MINISTRY
TRANSPORTATION

OF

MINISTRY OF EDUCATION &
TRAINING

VIETNAM MARITIME UNIVERSITY

STUDENT NAME: TA THI HUONG THAO

DISSERTATION
GLOBAL STUDIES AND MARITIME AFFAIRS

RECOMMENDATION TO IMPROVE CARGO RETURN
PROCESS AT GE HAIPHONG

HAI PHONG – 2015

Comment [A1]:
Comment [A2]:

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MINISTRY OF TRANSPORTATION

MINISTRY OF EDUCATION & TRAINING

VIETNAM MARITIME UNIVERSITY


has

increasing

rapidly.

However

the

transaction

among

nations/companies is not only buying and selling which known as forward logistic.
During the process, there will be defective items shipped to importer. In this case, it
is necessary to return defect cargo back to vendor. Although the defect cargoes only
account for small percentage of all imported goods they play an important role in
manufacturing process. Understand the importance of returning cargo, this research
not only provide an overview about GE Haiphong process to return cargo to vendor
but also giving recommendation to improve the process.
I declare that this report is my own unaided work. It has not been
submitted before.
If violated, I am solely responsible for and bear the punishments of the
Institution and University.

Student Name and Signature


TABLE OF CONTENTS


2.2.4. Issues that can arise during process .................................................. 28
2.2.5. Strengths and drawbacks of return cargo process ............................. 29
Chapter 3: Recommendations to return cargo process .............................................. 33
3.1. Supportive GE staff ....................................................................................... 33
3.2. Using one forwarder: ..................................................................................... 33
3.3. Updating workflow: ...................................................................................... 33
3.4 Systemized process: ....................................................................................... 37
CONCLUSIONS .......................................................................................................... 42
Bibliography ................................................................................................................. 43


Recommendations to improve cargo return process at Branch of GE Vietnam
limited in Haiphong

LIST OF FIGURES
Figure 1 Organization chart of GE Haiphong .......................................................10
Figure 2 The workflow of return cargo process ....................................................18
Figure 3 Tracking files of return cargo ..................................................................21
Figure 4:Process to open CDs ................................................................................22
Figure

5:

Custom

software

to


Booking

note

of

&

Airfreight
Formatted: Hyperlink, English (United
States), Do not check spelling or grammar

copr………………...27
Figure

8:

Tracking

list

of

buyers………………………………………………30
Figure

9:

Tracking


updated

workflow

to

open

CD………………………………...36
Figure

12:

The

suggested

process

to

return

cargo

to

vendor…………….……37
Figure


to

return

cargo

to

cargo

to

of

GE

vendor………………41

LIST OF TABLE
Table

1:

Departments

and

numbers

of

Figure 6:Tracking file of return cargo to Jabol ..................................................... 25
Figure 7:Booking note of Thami Shipping & Airfreight copr ............................. 27
Figure 8: Tracking list of buyers ............................................................................ 30
Figure 9:Tracking list of LOG ............................................................................... 31
Figure 10: The workflow of return cargo process by sea ..................................... 34
Figure 11: The updated workflow to open CD ..................................................... 36
Figure 12: The suggested process to return cargo to vendor ................................37
Figure 13: Display of the new system ................................................................... 39
Figure 14: The current process to return cargo to vendor .................................... 40
Figure 15: The systemized process to return cargo to vendor.............................. 41

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Recommendations to improve cargo return process at Branch of GE Vietnam
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LIST OF ABBREVIATIONS
GE

General Electrics

GW

Geodis Wilson

CD


WTG

Wind Turbine Generator

QC

Quality Control

ELA

Electrical Assembly

SOU

Sourcing

MM

Material Management

NCR Non-claim return
AWB Airway Bill
PIC

Person in Charge

ETD Estimated Time of Departure

Ta Thi Huong Thao
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manufacturing process. Without the replacement for the defective parts, production
may have to stop. As the matter of fact, if production stops for only one hour, the
consequences can be massive. In RTV (Return to vendor), quick transaction through
reverse logistics is highly important in order to keep trust intact. Otherwise, it spoils
the relationship between vendor and seller. Paying close attention to return cargo
can help to improve customer satisfaction and loyalty. Reverse logistics also
includes gaining feedback to get improvement to both seller and buyer.
Understand the important of returning defective cargoes to vendors; I would
like to choose the topic: “Recommendation to Return Cargo Process at Branch of
GE Vietnam limited in Haiphong” to write in this dissertation.
2. Research Structures
1.

Introduction

2.

Chapter 1: Overview About Return Cargo

3.

Chapter 2: Company Overview

4.

Chapter 3: The Process to Return Cargo

5.

Chapter 4: Recommendation to Return Cargo Process

Interviewing the staff directly



Observation from practical cases or in daily works

6. Research Results
The research presents a detailed process to return cargo to vendor with examples.
Moreover, strengths and drawbacks of this process are also pointed out with
recommendations proposed.

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Recommendations to improve cargo return process at Branch of GE Vietnam
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CHAPTER 1: LITERATURE REVIEW
1.1. Exporting activities
1.1.1. Definition
Exporting cargo is sending goods or services across national territorial for
the purpose of selling and realizing foreign exchange.
1.1.2. Responsibility of different parties in exporting transaction
-

Exporter: (A Basic Guide to Exporting, 1998, pp. 4-6)When exporting



who conduct the forwarding services called as the forwarders or freight forwarders,
forwarding agents.
Services that forwarders often serve are following:
 Preparing goods for transportation
 Organizing cargo transportation within the port
 Organizing cargo handling
 Consulting customers about cargo transportation
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Recommendations to improve cargo return process at Branch of GE Vietnam
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 Carrying out there procedure of sending or receiving goods
 Custom clearance services
 Paying the costs
 Consolidating, packing
 Checking the document related to cargo transportation
1.1.3. Documents in an exporting transaction
-

Commercial Invoice

A commercial invoice is a bill for the cargoes issued by the seller to the buyer.
Government uses these invoices to determine the true value of goods when
assessing customs duties. Governments that use the commercial invoice to control
imports will often specify its form, content, number of copies, language to be used,

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Recommendations to improve cargo return process at Branch of GE Vietnam
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-

Export Licenses

An export license is a government document that authorizes the export of specific
goods in specific quantities to a particular destination. This document may be
required for most or all exports to some countries or for other countries only under
special circumstances.

-

Certificate of Origin

The Certificate of Origin (CO) is required by some countries for all or only certain
products.
Customs export declaration form:
Customs form completed and submitted by an exporter at the port of export, it is
meant to serve two major purposes: (1) to provide information on amount, nature,
and value of exports to the statistical office for compilation of foreign trade data,
and (2) to serves as an export control document. In some cases, an export
license and/or a certificate of origin is also required to be attached.
1.1.4. Customs regulations

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-

Import goods which are machinery and equipment to form fixed assets and

which are tax exempt as part of an investment project ;
-

Goods imported into free trade zones, transit ports and customs bond

warehouses, goods in transit, emergency relief goods, specialized goods directly
servicing national defense and security, humanitarian aid goods and goods
temporarily imported for re-exported within a specified time;
-

Goods in other special cases as may be decided by the Prime Minister;

-

Goods other than the above mentioned may be exempted from actual customs

examination if the analysis of information from various sources and from a
reconnaissance by Customs establishes that there is no possibility of a breach of

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1.2. Returning cargo
1.2.1. Definition
Return cargo to vendor (RTV) refers to the process of return of goods that takes

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place between a user or retailer and a vendor. It may consist of return between user
and retailer that sends it back to vendor. In some cases, user may directly send the
goods to the vendors. It involves following activities:


Return of goods



Repair



Resend replacement, Otherwise refund for the good

(Handling In & Outbound Product Returns)In order to get a Return Material

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Recommendations to improve cargo return process at Branch of GE Vietnam
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(Finance)Pre- registered information is valid and shall be preserved on the
system for 7 day at most, counting from the time of registration or the time of final
change. Customs declarations may themselves correct information pre-registered.
According to article 56 of circular 128/2013/TT-BTC published by The

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Ministry of Finance, the customs dossier for return cargo consists of:

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-

The written explanation of the company for the export;

-

The declaration of exported goods: 02 original copies;


exported goods.
About the tax regulation on return cargo, the customs authority shall decide
not to collect tax on goods that are returned or exported to a third country or a free
trade zone if the declarant submit a sufficient application for tax cancellation when
following the procedure for returning goods, exporting goods to a third country or a
free trade zones as guided in Article 117 of Circular 128/2013/TT-BTC, and the
customs authority has ample evidence that the exported goods are the goods
previously exporter.

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Recommendations to improve cargo return process at Branch of GE Vietnam
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CHAPTER 2: EVALUATION OF RETURN CARGO
PROCESS AT GENERAL ELECTRICS HAIPHONG
General Electric (GE) which was established by Thomas Edison in 1892 is
an advanced technology, services and finance company taking on the world’s
toughest challenges. Dedicated to innovation in energy, health, transportation and
infrastructure, GE operates in more than 100 countries and employs about 300,000
people worldwide. GE was one of the first American companies established in
Vietnam since 1993 even before the US Embargo was lifted. GE first set up a
representative office in Hanoi in 1993, and subsequently in HCM City in 2001,

Recommendations to improve cargo return process at Branch of GE Vietnam
limited in Haiphong
- Address: Lot H1-H6 and F13A, F13B,F14, F15 Nomura- Haiphong
Industrial Zone, An Duong district, Haiphong City, Vietnam
- Using square: 84.220,90 m2
- Fields of business:
+

Manufacture, install components and part for machine, equipment of

generating power system, power plant, component, spare part for power
transmitting system
+

Provide service of installing, warranty, maintaining and repairing for

machine, equipment said above
+

Constructing workshop for rent

+

Manufacture, install spare part, component for machine, equipment

belonging to system of water supplying industry and petrol industry
- Chief of Branch: Ms Vu Thu Trang, born on 13/12/1978
- Total capital of investment: 2,320,455,000,000 (two thousand three
hundred twenty billion four hundred fifty five million) dongs equivalent to
111.000.000 (one hundred eleven million) USD

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Recommendations to improve cargo return process at Branch of GE Vietnam
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- Reviews and supports engineering and sales to oversee design concepts with
fundamental or new technology used for new or existing products or
improvement to provide cost reduction, safety, customer requirements and
market growth.
- Reviews operations and plans to meet requirements for sales planning and to
ascertain manufacturing or outsourcing requirements to develop new markets.
- Reviews and approves preparation of accounting analysis for budgetary planning

and implementation, production efficiency, financial reporting, budgetary
planning and submittal for capital expenditures.
GE Haiphong includes the following departments:


Admin:

- Provide Logistic Support for all EEMs and Visitors

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- Liaise with vendors such as car supplier, travel agencies, couriers, cleaners,
stationery, staffs, and many others.

limited in Haiphong
- Keep and maintain financial records – sales and expenditures figure and record
would be kept by Finance department. Other departments also use these
documents.
-

Prepare and plan internal financial information – this would mainly be
performed in the case of a budget, which is a financial plan and can help
managers take corrective action.

- Analyse current financial performance – how the firm has done in trading or
expenses would be analysed primarily using ratio analysis tools.


Wind turbine Generator (WTG):

- Manufacturing engineer (ME): These engineers are in charge of controlling daily
production. They also make work instruction. If there is any issue during

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manufacturing process, ME is also person in charge.
- Planer: Planer is in charge of accepting or rejecting orders. Besides, this
department also makes plan to import material and control material inventory
level.
- Quality control (QC): The engineers in Quality control take responsible for
quality framework, product quality control. Processing quality plan is also a task
quality control engineers have to complete. They have the right to stop any noncompliance quality-related actions.


- Warehouse: Warehouse staffs are in charge of keeping material under suitable

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conditions, delivering and receiving cargos. For daily task, warehouse staff input
quantity data in the system.
- Logistic: Logistic staff receive plan from planer and arrange the shipments to

meet the deadline of planer. Besides, logistic also takes responsible to carry out
the procedure to export products.


Sourcing (SOU): This department consists of 2 parts: Buyer and Supplier
Quality Control(SQE). This department is in charge of working with
suppliers.

- Buyer: responsible for defined work or projects with moderate complexity. Buyer task
consists of identify and qualify new suppliers, assess supplier capabilities and make

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recommendations on supplier acceptability, implement sourcing standards
including process & execution,write reports to track PO activity and supplier
performance, analyze and track Supplier promise date accuracy and develop
reports to ensure Supplier promise date accuracy.
- SQE (Supplier quality control engineer): SQE are engineers who take responsibility
of checking imported cargo’s quality.


Recommendations to improve cargo return process at Branch of GE Vietnam
limited in Haiphong
2.1.3. Personel
Table 1: Department and number of staffs/workers of GE Haiphong
No

Departments

Number of staff

1

Administration

8

2

Environment, Health and Safety

6

3

Finance

10

4


Human Resource

7

The total employee of Brach of GE Vietnam limited in Haiphong is 200483.
Human resource plays an important role in company’s success. GE Haiphong is
famous for its solid human capital strategy. HR manages to do things to reach out to
employee, tries to give them strong leadership support. Working for GEEHP,
besides the competitive compensation & benefit policy, excellent working
conditions, employees will have great opportunity in professional trainings and
expand career growth globally by joining Technical excellence, leadership, and soft
skills trainings; operational management leadership program (OMLP); human
resource leadership program (HRLP); financial management program (FMP)…

2.1.4. GE culture
GE culture is about providing everyone who works here with opportunities to
exercise their responsibility, integrity, and creativity.GE is famous for investing in
human resource. Every year there are many courses, trainings taken place in GE to
improve employee’s working productivity and soft skill. All GE’s employee are
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