and labor resources.
- Sales Department: In charge of production and business of the company, in
charge of purchasing materials and selling products. In addition, the department
advises the Director on production direction, import-export business goals in
the following fields: Market, products, customers... Strengthening marketing,
expanding domestic and foreign markets.
- Logistics department: Organize the transportation and delivery of goods, by
means of transportation, as a shipping agent for companies wishing to hire
freight: air, sea...
- Operations Department: is a field worker responsible for delivering documents
to customers and tracking goods.

10
 CHAPTER 2: BUSINESS ACTIVITIES OF U&I

2.1. Logistics services provided by U&I

Customs clearance agency
U&I Logistics is one of the first companies operating in the field of Customs
clearance agencies in Vietnam since 1998. With a large staff of well-trained and
professional staff and has been approved by the General Department of Customs,
Vietnam issues customs clearance agent certification. U&I have been the leading unit
in applying electronic customs declaration and applying information technology to the
online management of import and export activities.
U&I Logistics currently owns an online data management system and uses
business monitoring management tools according to a modern and accurate process,
ensuring that all activities are closely monitored as well as helping customers to check
the goods' information.
U&I Logistics is deeply aware that import and export activities are an
important link in the supply chain of businesses. Ensuring the smooth process of
customs clearance and customs clearance of import and export goods is a factor
contributing to creating competitive advantages for customers.
Warehouse Services
U&I logistics has the largest bonded warehouse business in Vietnam today,
with an area of more than 185,805 m2. The warehouse system is invested and built to
fulfill international standards and is qualified to preserve all dry goods under a strict
and scientific management process.
The solutions that their warehouse system provides:
- Control goods accurately and closely with intelligent online management
software.
- Concentrating and distributing goods is very convenient and flexible.
- Coordinate goods from many different suppliers, including goods imported
from abroad to export to third countries.

11
 - Maximize your cargo area and storage space with the versatile multi-tier
selective racking system.
- Thoroughly handle sanitary problems from goods with modern humidity
control systems and insect control systems.
- Make it easy for customers to get C-TPAT (Customs-Trade Partnership Against
Terrorism) certification from CBP (Customs Border Protection) USA.
In addition, the infrastructure is properly built and equipped with modern
equipment, the scientific and close organization, together with the attached services
always performing full duties, warehouse activities have created high credibility with
customers. This is the reason why the warehouse system of U&I Logistics always
works at full capacity, and the volume of cargo flowing through warehouses is
regularly growing year by year, reaching nearly 60,000 TEUS/year.
Inland transport (Unitrans)
Domestic freight transport is an integral part of the logistics service supply
chain. To some extent, there is no commodity that does not go through the domestic
transportation process, so Unitrans, a member of U&I Logistics, is the first choice for
customers.
Owning a large number of standard road transport vehicles, plus the ability to
mobilize means of transport from partners, U&I is evaluated as one of the leading
transport service providers in Vietnam. All of their road transport vehicles are
equipped with GPS navigation systems. The process of transporting and preserving
goods meets the standards of the C-TPAT program - a security program coordinated
between US Customs and border protection designed to strengthen the supply chain
and world security. Not only road transport, but U&I also provides other
transportation solutions such as transportation of project goods, super-long, super-
heavy goods, inland waterway transport, coastal sea, and railway.
Vietnam Transport Exchange (VTruck)
Vtruck was established in May 2014. This is a development plan of U&I
Logistics to create a premise for the strategy of combining e-commerce and traditional
logistics.

12
 Vtruck is an application platform operating online in the form of e-commerce,
where shippers and vehicle owners meet, connect, negotiate and conduct transactions.
The difference compared to conventional transportation is that Vtruck removes
the geographical distance, connecting shippers and car owners throughout Vietnam.
They only need a device with an internet connection to be able to meet to exchange
services without paying for the system.
At present, the rate of return of the "empty" transportation unit (vehicle owner)
is always at a high level of around 60 to 70%. Even on routes with a distance of less
than 150km, the level of running in one direction is more than 90%. This fee directly
affects the business (sender). For car owners, when running "empty" in returns, they
often apply a price equivalent to around 60-70% and add it to the cost. If you have to
run one-way delivery, the sender must bear the "empty" return fee.
However, there are hindrances that affect the growth ability of Vtruck in
Vietnam.
First, the exchange of transport in Vietnam is a new type.
Secondly, at present, most transactions between senders and vehicle owners
continue to maintain the traditional transaction method, which is connected in a stable
way through face-to-face meetings or telephone exchanges ...and they are regular.
They have had certain interests together for a long time ...
Third, there are still many transport units that operate in fragmentation, not
interested in online support tools ...
Fourth, it has not been interesting and supported by the state and functional
sectors.
International sea and air transportation
As part of the strategy of diversifying services and creating more choices for
customers, U&I Freight Solutions and U&I Logistics - North were born as an
affirmation of U&I Logistics' correct and sustainable development strategy.
U&I Freight Solutions and U&I Logistics - Northern was established with the
core of operators and managers with more than 20 years of experience in the
international freight industry. U&I Freight Solutions is in charge of and provides

13
services for the Southern market and U&I Logistics - the North is in charge of and
provides services for the North and Central markets.
U&I’s partners are multinational companies with a worldwide dealer network.
Their international freight operations are proving step by step proving that they are
one of the strong Vietnamese brands in this field. With an output of more than 2,000
tons of air freight each year, U&I has committed to meeting all of our customers'
freight needs at the most reasonable prices.
Types of goods delivered
The company has cargo handling equipment such as a modern fleet of trucks,
forklifts, a fairly large and safe warehouse system, very convenient for cargo
handling, and has its own fleet of ships or containers to serve customers. sea freight
forwarding. This is an advantage of the company compared to other forwarding
businesses
In the field of sea: U&I is providing a wide range of forwarding services to meet
the needs of the domestic and international market. From there, customers can be
assured about the import and export of goods:
- Delivery of import and export goods
- Collecting retail goods to export to countries around the world
- Delivery service to the place
- Cargo insurance service
The company's vehicles are very diverse, from 1 ton payload to 15 ton payload,
container tractors of all kinds to some other specialized vehicles, with an extensive
warehouse system. Moreover, these devices are also fully exploited with high
efficiency. In addition, the care and maintenance of equipment is done carefully. FCL
is a specific form of sea freight forwarding, accounting for a large proportion.
Types of delivery are:
- Departmental containers: Used to transport dry goods, general goods. Includes
20 feet, 40 feet DC/HC types
- Insulation containers: Used to transport items that require a stable temperature
- Ground container: Used to transport super-long and super-heavy items such as
iron, steel...

14
 - Tank Container: Used to transport liquid goods such as oil, chemicals, gas,
alcohol
- Bulk container: Used to transport bulk goods: cement, grain, ore...
- Specialized containers: Used to transport specific items such as cars,
livestock...
- Open-roof container: Used to transport goods such as machinery and
equipment

Business performance results during 2018-2019

Table II.1 Business results of U&I Northern JSC period 2018 – 2019
(unit: billion VND)

Source: Administrative Department of U&I Logistics

Yea Earnings before

Total Revenue Net Income Total Costs
r tax
2018 98.230.341.563 574.423.609 456.476.839 97.773.864.724 
2019 163.097.320.385  1.326.941.204 1.049.284.508 162.048.035.877 

The revenue and profits of the company reached growth in the period,
increasing approximately 65 billion VND. Specifically, the growth rate of revenue and
expenses is approximately 66%, but income growth is approximately 0.3% higher,
resulting in an increase of 130% in profit. However, the company's profit rate was low
compared to the total cost you have spent.

Table II.2. Profitability ratios of U&I Northern JSC period 2018 – 2019

Source: Administrative Department of U&I Logistics

Ratio Y2019 Y2018

Gross profit ratio 16.10% 11.53%
Operating profit ratio 0.57% 0.37%
Net profit ratio 0.65% 0.47%
ROA 1.75% 1.22%

15
 ROE 10.77% 7.64%
The gross benefit proportion shows the productivity per unit of income, and
furthermore mirrors the distinction between the cost of administrations and
Administration incomes (worth of administrations given by U&I Northern to a client).
This proportion of the organization came to 16.10% in 2019, higher than the normal
pace of the coordination business in Vietnam for a similar time of 11.4%.
However, the net benefit proportion of the organization is 0.65%, below the
business normal of 6.2%. Net benefit is the part of net benefit minus different costs,
including regulatory costs, selling costs, burdens, etc. Accommodating with the
expense design of U&I Northern, these different costs represent just 15.8% of absolute
expenses, of which the greater part is regulatory costs and selling costs, for example
costs paid to the board staff, deals staff and the expense of administration.
administration these two tasks.

2.2. Main customers

U&I has over 1000 customers, both large and small, around the country. U&I is
proud to be the leading company in Vietnam specializing in providing logistics
services for both domestic and international markets, from small businesses to huge
corporations.
U&I Logistics – Northern JSC serves a wide range of import-export firms and
industrial zone enterprises. The firm always retains a lot of loyal consumers who use
its services due to high service quality, steady and cheap costs. Customers of U&I
include well-known Vietnamese companies such as TH True Milk, VinEco, and Minh
Long, …. The company has also built and maintained large, regular and loyal
customers such as: Dainichi color Vietnam Co., Ltd., Honda trading Vietnam Co.,
Ltd., Sumitomo Chemical Vietnam Co., Ltd., Toyota Tsusho Company. ,... all of these
are large companies with a fairly stable export volume. There are some big and loyal
customers of U&I such as:

16
 - General Contractor Obayasi: A large Japanese Construction Contractor. U&I
Hanoi has done trucking for all materials as well as installed a machinery
system for this contractor.
- Zamil Steel: Steel manufacturing company, output 100conts a month and bulk
cargo up to 5000 tons.
- ShellaGas: ShellaGas is a supplier of Gas for the entire industrial zones of
Thang Long, Quang Minh, Noi Bai, and Nomura. U&I is the unit that stands
out to do the reciprocal customs procedures for Shell Gas (about 50 sets per
month)
- Prime Corporation: Group that manufactures ceramic tiles and bathroom
furniture. With a volume of 1 month / 100 containers of trucking and exporting
to Yemen.
- Junma One Member Co., Ltd: This is a big customer of U&I with the output up
to 300 conts/month. U&I currently does trucking, customs, ocean freight and
related documentation for this company. Junma's products are mainly exported
to markets such as Korea (90%) and the US (10%).
- BHL Vietnam Development and Investment Company: Wood customer in
Hanoi with 3 subsidiaries, exporting to the US market with an output of 80
conts/month...

U&I Logistics customers gave excellent feedback on the quality of the service
and the company's price. Customers are usually actively contacted to collaborate in
the following shipments, so that the firms have a quite stable order quantity over
months and years.

2.3. Competitors and competition

2.3.1 Competitors
According to the Logistics Report 2020, Vietnam has up to 4000 enterprises
registered to operate in the field of logistics. Of which 88% are domestic enterprises,
10% are joint ventures and 2% are foreign enterprises. This is a huge number in terms
of quantity because U&I Logistics is not only competing with Vietnamese logistics

17
companies but also has to face competition from international giants such as DHL,
Indo Trans, Schenker, Kuehne + Nagel, Yusen, etc... accounted for 80% of Vietnam
Logistics market share.
Some domestic companies are also considered as strong competitors of U&I,
such as: Delta, Vinavico, Vinalines Logistics, Nhat Tin, ... accounting for 88%. But
U&I Logistics is always proud to be the leading 3PL company today, standing in the
top 100 most prestigious companies today* (*Data was provided by the company)

2.3.2 Competition 
According to the customer service survey report of U&I Logistics in 2020, with
the question of choosing or terminate the contract with a logistics company, 85% of
shippers answered that the service did not meet the requirements, 62% said customer
service was poor and 23% noted that the partnership would end when the business
failed to meet shippers' expectations. Only 20% of shippers said that price is the
deciding factor to use the service or not, especially when the market becomes more
and more competitive.
According to the statistical report of U&I Logistics Company, up to 92% of
customers have chosen to return to use the services of Logistics company. It is thanks
to the prestige and quality of the service, the dedicated care to customers throughout
the process, before and after using the service, which has contributed to creating the
trust of U&I in the hearts of customers. That is also a big plus that helps U&I surpass
its competitors in the industry and become one of the most competitive logistics
companies in the market.

18
CHAPTER 3: CURRENT SITUATION OF GOODS DELIVERY PROCESS
MANAGEMENT EXPORTING BY CONTAINER AT U & I LOGISTICS
COMPANY

3.1 Planning process

Planning is the first and most important step of freight forwarding process
management. A good plan, complete, suitable for resources and circumstances will
make that process more convenient, faster and more efficient. At U&I Logistics, the
leadership team has a good vision and can create the optimal plan. The planning
manager has a good planning method to lead all members to the same goal. That is
professional business planning with PROBIZ PLAN software.
The plan of the head of the department has met the following factors:
1. Set objectives, mission, success factors
2. Select the form of business operation
3. Clearly define the products and services intended to provide.
4. Identify the target market of the business to have a specific view.
5. Identify your competitors and re-evaluate your competitiveness
6. Develop sales strategy, pricing, promotion, sales revenue forecast
7. Develop Marketing strategy (Determining competitive advantage, positioning,
marketing strategy, distribution strategy,...)
8. Building and organizing human resources and personnel costs.
9. Forecast of management costs, advertising costs, asset depreciation
10. Calculation of investment capital for the project
11. Calculate the time needed to borrow capital or call for more investment capital.
12. Calculate the payback period or key financial metrics to decide whether to
invest or deposit money in the bank
13. Financial analysis (Reasonable investment costs, profit and loss analysis,
break-even analysis, cash flow, balance sheet ..) based on input data.
14. Output the plan via Word, Powerpoint, Excel, Web to serve presentations or
business project reports. When applying this software to the management of the
freight forwarding process, the team leader was able to orient the departments

19
 with many different options to anticipate business situations: bad, average,
good to have a treatment plan appropriate.. Moreover, use the business plan to
call for investment capital or bank loans. Develop a reasonable debt policy to
avoid bankruptcy due to insolvency. This has helped the U & I company keep
its customers.
Information search can be done in three ways:
The first way, through the company's data warehouse. This is the company's
available data warehouse about customers. Sales staff can get business information
here and start the negotiation process.
The second way, through the relationship. Relationships are a great way, this
makes it easier for businesses to trust the company and makes the negotiation process
faster.
The third way is through searching the internet. This is quite difficult, because
the information of businesses online is general, quite vague and unclear. This makes it
difficult for Sales staff to fully and accurately capture business information. After
having contact with the customer, the sales staff sends a service quotation to
exchange, the successful negotiation will lead to the signing of the contract.

20
 3.2. Process of exporting goods

Delivery organization is a very important step that determines the quality of the
company's service. To organize the delivery of export goods, take the following steps:

Figure 3: Process of exporting goods

Finding clients, negotiating and signing contracts

Make a booking and get an empty container

Packing goods and preparing documents

Export customs clearance

Issue bill of lading

Make financial paper, keep records

Source: Report of U&I goods & service joint stock company

Firstly, the sales staff of the forwarding company will look for customers to
negotiate and sign contracts.
The content of a foreign trade contract includes the following information:
Contract scope, Contract value, Delivery conditions, Payment method, Goods
warranty conditions, Insurance purchase... Thus, operation staff will be the person on
behalf of the client to do the procedures such as: export clearance, organize the safe

21
transportation of goods, deliver the goods to the ship, make other procedures if
required... .

Second, make a booking and get an empty container

The forwarding company contacts the shipping company to find the best price
for transporting the shipment. Booking helps shippers confirm information about
shipper, consignee, weight, type of container, place of packing, port of unloading
container for export clearance, port of destination, date of departure, etc. Based on the
request of the client, the forwarding company will balance to book the most suitable
ship to ensure that the packing and shipping will take place smoothly.
The staff of the forwarding company will send a Booking request to the
shipping line. After a booking is made, the company's staff will have to exchange it
for a booking confirmation at the port authority. The booking confirmation is to
confirm with the shipping company that you have agreed to take the container and
seal.
Third, pack the goods and prepare documents
In addition to contacting the shipping company to book the ship, the forwarder
is responsible for contacting the transport firm to book the truck to transport that
shipment from the warehouse to the port. Based on the quantity of goods, the type of
goods that the company will choose the appropriate type of container. After that, when
there is an agreement on the date of packing, number of containers, type of container,
the forwarder will book trucks and send the packing plan information to the carrier
including: Place of packing, Time of packing, contact person, number of containers so
that the carrier can understand the favorable situation for the arrangement and
coordination of vehicles. In this step, the forwarder will do the following tasks:
+ Packing at the warehouse: The company's staff will coordinate with the
technical team and workers at the factory to pack the goods. It is important to choose
the appropriate packing according to the packing regulations contained in the foreign
trade contract. The information must be fully and accurately recorded on the shipment
such as: Name of goods, country of manufacture, net weight, tare weight, shipping
instructions …

22
 + Packing at the port: The process of packing goods at the port is similar to
packing goods at the warehouse, but here requires accompanying paperwork.
Enterprises need to have someone to check and inspect the packing of goods so that
the packing is guaranteed.
Firms need to provide a complete set of certificates including: Commercial
Invoice, Packing list, Bill of lading, Certificate of Origin, Phytosanitary Certificate
and Fumigation Certificate. If the enterprise pays by L/C for that shipment, it is
necessary to submit a set of documents to the notifying guarantor bank.
Fourth, customs clearance for export goods
When having all the documents provided by the customer about the outbound
shipment, the forwarder uses the electronic customs declaration software to transmit
data about the shipment to the online declaration. The transmission of declarations
helps to classify goods into 3 channels: green channel, red channel and yellow
channel. After that, the ops staff at the forwarding company is responsible for bringing
relevant documents such as: Invoice, Packing list and documents of the shipment to
the customs for customs clearance of the shipment. Customs officers base on the
information on the declaration to enter information and submit to the customs leader
to sign for the shipment to be cleared. Finish the customs clearance process for the
export shipment at the port. Cargo will be arranged on the ship according to the
shipping company's plan.
The opening of a customs declaration requires sufficient documents such as a letter of
introduction to the forwarder, a receipt of documents issued by the customs, a customs
declaration, a foreign trade contract, an invoice and a packing list.

23
 Figure 4: Commercial Invoice

Source: U&I Academy

Fifth, issue bill of lading
The forwarding company makes Bill at the request of the exporter. The bill of
lading can be the MBL of the shipping company or the HBL made by the forwarding
company itself. This work will be done by the document department at the forwarding
companies to issue the bill of lading to the customer. The issue of the bill of lading
will depend on the customer's request, if the customer does not use the international
service, the document officer will transfer a copy of the documents to the customer so

24
that they can send the information to the relevant shipping line to request a bill of
lading.

Figure 5: Bill of Lading

Source: U&I Academy

25
 Sixth, make financial paper and keep records
When the original set of documents is completed, the forwarding company
sends the documents to the customer and makes a file for record keeping.
The export delivery process at the company takes place in four basic steps
Step 1: Understand the situation of preparing goods and means of transport
In this step, the sales staff will coordinate with the documentation staff based
on the shipment information provided by the shipper to hire the appropriate carrier,
prepare the necessary documents for the shipment to serve the purpose of the
shipment. delivery and customs clearance assistance. The department head will
supervise this activity by checking the shipment information and export documents in
accordance with the type of goods.
Step 2: Deliver the goods at the Port
Field staff and customs declarants will take on the main tasks of this delivery
process. They combine to get shipment information and documents from sales staff to
transport goods, declare to Customs at Hai Phong port, and deliver goods on board.
The company provides FCL/FCL, LCL/LCL and bulk cargo. Each type of goods will
have a different process, each task is directly undertaken by different individuals and
the head of the Import-Export Department will manage according to the
implementation steps of each process and each type of goods.
- For FCL/FCL shipment
+ Confirmation of booking by shipping lines
+ Field staff receive orders to issue empty containers
+ Field staff receive empty containers from the port and transfer them to
the owner's warehouse for packing
+ Customs operation staff prepare necessary documents for customs
clearance
+ Procedures with the Hai Phong Port Trade Office lift off before the cut
off date

26
 + Operation staff cooperate with document staff to contact shipping lines
to get B/L
+ Send Pre-alert to agents
- For LCL/LCL shipment
+ Confirmation of booking by shipping lines
+ Bring the LCL shipment to the CFS retail delivery station
+ Customs operation staff prepare necessary documents for customs
clearance
+ Consolidators gather LCL shipments, pack them in sealed containers,
and take them to the CY yard at Hai Phong port
+ Operation staff cooperate with document staff to contact shipping lines
to get B/L
+ Send Pre-alert to agents
- For bulk goods
+ Sales staff and documentary staff support each other in understanding
the situation of the goods owner making a declaration of goods for
transportation
+ Documentary staff prepare S/O (Shipping order) and plan to load the
ship on board
+ The forwarder cooperates with the goods owner's representative (if any)
to monitor the loading process on the ship
+ The port and ship will make a record of finalizing the delivery of goods,
making a diagram of the goods loaded on the ship and sending it to the
owner
Step 3: Prepare and hand over transport documents
- Sales staff ask customers to provide shipment details to make a bill of lading
- Document officer sends draft HBL bill of lading for the customer to check and
send to the carrier for MBL
- When confirming the vehicle has departed, the forwarder sends the original
HBL and invoice to the customer.
Step 4 Final settlement of expenses

27
 Sales staff settle costs with suppliers and customers, report the process to the head
of the import-export department.
The four steps of U&I Logistics' container shipping process are carried out by
many different departments, and the head of the department is the person who
supervises the activities of each individual in the process. U&I company always tries
to create good relationships with customers, implement the most preferential policies
for big customers and stick with the company. For the staff, the company always
ensures clear reward and discipline policies to encourage employees.

28
 3.3 Evaluations of management of the process of delivery and receipt of
exported goods by container at U&I Logistics

3.3.1. Strengths

- The management of the export delivery process by container at the company

has creativity and close coordination among employees.
- Management activities help the parts in the process separate and work in
harmony, the work is clearly assigned and not duplicated.
- All employees in the process of exporting goods by sea are still very young,
dynamic, enthusiastic in all tasks, fulfilling their duties well, and ready to work
hard for the company. At the same time, having good professional skills as well
as foreign languages, creating high effective management activities are the
advantages of the young staff.
- Thanks to the establishment of many close relationships, especially with
regional and international shipping lines, the company can be flexible in
arranging cargo itineraries, meeting the diverse needs of customers,
- The market as well as the company's customers are also very diverse. The
company has a wide agent network and relationships with reputable shipping
lines and airlines such as: Hanjin, OOCL, Mearsk, Wanhai, VN Airline, MH
cargo... allowing the company to provide transportation services for both by
air, sea and inland.
- Regarding service quality, currently all services are organized according to the
procedures of the quality management system according to ISO 9001:2000,
which clearly describe the functions and tasks of everyone attached with the
process of implementation instructions. Therefore, the Company ensures the
stability of high service quality.
- At the same time, the scale of the company has also expanded and diversified
the services provided to customers. Currently, the company is planning to
establish its own department specializing in sea transportation to specialize,
promote the inherent advantages of the company and provide customers with
the best services.

29
 - The company also invests in managers to go to management courses to sharpen
their knowledge and new skills 

3.3.2. Weaknesses
- In each stage of the process: 
When making export documents, despite having a high level of expertise, in the
process of documenting, sometimes employees still allow errors such as wrong bill of
lading, wrong quantity, volume goods stated on the voucher, etc., affecting the general
process.
When customs clearance for export goods, online customs software is a step
forward to help businesses shorten time and cost of customs declaration. However,
since this is a newly applied software in the company's customs declaration, so many
errors still occur in the operation data entry. Common mistakes are wrong product
code, contract code, wrong invoice trade, etc. This makes the customs clearance
process may be delayed and cost a lot of money.
- With process management activities in general: 
Process management activities are also influenced by external influences
enterprises over which the enterprise cannot fully control: customers, shipping lines,
insurance companies, customs authorities, … 
Delivery time is sometimes delayed due to linkages with shipping lines and
shipping lines, other shipping units are still loose, not matching the delivery plan
encountered many difficulties. Especially for shipments that have to be transited
through many ships, others are prone to problems such as loss or damage of goods,
late boarding, missing import declaration. 

30
 CHAPTER 4: SHORTCOMINGS AND RECOMMENDATIONS
4.1 Shortcomings
4.1.1 Technology
There is likewise an issue in applying innovation in Logistics activity. U&I is
just applying a Forwarding Management System (FMS) for logistics services.
Anyway, the framework establishment actually faces numerous troubles because of
the capacity to synchronize information with transportation lines, carriers, customs,
ocean port, air terminal. Transport Management Systems (TMS), Warehouse
Management Software (WMS), Fleet Management Software (FMS), Road
Optimization Software (ROS) are not yet applied and the use of distributed computing
in data the executives is as yet restricted. That creates U&I cannot make the most of
the chance to build rivalry, diminish costs and ensure on-time delivery.
The information technology environment of the whole economy is quite low,
leading to the motivation for businesses to invest in information technology is not
great. Investment capital of companies is not enough to meet the demand. In addition,
Employees are lacking and weak in using high technology, lack the ability to update
knowledge and information about technology applications, making it difficult to
decide on solutions.
4.1.2 Logistics Services
U&I can not meet the demand criteria in some aspects of Logistics services.
The quality of U&I Logistics company in Logistics service is quite good, but still not
appreciated compared with other foreign companies. In terms of criteria of supply
time, information systems and flexibility in service exploitation and management
activities. That also puts pressure on the company's competitiveness in the
international market.
The reasons explain why Vietnam's logistics operations are relatively
ineffective compared to other countries are: Related legislation governing logistics
often hinders; costs of "lubrication" in transportation; the planning of transportation
infrastructure is not synchronous and lack of multi-modal corridor; Road transport can
not meet the requirements of shippers and seaports are not fully exploited their

31
potential, while about 90% of import and export goods of Vietnam are transported by
sea. The biggest limitation to the development of logistics services in Vietnam today
is Customs clearance.
4.2 Recommendations
4.2.1 Enhance technology in logistics services
Thanks to the development of information technology in the area of logistics,
technological factors are increasingly asserting its important position. The application
of information technology in logistics activities helps companies optimize their
management processes, cut down the costs and improve the speed as well as the
efficiency of transactions, thus they can enhance the competitiveness of enterprises.
Therefore, logistics services providers by U&I need to quickly apply information
technology into their activities as follows.
Firstly, it is important for U&I to be aware of IT as one of the factors that
create customer satisfaction and contribute to improving the quality of logistics
services. Thus, U&I should focus on building an IT strategy as an important part of
their business strategy.
Secondly, IT infrastructure needs to be focused on improvement and new
construction, especially the application of EDI systems to gradually improve the data
transfer and data digitization, increase security and data transfer speed. In business,
advanced technology provides the owner with a competitive advantage, which allows
their organization to outperform its competitors. Therefore, a part of the budget for
business activities of U&I should be used to invest in IT to effectively apply the new
software needed for logistics activities such as RFID, Barcode, logistics cloud, etc.
Thirdly, to quickly develop the technology in this industry, it is necessary for
U&I to improve employee’s qualification and skills. U&I should pay more attention
and invest more in recruiting and training IT professional personnel. U&I should
combine with human resource training centers or universities to train IT staff with
logistics knowledge. On-site training courses can be used to ensure that IT staff are
trained according to the specifics of the job.

32
 4.2.2 Improve management system of customs procedures
For a service business, improving service quality is very necessary. The service
is increasingly fast, accurate, ensure the needs of customers, makes customers
satisfied, then the service is considered to be of good quality, quantity. Completing
every step in the freight forwarding process is a necessary requirement, especially the
process of completing customs procedures. Specifically, those who are directly
involved in this process are customs clearance officers, document employees.
The company needs to carry out the following work steps:
- Join from the beginning with buyers and sellers in negotiations, signing the
contract of sale, then proceed to transport.
- The transportation begins with the design of the transportation route,
packaging, handling goods, clearing customs, providing shipping information
to interested parties are important... The work steps are performed sequentially
until the goods are delivered to the recipient.
- The types of transport that can be used in the process are by sea, air, road, or a
combination of these types, such as multimodal transport method.
This requires companies to apply specialized informatics technologies in
addition to prior knowledge and experience. Thus, logistics activities not only provide
integrated services but also help customers improve business management.

33
 CONCLUSION

To summarize, freight forwarders play an important role in facilitating global

import and export with their clients and logistics services. Customers’ requirements on
the quality of service provision are getting higher and higher, stricter and stricter; the
competition level is increasingly fierce on a wide range. Therefore, enterprises must
always assert themselves, step by step, establish the trust and reputation of the
company in the hearts of customers to survive and develop. The problem is how to
increase profit for the company as well as the satisfaction of their customers, which is
considered the business’s top goal. U&I Logistics – Northern JSC has constantly been
developing, growing up, and gaining a loyal customer base. Through analyzing the
company's business activities, we realize that the business performance is relatively
sound; the revenue in the past years has continuously increased. Contributing to that
success is the significant contribution of the company's employees and the wise
leadership, right decisions of the company leaders. But besides these achievements,
there are still certain limitations. It is necessary to have solutions to increase its
service supply output, actively seek new customers, and increase revenue and profit. 
Overall, this internship was a helpful experience. We have gained new
knowledge, skills and met many new people. We achieved several of my learning
goals. However, for some aspects, the conditions did not permit; We just got a relative
insight into professional practice in general. Through the internship, we have found
out about how logistics operate in practice. We have seen both achievements and
limitations of U&I Logistics – JSC. The training was a good chance for us to use our
knowledge to give recommendations to solve the problems of a logistics company.
Finally, we would like to express our sincere gratitude to the U&I Logistics
Northern JSC. They have facilitated us to visit, research and develop ourselves
through this subject. Once again, we also would like to express our profound gratitude
to our instructor - Dr. Bui Duy Linh for helping us during our internship and
incomplete this report.

34
 REFERENCES

1. Michigan State University Online.com. (2019). [online] Available at:

https://www.michiganstateuniversityonline.com/resources/supply-
chain/logistics-fundamental-to-supply-chain-success/ [Accessed 10 May,
2021].

2. StuDocu. (2019). Managing Supply Chains A Logistics Approach International

Edition 9th edition by Coyle Langley Gibson and Novack Solution Manual.
[online] Available at: https://www.studocu.com/vn/document/dai-hoc-ha-
noi/economics/tutorial-work/managing-supply-chains-a-logistics-approach-
international-edition-9th-edition-by-coyle-langley-gibson-and-novack-solution-
manual/5685802/view [Accessed 20 May. 2021].

3. Tapchitaichinh.vn, (2019). Phát triển ngành dịch vụ logistics tại Việt Nam.
[online] Available at: http://tapchitaichinh.vn/nghien-cuu-trao-doi/phat-trien-
nganh-dich-vu-logistics-tai-viet-nam-306129.html [Access 12 May. 2021].

4. Unilogistics.vn, (2019). Trang chủ công ty U&I Logistics. [online] Available

at: http://www.unilogistics.vn/ [Access 02 May.2021].

5. U&I, (2020). Profile_UI_Brochue_Viet. 4th ed. [pdf] Vietnam: U&I Logistics.

[Access 05 May 2020].

35