Final Project: Group 3
Final Project: Group 3
Final Project: Group 3
REPORT
GROUP 3
MIS3
LECTURER: DR. KHANH NGO
GROUP ASSIGNMENT COVER SHEET
STUDENT DETAILS
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Student’s signature: Nguyễn Phương An
Student’s signature: Mã Thiên Kim
Student’s signature: Vương Ngọc Nhã Linh
Student’s signature: Nguyễn Hồ Cường Phát
Student’s signature: Lê Hoàng Phương Uyên
Student’s signature: Nguyễn Trần Thục Uyên
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TABLE OF CONTENTS
1. Executive summary........................................................................................................ 3
2. Introduction................................................................................................................... 3
2.1. Company introduction..................................................................................................3
2.2. Organizational Chart.....................................................................................................4
2.3. Company Overview...................................................................................................... 6
2.3.1. Business Model................................................................................................... 6
2.3.2. Customer Journey and Customer Pain Points through Customer Journey..........7
2.3.3. Existing Information Systems of the firm:........................................................... 8
3. Strategic System Analysis................................................................................................9
3.1. Industry Analysis...........................................................................................................9
3.1.1. Industry Overview............................................................................................... 9
3.1.2. Five Competitive Forces Analysis.......................................................................10
a. Competitive Rivalry in the Logistics Industry.....................................................10
b. The Threats of New Entrants............................................................................. 11
c. Bargaining Power of suppliers............................................................................11
d. Bargaining Power of customers......................................................................... 11
e. Threats of substitute products or services........................................................ 12
3.1.3. Basis of competition in the industry (Quality, Price or Brand).......................... 12
3.1.4. Direction and nature of change within the industry......................................... 12
3.1.5. Current digitalization in the industry.................................................................12
3.1.6. Global future trends of digitalization in the industry........................................ 13
3.2. Firm’s competitive strategies......................................................................................13
3.2.1. Firm’s goal and objectives................................................................................. 13
3.2.2. The Strategy for DX from Business Perspective and Customers’ Pain Points.... 14
3.2.3. The use of BRAVO 7 ERP.................................................................................... 15
a. Operation...........................................................................................................16
b. Sales & Marketing..............................................................................................16
c. Documentation.................................................................................................. 16
d. Accounting.........................................................................................................16
3.2.4. The value chain analysis.................................................................................... 17
3.2.5. The core competencies..................................................................................... 18
3.2.6. Firm’s ecosystem & Value Web..........................................................................18
4. Business Challenges Analysis........................................................................................ 20
4.1. Overall........................................................................................................................ 20
4.2. Management.............................................................................................................. 20
4.3. Organization............................................................................................................... 21
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4.4. Technology................................................................................................................. 21
5. Solutions...................................................................................................................... 22
5.1. Candidate application: BRAVO 8 ERP..........................................................................22
5.2. Challenge 1................................................................................................................. 23
5.3. Challenge 2................................................................................................................. 23
6. Conclusion....................................................................................................................24
7. References....................................................................................................................25
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1. Executive summary
The primary purpose of this paper is to consider the challenges of the current BRAVO
7 ERP system and to recommend an updated ERP system, BRAVO 8, for effective
performance in the business and customer experience. The challenges that are facing
Empire Logistics with its current ERP system, BRAVO 7 ERP, are as follows: limited data
archiving, quotation management, and House Bill creation. This will seriously compromise its
ability to handle large volumes of intricate data for optimal performance and customer
satisfaction.
The research methodology comprises this: a deep analysis of the current ERP system
of the company and pinning down its limitations and how much impact it causes in the
different departments such as sales, documentation, and accounting. The study also
comprises an evaluation of the features of the proposed ERP system BRAVO 8 and its
potential benefits.
The report recommends adopting the new BRAVO 8 ERP system. It will improve upon
data processing, enhance security, and have more integrated functionality across
departments than BRAVO 7 ERP.
The information in this report is based on the data collected from research,
interviews and observations.
2. Introduction
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Director, and Christine Mai Anh, the General Director, who are responsible for the overall
strategic direction and leadership of the company. Supporting the Board of Management is
Nguyen Huu Toan, the Vice Director, who oversees various departments and activities within
the company.
The Export and Import Department, headed by Kathy Quyen, the Export Manager, is
divided into two main groups: the Sales Department and the Documentation Department.
The Sales helb by Dennis Toan, the Marketing Manager. Department focuses on promoting
the company's services and managing customer relationships as well as managing client
relationships and handling sales operations, with multiple coordinators responsible for
different aspects of export and import sales activities. The Documentation Department
specializes in managing and processing all necessary documentation for export and import
transactions, ensuring all paperwork is accurate and compliant with regulations. Susan Linh,
the Special Account Manager, oversees key accounts and provides specialized support to
major clients within this department.
Lastly, the Accounting Department, headed by Tracy Lien, the Chief Accountant,
manages the financial activities of the company, including accounting, budgeting, and
financial reporting. The team consists of multiple accountants who handle various financial
tasks and ensure the company's financial health. This detailed structure allows Empire
Logistics to operate efficiently by clearly defining roles and responsibilities across different
functions, ensuring that each aspect of the business is managed effectively.
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Figure 1: Organizational Chart
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2.3. Company Overview
a. Key Partners:
The company's success is heavily reliant on its robust network of key partners, which
includes global associations of freight forwarding and logistics, various domestic and
international agencies, and logistics suppliers. These partnerships are crucial for ensuring
the smooth operation of the company's services, facilitating global reach, and providing the
necessary support to manage complex logistics and supply chain processes efficiently.
Collaborating with international and domestic agencies enhances the firm's credibility and
capability to offer reliable and secure logistics solutions.
b. Key Activities:
The primary activities of the company focus on providing comprehensive logistics
services. This includes freight forwarding, project logistics, customs brokerage, and
warehousing and distribution services. Additionally, the company manages global supply
chains, offers air freight services, household removal services, and participates in fairs and
exhibitions. These activities are essential for meeting the diverse needs of their customers,
ensuring timely and efficient delivery of goods, and maintaining a competitive edge in the
logistics industry.
c. Key Resources:
To support its operations, the company relies on several key resources, including
licenses, buildings, and facilities. These resources provide the foundation for the company's
service offerings, ensuring compliance with regulatory standards and facilitating the physical
infrastructure necessary for logistics operations.
d. Value Proposition:
The company’s value proposition is centered on trust, security, and flexibility. It
promises secure cargo handling and offers flexible solutions tailored to specific customer
needs. By ensuring on-time delivery and providing cost-effective services, the company aims
to build a reputation for reliability and efficiency. Dedicated service is another key
component, emphasizing the company's commitment to customer satisfaction and
personalized support.
e. Customer Relationships:
Maintaining strong customer relationships is a priority for the company. It offers
comprehensive customer support and focuses on retaining redealer customers through
high-quality service. This approach helps build trust and loyalty, encouraging repeat business
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and positive referrals. The company’s customer-centric strategy ensures that clients feel
valued and confident in the services provided.
f. Channels:
The company reaches its customers through a combination of online and offline
channels, including a website, physical offices, and B2B interactions. The website serves as a
critical platform for customer engagement, providing information, service details, and
support. Physical offices offer a touchpoint for personalized service and consultations, while
B2B channels facilitate direct interactions with business clients, fostering strong partnerships
and efficient service delivery.
g. Customer Segments:
The company targets mid-range customers and businesses in logistics-dependent
industries such as tourism and transportation. By focusing on these segments, the company
can tailor its offerings to meet the specific needs of clients who rely heavily on efficient and
reliable logistics services to enhance their own service delivery and operational efficiency.
h. Cost Structure:
The company’s cost structure includes various expenses such as employee payables,
other obligations like trade union fees, social and health insurance, unemployment
insurance, and financial costs. Additionally, it incurs costs related to corporate management,
income tax, production, and business operations. Effective cost management is crucial for
maintaining profitability and ensuring the company can continue to invest in resources and
activities that drive value for customers.
i. Revenue Stream:
The company generates revenue through multiple streams, including sales revenue,
service revenue, and construction contract revenue. Additional revenue comes from
financial activities and the disposal or transfer of fixed assets. This diversified revenue model
helps stabilize the company’s income and supports its growth and expansion strategies.
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Empire Group focuses more on maintaining service quality, such as offering promotions to
loyal customers and keeping in touch with them. This approach helps build strong, long-term
relationships, which strengthens the company's reputation and attracts new customers.
During the consideration stage, Empire Group Co., Ltd sometimes encounters
problems with untimely quotes, causing customers to wait longer than expected. During the
purchase stage, customers will sometimes worry about the risk of goods being lost or
damaged during transportation, or of late delivery, causing customers to lose trust in the
quality of service. Additionally, when the company outsources warehousing and
transportation services, the inconsistency in service quality can result in customer
dissatisfaction. Such pain points create significant barriers to maintaining customer loyalty
and fostering long-term cooperation.
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BRAVO 7 ERP is a critical tool used by Empire-Group to manage various business processes
efficiently. This robust system supports the company's efforts to provide tailored, reliable
logistics solutions and maintain a high standard of service quality.
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Figure 4: Emerging Markets Index 2023 Rankings
With 48.57 billion USD of market size in 2024, this number is predicted to increase
sharply to 71.88 billion USD by 2030, estimating a 6.75% compound annual growth rate
(CAGR) (Mordor Intelligence Research & Advisory, 2024). The major players in Vietnam's
logistics industry included: BEELOGISTICS, Kuehne+Nagel, PVTRANS, VIMC, ViettelPost has
significantly created fierce and intense competition in this market. With the penetration and
expansion of a global corporation based in Germany: Kuehne+Nagel, the remaining domestic
corporations in Vietnam still maintain their competitive advantages and dominate the
market in this territory.
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and Tan Cang Logistics (SSD LOGISTICS, 2023). Apart from these organized players, small
unorganized transporters add to the intensity of competition in this sector (Tongzon, 2007).
Players in this sector compete aggressively on price and quality since every firm wants to
capture their market share in an environment that is already filled up with saturation. This
leads to innovation and efficiency but at the same time reduces the profit margin thus
making it difficult to be profitable in the long term. The entrance of new players like Amazon
and Alibaba who are technologically inclined has further increased competition (Cichosz,
2018). With their advanced technology and huge financial resources, these companies easily
come up with innovative solutions, thereby disrupting traditional business models and
reshaping the industry landscape.
In this industry, such small differentiation and low switching costs allows buyers to
obtain their desirable prices, which level of bargaining power is assessed to be medium to
high (Adamkasi, 2017). Recently, the consumers want their shipments to be delivered faster,
with more flexible and transparent processes at lower price points. As the buyers are the
immediate customers, a higher power to switch is witnessed thanks to availability of a large
number of suppliers at competitive prices. However, they are not accumulated, the power is
expected to be reduced to medium (Logistics Industry Analysis, n.d.).
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e. Threats of substitute products or services
The threat of substitutes is moderate to high due to shifting buyer behaviors towards
competitors, influenced by factors such as changes in service quality, freight rates, and
transit times (Kumar, 2017). Substitutes which can be different kinds of transportation such
as air freight, trucks, and rail can offer comparable costs with faster delivery. Emerging
technologies like 3D printing and hyperlocal warehousing further heighten this threat by
reducing the need for traditional shipping (Bizibl Logistics, 2016). While air freight's high
costs and limited cargo volume limit its threat, projects like China's "Belt and Road" initiative
could increase competition through container rail transport (Shama, 2020).
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shipment locations and conditions in real-time (CloudFret, 2024). These technologies
improve operational efficiency at every touchpoint.
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Figure 6: The firm Financial Report
This goal is based on revenue and profit statistics for 2023 along with the future
efforts that the company is aiming towards. Thus, in order to this specific goal, Empire
Logistics continues to strive to maintain and develop its competitive advantages such as:
building close relationships with potential B2B customers, as well as constantly improving
the standards and quality of customer service, empire logistics is and will bring unique
experiences with a combination of integrated logistics management services and
personalized services second-to-none. Specifically, during the operations, Empire Logistics
has proven their position in the transportation and shipment of the voluminous cargo
industry, they have successfully managed influential projects like the Black Point Power
Station Project and the PoChengTong Airport Terminal with 400 m/ton of construction
material transported by 18 long body trucks for the entire project from Ho Chi Minh City,
Vietnam to Cambodia. These were solid proofs and foundation for the goals and objectives
of Empire Group Co., Ltd could be achieved by the end of 2024.
3.2.2. The Strategy for DX from Business Perspective and Customers’ Pain
Points
Empire Group Co., Ltd. can aim to optimize its business operations by increasing
productivity and improving customer experience. After the COVID-19 pandemic, the
company's revenue has decreased dramatically. Therefore, it is vital to acquire new
customers and make more accurate decision-making based on data-driven so as to recover
revenue. In order to achieve these goals, the company can upgrade its Enterprise Resource
Planning (ERP) system to optimize data processing and automate business processes. In
addition, Empire Group Co., Ltd. should plan to enhance customer experience by providing
timely quotes and ensuring prompt delivery. After-sales service should also be implemented
effectively to maintain customer loyalty and satisfaction. These proposed strategies will
contribute to ensuring long-term growth and strengthening the company's position in the
market.
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Figure 7: Business Optimization Chart
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the company website as a central hub for service information, client inquiries, and requests.
A portal allows employees to track shipments, manage orders, and access documentation in
order to bring on-time delivery and limit risks. The system is used as means to communicate
with customers for shipment status updates with other related problems , improving
customer engagement. However, BRAVO 7 ERP does have its own limitations, which will be
discussed.
a. Operation
BRAVO 7 ERP is used for the operation department since it helps Empire Group
monitor logistics activities in the automated manner. The firm confirmed that it ensured all
logistics procedures to be closely managed, from ordering placement to final delivery.
Empire Group uses the system to bring well-qualified services, which leads to greater
efficiency and customer satisfaction. However, the challenge is to seamlessly integrate
BRAVO 7 ERP with existing infrastructures while ensuring that all members can use them
proficiently. So, BRAVO 7 ERP is still not a perfect solution for the company due to its several
obstacles.
c. Documentation
BRAVO 7 ERP is used to efficiently manage data and paperwork for
intercommunication with the Operation Department. This application is expected to lower
manual paperwork with the expectation to result in fewer errors, faster processing times,
and easier document retrieval. Unfortunately, BRAVO 7's documentation features have not
yet been optimized, the challenge is to digitize existing paper records, assure interoperability
with older systems, and preserve data integrity during the shift. The issue will be discussed
later in this report.
d. Accounting
BRAVO 7 ERP integrates three major accounting functions: managing finance and
accounts, combining financial data, and connecting with e-banking services, which for
Empire Group is Vietcombank. The application helps the Accounting Department to keep
track and post accurate and timely financial reporting, streamlined reconciliation
procedures, and smooth bank transactions. This integration enables for better cash flow
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management and financial planning. From Empire Group’s perspective, they confirm that
BRAVO 7 ERP adequately meets the Accounting’s needs.
Implementing Porter’s Value Chain framework and integrating BRAVO 7 ERP, the
value chain of a freight forwarding company can be depicted in a more realistic way. The
activities include inbound and outbound logistics, operations, marketing and sales, all of
which are essential to value creation.
Regarding inbound logistics, BRAVO 7 ERP automates order processing, tracking and
paperwork. The technology helps monitoring relationship with carriers, consolidators and
suppliers, ensuring that services are always in available condition.For outbound logistics, the
ERP system provides real-time shipment tracking and delivery coordination. BRAVO 7 ERP is
also used to support CRM functions of Sales & Marketing, customer interaction
management, sales campaigns and customers support. The system also facilitates accurate
quotation generation and contract management as well as streamline sales processes. In the
service area, BRAVO 7 ERP helps after-sales services by handling customer requests,
complaints and offering support. The application also generates reports automatically,
enabling the company to improve the services.
In general, the BRAVO 7 ERP integration developed the company’s efficiency, reduced
costs, and enhanced service quality, thereby increasing the whole profit margin for this
freight forwarding company. This comprehensive value chain framework ensures streamline,
optimized and coordinated operation to deliver maximum value to customers while
maintaining cost efficiency and operational effectiveness.
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Figure 8: Value chain analysis
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company has formed a close bond with key stakeholders such as warehouse providers,
information technology and transportation partners. Therefore, Empire Group is able to
create an integrated and seamless chain. This network facilitates efficient transportation,
storage and management, lowering costs and improving delivery times. Furthermore,
cohesive strategic partnerships as well as such useful shared data enable agile information
exchange, promoting innovation and flexibility, helping Empire adapt quickly to market
changes and customer needs. The synergy derived from these partnerships ensures
competitive advantage and sustainable growth in a dynamic logistics landscape.
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Figure 9: Firm’s Value Web
4.2. Management
With BRAVO 7, Empire-Group Co., Ltd. is able to handle the majority of management
system problems. The system moderately minimizes human error and the requirement for
manual work by automating a number of administrative and operational processes, which
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considerably lowers operational costs. Furthermore, BRAVO 7 enhances customer service
through its features, leading to rather high customer satisfaction and encouraging repeat
business, thereby increasing Empire Group Co., Ltd’s revenue and profits. Additionally, the
BRAVO 7 offers a unified platform for comprehensive management, integrating functions
into a single platform, which simplifies management procedures and delivers real-time
reporting for well-informed decision-making.
4.3. Organization
Empire-Group can control the organizational system quite well with BRAVO 7. The
BRAVO 7 significantly improves process efficiency by streamlining operations and identifying
bottlenecks. This software transforms previously manual business processes into fully
automated procedures, eliminating redundant and inefficient activities. As a result, each
department within the company operates and collaborates moderately; however, the
company’s ability to make necessary adjustments and advancement is being limited due to
insufficient technology, which will be discussed later. Besides, the trend of mergers and
acquisitions is becoming more prevalent in the current global economic slump, and the
BRAVO 7 system's flexible design still makes it simple to swiftly adapt to these shifting
requirements. It can be said that BRAVO 7 is an application that covers several aspects of the
company quite well.
4.4. Technology
Despite these benefits, the company faces several technical challenges with BRAVO 7
ERP. Logistics companies frequently have distinct quotation processes for specific types of
goods. The limitations of BRAVO 7, which include the inability to store all data, lack of
capabilities to edit and compare different quotations, compel the Empire Group Co., Ltd to
rely on Excel for exchanging data and quotation information. This reliance results in
significant time-consuming and poses a risk of miscommunication among various
departments within the business. This shortcoming leads to the delay and risk of inaccuracy
when providing quotations to clients, resulting in dissatisfaction in customer experience,
missing sales opportunities, lowering business productivity and creating potential loss of
business. Therefore, enhancement of BRAVO 7 with advanced Business Intelligence (BI)
features is urgently needed to adjust and compare quotations to improve efficiency,
customer satisfaction, and overall business performance.
Another disadvantage of BRAVO 7 is that the application cannot support the creation
of House Bills of Lading (HBL) because this process involves specific functionalities beyond its
scope. Creating an HBL requires capturing detailed shipment information, such as consignee
and consignor details, cargo description, weight, and dimensions for instances. It also
involves assigning a unique bill number, ensuring regulatory compliance, and generating
legally binding documents. These tasks need specialized freight management software
capable of handling complex logistics data and integrating with international shipping
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standards, which Bravo 7 ERP lacks; causing significant stagnation and deterioration in the
firm's services. Notably, manual HBL creation increases the likelihood of errors, leading to
potential discrepancies and regulatory non-compliance. These inefficiencies can cause
shipment delays, damage the firm's reputation, reduce customer satisfaction, and ultimately
lead to loss of business. Additionally, the need for separate software can complicate
workflows and increase operational costs. Therefore, companies must use dedicated
software to create and manage HBLs accurately and compliantly.
5. Solutions
5.1. Candidate application: BRAVO 8 ERP
BRAVO 8 ERP, a new version updated from BRAVO 7, is an advanced ERP software
that introduces significantly upgraded design and functionality, the application is also a
Custom Order Software offered by BRAVO, an IT enterprise. It features an intuitive,
customizable interface and enhanced data processing speed. Thanks to real-time access
across different platforms, BRAVO 8 advances the firm's coordination and operational
efficiency. The system enhances data security using Windows Communication Foundation
(WCF) and supports seamless integration with other systems via Web Services. These
upgrades differentiate BRAVO 8 ERP from its old version, stressing the new one as a
powerful tool for modern businesses seeking to streamline their processes and improve
overall efficiency (Maitt, 2022b). Internal and external issues will be solved by applying
BRAVO 8. The improvement of user interface and faster data processing increase operational
productivity and ease of use. Seamless data integration across departments also reduces
unexpected errors for the company to perform better, while advanced data security features
protect sensitive information, ensuring a secure working environment.
Last but not least, the features of advanced data processing and integration
capabilities let BRAVO 8 ERP bring a more speedy and accurate creation of House Bills of
Lading (HBL). Furthermore, its robust data storage will ensure documentations are well
prepared, which is useful in minimizing errors. With all the features above, BRAVO 8 ERP is
specialized to help Empire Group Co., Ltd streamline their HBL creation process, making the
process less time-consuming but still reliable. As a result, this efficiency also allows the
logistics firm to track shipments timeline more effectively, ensuring timely and accurate
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documentation. Externally, real-time data access and updates enhance customer
engagement and satisfaction. Clients are immediately informed about shipments tracking.
Automated notifications and seamless communication improve service delivery and
strengthen customer relationships in order to obtain strong loyalty. These enhancements
collectively lead to streamlined operations, improved productivity, and better customer
experiences.
5.2. Challenge 1
During the procurement processes of BRAVO 8 ERP, such a significant financial
burden is witnessed, requiring a substantial investment from the company's budget,
potentially resulting in cost deficits for other areas. Besides, BRAVO 8 ERP systems often
require regular updates and maintenance to ensure they remain functional and secure.
These costs can accumulate over time.
a. Short-term
Solution: Negotiation with the vendor for payment plans or deliberation of deferred
payment options is urgently needed to split the cost over a longer period. Additionally,
explore options such as bank loans or lines of credit to cover the initial costs. This expense
should be taken into account for investment.
Expected result: The company will be able to move forward with the upgrade
without experiencing a major financial burden.
b. Mid-term
Solution: Reviewing and cutting non-essential expenses to allocate budget for the
system upgrade.
Expected result: Reduce wasteful spending and make the most use of the money for
the uninterrupted progress of the system upgrade. Loans (if any) should be covered within
90 days (Net 90) of the firm’s implementation.
c. Long-term
Solution: Negotiate the terms of maintenance and support contracts with the
vendor. Aim for fixed rates over a longer period to avoid unexpected increases.
Expected result: Increased revenue from more efficient operations will provide a
stronger financial basis. Reinvesting earnings will ensure that the business continues to
expand and flourish, giving it a competitive edge in the market and long-term stability.
5.3. Challenge 2
Firstly, BRAVO 8 ERP, the solution for miscreation of HBL, can lead to a stagnation.
Applying a new application means that such temporary disruptions and a learning curve for
employees will be created; hence, the process will slightly deteriorate the firm's productivity.
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Furthermore, regarding domestic and international policies that will continuously change in
near future, Empire Group Co., Ltd are under pressure to perform their work efficiently.
a. Short Term:
Solution: Usage training is required and temporary solutions for tracking with House
Bills of Lading (HBL) are in need while BRAVO 8 ERP is configured. This ensures the on-going
status of HBL processing without major disruptions, although it may be less efficient.
Expected Result: The company is expected to maintain its operations without Less
significant downtime or interruption maintenance are under expectation of the company,
even if the process is temporarily less streamlined.
b. Mid Term
Solution: Since it is a Custom Order Software, Empire Group Co., Ltd should ask for
integration of a specialized module within BRAVO 8 ERP for handling HBL, including data
migration and process automation.
Expected Result: The company is looking forward to obtaining higher efficiency and
accuracy in HBL procedures, aligning with reduced manual workload and errors.
c. Long Term
Solution: Continuous maintenance as well as advance in the implementation of
BRAVO 8 ERP is required to meet the upcoming needs of near future demand. Whole new
trend popping up in the logistics industry requires continuing upgraded versions to bring
about qualified satisfaction of customers.
Expected Result: The firm will be able to access a robust and adaptable system that
can handle increasing volumes and complexities in HBL management; ensuring sustained
operational efficiency and contributing to long-term business success which let Empire
Group Co., Ltd easily adapt to new changes in the future.
6. Conclusion
In conclusion, incorporating BRAVO 8 ERP into company operations will become a
crucial strategy and a determining element for Empire Group Co., Ltd.'s long-term
objectives. This execution is expected to support Empire Logistics' maintenance of its
position as the industry leader in logistics, increase the quality of services it provides to
target customers, and improve operational efficiency. Empire Group Co., Ltd. will succeed
over the long run by strategically utilizing the new system's advantages while effectively
recognizing and mitigating current threats.
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