Oct 2019


 Freight Forwarding companies Mumbai - 6 points to help you compete in the shipping and freight industry
Credits : freepik.com

Here are 6 differentiators to help you compete in the shipping and freight industry:

  1. 1. Service
  2. 2. Relationship
  3. 3. Reputation
  4. 4. Innovation
  5. 5. Product
  6. 6. Price

1) Differentiation by service

While routing, transit, ports etc may be common, one main factor that will set you apart from your competition and something that your customers look for is SERVICE.. The pre-sales and after-sales service that you offer.

Make it easy to deal with you

As much as you think this is a basic requirement, something as basic as this is a “big” differentiator when it comes to customer service and customer contacts

Am not sure how many of you struggle to find a simple telephone number on a website of many companies.. I have seen many websites of companies where a simple telephone number maybe buried a few pages deep or  all you get is a contact form to fill up..!! How frustrating.

While it is natural to go that route when you have 100s of offices worldwide, it can still be made easier in a lot of cases.

Ease of doing business with a company is something that a customer is always looking for, so take the time, make the effort, be accessible and make it easy for the customer to deal with you.

Make your process unique

  • Have a different approach to your client’s problem, don’t treat your customer as a number
  • Show the unique benefits your client can enjoy by using you

Differentiate your business model

  • Give your customers a different business model to look forward to and work with
  • Develop your own unique business model which is not available in the market (like a 24-hour access point for any port/customs/transport queries)

Offer value

  • Whether it is a service or a product, customers are always looking for value in their purchase
  • There are many cases where customers will pay more for products or services with value
  • Find your niche and offer the best value that you can to your customers

Hire right

  • Having the right personnel handling their business makes a big impact on your client
  • Show the customer you take their business seriously and nominate the right person for the right job
  • Adding some high level subject matter experts to your team will create confidence in your services

Train, train, train

  • No, not the rail variety, the training variety
  • Training is an important and integral part of differentiating your services
  • In order to provide an exemplary service, your team must be well trained not only in terms of your service offering, but also in terms of solving the customer’s problems and meeting their requirements

2) Differentiate based on relationship

  • NOTHING beats RELATIONSHIP when it comes to sustainable business development
  • Many businesses survive due to the relationships that are created and developed between the seller and buyer, service provider and customer etc
  • Businesses based on relationships tend to last much longer than other commercial or conventional businesses
  • A big step towards this, is for you to be GENUINE in your approach to the client, their business and an honest intention to assist with their requirements
  • In some cases it may take years to cultivate the kind of relationship where the customer gives you the business without asking what it costs because you have created that implicit trust in you and your service.. Yes there are several customer relations like this

3) Differentiate based on Reputation

  • 1. Having in-depth understanding of your market will establish you as an industry expert and creates a reputation around you and your business
  • 2. This helps you maintain your value in your industry
  • 3. Businesses based on relationships tend to last much longer than other commercial or conventional businesses
  • 4. This helps you gain credibility in your industry
  • 5. Reputational differentiation is an easy way to differentiate yourself in your industry so people know to ask for you by name

Use your reputation

  • 1. You have created a good image and reputation for your business and yourself through your high level of service quality products, unique business model and performance
  • 2. Use it to your benefit and that of your customer’s

Be a specialist

  • 1. All clients have various pain points in their business
  • 2. That is why they need a service provider or someone to provide a solution and relieve them of the pain
  • 3. Specialise in solving a specific pain point in your client’s business.. For example, there may be clients who are successful in shipping overseas but have major problems in serving their clients inland in a particular continent (example Africa) or country (example India)..
  • 4. So you could be an inland movement specialist who specialises in assisting clients with this kind of pain.. Or you could be an Out Of Gauge or Abnormal Cargo transport specialist..
  • 5. Specialisation helps promote your services further and get you more word of mouth promo
  • So don’t try to be a jack of all trades – be a master of one
  • While this is usually successful if your field is rare, you need to keep innovating to stay ahead as your competition is usually waiting to emulate your success..
  • Have a specific target market and be the best at servicing this market.

4) Differentiate through Innovation

Which brings us to INNOVATION.. Probably the biggest buzzword to hit many industries in a very long time, especially of late.. But it is not just a buzzword like many others.. This is a serious buzzword..

The world is progressing rapidly and if you don’t innovate you will be left behind.. Combine traditional service with innovative technology..

5) Differentiate using your product

  • 1. Product differentiation and innovation like above go hand in hand
  • 2. Product differentiation is a main form of differentiation and
  • 3. Those that have innovated are ahead of the pack

Have a distinctive but flexible strategy for your product

  • 1. Ok, this is not an oxymoron and yes it is possible..
  • 2. Our industry does not have a one size fits all solution for its problems
  • 3. So you should have products and business strategies that are distinctive to you/your company but flexible
  • 4. A lot of big businesses don’t have strategies that are flexible and because of this they may not be able to compete against the smaller but more agile competition

6) Differentiate through price

  • 1. Drop the price and secure the business
  • 2. Although it may sound easy, it may not always be the case as the customers are much too wary about “what you pay for is what you get”
  • 3. In some cases, this type of differentiation comes with a big compromise in quality, something that some of the customers are well aware of
  • 4. In many industries including shipping and freight, this type of differentiation doesn’t even need a sales department or sales person to secure business
  • 5. Anyone with a phone can contact customers, offer lower rates and secure business If you are wondering, why then I have shown this as one of the types of differentiation, it is because this form of differentiation is probably the most popular or most common in many industries.. In this day and age of depressed margins and revenue, everyone is looking to cut costs and what better way than to get your shipping rates as cheap as possible..

 

Source : shippingandfreightresource.com


Back to All Logsitics Articles and Resources


Also read: 8 points to consider before you sign a bill of lading



About Fame Global Logistics Pvt. Ltd. :


Fame Global Logistics Pvt. Ltd. is one of Best Freight Forwarding companies Mumbai We offer services like BDD Import, BDD Export, Ocean Cargo / NVOCC, Air Cargo Division, Buyer Consolidation, Custom Clearance, Warehouse and Distribution, Transportation etc.

Talk to us on 022 27564676 Or Email us at info@fglindia.net / salescordmum@fglindia.in .

Happy to help!



Share This: