Transportation services at Hai Minh Dang Co., Ltd.

I. INTRODUCTION

1.1 Urgency of the study

Transportation services are one of the key factors determining the success of logistics businesses,
especially in the context of today's globalized economy. Hai Minh Dang Co., Ltd., as a customs
and transportation service provider, plays an important role in connecting the links of the supply
chain and ensuring that goods are transported on time and at a reasonable cost. However, the
current situation of transportation activities at the company is revealing many problems that need
to be solved urgently.

Some prominent inadequacies in the company's transportation services can be mentioned:

 Delays in freight forwarding: The transportation process has not been optimized,
leading to long transportation times, directly affecting the delivery schedule and the
company's reputation with customers.
 High Operating Costs: Fuel costs, vehicle maintenance, and management are not
effectively controlled, increasing service costs and reducing competitiveness in the
market.
 Limitations in technology application: Transportation management is mainly based on
traditional methods, not taking advantage of advanced technology solutions such as
transportation management software (TMS), GPS route tracking or route optimization.
This not only reduces management efficiency but also increases the risk of risks during
transportation.
 Poor coordination with partners in the supply chain: Communication and
coordination between the company and partners are still limited, leading to a lack of
synchronization in the transportation and freight forwarding process.

In the context of increasingly fierce competition, improving and improving the efficiency of
transportation services not only helps the company solve outstanding problems but is also a
decisive factor to maintain and expand market share. Therefore, this study aims to focus on
analyzing the current situation, finding out the causes and proposing solutions to optimize
transportation services at Hai Minh Dang Co., Ltd., thereby better meeting customer needs and
improving competitiveness in the market.

1.2 Research objectives

1.2.1 General objectives

The research aims to improve the efficiency and quality of transportation services of Hai Minh
Dang Co., Ltd., contributing to improving freight delivery time, reducing operating costs and
improving customer satisfaction. This will create a sustainable competitive advantage for the
company in the context of global economic integration and an increasingly demanding logistics
market.

1.2.2 Specific objectives

 Analyze the current state of the company's transportation services, thereby identifying
strengths, weaknesses, opportunities and challenges in operations.
 Assess the impact of internal factors (management, vehicles, human resources) and
external factors (customer requirements, competitors) on the efficiency of transport
services.
 Propose technological and organizational solutions to optimize transportation processes,
including the application of transportation management software, route optimization, and
employee upskilling.
 Develop a roadmap to implement innovative solutions, with the goal of reducing
transportation time and operating costs, and improving customer reliability and
satisfaction.

1.3 Object and scope of study

1.3.1 Subjects of study

The research object of this project is transportation services at Hai Minh Dang Co., Ltd.,
including freight forwarding activities, transportation management and coordination with
partners in the supply chain. In addition, the study also considers factors related to customers and
partners to comprehensively evaluate the effectiveness of transportation services.

1.3.2 Scope of study

 Scope of content: The study focuses on aspects related to the transportation process,
including planning, vehicle management, route optimization, and coordination with
supply chain partners. In addition, the study also evaluates the application of technology
and factors that affect transportation time and costs.
 Scope of space: The company's transportation activities are mainly concentrated in the
Northern region, with two main centers being Hanoi and Hai Phong – where there is a
great demand for freight forwarding and is an important node in the supply chain.
 Temporal scope: The study will focus on the period from 2019 - 2023 to the present to
ensure that the data and information accurately reflect the current situation, and forecast
future development trends.

II. COMPANY CHARACTERISTICS AND RESEARCH METHODS

1. Company characteristics
1.1. Information about the company:
- Company name: HAI MINH DANG COMPANY LIMITED (HMD Co., Ltd).
- Tax code: 0107362394.
- Company address: 10A7 Dam Trau, Bach Dang Ward, Hai Ba Trung District, Hanoi City,
Vietnam.
- Phone number: 0379 00 6666
- Hai Minh Dang Co., Ltd was established in 2016 and has been operating for nearly 10 years.
- Director: Nguyen Thi Thu Hang.
- Type of business: service
- Main service activities:
+ Customs declaration service
+ Delivery of goods.
+ Collect and issue transport documents and bills of lading.
+ Activities of customs clearance agents.
+...
1.2. Organizational structure and human resources of the company
HMD Co., Ltd is a company specializing in services, so it does not require a large workforce.
Instead, the company focuses on building a cohesive working system, where each employee has
a clear, specific role and responsibilities. Each team member contributes to the overall process,
creating a unified and tightly connected workflow. All activities of the company’s members are
guided, monitored, and closely supervised by the director to ensure that every aspect runs
efficiently. With a streamlined and simple organizational structure, HMD Co., Ltd achieves
flexibility in operations, delivering high effectiveness while maintaining consistency in service
quality.

DIAGRAM 1 – ORGANIZATIONAL STRUCTURE CHART OF HMD CO., LTD

DIRECTOR

SALES DOCS FORWARDER ACCOUNTANT

1.2.1. Director:
As illustrated in the diagram above, the Director is responsible for overseeing all company
operations, which include:
- Making strategic decisions for business activities.
- Organizing and executing the company’s business operations.
- Establishing internal management policies.
- Appointing and removing individuals in management roles, among other responsibilities.
In summary, the Director holds direct management over each department within the company.
1.2.2. Sales:
This is the company’s central and most critical department - the business department, which
includes areas such as domestic and international freight sales. Sales staff seek out customers,
handle import-export needs from agents or clients, present the company’s service rates to agents
and clients, and negotiate with shipping lines and airlines to secure the best freight rates for
customers. They then proceed to review and provide quotations, after which both parties
negotiate and finalize the freight forwarding contract.
1.2.3. Docs:
Managing the storage of documents and correspondence, drafting customs documentation, and
preparing necessary paperwork helps the forwarding department complete its tasks efficiently.
Regularly tracking the cargo handling process, maintaining communication with clients to
provide essential updates on shipments, monitoring cargo bookings, notifying clients of vessel
arrivals and departures, and handling the issuance of bills of lading and delivery orders are all
part of this role.
1.2.4. Forwarder:
- Carrying out all tasks involved in import and export business activities: from preparing
documentation to completing export procedures for shipments leaving the country or importing
goods into the company’s warehouse for registered services.
- Resolving any issues faced by customers quickly and definitively for each shipment.
- Minimizing costs to the lowest possible level while building a strong reputation and trust with
customers.
1.2.5. Accountant:
Responsible for managing the company’s revenues and expenditures, fully recording all arising
accounting transactions, and providing accurate periodic reports. This role involves tracking and
organizing business activities to ensure continuous and efficient operations, advancing funds to
delivery staff for task completion, and supplying data and information to support forecasting
efforts.
1.2.6. Human resources:
The company is staffed by a team of approximately 10 energetic, knowledgeable, and skilled
professionals with extensive experience and a strong sense of responsibility, fully equipped to
fulfill every customer need.
1.3. Asset system, production and business resources of the company:
According to actual observations:
- Human resources: Employees have knowledge, skills and rich experience in the logistics
industry.
- Equipment serving production and business activities: cars, printers, computers, network
devices, some other office supplies and equipment.
- Capital source: owner's equity, borrowed capital, ...
- Technological resources: Electronic customs declaration software ECUS5VNACCS (Electronic
customs declaration software ECUS5VNACCS is a professional electronic customs solution,
fully meeting the professional requirements of the General Department of Customs and suitable
for all types of import-export businesses.), ...
1.4. Results of the company's production and business activities:

1.5 Some practical observations

Based on the current activities of Hai Minh Dang Co., Ltd., some notable points about the
company's transportation service activities include:

1. Human Resources
o The company's transportation staff has certain expertise in the field of logistics,
with a basic understanding of freight forwarding and transportation processes.
However, the number of employees is still limited, mainly concentrated in Hanoi
and Hai Phong, making it difficult to manage large transport routes.
o The coordination between internal departments and employees with transport
partners is not really effective, sometimes leading to delays in delivery.

2. Vehicle and equipment systems

 o The company currently owns a number of vehicles, including medium and light
trucks, for the delivery of domestic goods. However, the number of vehicles is
still limited, not enough to meet the transportation demand during peak periods.
o Vehicles are not fully equipped with GPS tracking systems and modern
operational support technologies, making it difficult to monitor routes and
manage transportation time.

3. Transportation Process
o The process of forwarding and transporting goods also depends a lot on manual
management methods. This increases the risk of errors in order tracking,
especially for shipments that require urgent processing or have high time
requirements.
o There is no optimization of transportation routes, leading to inefficient use of
resources, increasing fuel costs and delivery times.

4. Application of technology
o The company has implemented ECUS5VNACCS electronic customs declaration
software, which simplifies the customs process. However, in the field of
transportation, the application of transportation management technology (TMS)
has not yet been applied, leading to limitations in effectively tracking and
coordinating transportation activities.
o The update of real-time data to inform customers of order status has not been
implemented, causing inconveniences in tracking delivery progress.

5. Cost and competitive challenges

o High operating costs, including fuel, vehicle maintenance, and labor, reduce the
company's profit margins.
o In the market, the company faces strong competition from large logistics
enterprises, which have modern transportation systems and more competitive
service costs.

6. Customer Reviews
o Some of the company's major customers such as QNTITS CO., LTD and Thuan
Phat (TP CORPORATION) highly appreciate the capacity in handling customs
procedures. However, they also responded that transportation services need to be
improved in terms of delivery time and operational stability.

These observations provide an overview of the current state of the company's transportation
activities, and are an important basis for building solutions to improve efficiency and service
quality in the future.

2.2 Research methods

2.2.1 Research point selection method

The selected research site is transportation activities in Hanoi and Hai Phong areas, where Hai
Minh Dang Co., Ltd. concentrates most of its freight forwarding activities. Reasons for choosing
these areas as research sites:

 Representing the entire company's transportation activities: Hanoi is the

headquarters and main operating center of the company, while Hai Phong is an important
transportation hub with the largest seaport in the North, playing an important role in
domestic and international transportation routes. The activities in these two areas best
reflect the characteristics and efficiency of the transportation system that the company is
implementing.
 Alignment with research objectives: These two areas are where the company
concentrates the most resources, with large volumes of transactions and commodities.
Therefore, the research here will help to analyze in detail the advantages and limitations,
and at the same time propose appropriate solutions to improve transportation services
throughout the system.

In addition, research in these areas also makes it easy to access internal data sources, customers
and employees, helping to improve the accuracy and comprehensiveness of research results.

2.2.2 Methods of collecting information and data

2.2.2.1 Secondary information collection methods

 Sources of information collected:

o Internal documents from the departments of Hai Minh Dang Co., Ltd., including:
 Operation Department: Report on the transport process, delivery route
and list of means of transport.
 Sales Department: Data about customers, orders, and customer feedback.
 Accounting Department: Figures related to the cost of operation,
maintenance of vehicles, and other expenses.
o Data from state management agencies such as the General Department of
Customs and the Vietnam Logistics Business Association. These reports provide
information on the logistics industry landscape in Vietnam, related trends and
regulatory requirements.
o Previous studies, scientific papers, and other references related to the field of
transportation and logistics.

 Methods of collecting and aggregating secondary information:

o Collect documents and figures through internal reports, documents from state
agencies, and public sources.
o Classify and systematize information by groups: transportation efficiency, costs,
customer feedback, and factors affecting service quality.
o Preliminary processing of data to serve as a basis for more detailed analysis in the
next steps.
2.2.2.2 Primary information collection methods

 Survey and interview subjects:

o Company Employees: Focus on the transportation team, operations management
staff, and other support departments.
o The company's customers: Including large enterprises such as QNT (QNTITS
CO., LTD) and Thuan Phat (TP CORPORATION), as well as small customers
using the company's transportation services.

 Sample selection criteria and sample size:

o Employees: Select all employees working in Hanoi and Hai Phong, including
direct transport staff and indirect support staff. It is expected to survey about 20
employees.
o Customers: A random sample of 30 customers who have used transportation
services in the period 2022–2023 will be selected, with criteria including:
cooperation time, transaction size, and level of interaction with the company.

 Survey content:
o For employees:
 Evaluate the current transportation process, common difficulties
encountered in the working process.
 Propose improvements in transport management.
o For customers:
 Assess the level of satisfaction with the company's transportation services.
 Problems encountered during the use of the service, such as delivery time,
cost and service attitude.
 Customer expectations for the quality of transportation services in the
future.

 Information collection method:

o Use questionnaires that incorporate face-to-face interviews with employees and
customers.
o For remote customers, use online surveys or phone interviews.

2.2.3 Information processing methods

 Information Processing Tools:

o Microsoft Excel: Used to synthesize and process quantitative data, calculate
indicators such as delivery time, transportation costs and customer satisfaction
rates.
o SPSS software: Used to analyze statistical data, look for relationships and trends
between factors that affect transportation efficiency.
o Google Sheets and Google Forms: Supports managing and tracking survey
results, especially with online surveys.

2.2.4 Information analysis methods

  The statistical method describes:
o Use to describe metrics such as delivery time, operating costs, and customer
satisfaction.
o Column charts, line charts, and tables will be used to present the results clearly.

 Comparative statistical methods:

o Compare the efficiency of transport activities between different routes or periods
(before and after applying solutions).
o Assess differences in satisfaction between customer groups.

 SWOT Analysis:
o Identify the strengths, weaknesses, opportunities and threats of transportation
activities at the company.
o The results of the analysis will be the basis for building service improvement
strategies.

 Matrix Analysis:
o Apply the SWOT matrix and other criteria to select the optimal solution to
improve transport efficiency.

2.2.5 System of indicators used in research

 Quantitative indicators:
o Average delivery time.
o Transportation costs are calculated on the order.
o The quantity of goods transported.
o On-time delivery rate.

 Qualitative indicators:
o Customer feedback on service quality.
o Employee evaluation of the efficiency of transportation processes and tools.
o Environmental factors affecting transport activities (policy, legal, technology).