A Sea of Strategic Sourcing

Royal Caribbean Cruises gets ship shape with SeaConnect

London  February 19, 2002  Warm, tropical breezes and exciting ports of call on the high seas don't exactly bring thoughts of e-procurement and strategic sourcing rushing to mind, but even cruise ships aren't immune to the need for streamlined supply chains.

That's why Miami-based Royal Caribbean Cruises Ltd. (RCCL) announced today that it has signed a multi-year contract with SeaSupplier Ltd., the marine e-procurement subsidiary of Stolt-Nielsen S.A. SeaSupplier will link RCCL electronically with its marine product suppliers through the use of its SeaConnect system, as well as offer marine product database and strategic sourcing consultancy services to achieve competitive pricing.

According to a statement made by SeaSupplier, the SeaConnect system will provide electronic connectivity between RCCL and key suppliers responsible for supplying up to 80 percent of RCCL's marine goods and services.

SeaSupplier's consultancy services will develop a uniform and rationalized marine product database, as well as marine product sourcing strategies that include membership of marine supplier consortia associated with SeaSupplier Ltd. SeaConnect will integrate with RCCL's J.D. Edwards purchasing system and provide electronic and standardized transactions with marine suppliers to eliminate imprecise, paper-based activities. With the completion of these initiatives, RCCL expects to reduce its marine procurement costs by 15 to 20 percent.

In addition, SeaSupplier will provide RCCL with the SeaConnect system and consultancy, including sourcing enhancements, an introduction to marine-supplier consortia for competitive product pricing, real-time access to SeaSupplier's Value Added Supplier Network, and improved specification and quality of marine consumables and spare parts database.

SeaSupplier has been contracted to provide us with a unique database development methodology and expertise in business process design. Both components are fundamental to an efficient procurement solution. The benefits associated with this approach will enhance our competitive position through process efficiencies, commented Michael Allsup, RCCL's vice president, supply chain management.

The contract is part of a RCCL multi-faceted supply chain strategic initiative to streamline its worldwide procurement and logistics activities for the Royal Caribbean International and Celebrity Cruises fleet of cruise ships.