Competitive strategies for tank farm operations

Abstract

The aim of this research is to determine the criteria for selecting tank farm of the customers and to establish competitive strategies for tank farm operations so that tank farm operators can use them to improve their serves. The tank farm the study is an independent tank farm located at Map Ta Phut Industrial Estate, on the Eastern Seaboard of Thailand. The main services of typical tank farms are unloading of liquid chemicals from tanker, loading of liquid chemicals to tankers and tanktrucks, and storing of the chemicals. The research methodology consists of : 1. Studying of the tank farm business and services in the case study 2. interviewing five tank farms customers in Bangkok and five at Map Ta Phut Industrial Estate, with emphasis on the customer requirements and the criteria for selecting tank farm. The Analytic Hierarchy Process is used as a decision making tool for determining the important criteria. 3. Establishing the competitive strategies based on the obtained information. From the results obtain t was found that the man criteria used by the interviewed customers in their selection of tank farm services are 1. Cost 2. location 3. safety procedure 5. facilities 6. service. Base on the critera obtained and other intervewed information, the recommended competitive strategies for the tank farm operator include preparing the area for tank construction, providing 500 cubic-meter spot tanks for Bangkok customers, providing tank truck transportation service carrying chemicals from Map Ta Phut to distribute to the users in Bangkok, offering bonded warehousing, providing laboratory for sampling test of product, serving the ships 24-hour a day for berthing, loading, and unloading, providing such value-added services as adding additives and agitation service in order to improve the quality of chemicals to suit local usage, and promoting the right image of the tank farm in the eye of the target customers. The competitive strategies obtained from this research may be used by the tank farm operators to improve the services to conform to customer requirements, to persuade potential customers to use tank farm services, and to aid in planning future tank farms. This should result in mutual benefits for customers, service providers, and public safety alike.