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Logistics Mid Course Report PDF
Logistics Mid Course Report PDF
Logistics Mid Course Report PDF
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Assessment of compliance with regulations, progress and work ethics
(Maximum of 1.0 point, with one decimal number):
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This report is not only from the effort of the author but also from the great support
and guidance of teachers, classmates and internship organization. Firstly, the author
would like to express my sincere gratefulness to Mrs. Vuong Thi Bich Nga, the
supervisor who directly gave the author an enthusiastic guidance for doing the mid-
course internship report. Without her conscientious supports, guidance and remarks,
the report could have not been completed.
Furthermore, the author would like to show her deep gratitude to Mr. Pham Tan Đat
– Director of Fado Joint Stock Company (JSC), Ms Chau Thi My Anh- Import team
leader, and all staff members at Fado JSC for their enthusiastic support during the
author’s internship. Thanks to the great support, the author had an opportunity to
approach many different kinds of assignments so that the author can extend the
knowledge regarding professional expertise and skills in Logistics and Supply Chain
Management field. Besides, the author also could access to company’s data which
has been significant source of information for this report.
Finally, the author would like to present a thankful attitude to the author’s university
– Foreign Trade University and all the teachers who have conveyed invaluable
knowledge as a foundation for her to complete this report.
Author
LIST OF ABBREVIATIONS
LIST OF FIGURES
LIST OF TABLES
1 CHAPTER 1: INTRODUCTION OF FADO JSC VIETNAM ....................3
1.1 General information:......................................................................................3
1.1.1 Company’s profile: .................................................................................3
1.1.2 Partner and customer ..............................................................................5
1.1.3 Functions and mission of Fado Vietnam JSC in conducting business ...5
1.2 History and development: ..............................................................................6
1.2.1 History ....................................................................................................6
1.2.2 Developing process .................................................................................8
1.3 Organizational structure and personnel structure ..........................................8
1.3.1 Organizational structure ..........................................................................8
1.3.2 Personnel structure ................................................................................11
1.4 Business performance of Fado from 2016 to 2020 .....................................12
1.5 Internship period summary at Fado JSC Vietnam .......................................14
1.6 Conclusion of chapter 1 ...............................................................................15
2 CHAPTER 2: FREIGHT FORWARDING ACTIVITIES FOR
CONSIGNMENTS ORDERED ON INTERNATIONAL E-COMMERCE
PLATFORMS BY INDIVIDUAL CUSTOMERS OF FADO JOINT STOCK
COMPANY VIETNAM..........................................................................................15
2.1 Process of freight forwarding service for consignments purchased on
international e-commerce platforms by Fado’ customers. ....................................15
2.1.1 Operation of trading activities on cross-border e-commerce platforms
at Fado JSC Vietnam .........................................................................................15
2.1.2 General process of freight forwarding activities at Fado JSC ..............17
2.2 Strengths and weaknesses of Fado’s freight forwarding service ................24
2.2.1 Strengths ...............................................................................................24
2.2.2 Weaknesses ...........................................................................................25
2.3 Conclusion of chapter 2 ...............................................................................27
3 CHAPTER 3: RECOMMENDATIONS FOR IMPROVING THE
FREIGHT FORWARDING ACTIVITIES FOR CONSIGNMENTS
ORDERED ON INTERNATIONAL E-COMMERCE PLATFORMS AT
FADO JSC VIETNAM .......................................................................................... 28
3.1 Recommendations for internship organization: .......................................... 28
3.2 Personal lessons and experience ................................................................. 29
3.3 Conclusion of chapter 3 .............................................................................. 31
4 CONCLUSION ............................................................................................... 31
5 BIBLIOGRAPHY .......................................................................................... 32
6 ANNEXES ....................................................................................................... 32
LIST OF ABBREVIATIONS
Abbreviation Full meaning
CS Customer Service
LIST OF TABLES
Table 1-1: Fado Joint Stock Company profile ........................................................... 4
Table 1-2: Personnel structure at Fado JSC ............................................................. 11
Table 1-3: Business performance of Fado from 2016 to 2020................................. 12
Table 2-1: General process of freight forwarding activities at Fado JSC ............. 17
1
PREFACE
When globalization has been a common development trend for the whole world, there
is nearly no borders among people in approaching flow of information, products and
goods between countries. Therefore, people are likely to use variety of products from
many countries outside Vietnam because the national supply is certainly limited.
Besides, thanks to the development of internet, geographical distance is no longer an
obstacle for trade and commerce, especially the advent of e-commerce platforms
which makes access to resources easier. In other to meet the demand of Vietnamese
people in making purchases outside the border, many companies operating in the field
of logistics were born, creating an extremely competitive environment.
Fado Vietnam Joint Stock Company (JSC) is a corporation focusing on providing and
E-commerce platform called Fado.vn integrated with best service for customers
regarding logistics and freight forwarding process for orders placed the platform. By
continuing improving and developing the service during 10 years, Fado JSC can be
proud that they are one of the leading companies in the e-commerce and cross-border
logistics business sector. This report named “Freight forwarding process for
consignments ordered on international e-commerce platforms at Fado Joint Stock
Company Vietnam” is presented for the purpose of having a better look over the
freight forwarding process at the company to find out strengths and weaknesses that
the process may have, therefore, solutions can be created to enhance or mitigate
weaknesses of the process. Furthermore, it can contribute to the thrive of Fado JSC
to some extend in the future.
Besides the preface, conclusion and some annexes, the outline of the mid- course
internship report contains three main parts as below:
The author would like to give her sincere thankfulness to her guiding lecturer Mrs.
Vuong Thị Bich Nga together with the director, supervisor and all staff member of
Fado JSC Vietnam who gave the author a considerable support to accomplish this
report.
Though great effort was made during the internship and the time writing this report,
the harvest cannot avoid the drawbacks and deficiencies due to limited knowledge as
well as not much practice time at the Company. Therefore, the author would highly
appreciate any constructive comments that can help improve it.
3
Logo
The company has two transaction branches, one located at 4th floor, Interserco
Shopping Center Building, 2 Ton That Thuyet, My Dinh 2 Ward, Nam Tu Liem,
Hanoi, and the other is at 21Bis Hau Giang, Ward 4, Tan Binh District, Ho Chi Minh
City, both are nearby trucking company and airport as well. That makes Fado reduce
cost of transportation and create convenience for them because it is not quite far when
Fado conducts their services. The company also have warehouses in Cambodia, USA,
Germany, Japan, Australia, UK for easily conducting the logistics service.
their best service for customers and satisfy them even with the most fastidious
customers.
Regarding Customer, they are individual customers living in Vietnam who require
imported items for commercial and non-commercial use.
With the Fado.vn, customers can purchase any kind of goods which are limited
quantity or hardly sold in Vietnam officially with simple, shorter lead-time
procedures, the buying can also be conducted safer with insurance and transparency
compensation policy and therefore the total paid cost might reduce for the whole
process. Today, shopping outside Vietnam become easy than ever only with just one
click using Fado.vn.
A special thing that differentiates Fado with other competitors is that Fado
continuously updates product information and prices from famous websites all over
the world in real time so that customers can shop at any time, especially during the
world famous discount seasons such as Black Friday, Cyber Monday, etc in other to
help customers enjoy full sales, voucher, like a native people. Besides, the system
automatically calculates the total cost that customers have to pay to receive products
in Vietnam together with a transparent explanation about Fado’s freight forwarding
services. Buyers can also minimize all risks when shopping online thanks to a product
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review connection platform on Fado.vn which can help monitor the seller's reputation
level, quality assurance, origin of goods.
In term of mission, Fado JSC Vietnam commit to fulfill its customers and partner
interests formed on written agreements and contracts. Furthermore, the company
always makes an effort to
(i) Indicate in plain sight that the sales partner is a person or a company
engaged in lawful commercial activities that Fado.vn has officially
recognized.
(ii) Commit that the goods and services advertised on Fado.vn is exempt from
business and advertising restrictions under Vietnamese law.
(iii) Consistently practice good corporate responsibility towards society by
adhering to its tax obligations and making efforts to protect the
environment from the transportation-related activities of the e-commerce
sector.
1.2 History and development:
1.2.1 History
Fado JSC Vietnam is a member of the Miczone Group which provides solutions for
cross-border ecommerce platform and international freight forwarding service to
successfully remove obstacle in the business sector.
Fado JSC Vietnam officially came into operation in December 2015. With the
mission to become a leading firm in providing logistics service and e-commerce
platform in 2030, the company is continuously making effort to enhance their trading
platform. According to the Miczone diagram attached below, the year 2015 represents
the beginning of a seamless and coordinated combination of member organizations
when each member of the Miczone Ecosystem performs a specific duty. Fado.vn, a
cross-border e-commerce platform, was typically created to further demonstrate the
Group's willingness to take use of the supply chain and logistics value chain's
potential. One may say that the future goal of Fado Vietnam Joint Stock Company
and its members (and partners) is to establish a comprehensive logistics and e-
commerce operating value chain.
7
This is the period between 2018 and 2020 during which the platform is gradually and
rapidly increasing. In 2020 alone, more than 1.5 million consumers successfully
placed orders on Fado.vn, and 5 billion items were delivered to customers.
Furthermore, consumer reorders are quite common (accounting for more than 41
percent of customer data files). However, now is the moment to capitalize on the
"home field" advantage before Fado Express begins in 2018; doing so allows the firm
to save logistical expenses while maximizing the benefits of each shipping partner.
The year 2019 sees the completion of the introduction of the Fado.vn mobile
application, which works together with the website.
Early in October 2021, the Company formally changed its identity after six years of
operation with the aim of boosting FADO brand recognition globally. This was done
to build momentum for the introduction of the Fado Global platform in 2021.
The company has a simple administrative structure in the form of a Joint Stock
Company, including 06 departments divided based on certain tasks and functions.
The departments under the management and supervision of the Board of Directors
are always closely linked to each other to coordinate well to make the process of
providing services to customers optimized and quickly towards the vision, mission,
core values that Fado Vietnam Company has been building.
Director: CEO Pham Tan Dat is the one who makes all business-related choices and
builds business strategies in order to bring the highest possible profit for the company.
He also directly supervises, operates and assigns tasks to firm employees while
integrating work amongst divisions in an orderly manner.
IT Department: Charged with keeping networks and computer systems in top shape,
offering technical support, and teaching clients or staff members in other departments
the fundamental skills needed and make use of the company's protected IT
infrastructure to run the new installation. Improve the website and make sure the Fado
e-commerce platform is working properly.
In general, the company's personnel did not significantly rise after its first two years;
in 2020 alone, it only hired one person. It may be claimed that the Company's decision
to prioritize protecting the rights of current employees and growing existing resources
stems from the influence of Covid-19.
In terms of the company's gender composition, the ratio of male to female employees
has generally been 1:1 over the years, with the female representation being constant
at 51 to 53 percent. This minor discrepancy results from employment that, depending
on the nature of the profession, call for the care and sensitivity of both men and
women. Usually in the Import-Logistics Department, women make up a higher
percentage (88%) of occupations requiring attention to detail, such as document
preparation, while males make up 83.6% of roles in logistics and activities requiring
acumen. The male: female ratio in the CS Department (Business Operations
Department) is roughly 4:6, which contrasts with the IT Department, where the
present data job characteristics suggest a significantly higher number of men than
women (male employees account for 73 percent).
A young and promising staff that has just graduated has been drawn to the company
by its vibrant environment. While this is true, the group of employees over 30 years
old is more prevalent due to specific jobs' seniority-related needs for knowledge and
high levels of professionalism in individuals. Most of the staff members have a
university degree or higher in terms of education. Additionally, the Company has had
more than 7.5% of employees over 30 having PhD or Master's degrees in critical roles.
As we can see, the business performance of Fado over 5 years is quite stable. The
revenue in 2020 grew by 28.87% compared to 2016 and profit after tax tended to
increase over the years, although the changes were slow and uneven. Profit growth in
2017 increased by 74.82% compared to 2016, in 2018 increased by 55.14% compared
to 2017. The reason for the growth from 2017-2018 was the reduction of initial fixed
costs at the US, Germany and Japan freight stations in 2017.
The revenue in 2018 increased significantly compared to 2017. Because in 2018, the
company focused on marketing and communication to reach Vietnamese people. That
is the rationale for creating a stable revenue from 2018 onwards.
Costs in 2018 and onwards increased compared to the downtrend in 2017 due to
concentrating resources to boost processing efficiency at warehouses by building
more warehouses in the UK, Australia, Korea to expand the operations.
However, the profit after tax appears to be smaller in 2020, despite the fact that
Covid-19 presents growing potential for B2C e-commerce in 2020. The reason for
this is because the corporation devotes more resources to marketing and order
fulfillment. On the other hand, because retailers tend to integrate throughout the
distribution channel, the Company does not have a bargaining position in general.
Furthermore, Fado must face costs associated with customs blunders, handling risks
for missing items, and so on. As a result, the Company must set aside funds for
training and professional development for Import - Logistics Department staff.
Furthermore, because it has only been in business for six years, the Company is
continuously working to improve the customer experience by investigating
conveniences when purchasing on the website Fado.vn. As a result, investment in
building online platforms and infrastructure continues to account for a significant
amount of overall expenses over time; typically emit introducing the Fado.vn app for
smartphones in 2019.
14
Thank to Miss Chau Thi My Anh, Import Team Leader at Fado JSC, the author was
supported and receive enthusiastic guidance and training. At the end of the internship,
the author had a great experience from opportunity to support Import team to
participate in importing many consignments from foreign country. Details of the
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internship at Fado JSC are attached in “Internship diary” in the annexes below. (See
Annex 1)
(i) Paste the link to access product from any Amazon website to the Fado.vn platform
to receive a corresponding quote, which is the final unit price expressed in VND
(including selling price, tax, cost, service fees, etc.)
16
In essence, users are buying products from the official stores of amazon sites because
these items are based on the integration of product information from the Amazon
channel system into Fado.vn using standardized product identifiers.
When a buyer places an order on the website, the functional departments and the
system will manipulate order information about the type of goods ordered, the place
of distribution and the delivery address to prioritize cooperation with the distributors
and international or domestic shipping from the members of Miczone Ecosystem- an
ecosystem that provides e-commerce and cross-border logistics in Vietnam.
For example, if a customer wants to order a skin cream from the Japanese Amazon
channel, after receiving the customer's order and payment, the customer service
department will censor it and transfer it to the Megavita if the product is still in stock
at the Megavita warehouse. At the same time, an email will be sent by the SC
department to the buyer to notify the actual unit price of the same orders as when the
order is imported directly from Japan, usually the price will be the same or even lower
because the goods are available at Vietnam warehouse and along with that, the
delivery time is cut by up to 70% compared to the original estimated time.
17
Since Fado JSC is mainly in the e-commerce sector, normal goods will be transported
by air for speed and safety, except for bulky or oversized items. Thanks to the
coordination and unification of the relevant departments at each stage of the business,
along with the support of member companies, the delivery process of goods ordered
by customers on the e-commerce floor is operated optimally and efficiently.
When a customer places an order on the Fado E-commerce platform, the condition
for that order to be valid and processed by the CS department is that the customer
must pay in advance from 50-100% of the order value. The sooner the customer pays,
18
the faster the CS department will process the order, which means that the customer
will receive the goods sooner.
After customer's order is placed on the Fado’s system, the CS department will receive
and perform it manually, sequentially or in parallel with the initial steps of censorship
in the first stage of order processing. The CS's moderation process includes:
2) Check if the item ordered by the customer is available, in stock or out of stock
from the seller. If the item on the trading floors is out of stock and does not show a
specific re-import date, the CS department will find a replacement source and quote
the equivalent unit price to the customer.
3) Check if the items ordered by the customer are stocked at Fado’s warehouses in
Vietnam or not. If the goods are available and meet the inspection requirements, then
the order is noted for immediate domestic shipping. In addition, when there is an item
authorized to distribute by Megavita, CS Department will make a note to assign the
right to exploit the order to Megavita member.
After the successful censorship of the CS department, the Bot (Build- operate-
transfer) system will start updating the order's information on the system to facilitate
the entire Fado’s department and update the ETA so that the CS department, logistics
department, and even customers can know the ETA of the goods. And at this time,
the Fado will make payment to the seller. The Bot system always updates the ETA
time as soon as the customer places an order, so there will be a deviation from the
actual ETA because there are cases where the customer does not pay on the same day
as the order date but later.
Because the seller's delivery cannot be controlled in the seller's country, the Fado
logistics department will contact an international shipping service partner to book a
flight, which allows the buyer to deliver within 5 days to the Fado’s warehouses in
the seller's country. When arriving at Fado's warehouse, the warehouse department
will then give it to the international shipping service department to ship to Vietnam.
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Although in the Miczone ecosystem, there is a Fado express delivery member, when
comparing the cost, the exporting cost from Vietnam will be 0.65 times lower than
importing from abroad. So for the import, Fado will focus on contacting the other
shipping partner named Nippong Express and outsourcing 3PL logistics which is
partly involved and controlled by Fado. As soon as the shipping partner receives the
consignment, responsibility is transferred to the international shipping department.
When the flight has been book, import team will put the consignment in suitable
flights.
Once the order is processed, the seller will deliver the goods to the Fado receiving
warehouse at the mining station in the respective country. Logistics department will
monitor the delivery progress from the seller, if there are problems such as late
delivery, lost goods, not in time to store, the logistics department will update the ETA
on the system. From there, CS department and BOTS know about the adjusted ETA
and inform customers.
After the filtrate is completed, the foreign warehouse will stamp, scan the code and
affix the SCE (Sai Gon Cargo Express) package label on the customer's box and then
the international logistics will send the goods to the international express delivery
partner. At the same time, the import department and the warehouse department will
match the actual application with the import document.
Because each individual can only enter one order, but if there are many items in that
order, they will be charged a higher fee than each individual who imports one
individual item in different batches. After scanning the customer's information, SCE's
system will automatically see the customer's purchase history, if the customer buys
often, it will be suspected by the customs or if he buys a single order in large
quantities, it will suffer high taxes. Therefore, when scanning the label, the SCE
system will automatically separate the package and change the address so that each
package has only one item and one different address.
Then the import department updates the changes on the shipping label, packing slip
to give to the airline as a cargo manifest.
The airline issues the MAWB and sends it to the international carrier. Then this unit
will issue Fado a set of HAWB. The set of documents for customs clearance of goods
includes
Contract terms between Fado Vietnam and Express Customs Sub-Department (if
required)
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Fado's system will retrieve the HS code at the translation stage depending on the
history declared with the prior Customs authority. As a result, customs will examine
the labels of SCE goods and compare them to necessary papers. If there are no
discrepancies or errors, the goods will be cleared.
The logistics department will rely on the MAWB provided by the airline to check the
shipment journey on the system and query the track trace shipments. From there, the
import department can control the entire shipment, know the status of orders. This
helps Fado's import and logistics department to provide solutions if any risks arise in
a timely manner based on the track trace schedule. Here is an example for the tracking
of MAWB No: 180-11447365. Then Fado’s staff will control the shipment and
update it on Fado systems.
22
The import department submits the official dispatch at one of the two warehouses,
which is Ho Chi Minh (TCS or SCSC warehouse) and waits to receive the order to
pull the goods back to Fado's bonded warehouse at TECS - this warehouse is where
imported goods are temporarily stored and processed. customs clearance) and only
the TECS warehouse can clear the goods.
After clearing customs, the import department will make a list of customs clearance
packages, report to the customs party at the bonded warehouse and transfer the goods
to the Fado warehouse in Ho Chi Minh. Proship shipping department will deliver
goods to Fado warehouse
When the goods arrive at Fado warehouse at 21 Bis Hau Giang, ward 4, Tan Binh
district, the Fado logistics department will do things such as classifying goods,
checking to compare the actual goods received with the system and the accompanying
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documents. follow and ensure that the actual consignment received matches the
information declared on the declaration.
And now, the parcels that were split into several packages at the SCE warehouse at
first to avoid suspicion of customs will be collected into 1 package to be delivered to
the recipient just like when they first ordered on Fado, if there are no problems, the
warehouse staff will print and paste the domestic shipping invoice provided by the
Proship member on the package to deliver to the customer.
The bill of lading code is also updated by Proship on Fado system and the website of
the Proship carrier, and the delivery order is executed from the Proship carrier or
DHL express.
The Logistics Department will transmit information orders to ProShip (for intra-city
orders) or DHL Express (for intercity orders) as soon as the products are approved
for import so they can obtain the Shipping Label/Domestic Invoice data and attach it
to the packages after the orders are sent. Since that time, Fado will give the domestic
carrier, DHL Express, or ProShip the task of delivering the goods to the final
consumer.
The Logistics Department will follow and monitor the delivery process in the final
mile to the recipient location based on the bill of lading code given by the carrier. The
system will now send the customer an email with the most recent information
regarding the order journey.
Fado.vn will only complete its obligations if the domestic package has been
personally delivered and has been signed for by the customer. If there is an issue, the
two parties will work to address it, and the Company will make restitution in
accordance with Fado’s policy (if any). Customers will be encouraged to return the
item, albeit this does happen frequently when transport issues occur and are Fado's
fault. Reverse logistics will still be done going forward by the Import - Logistics
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Department. Customers will also be forced to pay the outstanding balance on Fado.vn
if the full order value has not been paid.
Firstly, Fado always ensures the fastest delivery with all its efforts. By making full
use of human and technological resources throughout the service delivery process,
from the moment the customer places an order on the website to the time it is
delivered to the customer. For example, Warehousing backend system which helps
synchronized in both domestic and foreign mining warehouses, BOT system, order
tracking system, etc.
The second is the reduction of costs for the logistics department when outsourcing
the 3PL in part and is controlled by Fado. This is estimated to reduce international
and domestic logistics costs by 30% for each order sold, and this cost is also reduced
due to the large network of partners and carriers such as Nippon express, Proship,
Megavita, SCE.
The third advantage of Fado is that it can provide an online shopping platform that is
convenient, easy and suitable for the buying habits of consumers. Customers often
tend to choose to shop on a variety of online platforms and Fado can meet when
allowing customers to copy product links from other e-commerce sites and paste it
into Fado's search box. In addition, customers can also buy and choose directly on
the Fado page with more than 4 billion products from all over the world.
Fado's next advantage is always being trusted by customers thanks to its reputation
as a unit that always puts customers' interests first. The policy of protecting
customers' interests is always focused on and transparency on the company's fado
website. The stages in the process are always promptly updated by CS department
and the email system to customers to ensure quick handling of risks arising in the
25
delivery process. Fado is always committed to the credibility of the sellers posted on
Fado and absolutely excludes goods on the list of prohibited imports.
Another advantage is that Fado JSC can be proactive in checking, exploiting and
completing orders in the process. Because Fado also has dedicated mining depots in
6 countries. This makes customer order extraction completely proactive at these
warehouses. Fado can be completely controlled, determined and independent of
international logistics leasing services. This also makes it easier for other departments
to monitor orders, making it easier to handle urgent problems that arise.
2.2.2 Weaknesses
The first is that the receipt and confirmation of orders is still complicated and time
consuming because according to Fado's operation process, after the customer places
an order and makes payment, the order will be censored manually by the CS
department through 3 steps as described in the chapter two. This affects order
processing time and the following processes because normally each order will take
6-8 minutes to process and this time also depends on the number of items in the order.
This is also one of the major difficulties for Fado's delivery service when on sale
occasions, orders skyrocket, causing censorship to be blocked and delivery delays.
And also in this step of censorship, the identification of prohibited imports is still
manually checked, which has potential risks of time delay when there are too many
orders and the risk of accuracy for customers.
The second weakness is that the actual delivery time is always deviated from the ETA
notified to customers as soon as they place an order on Fado.vn. Usually, the actual
delivery time will be 3-7 days later than the ETA recorded on the system by the BOTS
system. The first reason is that the BOTS system that updates the order information
always gives the ETA to the customer as soon as they place the order, usually from
10-14 after the customer places the order. In fact, only when the customer places and
pays 50-100% of the order value, the order begins to be valid. The CS department
will accept to process the order when the customer pays so in advance, and so, the
exact delivery time will be from the time the customer completes the order
verification.
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The third weakness is that Fado's logistics department is passive in controlling the
seller's delivery process because this depends on the seller's preparation time and the
activities of the domestic shipping unit in the country. Seller, this will lead to
extended testing and mining time at overseas warehouse
The fourth weakness is that the auxiliary logistics system has not been consistently
invested and improved, affecting the monitoring process of related departments. In
fact, like the backend warehouses in the US, Australia, Germany, and Japan, the
warehouse system has been improved with an easy-to-manage interface and the
software has more features than warehouse management software in Korea and the
UK. For orders in these countries when problems arise, it is easy to find the cause and
stage of the error to handle. While to solve problems in Korean and British
warehouses, the management department has to manually monitor each step,
contacting the warehouse department directly to exchange via telegram. This will
affect the overall progress of the delivery and show the unprofessionalism of the
handling.
The fifth weakness is that advanced technologies have not been applied to order
processing as well as the exploitation of goods at international and domestic
warehouses in a complete delivery process. The technology used in the warehouse is
also quite outdated. For example, scanning the parcel code by manual method and
this will be a huge obstacle if on promotional occasions, the demand for shopping of
customers increases, which means that the processing of orders at the warehouse will
be overloaded and unable to make progress to process orders, thereby extending the
delivery time to customers. In addition, manual inspection of packages can lead to
loss of goods, affecting the progress and reputation of the company.
Limited infrastructure at warehouses is considered as the 6th weak point when Fado
implements this delivery process. The small warehouse area, the lack of equipment
in service at the warehouse can make the capacity to exploit orders limited and not
meet the large volume of orders that may be available during discounts and holidays.
The seventh weakness can be mentioned that the Fado does not pay attention to
reverse logistics, the process plays an important role in helping the forward logistics
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take place according to ETA. In fact, when receiving goods from the seller at a Fado
warehouse abroad, the warehouse department will check the goods, but only stop at
checking if the goods received are the same as the goods on the accompanying papers,
but ignore product quality inspection. This poses quality risks to the customer's order,
and often these problems are only discovered and resolved when the customer
complaints and requests a product return. And this increases the cost of the whole
process when having to return the product.
The process of returning products is done too unprofessionally and ineffectively. This
can lead to the risks of not returning goods, lost goods, increasing costs and time for
customers. In fact, when customers want to return products, CS department and
giaonhan247.com staff will transfer information of the customer to the FadoExpress
department to re-export the seller's address and request a refund. However, in fact,
the CS department does not work directly with the exporter to do the return
procedures, but the customer themselves have to solve problem with the staff of
FadoExpress. It is worth mentioning that the export and import process is not the
same for certain items, such as personal laptops. When importing, the CS Department
does all the procedures, but when exporting, the customer is forced to remove the
laptop battery and be charged an additional fee. (According to international express,
some type of goods with battery will not be allow to export or allowed to do with
extra fee). When the customer has to contact Fado's export department by himself, it
costs a lot more for the customer and many risks may occur if the recipient country
unfortunately charges an import fee, the goods are confiscated by the customs causing
a lot of trouble for customers.
The first is about replacing the process of censoring customer orders on Fado.vn
system with software that automatically verifies orders and categorizes goods,
validates the availability of goods, and views the goods that customers have
purchased instead of doing it manually. This improvement can help to reduce errors
caused by checking whether goods are banned from import quickly and with less
errors, on the other hand, it can reduce order processing time which can respond
quickly, thereby being able to handle large orders during promotional occasions.
The second point to improve is that because the forecasted ETA is not concise when
it is publics to stakeholders, the logistics department must combine with warehouse
departments, transaction departments in the seller's country, shipping partners,
overseas goods handling departments to track orders accurately, and promptly know
the delivery progress, if there is a delay, the tracking team must immediately update
the ETA on the systems and inform the customer promptly, thereby ensuring the
information to be informed clearly and regularly to the management department and
customers.
The next recommendation is that the company should invest in upgrading the
auxiliary logistics system to improve the process and unify the warehouse systems in
different countries, especially the auxiliary logistics in Korea and the UK. This
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The company should set aside a budget for infrastructure upgrades at overseas
warehouses. The upgrade may include expanding the area, installing more equipment
for serving at the warehouse with an automatic system to help improve the handling
capacity to be able to do better even on occasions with large volumes.
The company should focus, develop and improve the reverse logistics process by
developing more quality inspection of goods instead of simply comparing goods with
accompanying documents. In addition, when customers have a need to return goods
that are not caused by the manufacturer's fault, they should have a policy to guide
customers and contact relevant parties to help customers return goods quickly,
efficiently and professionally.
Professional expertise:
During the internship at the enterprise for 2 months, the author had the opportunity
to learn and expand more knowledge about the industry, such as practicing exporting
a shipment to foreign countries, quoting prices to customers over many
communication platforms and know how to proceed with importing a customer's
shipment from the Fado.vn e-commerce platform. The procedures of processing
customer's order when it is placed on Fado.vn until it is delivered to the customer's
hand is such an amazing thing to learn.
The author also practiced on the company's software and systems to do procedures
such as creating bills of lading, creating receipts, managing warehouses, controlling
late arrivals from other countries, thereby being able to participate in directly
involved in the business of the enterprise.
The author also learned how to handle the risks that arise when carrying out the
import-export operation of a shipment from the sharing of experienced brothers and
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sisters in the company. This contributes to the author's knowledge of the field of study
in the future.
The internship also gives the author the opportunity to become familiar with the
reading and understanding of documents, contracts, bills of lading, MAWB and
related documents. These documents are very important and necessary in
international commercial transactions, so that the author knows that at each stage in
the business, what documents are needed.
In the office work environment, the author finds that communication skills are very
important, the way that people convey messages to each other must be clear, concise
and stick to the point. In the position of an intern, the author learnt to communicate
with many colleagues inside and outside her department, learnt by communicating
with partners, customers, etc., as well. The author realizes that she need to observe
and listen to everyone and use appropriate words in certain situations. The author
always puts respect for others first, must think carefully before speaking and know
how to resolve conflicts or misunderstandings with colleagues.
The author always keeps an open mind, ready to listen to suggestions or criticism
from other colleagues, managers, and willing to accept mistakes to be willing to learn
actively. In addition, initiative is one of the characteristics that the author learns while
working in an enterprise. The author always proactively prepares the work in advance,
actively gets acquainted with the employees in the company, because this helps the
author to adapt and respond to the environment faster. In addition, the author also
keeps in mind that she must always proactive in asking questions, actively do things
that are outside his duties, actively give suggestions to improve something or solve
problems.
In conclusion, the 2-month internship at Fado is a precious time and the author's
contributions cannot be compared with the values that the business environment
brings to the author. At this enterprise, the author not only has the opportunity to
expand his knowledge, expand his relationships, but also expand and learn many new
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soft skills and make sure that these skills play an extremely important role. important
in the author's future work.
4 CONCLUSION
Fado is a pioneer enterprise in Vietnam operating in the field of cross-border E
Commerce to help consumers transact internationally without being limited by
geographical distance. and orthodox. Accordingly, Fado fully updates product
information and prices from famous websites in the world in real time so that
customers can shop at any time, especially during the world famous discount seasons:
Blackfriday, Cyber Monday, etc. Besides, the system automatically calculates
shipping costs and import taxes to help users understand the package cost to receive
products in Vietnam. Buyers can also minimize all risks when shopping online thanks
to a product review connection platform; monitor the seller's reputation level; quality
assurance, origin of goods.
The author of this paper describes Fado JSC process for freight forwarding service
by air. In general, the process is open, adaptable, and makes use of the Company's
advantages, including its skilled team and trustworthy network of worldwide partners.
But certain issues need to be resolved. As a result, the author offers some suggestions
in chapter 3 to enhance the execution of this export method.
The author's knowledge and perspective have expanded as a result of his or her time
at Fado in various ways. The author would like to convey her gratitude once more for
the invaluable lessons and experiences she gained while serving as an intern at Fado
JSC Vietnam
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5 BIBLIOGRAPHY
Business sources:
1. Fado Vietnam Joint Stock Company, 2018 A, Human Resources Report 2018,
HCMC.
3. Fado Vietnam Joint Stock Company, 2020 A, Human Resources Report 2020,
HCMC.
4. Fado Vietnam Joint Stock Company, 2016, Annual Report 2016, HCMC.
5. Fado Vietnam Joint Stock Company, 2017, Annual Report 2017, HCMC.
6. Fado Vietnam Joint Stock Company, 2018 B, Annual Report 2018, HCMC.
7. Fado Vietnam Joint Stock Company, 2019 B, Annual Report 2019, HCMC.
8. Fado Vietnam Joint Stock Company, 2020 B, Annual Report 2020, HCMC.
Other sources:
10. Chevalier, S., 2021, Global retail e-commerce sales 2014-2024, Statista,
accessed 07/12/2021<https://www.statista.com/statistics/379046/worldwide-retail-
e-commerce-sales/>.
6 ANNEXES
Annex 1 Internship diary
Annex 3. Invoice
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Annex 6. Contract
Annex 3: Invoice
40
41
Annex 5. Manifest
43
Annex 5. Contract
44