7 minute read
Performance
INCREASING PRODUCTIVITY WITH TOS
Over the past decade, there has been a shift toward “smart” technologies that help increase effi ciency, writes Hugh Gallagher, vice president of marine client services, Tideworks Technology
Credit: Tideworks Technology
Decision makers across the supply chain are also evaluating smart technologies to identify ways to boost operational effi ciency and enhance productivity, safety and sustainability of their operations.
Even before the onset of pandemic-related supply chain challenges, terminal operators acknowledged the necessity of implementing technology and were updating existing processes to modernise their terminals. The increase in container volumes and resulting congestion from the pandemic has heightened urgency around modernisation strategies and put enhanced pressure on terminal operators.
The role of TOS
According to a 2021 report by the International Transport Forum, container terminal operators are the main driving force for terminal automation projects. As a long-term partner of terminal operators and full-service provider of comprehensive terminal operating system (TOS) solutions, Tideworks Technology has seen its customers (terminal operators) turn to TOS as the foundation of their modernisation projects.
In past decades, terminals were not dependent on technology to the degree they are today. Now that story is drastically different. TOS and the ancillary technologies that support terminal operations have become mission-critical components that enable terminals to achieve their business objectives, such as improving efficiency, safety and service.
Through additional automation, TOS solutions are becoming even better equipped to transform the way ports and terminals operate through more sophisticated integrations and data capabilities. And as introduced above, for many terminal operators, their TOS is the foundation to their automation and smart strategies because it can seamlessly integrate with other critical transactions throughout the terminal.
The term “smart terminal strategies” doesn’t have a singular definition and may have different meanings for various industry players. When Tideworks’ customers use the phrase “smart terminal” we’ve found they are often referring to modernisation programmes and efforts to increase technology adoption, integration and automation within their terminal or across their terminal network.
Regardless of the definition or term used, Tideworks is seeing more customers express interest in ways they can modernise operations. However, before supply chain stakeholders invest in new technologies, even TOS, it’s important to set a strategy and understand which aspects of your operations you want technology to address.
Evaluating technology
Implementing any technology platform should involve careful planning and execution. Before making a TOS purchase decision, operators should consider taking the following steps:
9 Identify current business processes Before incorporating new technology into existing terminal operations, it is important for organisations to have a clear understanding of their current business processes. Knowing what works and what needs to be improved through new technology can help TOS providers tailor solutions to fit a
8 Even before the
onset of pandemicrelated supply chain challenges, terminal operators acknowledged the necessity of implementing technology
terminal operator’s specific needs and address existing concerns. At Tideworks, we’ve seen that terminal operators who take the time to understand and deeply integrate us within their current business process see the most significant ROI.
9 Have a clear objective Hand in hand with identifying business processes, is understanding your current situation and the goals you have for the near and long-term. Terminal operators do not need to be experts in the latest automation or modernization solutions, but it is important for them to have clear goals that will guide technology providers and streamline integrations. Stakeholders could conduct a SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats) exercise to help identify any challenges or areas of improvement. Project planning exercises like this will help terminal operators set clear goals that they can share with the technology providers they choose to vet.
9 Approach new technology through a value proposition lens When terminal operators evaluate technology to invest in, one strategy that will help ensure ROI is to approach the technology through their value proposition. How will the TOS or gate management solution help differentiate you from competitors? What benefits or new capabilities would the integration of these tools offer to your customers? Would you be able to offer more visibility and share data that you couldn’t before? Looking at the technology through this strategic lens can improve the implementation and results secured.
No terminal is the same, and ROI will be different across terminals, so taking time to invest in strategy will enable terminal operators to implement technology that will drive productivity, facilitate data sharing and encourage stakeholder collaboration to meet customers’ needs.
After terminal operators have created their modernisation plans, vetted TOS providers and gone live with integrations, the benefits can be somewhat immediate. While automation is not a one size fits all solution, it’s helpful to understand some of the common pain points facing operators and how TOS integrations have been beneficial to lessen those strains.
The Benefi ts of TOS solutions
TOS solutions that connect with other port systems and automation technologies can help terminal operators mitigate congestion, improve collaboration and cut costs.
One of the core objectives terminal operators have for their TOS integrations and modernization strategies is to increase the flow of cargo and information through the terminal. TOS solutions connect all elements of a terminal, allowing for improved container visibility, better planning and enhanced productivity. With a Tideworks TOS solution in place, customers have seen tremendous productivity gains directly connected to increasing throughput. For example, after implementing Tideworks’ TOS, customers have been able to effectively manage higher container volumes and increase turn times, mitigating congestion and reducing emissions from trucks idling in line at the gate.
Incorporating TOS solutions provides terminal operators with the ability to solve problems through shared data. With access to data generated by a TOS, customers can identify where operational problems are occurring. For example, through daily reports, terminal operators can pinpoint peak times of congestion and use the data to refine their schedule of arrivals and departures to better accommodate the flow of activity.
With that said, in order for visibility and access to data to be truly valuable and productive it needs to be timely and connected. For example, knowing where a container is, is not particularly helpful if it’s buried under other containers in the yard and it needs to be picked up in a matter of minutes. As TOS integrations evolve, sophistication of tools that forecast and help anticipate moves will deliver value in modernization strategies.
Maybe the most beneficial result of introducing TOS solutions is the impacts to the bottom line. The increased efficiency from automation and TOS integrations can improve throughput and accuracy of movements that directly reduce downtime and unnecessary moves. In fact, automation at ports has the potential to reduce operating costs by 55%, according to a study by McKinsey & Co. For Tideworks’ customers, decreased downtime and congestion have translated to increased savings and have even attracted new partners and customers.
The future of terminal operations
As TOS technology continues to evolve, the future of smart terminals remains bright. Tideworks is continuing to evolve its solutions, laying the groundwork so terminal operators can hit the ground running with modernisation programs. Below are a few elements that will continue to drive terminal operations forward.
Through an integrated TOS solution, every logistics stakeholder can access real-time data concerning all movements across a terminal. Additionally, data sharing can lead to proactive and data-driven decision-making, reducing downtime created by reactive actions. For example, if a specific terminal is experiencing difficulties that could cause delays, operators can see this and plan ahead and route to different operating terminals.
Terminals that bring together stakeholders under one integrated solution can significantly increase productivity and ease of management. We’ll continue to see improved collaboration and data sharing with the recent Ocean Shipping Reform Act and the Federal Maritime Commission’ Maritime Transportation Data Initiative.
The data provided by TOS solutions increases transparency among terminal stakeholders. The ability to track a container’s movements allows for better preparation and more efficient operations. And as teased above, as integrations grow in sophistication, so will the accuracy of predicted transparency tools.
Safety is a top priority for terminals. Through technology and the resulting collaboration achieved in modernization efforts, terminals will have better visibility into container and equipment movements to keep workers out of harm’s way. Additionally, with more fuel-efficient trucks and lift equipment at the terminal, operators on the ground will reap benefits of less emissions and sound pollution.
Innovation is driving the future of terminal operations, with terminal operators and their partners at the helm. Implementing TOS as the foundation of modernisation strategies will help terminal operators deploy technologies that are grounded in core operating needs, while also enabling productivity and predictability as the supply chain evolves.
