The import and export industry are growing daily, helping promote goods circulation and expand markets for Vietnamese businesses. Increasing imports and exports helps increase revenue sources and develop the economy. Exports bring abundant income, helping to improve import activities, serving production, and domestic consumption.

Export process

Step 1: Apply for a license to export goods

When there is a need to export goods to foreign countries, enterprises need to apply for an export license. Some items, such as rice, books, newspapers, pearls, gems, and collectibles, are entitled to export as long as they conform to the business registration contents of the enterprise.

Step 2: Packing export goods

Exported goods are usually packed in bags, bales, and containers marked with codes, letters, or pictures outside the packages to show the necessary information to deliver, load and preserve goods better.

Enterprises need to buy cargo insurance for exported goods. Because when the shipment is in transit, it will be difficult to predict if there is a problem or trouble. It has a significant impact on the cost and economy of the business. Cargo insurance helps to minimize possible damage.

Step 3: Order transportation

For export goods, enterprises must hire means of transporting goods. It uses containers to pack goods and ship by sea for large shipments.

Step 4: Do customs procedures

Mandatory regulations when exporting goods are customs procedures, including declaration, presentation of goods, and implementation of customs decisions. After completing the practices, the enterprise delivers the goods to the ship for transportation to foreign countries.

Step 5: Complaints and complaints handling

If the goods are damaged or damaged, the parties will jointly settle them according to the contract.

Import Process

Step 1: Sign the contract

Buyers and owners of goods need to sign a contract to agree on terms when purchasing and transporting goods to ensure rationality between the two parties.

Step 2: Ship the goods

The liability of each party will be according to the agreed contract. Including scheduling the ship, delivering the goods to the port of departure (the seller’s duty), or carrying out procedures to receive goods at the destination port, loading, unloading, and transporting to the warehouse (the buyer’s task).

When importing goods, enterprises need to actively monitor the packing progress, schedule, and shipping information to ensure timely updating of goods, avoiding risks during transportation.

Step 3: Do customs procedures for importing goods

Depending on whether the goods are imported by sea or by air, the enterprise will carry out customs procedures: pay import tax and present documents on the shipment to the control unit. It will hand over the goods to businesses after completing customs procedures.

For imported goods, it is necessary to pay tax according to the state’s regulations; the new business can receive the goods.

It also requires a set of documents for customs documentation. The request must be the original documents, so when shipping the goods, the buyer must ask the seller to send the original documents.

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Step 4: Receive the goods and deliver them goods to the warehouse

After completing customs procedures for importing goods, businesses can transport the goods to the warehouse. After unloading, it returns empty containers to the port of entry for goods imported by sea.

Import and export documents required

– Commercial contract

– Commercial invoice

– Commodity detail slip

– Bill of lading

– Customs declaration

Other documents include letters of credit, insurance, certificates of origin, quality, inspection, and quarantine documents.

Some concepts in import and export

CO CQ: CO (Certificate of Origin) is a certificate of origin, and CQ (Certificate of Quality) is a quality certificate.

Incoterms (International Commerce Terms) are rules about parties’ responsibilities in international sales and foreign trade contracts.

UCP (The Uniform Custom and Practice for Documentary Credits) – list of uniform rules for documentary credit operations.

Letter of Credit: this is a commitment used in payment issued by the bank at the importer’s request. Written to promise that the buyer will pay within a certain period if the seller provides enough valid documents.

If the business has yet to gain experience in importing and exporting goods, using the services of a unit specializing in importing and exporting goods will be the most optimal solution. Helping businesses focus their time on commercial production activities. Contact Fin Logistics now:

– High expertise, mastering the import and export process of goods, how to make documents, customs procedures

– Knowledge of products and markets

– The staff is caring, agile, has a high sense of responsibility, professional skills, and good foreign language ability to help carry out import and export activities smoothly.

– Save time, and optimize costs for businesses.

– Import and export services of significant products of the Vietnamese market, such as textiles and garments, telephones, electronic products, components, machinery, equipment and spare parts, wood and aquatic wood products, and seafood.

A product that can reach the customer needs a route from creation to distribution. That route is called the supply chain process. It makes up the bulk of the order fulfillment process.

What is a supply chain?

A supply chain integrates the processes of supply, production, distribution, raw material procurement, order fulfillment, order fulfillment or transportation services, and delivery of goods to customers. It consists of a chain of many components involved directly or indirectly, built to meet the production of products according to customer needs.

Supply chain management includes planning and managing all sourcing, purchasing, manufacturing, and logistics activities.

Supply chains play an important role in influencing businesses. It directly determines revenue, production activities, and future development direction. Enterprises with good supply chain processes will avoid many operational risks and optimize costs from purchasing raw materials to product prices. Help improve business performance, meet business strategy, and increase market share.

When the supply chain runs smoothly, managing the operations that coordinate the flow of products and services best serves the customer. Enterprises can develop other products and fields but still ensure the development of the system.

Operations in the supply chain

The supply chain includes planning, sourcing, production, and distribution.

Plan

Planning includes the steps involved in planning and organizing activities for the other three processes. We need to pay attention to 3 actions:

Forecast of demand: It is necessary to determine the needs of consumers in the market to organize production accordingly. Limit the display of excess melons and inventories.

Product pricing: The price of the product is an essential factor. It determines a part of the customer’s purchasing decision. Whether or not the product is highly competitive also depends on whether the price suits consumers.

Inventory Management: This helps manage inventory levels and quantities. The primary purpose is to reduce storage costs to a minimum, eliminating excess costs in product costs.

Looking for a source

When choosing a supplier, businesses need to compare the strengths and weaknesses of different suppliers. From there, as a basis to select the best supplier. In finding the source of goods, paying attention to 2 main activities: purchasing and selling on credit, is necessary.

Manufacture

It is the most critical activity in the entire supply chain. Production includes three main activities:

– Product design: Design the product’s characteristics and properties following the customer’s needs.

– Setting up the production process: calculating the appropriate production time to meet customers’ needs promptly.

– Vehicle management

Distribution

It is the stage of delivering the product to the consumer. Distribution includes:

– Order management: update quantity, time, and location from customer’s order.

– Schedule delivery: delivery according to the time specified in the contract. Ensuring the most convenience, optimizing costs, and meeting customers’ needs.

– Return Process: it transports damaged products to the enterprise’s premises for repair or destruction.

Roles in the supply chain

The supply chain includes manufacturers, wholesalers, retailers, and carriers; all have a particular role.

Producer

Manufacturers make products but generally do not sell directly to consumers. They deal in bulk to wholesalers. The manufacturer offers a relatively low cost for the product, but with the condition that it has to be ordered in large quantities.

Small businesses, when starting, often have to buy from a wholesaler. After you can afford to order in bulk, buy directly from the manufacturer and store the product at the enterprise’s warehouse.

Business

Wholesalers buy products from manufacturers and sell them to retailers at a higher price. They can order large quantities from the manufacturer and sell them in small amounts, suitable for small business units. Most small businesses buy products from wholesalers because order levels are much lower than the manufacturer’s minimum.

Wholesalers usually only sell to small businesses and retailers rather than consumers.

Retailers

The unit that sells products directly to consumers is the retailer. And buying products from retailers will cost much more than now from wholesalers or manufacturers.

Shipping unit

How products are transported between manufacturers, wholesalers, and retailers is very important. Because depending on the order quantity, choose the most optimal and cost-effective shipping method.

To operate the supply chain effectively, the stages of strategic planning must be detailed. Strategic design plays an essential role in the success of the business. Businesses need to consider and choose a strategy to suit customers’ needs while still ensuring the most optimal and cost-effective.

Sea freight accounts for a substantial market share in freight activities. More than 80% of commercial goods are transported by sea. It plays a vital role in the Logistics chain. Especially, Vietnam has a long coastline with many critical maritime routes; sea transportation plays an even more important role in promoting import and export.

Why should you choose sea freight?

Sea freight can carry all kinds of goods, including bulky machinery, and construction materials.

Large carrying capacity. The volume of shipping by ship can be hundreds or even thousands of times more than shipping by air.

Shipping by sea is not restricted like other means of transportation. The problem of collision during transport is also limited, so the level of cargo safety is relatively high.

Low shipping charges. Sea transport is the top priority when transporting goods between countries. Because large volumes of goods can be transported, transportation costs are reduced.

Facilitate economic exchanges between countries around the world.

Items shipped by sea

– Production materials: iron, steel, purlin, scrap, chemicals, factory equipment

– Consumer goods such as food, feed, necessities, and agricultural products.

– Construction materials, industrial machinery, and equipment

– All kinds of canned goods, shoes, clothes, toys

– Minerals: coal, ore, sand.

– Goods with unique properties, perishable

– Bulky goods

Sea shipping process

Step 1: Set a train schedule

After reaching an agreement on transportation costs, the shipping line will confirm that the charterer has booked a seat on the ship. Information required to reserve a train schedule includes:

– Information about port of departure, port of destination, and port of transshipment (if any).

– Name of goods, the weight of goods.

– The time the train will start to depart.

– Closing time

– Other requirements such as type of container, number of containers, size, ventilation, temperature

Step 2: Close the goods

Supervising and tracking the packaging of goods will be the exporter’s or agent’s responsibility. The information needs to be updated from the exporter, such as photos of empty containers, interests, and the temperature table for frozen products. Then take the goods to the container yard at the port.

Step 3: Confirm documents and records related to the shipment

Checking documents and records of shipments is an important job. Check carefully if the information is correct or not. Just one small mistake, and you will have big trouble with the customs or state agencies.

Step 4: Do export customs procedures

After being transported to the port, enterprises must prepare relevant documents to carry out customs procedures. Some specific items will need to apply for an export license, and fumigation.

If you need to know the customs procedure, businesses can hire a 3rd party to do customs declaration services to save time.

Step 5: Inform the goods to arrive

At least one day before the ship docks, the importer will receive a notice of arrival from the agent or shipping line. Notify the estimated arrival time of the shipment with accompanying information: name of the importer and exporter, container number, seal, ship name, number of trips, warehouse or place of storage waiting for customs clearance, and fees to be paid. …

The importer will proceed to get the delivery order, including documents such as the introduction paper, original bill, and power of attorney. Depending on the type of goods, there are different required permits. The importer needs to register the certificates related to the shipment to facilitate the customs clearance process.

Step 6: Declare import customs

Enterprises can open an electronic customs declaration even if the goods have come at the port. After the goods arrive at the port, customs clearance can be carried out. To conduct customs declaration for imported goods, enterprises need to prepare documents such as:

– Contract

– Commercial invoice

– Packing slips

– Bill of lading

– Certificate of origin of goods

– Import license

For some goods, enterprises must have some required documents and bring the goods to check product quality. After being inspected and granted a certificate of publication of regulation conformity, the new consignment will be cleared for customs clearance.

Step 7: Open customs clearance, liquidate declarations

Goods will be divided into different streams for customs clearance

Green creek: importers only need to pay tax, print barcodes to receive goods, and liquidate declarations.

Golden stream: businesses must pay tax before or after completing the procedures for opening declarations, liquidating, and receiving goods.

Red stream: Enterprises must conduct goods inspection procedures before opening the declaration. Then liquidate the order and receive the goods.

After completing the tax payment and the declaration is cleared, the enterprise submits the barcode and the removed statement to the supervising customs (submit at least two sets). Customs will stamp and return 1 set to the business.

Step 8: Unloading

After completing customs procedures, the goods are transported to the warehouse. Enterprises go to the port’s trade office to pay fees. Then transport the goods to the warehouse of the importer. If it is FCL goods, unloading the goods from the container and returning the empty container to the port is necessary.

With many years of experience and professional staff, Fin Logistics provides the most cost-effective and efficient ocean transportation service. Contact us now for a free consultation.

Inbound and outbound logistics is one of the activities associated with the supply chain in production activities. Inbound logistics takes care of the input of the supply chain; outbound Logistics takes care of the post-production stage to bring products to consumers.

Inbound Logistics

Inbound Logistics is the first stage in the value chain system of Logistics. It is the process of controlling the source of raw materials or semi-finished products from suppliers before they go into production.

Inbound Logistics includes stages such as purchasing raw materials, handling raw materials, transporting, managing inventory, and storing goods to create favorable conditions for the production apparatus to create finished products.

It is the most crucial stage, directly affecting the following steps to create finished products before bringing them to market. Its input source is guaranteed to help businesses increase revenue and ensure the best quality products. If the input logistics are efficient, it will prevent companies from reducing income, wasting input materials, and raising production costs.

Inbound Logistics Operation Process

Step 1: Sourcing

Enterprises identify and evaluate raw materials from suppliers. Negotiate prices and purchase raw materials.

Step 2: When there is an order, it will deliver materials to the production plan

Businesses always want to source materials in the correct quantity, quality, and time for production. It can suspend a factory if the input material does not meet the quantity, quality, and time.

It besides focuses on purchasing and planning to use raw materials. Inbound Logistics is also responsible for tracking inventory and optimizing the transportation process from the beginning to the end of the goods.

Step 3: The supplier will conduct an electronic declaration of shipment information when transporting raw materials.

Then move the goods to the warehouse of the enterprise. They were loading and unloading staff and inventorying goods to ensure they followed the order. Transfer the goods to the production facility to continue performing production activities.

Step 4: Receive and ship orders from customers (if any) due to errors or problems in delivery or repair.

Outbound Logistics

Outbound Logistics

Outbound Logistics is storing, transporting, and distributing goods to the market. This stage should optimize every step, from location and time to logistics costs.

Enterprises often only focus on production and pay little attention to output logistics activities. Compared to input Logistics, Outbound Logistics plays a significant role. Businesses need to choose an appropriate supply or distribution channel that will help reasonably handle inventory.

Distribution channels include companies, agents, stores, retailers, or end consumers.

Outbound logistics operation process

Step 1: Customer places an order

Step 2: Process the order. Enterprises receive the required quantity and check the inventory source to ensure the customer’s order quantity. If there is enough stock, the order will be processed.

Step 3: Send the customer’s order to the business’s warehouse to pick up the goods and carry out packing. The stocked inventory will move to the primary storage, replacing the product purchased by the customer. This process can trigger product additions or orders of raw materials from suppliers to maintain steady inventory levels.

Step 4: Warehouse staff take the goods and pack them goods. Then proceed to load the goods into the transport vehicle.

Step 5: Deliver the goods to the customer. The company system will record the shipment and send detailed information to the customer for tracking.

Step 6: Make an invoice, and collect payment for the order.

Factors that ensure Outbound Logistics take place smoothly

For the Outbound Logistics process to take place smoothly, the stages and steps must not make mistakes.

1. Choosing the right distribution channel

The correct distribution channel helps businesses optimize costs and shorten the distance between customers. Companies can use a variety of distribution channels to promote products and sell to consumers quickly. Taking advantage of distribution channels will serve customers best.

2. Storage and inventory management

Businesses must ensure that they have a system for storing and inventorying goods. If the inventory is too much and not sold out, it can easily lead to damaged and obsolete products. Conversely, if the merchandise is not enough, it will not be able to meet customers’ needs, lose the business’s reputation, and quickly lose customers.

With a system to store and control goods, businesses can grasp the market’s needs. From there, companies can start production and order timely responses to customers.

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3. Optimizing delivery operations

Delivery activities play an essential role in helping businesses save a lot of logistics costs. Enterprises must choose partners and delivery methods suitable for products and customer requirements. Accurate shipping saves costs, the goods are delivered safely, and the goods are to the right place in the allotted time.

Customer service is always a top priority for any industry. Logistics is no exception. Customer service in logistics is a matter of great interest to many people. When the rate of customers reusing logistics services increases, it is a success for enterprises in the field of customer care.

Customer service in logistics

Customer service in logistics is additional service activities provided when customers use the service. Act as a value-added, providing more value than the core service that customers need. It results in maximum customer satisfaction.

Businesses today provide services to customers in addition to using products. Customer service in logistics, handling orders, making documents, doing customs procedures, processing orders, and handling complaints.

Critical factors in customer service

Many factors affect customer service. Businesses can apply factors to increase business efficiency.

1. Time

It is a precious factor in creating customer satisfaction in logistics and any industry. The shorter the time the customer receives the product, the better the customer will rate it and feel satisfied.

2. Reliability

Customers will feel more secure when using services from a reputable brand. The more reputable the brand, the higher the reliability, and the better the customer service can meet customer needs. Therefore, reliability is one of the critical factors of customer service.

3. Costs

The competitive factor in the market among businesses today is cost. Customers always want cheap, good products suitable for their needs and pocket. If you offer the same or higher quality item at a lower price, you will have the advantage of attracting customers.

4. Flexibility

Flexibility is the ability to be flexible about the service or product provided according to the customer’s needs. Customers always want businesses to be able to solve their problems. Therefore, always customize the product to be able to fit all the needs of customers.

What activities does customer service in logistics include?

1. Supply Chain Management

The job of supply chain management in customer service is that customers only need to deliver goods, and businesses will help customers design a good supply chain. Includes steps:

– Receive requests from customers

– Planning the packing of goods and shipping

– Delivery and invoice collection

Doing these jobs quickly, accurately, and responsibly helps to create trust between customers and businesses. Create detailed, reliable workflows. Besides, managing customer information closely is necessary to ensure work efficiency.

2. Warehousing and distribution services

We provide freight forwarding services, checking goods, loading and unloading, loading goods, handling damaged goods, and labeling goods.

3. Warehousing Service

Developing a cross-docking system hosting service is necessary to create professional, systematic, and organized customer service. It helps to reduce storage costs and improve business efficiency.

4. Other services

Some services businesses can provide to customers, such as customs clearance, cargo insurance procedures, advice and guidance on the transportation process, and import and export of goods.

Customer service benefits

In any industry or business field, customer service brings certain benefits. Businesses with good customer service will have benefits such as:

Customer loyalty

Besides finding new customers, retaining old customers is also a problem that needs to be posed for every business. Customers will return if they feel your service is awesome  and valuable.

Increase competitive efficiency

Customers choose and decide to use the company’s products depending on the service and after-sales policy the business provides. Companies with good customer service and many preferential policies will retain customers. It is an effective tool for contesting in the market.

Increase the revenue

Good customer service is an opportunity to get more new clients and keep old customers. Since then, business activities have been expanded, revenue has increased.

From the above, it shows that customer service in Logistics deserves attention. There is no better solution than providing good customer service. Drive the appropriate application and provide outstanding service to satisfy your customers and keep producing to use your product.

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