Business development strategy of Logistics services of Vietfracht Transport and Chartering Joint Stock Company in the integration process

Employees will be introduced to logistics, logistics services, and logistics service providers. At the same time, they will listen to reports from staff who have been sent to study logistics services in some countries with developed logistics industries such as Singapore and Thailand, along with listening to IT experts talk about EDI. This class will promote the spirit of contribution of individuals participating in the class through discussions, presenting situations that cause difficulties in providing logistics services to customers, and then together solve them in the most beneficial way for the Company.

These classes invite experts and logistics service officers from the VIFFAS Association, and some international organizations such as AFFA, ESCAP, etc. However, inviting these officers is not a simple task and the cost is not small, so Vietfracht needs to cooperate with VIFFAS, along with seeking cooperation with international organizations to have funding to regularly train such classes.

In addition, Vietfracht needs to send some key staff to countries with developed logistics service industries to learn from them about technology, skills, etc.

Attracting talent is a topic that all businesses are interested in. How to attract them to serve you is not a simple task. Therefore, Vietfracht should use salary and bonus as the most important economic lever to stimulate employees to actively participate in production and business and attract talent. The company should pay salary according to ability, introduce periodic salary and bonus policies, and special bonuses for individuals and groups with good achievements and high business efficiency, along with other benefits such as rest, entertainment, overtime, etc.

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3. Increase the effectiveness of marketing activities

Marketing activities today almost play a decisive role in the success or failure of a business because in the context of globalization along with the development of science and technology, of information technology, businesses have

$Business development strategy of Logistics services of Vietfracht Transport and Chartering Joint Stock Company in the integration process - 13$

Vietfracht has the potential of human resources and finance equivalent, capable of bringing to the market services that are almost equivalent in quality and price. Marketing strategy is a necessary tool for Vietfracht to surpass its competitors, attract and retain its customers.

To enhance logistics marketing activities, Vietfracht needs to improve customer service in the immediate future. Customer service activities are specific activities of the enterprise to handle customer orders. The purpose of customer service activities is to create a smooth buying and selling process, and the result of this process is to increase the value of the exchanged products. In this work, it is necessary to build a system of target customers to maximize the service provision capacity of the Company.

In addition, it is necessary to create a close connection between the Company and customers through a customer care center. Customer care is always a necessary requirement in business, currently applied by many large enterprises, Vietfracht also needs to learn to have a customer care center as a link, a driving force to promote the relationship between the Company and customers. For this system to operate most effectively, it needs to operate based on modern technology equipment, according to a dedicated, professional process. This department needs to combine with other departments to be able to take care of customers in the best way, to be the place to solve customers' problems without wasting their time.

Nowadays, the best marketing method is to provide the best quality services to satisfy customers at competitive prices. Competitive prices do not mean providing cheap prices. Cheap prices but poor service are difficult to compete. Therefore, Vietfracht needs to save costs, make good use of its resources to offer competitive prices to attract new customers along with providing services with more outstanding features than competitors. For each customer

Different customers need logistics activities that suit their requirements. Therefore, Vietfracht needs to expand more services in the logistics service chain provided to customers. Currently, Vietfracht still lacks many services compared to the logistics services of foreign suppliers, so this will also limit Vietfracht's market share. From now until 2020, Vietfracht will be able to provide more services so that the logistics service chain is continuous according to international standards:

 Consolidation/Cross Docking - Fast consolidation of goods at the warehouse.

 Value-added Warehousing - Value-added warehousing services.

 QA and QI Programs - Quality control services.

 Data Management/EDI Clearing House - Manage data and provide end-to-end data to customers.

 Barcode Scanning and Label Production - Barcode scanning and printing service

line

 GOH and HangerPack Service - Hanging container service (for

garments).

 Systemwide Track and Trace/Web-based Visibility - Service to track and check goods via the internet.

 ….

With the development of information technology and the internet, another effective marketing method is internet marketing. Vietfracht's current website system is still very sketchy and has little information. Therefore, Vietfracht needs to upgrade and add new features to the website, making the website a more effective tool for promoting and exchanging information between customers and the Company.

4. Application of information technology in logistics activities

To successfully manage logistics, one must first manage a very complex information system. Upgrading the current information system in the Company should be divided into two phases:

 Phase 1 : Completing the internal information system (intranet), information system in each functional department, information system at each stage in the supply chain (warehouse, yard, transportation,...) and information connection between the above organizations and departments, applying information technology in the Company's operations, installing software to serve the Company's operations, standardizing databases,... creating a foundation in the logistics information system.

 Phase 2 : Connect internal and external information systems in two ways:

- Method 1 : Using the internet. This is a trend that logistics companies around the world are aiming for as an indispensable tool in logistics operations.

- Method 2 : Electronic Data Interchange (EDI) system. This information system allows the exchange of data information from computer to computer of the system's components with each other.

In the coming time, Vietfracht needs to apply systems to develop its logistics services:

 Electronic Data Interchange (EDI) system. This is an essential tool in business-to-business transactions over the Internet. A solution that allows secure electronic transmission of information, including payment fund information, between buyers and sellers over private data networks. This system aims to transfer information from one computer to another by electronic means, using an agreed standard to structure the information.

EDI is mainly used to exchange information related to business activities and to exchange funds electronically. From now until 2020, nearly 90% of businesses have connected to the internet, so the role of EDI - the mechanism that helps the Company to buy, sell and exchange information online becomes more and more important and is an indispensable requirement in providing logistics services at Vietfracht.

 Integrated enterprise management system - ERP (Enterprise Resources Planning). This management system is a set of information technology solutions capable of integrating all production and business management applications into a single system, which can automate management processes. All business activities, from human resource management, material supply chain management,... are performed on a single system.

 To better serve customers and create a cooperative relationship between customers and the Company, Vietfracht should use the NetTrace tool. This tool will help customers track goods during transportation or control the movement of documents in the supply chain. Thanks to this tool, customers can visualize the movement process of goods. By knowing more about the status of their goods, customers will have more confidence in handing over their goods to Vietfracht. This tool should be integrated by Vietfracht on the Company's website. Just by accessing Vietfracht's website, customers can know the current status of their goods, thereby being able to monitor more closely. Through such close supervision of customers, Vietfracht always keeps in mind and provides customers with the best and most guaranteed services, thereby creating customer satisfaction.

The progress of science and technology in the past and in the future will be a favorable factor for the development of logistics services at Vietfracht.

5. Strategic alliances with domestic and foreign enterprises

Nowadays, association and collaboration are necessary to develop logistics services in the direction of diversifying services with competitive prices. Vietfracht has understood this, so in the past time it has joined associations with a number of partners, however, the association is still not much. Although Vietfracht is a large company, compared to foreign enterprises, it is not competitive enough, so Vietfracht's current task is to seek support from external partners. The logistics market is increasingly competitive, so in order to develop sustainably and strongly, Vietfracht needs to build alliances with enterprises operating in other fields to consolidate and gradually improve the types of services Vietfracht provides. Currently, Vietfracht's air cargo logistics services and container cargo services are not yet operating strongly, so Vietfracht needs to link up with an airline with good service quality and a container cargo service provider to ensure flexibility, thereby providing a complete logistics service chain. In addition, Vietfracht's warehouse system is not large, so Vietfracht needs to have plans to build warehouses near seaports and major cities such as Da Nang, Ho Chi Minh City, and Hanoi. Since Vietnam joined the WTO, many foreign logistics service providers will enter Vietnam. Taking advantage of this, Vietfracht needs to link up with these companies in providing domestic logistics services, learning their management experience and professional work. On the other hand, the integration process is increasingly widespread, and Vietfracht is no exception to that integration trend. To expand into the international market, Vietfracht needs to open more agents in providing global logistics services to take advantage of the facilities and modern equipment available in these companies. Therefore, Vietfracht needs to open more agents in some major markets such as Thailand, Malaysia, Southeast Asia, China, North America, and Europe.

6. Capital mobilization solutions

Lack of capital is the biggest difficulty for Vietfracht in particular and other businesses in general in developing logistics services because doing business in this service requires relatively expensive facilities. That is, large investments in means of transport, building a warehouse system according to standards, purchasing equipment to provide value-added services for goods, purchasing management software, etc. These investments must be divided into stages of implementation, and cannot be invested in at the same time. The problem of capital is not an easy problem for Vietfracht. Where to find capital, what factors to invest in? Capital mobilization can be done from the following options:

 Strategically cooperate with foreign logistics and transportation companies to both mobilize large capital to meet service development needs and learn management experience and professional knowledge.

 Joint ventures and partnerships with businesses in other industries such as airlines, banks, insurance companies, telecommunications, etc. to increase capital capacity.

 Issue additional shares to the public to raise capital, retain undistributed profits, do not pay cash dividends but pay dividends in shares to raise more capital.

In summary, the above strategies and measures will help Vietfracht promote logistics services business in the Vietnamese market and gradually expand to the international market in the coming time.

CONCLUDE

After a period of research, study and implementation of the topic, I have completed my graduation thesis.

In Chapter I, I systematized the most general theories related to logistics, logistics services, and third-party logistics service providers.

Through the research and evaluation of the logistics service business activities of Vietfracht Transport and Chartering Joint Stock Company in particular in Chapter II, I can evaluate the strengths and weaknesses of the logistics services provided by Vietfracht. On that basis, along with the analysis of the opportunities and challenges that the market brings to Vietfracht in providing logistics services in Chapter III, I propose some strategies for developing logistics services business for Vietfracht in the period from now to 2020 such as:

 Improve and expand the logistics services being provided.

 Improve customer service quality, build customer trust.

 Build a team of professional logistics staff.

 Develop e-commerce networks and apply information technology achievements to business operations.

Having a strategy is not enough, there must be measures to implement those strategies. These are:

 Investing in upgrading and building new infrastructure.

 Training professional human resources, attracting talent.