Leapfrog, Grounded

By Laura Hughes  |  Posted 01-01-2002 Print Email

Leapfrog, Grounded

Highlights of Royal Caribbean's five-year, $1 billion Project Leapfrog and how the Sept. 11 attacks mandated a 180-degree shift in course.

  RESERVATIONS SUPPLY CHAIN EMPLOYEE MANAGEMENT
PROBLEM Twelve different, incompatible, glitch-prone, legacy reservation systems could not reliably handle 45,000 calls per day and did not give marketing a common view of the customer before they boarded ship. Spike in fleet size, from 23 ships to 29, threatened to stretch the supply chain to the breaking point. A surge of 27,000 employees would overwhelm RC's unwired HR department.
SOLUTION Build a $50 million, Web-enabled reservations system, the company's first. Design new in-house network to coordinate and leverage purchasing, fleet management, entertainment, food and maintenance schedules and supplies. Build Web-enabled, in-house HR network on shore and onboard ships to coordinate and manage all employees.
PLANNED PAYOFF Boost revenues and customer loyalty by letting agents book more customized vacations for clients. Cuts costs by millions of dollars annually, reduces duplicate purchasing, leverages buys for volume discounts. Cut employee costs, reduce HR headcount, win volume discounts on health plans, track employee performance ratings and skillsets, and trade expertise across locations.
STATUS On hold. Scaled back from a $9 million project to $1.4 million for 2002. Shoreside portion complete, shipside portion on hold indefinitely.

SOURCE: RCCL LTD.



 

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