Special Supplement: Brand building boosts port development

YANTAI: "Vehicle loading network", a load-unload approach invented by Longkou Port, was put into practice at the beginning of last month.

This approach makes it possible for different vehicles to be loaded and unloaded only once on the road from the factory to the ship, as it serves different vehicles with exact "tailored service" according to their size, thus increasing the load-unload efficiency by 30 percent.

"It is only the epitome of our management idea of 'differentiated strategy and tailored service'," said Li Anle, assistant to the Longkou Port general manager.

"Tailored service cannot be separated from readjustment of procedure and innovation of techniques. Apart from the 'vehicle loading network', we also made improvements in the loading facilities, including the big triangle chain hook and the small triangle chain hook to sling billets. Both of them won technical innovation prizes from the Ministry of Communications," said Li.

"Differentiation" means to gain diversified competitive superiority through subdividing the market and providing tailored services. It has currently become a trend in port developing strategies.

Back in 2004, when its handling capacity broke through 10 million tons, Longkou Port felt unprecedented pressure from severe competition on all sides: the neighboring bigger ports were powerful, the smaller ones were developing rapidly. As a medium-sized port, how was it to remain invincible? It chose to get the upper hand through differentiation.

Maintaining momentum

The port adjusted its development focus in accordance with the market. On the basis of detailed market surveys, it selected coal, liquid chemicals, ore, cement, and grain as the mainstay of its goods supply. It has now become a comprehensive modernized port with competitive advantages in goods supply.

Longkou Port's strategy of differentiation is also demonstrated by the implementation of brand service. It is building a freight operation system suitable for modern logistics through promoting tailored service, extending service scope, improving its quality, and implementing "a coordinated process of service."

"The customers only need to sign a contract with us. All the other things will be done by us," said Cui Tiecheng, manager of Longkou Port Operation Department.

In fact, "all the other things" cannot be done easily as the operational service system includes business with many sections like port inspection and quarantine, customs, storage, transportation and so on.

The load-unload of goods is the core of the "coordinated process of service". How can operational quality and efficiency be improved? How can a brand service be forged in this field? The key provided by Longkou Port is innovation.

Since 2003, it has put forward some technical reform projects every year. To date, more than 40 instances of technical reforms have been completed, accelerating the construction of brand service.

Customer-orientation

Longkou Port has always put customers' benefits first and is ready to help them out of difficulties. In recent years, when dried cassava did not sell well, the port took advantage of its existing information network to find buyers and sales channels for the consignors.

It also assists consignors in transporting their goods to the port via water routes rather than expressways, thus saving more than 10 yuan per ton. All these key services, never provided by traditional ports, are now on Longkou Port's service list.

Tailored services are offered to different customers for their satisfaction. Australian consignors are strict in loading quality: any sundries should be avoided. The subsidiary of Longkou Port, who is in charge of the loading operation, changed all the wood tools like cordage, wood baton, and broom, to plastic ones in order to meet the customer's requirements.

Its tailored services have won Longkou Port the trust of customers as well as sufficient supplies of goods. More and more foreign companies are now choosing Longkou Port for the import and export of their goods.

This year, Longkou Port, together with a Singapore logistics giant, is building a logistic station in the city of Weifang, hinterland in interior Shandong Province. The station will provide customers with an information platform, as well as a basket of services.

With "meeting customers' requirements, exceeding customers' expectations" as its motto, Longkou Port is implementing its brand layout, following the four principles of customer-orientation, differentiation, individualization, and dynamic adjustment. The brand service under the strategy of differentiation will surely boost further development of Longkou Port.

(China Daily 11/09/2007 page19)