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Royal Caribbean's Leapfrog Project Overview

Royal Caribbean Cruises Ltd. faced several issues in the early 2000s that threatened its operations and growth. These included an outdated reservation system, overwhelmed HR due to rapid employee growth, weak economic conditions dampening travel, and straining its supply chain from expanding its fleet too quickly. The company had implemented the Leapfrog project earlier to modernize its supply chain process through automation and simplify purchasing. Reimplementing Leapfrog more quickly could help address Royal Caribbean's reservation, employee, and supply chain issues by building better internal networks and systems to coordinate operations more efficiently as the company continued to grow. Doing so in a scalable way would help make the solutions sustainable long-term.

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229 views1 page

Royal Caribbean's Leapfrog Project Overview

Royal Caribbean Cruises Ltd. faced several issues in the early 2000s that threatened its operations and growth. These included an outdated reservation system, overwhelmed HR due to rapid employee growth, weak economic conditions dampening travel, and straining its supply chain from expanding its fleet too quickly. The company had implemented the Leapfrog project earlier to modernize its supply chain process through automation and simplify purchasing. Reimplementing Leapfrog more quickly could help address Royal Caribbean's reservation, employee, and supply chain issues by building better internal networks and systems to coordinate operations more efficiently as the company continued to grow. Doing so in a scalable way would help make the solutions sustainable long-term.

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Royal Caribbean Cruises Ltd.

By: Ricky Chan, Ludner Exantus, Blythe Falvey, and Morgan Thompson

Introduction: Analysis: Supply Chain Alternatives:


Royal Caribbean Cruise Ltd was founded in Royal Caribbean supply chain during this time can be divided
1969. The founder Edwin W Stephen founded into two sections one dedicated to food, beverage, and lodging
the company with a vision to provide specific inventories. The second is dedicated to corporate expenses
cruise ships for the pleasure of the Caribbean
ranging from office supplies, printed materials, printed services,
waters. The main companies are Carnival
computer supplies, and ship maintenance and is handled
Corporation, Royal Caribbean Cruise Line, and
directly by a separate Provision Master.
Norwegian Cruise Line. The main competitors
are Carnival Cruise Lines and Norwegian Prior to the Leapfrog project Royal Caribbean procurement
Cruise Lines. department made these purchases directly to vendors through
fax or email which is a tedious manual process.

This process was manageable for Royal Caribbean with a


smaller fleet, but as fleet size increased for 23 ships to 29
increased strains on vendors lead to higher cost and delays

The Leapfrog Project Goal for supply chain was ultimately the
automation and simplification of the purchasing process to
lower cost and overall increase efficiency and coordination.

Issues:

1. Reservations: The twelve different glitch – prone


reservation systems could not handle the 45,000 calls
per day and didn’t give marketing a common view of
customers before they arrived on the ships. Conclusion:

After analyzing the data and the alternatives the best solution to help Royal Caribbean Cruise
2. Employee Engagement: Royal Caribbean had a solve their issues is the reimplementation of the Leapfrog Project quicker. The Leapfrog project
surge of 27,000 employees which overwhelmed their Ship supply had great potential and would help improve their reservation system, supply chain, as well as
unwired HR department. handling the employee issues that arose. Those are the three main issues that almost brought
RCCL to their breaking point.
0
BERTHS BY 2006 60,356 Building a better reservation system will help get more people to make reservations and will also
3. Economic Conditions: Economy is down, and 142,300
provide RCCL with more reliable and accurate data about the customers. Designing an in- house
21
people are fearful to travel due to the 9/11 attacks. SHIPS BY 2006 28 network that coordinates purchasing, fleet management, entertainment, food, maintenance,
83
27,609 schedules, and supplies will help RCCL with who and what they need when. An in-house network
BERTHS 53042 allows everyone to be on the same page. Also having a different in-house network that manages
100,000
18 employees makes it easier for HR to manage everyone and help them from becoming
4. Supply Chain: A decision was made to increase the SHIPS 26
66 overwhelmed.
fleet size from 23-29. Many people were unprepared
for the fast increase in ships and therefore they 3
BRANDS 2 IS IT SUSTAINABLE LONGTERM?
struggled to make things work. This threatened to 13
stretch the supply chain to the breaking point. 0 50000 100000 150000 Yes, the Leapfrog project is scalable and sustainable. With in-house networks RCCL can have full
Norwegian Cruise Royal Caribbean Carnival Corp. control over the network. This will allow them to update, fix issues and change each network as
the company grows.

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