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Logistics and Procurement in a
Cruise Line
Eduardo López-Puertas
VP Operations
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Supply Chain - Pullmantur
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IntroductionWhen onboard experience is the key differentiating factor, being able to offer the best products to your clients is a must.
From the purchasing process until the goods are ready to be consumed by the clients, the supply chain plays a decisive role in achieving customer satisfaction and loyalty.
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Supply Chain Evolution
Ships are just the way of transportation from one port of origin to a final port of destination. Regular itineraries with minimum modifications throughout the season.Local purchases for a full provisioning.Big stocks onboard
Provisions Spare parts
Onboard experience becomes part of the cruise itself.Multiple itineraries. Global suppliers with JIT deliveries.Everything is deeply planned in advance.
Itineraries Occupancy
forecasts Consumption
records Legislation
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An average consumption
WEEKLY Milk – 4,000 l Eggs – 18,600 units Flour – 700 kg Beef – 1,900 kg Bananas – 700 kg Water – 5,000 l Beer – 5,000 l Whiskey – 800 l
MONTHLY Drinking Straws – 12,000
units Life jacket lights – 300
units Toilet Paper Rolls – 4.000
units
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A tailor-made supply
STRATEGY Planning Dry Docks
IMPLEMENTATION Vendors bidding
process Purchasing Transportation Delivery
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PurchasingS
TR
ATEG
Y
VENDORS SELECTION Worldwide suppliers
Hotel Provisions Equipment Spare parts
Local vendors for local or urgent provisions and spare parts
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Port OperationsS
TR
ATEG
Y
PORT FACILITY Docking Pier area Tides Time window for
loading Proximity to airport Equipment Operational cost
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LegislationS
TR
ATEG
Y
CUSTOMS Restrictions Special taxes Average delay for
clearance
SANITARY REGULATIONS Restricted articles Restricted origins Sanitary certificates
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HISTORICAL DATA AND FORECAST
Trends Special calendar dates
Occupancy & Consumption
STR
ATEG
Y
PASSANGER PROFILE Age Country of origin Groups
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PROJECT Tight logistic schedule Selection of a unique Global
Freight Forwarder Coordination of all logistics at
the shipyard Special logistic for provisions
Dry DocksS
TR
ATEG
Y
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Supply ChainIM
PLEM
EN
TATIO
N Ship Order
PU
RC
HA
SE
Purchasing department
approval
Purchase
order to
Supplier
LO
GIS
TI
CS Consolidat
ion HubsTransportat
ion
Customs
clearance
Delivery
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Purchasing - ProvisionsIM
PLEM
EN
TATIO
N
SELECTION CRITERIA Quality Price Big suppliers with a
wide range of products. They deliver more than 90% of total provisions
Small suppliers for typical local products
Local suppliers for urgent deliveries
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Purchasing - Equipment
IMP
LEM
EN
TATIO
N SELECTION CRITERIA Standard products to
be delivered world wide
Economy of scale Only one or two
purchase orders for the whole year consumption
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Purchasing – Spare parts
IMP
LEM
EN
TATIO
N
SELECTION CRITERIA Reliability Quick response when
emergencies Price
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Purchasing – PolicyIM
PLEM
EN
TATIO
N
REQUIREMENTS Supplier certification and
approval SLA Continuous evaluation
program
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Logistics – WarehouseIM
PLEM
EN
TATIO
N HUBS Close to main global
suppliers Consolidate provisions
in transit
BUFFER STOCK Picking service Full year orders stock
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Logistics – Transportation
IMP
LEM
EN
TATIO
N
MEANS OF TRANSPORT Road – Mainly for
European deliveries Sea freight – for
transporting European and North American goods to South America and Caribbean sea.
Air freight – Mainly just for emergencies
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Logistics – DeliveryIM
PLEM
EN
TATIO
N SEVERAL SERVICES Customs Clearance at
destination Container drayage Goods collection at the
airport of destination Landing Goods Special logistic
operations
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IT IS ABOUT DELIVERING THE BEST EXPERIENCE
IT IS NOT ABOUT DELIVERING
GOODS
At the end of the day
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21
Muchas gracias