To Improve Customer Service by Opening up a New Shipping Route in ESCL.doc

to improve customer service by opening up a new shipping route in escl摘要东方集装箱运输股份有限公司（简称东方集运）是以中国为基地的全球增长最快的主要集装箱运输公司，目前排在全球承运主要班轮公司的第十九位，主要从事国际和国内集装箱航海运输的营运及管理，其总部设立在上海，并且在中国的各主要港口都成立了分公司。近期，东方集装箱运输股份有限公司大连分公司正竞标与中国一汽公司的合作，取得中国一汽公司和日本日产公司在沈阳地区进出口海运承运商资格，但是长期以来东方集运在沈阳地区20集装箱出口量远大于进口量，造成20集装箱严重短缺问题，致使东方集运缺乏竞争力。我们试图安排空箱从大连港调运到沈阳等内路地区，来解决这个问题，但不得不额外支付rmb3000/20空箱调运费，成本大大提高。如果不解决沈阳地区缺箱的问题，我司将面临失去一汽等重要客户。我作为公司亚太部日韩航线主管，主要分管该地区的协调工作，也清醒地认识到解决缺箱问题迫在眉睫，因此和市场部、箱管部以及大连公司等兄弟单位组成一个项目小组，通过两个月时间的市场调查和swot分析办法，进行航线成本测算，研究开辟一条新航线以主要运输从日本进口到目的地为沈阳的20集装箱的可行性方案，最终成功竞标与中国一汽公司的合作。该方案的实施即新航线的开辟，不仅及时地在一定程度上解决了缺箱问题，又可以降低成本达到每周15575美元，同时对增强东方集运在东北内陆市场的竞争力，提高市场份额。关键词：缺箱、开辟新航线、市场份额和市场竞争力 abstracteastern shipping container lines company （escl）， is the fastest growing and world leading major container shipping company with its headquarters in shanghai and branches in main ports of china. it is principally engaged in the operation and management of international container transportation as well as domestic trade lanes. recently escl dalian branch is going to bid for china first motor and nissan which selects one company as carrier for their sea-shipment to/ from shenyang. however, we are facing a problem on serious shortage of 20 container due to imbalance of its import and export of 20 container in shenyang. we try to arrange empty container repositioning from dalian to shenyang, but we have to pay extra charge of rmb3000/20 container for a/c freight from dalian to shenyang. obviously, the freight cost would be increased too much . if we cant solve this problem, we will most probably lose china fist motor client. i, as supervisor of japan-korea lines of asia-pacific in escl , have clearly noted this matter，so we plan to launch a new regular service and import 20 foot container from japan port to final destination in order that it could provide more 20 foot container to meet china first motor requirement. finally，we have succeeded in bidding as sole carrier for their export shipment.the results of the project brought to escl can not only solve the problem of 20“ container shortage and reduce the cost to usd15575 per week, but also supplied us more 20 foot containers in shenyang to increase the marketing share and competitive ability in north-east of china.key words: shortage of 20 container, launch a new regular service, marketing share and more competitive table of contentspages1. project introduction 62. project problem identification and analysis7 2.1 current situation7 2.2 customer profile8 2.3 human resources involved82.4 financial status8 2.5 a swot analysis of the situation9 3project objective and hypothesis103.1 project objective10 3.2 project hypothesis104. project rationale115. project design125.1 activities planned to take place12 5.2 people involved in the activities and their responsibilities .13 6. project implementation136.1 project implemented14 6.2 project monitoring146.3 project finding14 7. results and discussion 14 7.1 results15 7.2 discussion158. conclusion15bibliography16appendix i. 16appendix ii. 17appendix iii. 20appendix 4. 22appendix 5. 24to improve customer service by opening up a new shipping route in escl1. introductioneastern shipping container lines company ， is the fastest growing and world leading major container shipping company with its headquarters in shanghai and branches in main ports of china. it is principally engaged in the operation and management of international container transportation as well as domestic trade lanes. recently escl dalian branch is going to bid for china first motor and nissan which selects one company as carrier for their sea-shipment to/ from shenyang. however, we are facing a problem on serious shortage of 20 container due to imbalance of its import and export of 20 container in shenyang. we try to arrange empty container repositioning from dalian to shenyang, but we have to pay extra charge of rmb3000/20 container for a/c freight from dalian to shenyang. obviously, the freight cost would be increased too much . if we cant solve this problem, we will most probably lose china fist motor client. i, as supervisor of japan-korea lines of asia-pacific in escl , have clearly noted this matter，so we plan to launch a new regular service and import 20 foot container from japan port to final destination in order that it could provide more 20 foot container to meet china first motor requirement. based on customer-oriented theory and cost-control policy it took around two months to finish my project by taking several scientific researching methods. especially, the most important part of my project is the cost analysis, the total estimated operation costs of the project mainly contain four parts including rental of chartering vessel space, empty reposition of container, loading and discharging filled container and management of equipment control. as the total amounts of usd 85117 is reasonable and acceptable it is smoothly approved our top management of the company.the goal of my project is to supply sufficient 20 foot container in shenyang, to satisfy the customers requirement of 20 foot container there. the objective is to seek a suitable container vessel and charter the spaces, to launch a new regular service from overseas port to final destination shenyang, to establish good relation with vip customer and imported 20 foot container from osaka port to shenyang through our new service, to increase shenyang imported 20 foot container up to 250-300 units per week.2. problem identification and analysis2.1 current situationrecently escl dalian branch is going to bid for china first motor and nissan which selects one company as carrier for their sea-shipment to/ from shenyang. however, we are facing a problem on serious shortage of 20 container due to imbalance of its import and export of 20 container in shenyang. we try to arrange empty container repositioning from dalian to shenyang, but we have to pay extra charge of rmb3000/20 container for a/c freight from dalian to shenyang. obviously, the freight cost would be increased too much 22 customer profileour major clients were listed as follows: 1) the first client is china first motor which chose our company as carrier for their sea- shipment to/from shenyang. 2) the second client is shipper nissan which we provide the service for their sea-shipment to/ from osaka .23 human resources involved there are more than 10 employees in our division and 3 persons are responsible for japan-china lines, the committee to fulfill the project will consist of 6 members, including colleagues coming from marketing division and equipment control division additionally we will request our dalian branch to nominate a senior employee to specially follow this case, meanwhile, we shall choose an new agent in osaka. i, as the head of the committee will be responsible for the whole procedure of the project and supervise all related activities. 24financial status escl was able to achieve remarkable results again under an operating environment where there was a general increase in operation costs. it is reported that for the year ended 31 2009, the company recorded a turnover of rmb28,374,680,000, achieving an increase of 26.9% as compared with the same period last year. however, profit before income tax decreased by 8.2% as compared with the same period last year to rmb4,309,263,000 and profit attributable to equity holders decreased by 10.7% as compared with the last year to rmb3,582,782,000 as a result of and increase in operation cost. one of reasons for increased cost is stevedore charges for loaded and empty containers amounted to rmb6,506,474,000, representing an increase of 26.6% , principally due to the increase in the volume of loaded cargoes in the international and domestic trade lanes and repositioning of empty containers. in view of trade imbalance, escl now has to arrange about 33,000 teu (twenty-foot equivalent unit, 20 equivalent to 2 teu) empty positioning per week, which costs around usd 3,300,000 per year. therefore, it is one of our missions to reduce the cost of empty repositioning by means of various methods. the research on marketing in shenyang shows the imbalance volume of 20 foot container is more than 150 units per week. calculating the empty positioning cost of rmb3000 per 20 foot container from dalian to chang chun, the annual cost will up to rmb21，600，000 through our effort, our investigation about import marketing also shows there are many ckd (completely knotted down) shipment of auto spare parts imported from osaka ( port of japan),the shipper is mazida while receiver is china first motor, but the service now is served by other shipping company, according to history record there are around 150 units 20 foot filled container per week from osaka to shenyang. by evaluating the method of the project, if we can succeed in launching a new weekly service to transport 20 foot loaded container for shenyang ,then we can not only have 20 foot container to meet requirement but also save the huge cost of empty repositioning. as for opening a new service, the cost and income of one import and one export voyage is listed as follows:cost for chartering space of vessel (round trip) usd30000cost for empty 20 foot container fm dalian to osaka usd23850cost for loaded 20 container in osaka and dalian usd34200cost for management of equipment control fee usd11700total cost: usd99750income of ocean freight from osaka to dalian usd7500income of surcharge: usd76950total income: usd84450considering we can save the cost of rmb1400/20 empty repositioning fee from dalian to shenyang, total usd26250 per week, we finally can get operation benefit total usd10950 per week 25 a swot analysis of the situationbased on the previous discussion of both internal and external situations of our business as well as the needs and wants analysis of our business, a swot analysis is carried out to focus the projects activities into areas where our business are strong and weak and where the greatest opportunities or threats lie.25. 1 strength1) one of leading shipping lines in china, now rank no. 9 in china with good reputation and more competitive ability.2) leading market position in china, which has rapidly growing export industries.3) yang fleet with lower operating costs for vessels.4) exploitation of market opportunities and strategic fleet expansion.5) experienced management team.6) flexibility to deploy resources.7) strong sales network with broad geographic coverage.8) competitive rate in main ports all over the world comparing to other company.252 weaknesses1) we now have not available container ship to serve for above mentioned new regular service, and have to charter a vessel from other company, therefore, the management of ship will be control by other company, it may exist potential problem.2) our company cant obtain the confirmation from the shipper on insuring their shipment volume up to 150 units per west bound voyage; however, our company has to pay a lump sum space chartering rate of 150 units (total usd15000) even if the volume cant reach to 150 units. 3) government control of currency conversion or future movements in exchange rates may adversely affect the financial condition and operating results of our company because we collect ocean freight from customer in us dollar and pay the haulage in rmb for transportation in china. 4) our companys core business management system, the leadership system, may not be sufficient to handle our companys growing operations; our company will be unable to modify the program applications used to operate it.253 opportunities1) with chinas significant growth in foreign trade following its entry into the wto, china has also experienced significant growth in its container shipping industry.2) growth will continue to be driven by growth in the level of chinas foreign trade.3) container transportation is growing in china and has opportunities for further growth.4) increased capital investment in chinese ports and related infrastructure may enable container throughout to increase.5) cost of shipbuilding in china remains relatively inexpensive compared to such costs in other nations.6) liner services to/from china are becoming increasingly completive and this will continue under the wto agreement, however, domestic or costal container shipping and feeder services in china are likely to continue to be dominated by chinese-owned companies.7) china as the biggest trading country with japan, the import cargo from japan is steadily increasing.254 threats1) the companys business is seasonal. 2) increases in marine fuel prices could increase the companys operating costs.3) changes in anti-trust immunities could adversely affect our company.4) changes in environmental and other regulations could adversely affect our company.5) increased inspection procedures and tighter import and export controls could increase the groups operating costs and cause disruption to our business.6) container shipping is a capital-intensive industry and the sources and conditions of our company future financing are uncertain.with the above analysis of company current situation and customers needs and wants, a two-month plan is considered as the appropriate and effective way to solve the problem.3. project objective and hypothesis3.1 project objectivethe goal of my project is to supply sufficient 20 foot container in shenyang, to satisfy the customers requirement of 20 foot container there. the objective is to seek a suitable container vessel and charter the spaces, to launch a new regular service from overseas port to final destination shenyang, to establish good relation with vip customer and canvas imported 20 foot container from overseas port to shenyang through our new service, to increase shenyang imported 20 foot container up to 250-300 units per week.32 project hypothesis: it is hypothesized that if our company can launch a new regular service and import 20 foot container from overseas port to final destination shenyang, then it could provide more 20 foot container to meet customers requirement there by reducing the cost of empty reposition.i will be responsible for the supervision of whole procedure of the project and integrate with the opinion of the customers and ship-owner. i will make the proposal and monitor the process of carrying out, also will report timely to my leader for further decision 4. project rationaleto satisfy the customers requirement and monitor our service keeping in good status and procedure i would like to refer to the books and articles i have read such as “world class english for business book 1 & 2” “customer centered growth” “quality management systems” and annual performance publicity by our company. i have quoted some useful rationales for my project as below:1） an organization can improve its service to the customers. their success depends on having a strong customer service policy.2) a good customer service policy depends on knowing what customers want and how they feel about the service you offer3）there are three ways of getting feedback from customers in face-to-face interviews, on the telephone and through a written questionnaire4）the quality management system approach encourages organizations to analyze customer requirements, define the processes that contribute to the achievement of a product or service, which is acceptable to the customer, and keep these processes under control. a quality management system can provide the framework for continual improvement to increase the probability of enhancing customer satisfaction and the satisfaction of other interested parties. it provides confidence to the organization and its customers that it is able to provide products or services that consistently fulfill requirements.5） successful communication is essential for our survival.6) our company, eastern shipping container lines, shall apply strict cost control over equipment control and transporting operation in the future. the company will enlarge the service networks and reduce operation cost; to study state policy related and optimize line layout and thus seek for a more effective application of the companys source.meantime, i reviewed the related section of the books before i made further investigation.only an organization is customer-centred, and the organization is well aware of the customers current and future needs and mange to meet the customer needs or even do better than the customers expectation, their business can have a big progress.“giordano” is a good example. “giordano” developed smoothly in asia pacific, but there were some problems when then came into china market in 1993. they lost 15 million dollars. they did many reforms at that time. they promise to follow the advices of customers to improve their service. they made an activity named “mystery buyers” which are acted by the employees in the company. their hong kong office is much eager to get advice from the customers for they had 26% shares of their whole sales. they advertised on hong kong newspapers to get claims from customers. one customer can get one free t-shirt. they got 40000 letters from customers. the most people claim the size of “giordano” is much bigger than the other brand. “giordano”, added a “xs” size. as a result, “xs” size get 12% share of the whole sale and almost all of them are new customers. from the claims, “giordano” also found their services are over warm. the customers are not comfortable