By
Michele Witthaus |
The major cruise lines’ purchasing strategies were addressed on the second day of the Marine Hotel Association (MHA) conference in Barcelona.
Mike Jones, VP, supply chain management, Royal Caribbean Cruises Ltd, told delegates: “Running a cruise line is like running 35 small cities that go everywhere in the world.” He said that 95% of the company’s global shipments went by sea, with approximately 6,000 containers in transit last year. “We deliver 99.8% of items on time, in keeping with our global standard,” said Jones.
Grenville Cartledge, MD of Fourgold. He said that as major operators took to managing global supply via centralised 'control towers’, local and regional suppliers had to adapt to stay in business. “Cruise line procurement teams can guarantee worldwide supply from a central source. The biggest impact has been on local ships’ chandlers, who have had to adapt their business models to become as much logistics providers as suppliers.” He added that other challenges for cruise lines and suppliers included new legislation such as EU regulation 1169/2011 regarding food labelling, due to take effect in 2014.
Different approaches to procurement by the major lines in various territories were also discussed. Regarding niche destinations with few ship calls, John Peijs, director of marine hotel operations at Holland America Line, said: “There are more opportunities than ever before for suppliers. It’s a partnership – we encourage our ships to go out to the suppliers, but if suppliers know a ship is coming, we encourage them to take the initiative.” In contrast, Jones said direct approaches to its ships by suppliers were not a feature of any of the Royal Caribbean cruise brands’ operations.