Arranging Luggage Delivery Service in Da Nang
Yen, Cao (2019)
Yen, Cao
2019
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2019061517016
https://urn.fi/URN:NBN:fi:amk-2019061517016
Tiivistelmä
The purpose of this thesis was to provide recommendations for Bellugg Group Company Ltd to expand their service to Da Nang, Vietnam. The author of this thesis has completed her 6-month practical training at the Bellugg during the summer of 2018. Bellugg is a Logistics and Tourism company offering luggage delivery service for travelers between the airports and hotels in Thailand. The background of this project was based on the insight that over 80% of customers using Bellugg service in Thailand are Koreans, and Da Nang is recently one of the most attractive destinations for Korean travelers. Thus, the project was created for Bellugg to look for a way to expand their services to Da Nang in the near future. So, the first objective of this project is to demonstrate the laws and regulations as well as the required procedure for Bellugg to open their business in Vietnam. The second objective is to organize transport and warehousing processes for luggage delivery service in Da Nang.
The theoretical framework of this thesis was established on process management and design, logistics process planning, and investment law. This was the framework for empirical research. Both qualitative and quantitative methods were chosen as the base for the research. Qualitative research was used to achieved information regarding the organization of operation and forecasted demand through the author's observation during the internship and an in-depth interview with the Bellugg managing director. Meanwhile, quantitative research was conducted by analyzing flight schedules and frequency at Da Nang international airport for the operation planning purpose. Besides, investment law and procedure for foreign investors were also studied to find an appropriate way for Bellugg to enter the Vietnamese market.
According to the findings, the only way for Bellugg to operate in the road transport business is to establish a joint venture with a Vietnamese company. Bellugg should rely on the ASEAN Framework Agreement of Services (AFAS) to be entitled to the investment benefit of the capital contribution ratio up to 70%. As for the logistic process development, it was discussed and found that Da Nang and Bangkok have several similarities in terms of weather, geographical locations as well as main groups of travelers, customer needs are expected to be relatively the same between the two destinations. However, there are still differences that need to consider when designing warehousing and transport processes, such as demand, flight timetable, or location and size of the airport. These differences resulted in different ways of designing warehouse and booth location, planning storage requirement and operating hours, or choosing a suitable transport vehicle. So, with the current operational model that is running in Thailand, it is viable for the company to apply as well as adjust their existing Logistics process appropriately to organize luggage delivery service in Da Nang in the most optimal way.
The theoretical framework of this thesis was established on process management and design, logistics process planning, and investment law. This was the framework for empirical research. Both qualitative and quantitative methods were chosen as the base for the research. Qualitative research was used to achieved information regarding the organization of operation and forecasted demand through the author's observation during the internship and an in-depth interview with the Bellugg managing director. Meanwhile, quantitative research was conducted by analyzing flight schedules and frequency at Da Nang international airport for the operation planning purpose. Besides, investment law and procedure for foreign investors were also studied to find an appropriate way for Bellugg to enter the Vietnamese market.
According to the findings, the only way for Bellugg to operate in the road transport business is to establish a joint venture with a Vietnamese company. Bellugg should rely on the ASEAN Framework Agreement of Services (AFAS) to be entitled to the investment benefit of the capital contribution ratio up to 70%. As for the logistic process development, it was discussed and found that Da Nang and Bangkok have several similarities in terms of weather, geographical locations as well as main groups of travelers, customer needs are expected to be relatively the same between the two destinations. However, there are still differences that need to consider when designing warehousing and transport processes, such as demand, flight timetable, or location and size of the airport. These differences resulted in different ways of designing warehouse and booth location, planning storage requirement and operating hours, or choosing a suitable transport vehicle. So, with the current operational model that is running in Thailand, it is viable for the company to apply as well as adjust their existing Logistics process appropriately to organize luggage delivery service in Da Nang in the most optimal way.