Though you’re never done trying to get better, it’s not always obvious where to focus your limited resources when it comes to improving your terminal operations.
If you’re comparing your terminal today with data from one year ago, you may notice a massive improvement in efficiency and turnaround time. However, this may not always be accompanied by a big increase in revenue or customers. To understand why this is, you’ll have to look beyond your terminal and understand how your competitors are doing.
Understanding your competitors is the best way to figure out where you stack up in the marketplace. It’s also a great way to determine how to target upgrades and improvements for your terminal. To help you accomplish this, we’ve put together a list of 6 insights you should know about your competitors.
1: Location Matters
The first thing terminal operators need to know about your competition is how much of it you have and where they’re located relative to your own terminal.
Knowing where competitors are located is vital to help understand:
- Market Saturation: Is your area highly saturated or ripe for growth?
- Customer Accessibility: How close are you and your competitors to key customers or transportation hubs?
- Resource Allocation: Understanding the competition’s location lets you allocate resources wisely. For example, if a competitor is strategically positioned near a major transportation route, you might want to focus on differentiating through specialized offerings
Finding your competitors can be as easy as a Google search, but you can also try things like industry associations, forums, market reports/studies and networking events and conferences.
2. Market Presence
Market presence refers to many things. Primarily, it’s a measure of your competitor’s market positioning, strengths and weaknesses, customer perception and market trends.
Having a solid handle on your competitor’s market presence means knowing things like their:
- Brand Recognition: Higher brand recognition = higher credibility and customer trust
- Existing Customer Base: Well-established competitors will have large and diverse customer bases
- Market Share Percentage: Higher market share means more presence and influence in the industry
- Online Engagement: A more active online presence shows a competitor’s will and ability to connect with their customers
- Industry Awards and Status: A great proxy for how well-respected the company is in industry circles and a good way to determine what specific things their terminal is excelling at
Leveraging knowledge of your competitor’s market presence will allow you to make smart decisions when it comes time to create your own value proposition, decide which niches to target and determine how to build your terminal’s brand.
3. Cargo Diversity
If you want to forge a real competitive edge against your fellow terminal operators, one great avenue to explore is cargo diversification. This can be especially true if your terminal is in an area that is highly saturated or if you’re trying to find advantages over rivals who have the upper hand when it comes to location or logistics.
How to Tell What Cargo Your Competition is Working With
Try these sources to determine the types of cargo your rivals are specializing in:
- Industry Publications & Reports
- Port Authority Records
- Online Presence/Marketing Materials
- Conferences
- Customer Case Studies
How Terminal Operators Can Strategize Around Cargo Diversity
Once you know what types of cargo your competitors are working with and specializing in, consider these strategies to carve out an advantage for your terminal:
- Identify open niches and address them directly
- Tailor marketing to highlight expertise with specific cargo. Highlight safety and compliance measures
- Invest in specialized equipment, facilities and training to handle unique cargo types.
- Leverage technology solutions that can help you streamline operations and attract specific clients
4. Terminal Roles and Access
Another important piece of information to gather when assessing your competition is the role their terminal plays in the global supply chain. This has a lot to do with what types of cargo they specialize in and will naturally reflect how they position themselves in the market.
Understanding what type of terminal your competitor is running will give you an advantage when it comes to things like specialization, investment planning, risk management, resource allocation and customized services.
The Role of Collaboration among Terminal Operators
However, not everything has to be about coming out on top of your competitors.
In many instances, working together with your closest competitors can be a mutual benefit. For example, combining the services of container handling with a neighboring terminal that can handle hazardous or sensitive materials can give both of your customer bases more options.
5. Keeping Tabs on Developments
Having a solid grasp on the state of your competitor’s terminals will give you an immediate leg up in the marketplace. However, you can’t expect them to stay stagnant. Your competitors will be constantly growing and changing, just like you.
In order to avoid surprises in your competitor’s operations:
- Follow their social media to stay up to date on their marketing and messaging.
- Read industry news and publications to see if their names pop up.
- Participate actively in industry forums and groups.
- Review annual reports and filings. These documents often contain information about upcoming projects, expansions, or strategic shifts.
Compare your own terminal operations with the new developments of your competitors to ensure you don’t get left behind.
6. Measuring Performance
Assessing the efficiency of your competitors’ terminals provides valuable insights for gaining a competitive edge. Here’s how you can do it:
Monitor KPIs
Just like your own terminal, keep track of your competitors’ turnaround time, vessel productivity, cargo throughput and equipment utilization.
Compare their performance against a benchmark, as well as your own terminal. Look for ways you feel you can stretch or gain an advantage.
Customer Feedback
Some of your customers may have experience with your competitors. Asking them for direct feedback about what they liked or didn’t like about your competitors’ terminals is a great way to find out where to focus your attention.
Direct Observation
If possible, visit your competitors’ terminals to observe their operations firsthand. Look for visible signs of inefficiency that you may be able to capitalize on.
Finding Success with Tideworks
When it comes to gaining a competitive edge, understanding how your competitors’ operations function will give you critical insights you can use to gain advantages in the marketplace.
To accomplish your competitive strategy, you’ll need a technology partner that’s flexible and powerful enough to help you implement big changes quickly.
Tideworks has spent more than 20 years developing software solutions for marine and intermodal terminals around the globe. We’re ready to help you gain and maintain your competitive edge with state-of-the-art terminal operating systems,, training and implementation services and operational consulting.
Learn more about how Tideworks can keep you ahead of the competition.