“We need to think about the supply chain long-term on many fronts,” said Vina Jumpp, associate vice president, global hotel, food and beverage procurement at Royal Caribbean Group. “There are so many uncontrollable factors impacting our industry. One is climate change and another is regulation changes that are happening frequently, forcing us to look at the total cost of ownership of shipping goods across the world.”
Jumpp, speaking at a Marine Hotel Association event, said the pandemic had forced changes in supply chain and logistics.
“We have been able to eliminate all frozen and chilled containers heading to our ships in Alaska,” she said. “We had seven ships there this past summer, and if you think about the carbon footprint on frozen containers, it’s really horrible.
“It’s not always what you pay for the cost of goods, but it’s the total cost of it.”
That includes shipping and even financing costs, as the company will consider the difference between net 30-day and net 90-day payment terms, for instance.
Sourcing is also considerably up in Europe for Royal Caribbean Group, she said, as the company had 80 percent locally sourced food and beverage in 2023 and hopes to grow that this year.
“It’s possible to find beef in Italy that will suit the American palate. If you spend time on the ground you will find it,” Jumpp explained. “We have found beef companies in Italy and Spain that can do tenderloin and prime. That is huge cost savings for us, and we are reducing the containers we put on the water.”
Jumpp said suppliers in the U.S. would see a reduced volume of business because of this.
“We would love to see more regional sourcing in the U.S. (close to the homeports,” she said.
On the lookout for new products and innovative solutions, Jumpp said: “There are a lot of comparable products out there with cost-savings potential. I’ll make time for it.”
Certain protein items that were cut from Royal Caribbean and Celebrity’s main dining room due to cost pressures are also making a comeback, she said.
Excerpt from the Cruise Industry News Quarterly Magazine Spring 2024
