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.
This article was originally published on 01-01-2002