Logistics and Procurement in a

Cruise Line

Eduardo López-Puertas

VP Operations

Supply Chain - Pullmantur

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.

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

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

A tailor-made supply

STRATEGY Planning Dry Docks

IMPLEMENTATION Vendors bidding

process Purchasing Transportation Delivery

PurchasingS

TR

ATEG

Y

VENDORS SELECTION Worldwide suppliers

Hotel Provisions Equipment Spare parts

Local vendors for local or urgent provisions and spare parts

Port OperationsS

TR

ATEG

Y

PORT FACILITY Docking Pier area Tides Time window for

loading Proximity to airport Equipment Operational cost

LegislationS

TR

ATEG

Y

CUSTOMS Restrictions Special taxes Average delay for

clearance

SANITARY REGULATIONS Restricted articles Restricted origins Sanitary certificates

HISTORICAL DATA AND FORECAST

Trends Special calendar dates

Occupancy & Consumption

STR

ATEG

Y

PASSANGER PROFILE Age Country of origin Groups

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

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

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

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

Purchasing – Spare parts

IMP

LEM

EN

TATIO

N

SELECTION CRITERIA Reliability Quick response when

emergencies Price

Purchasing – PolicyIM

PLEM

EN

TATIO

N

REQUIREMENTS Supplier certification and

approval SLA Continuous evaluation

program

Logistics – WarehouseIM

PLEM

EN

TATIO

N HUBS Close to main global

suppliers Consolidate provisions

in transit

BUFFER STOCK Picking service Full year orders stock

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

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

IT IS ABOUT DELIVERING THE BEST EXPERIENCE

IT IS NOT ABOUT DELIVERING

GOODS

At the end of the day

21

Muchas gracias