Sunday 23rd Oct 2016 - Logistics Manager

Carnival cuts logistics costs by 20pc

Cruise line Carnival UK has cut its logistics costs by about a fifth following an efficiency review conducted in partnership with Meachers Global Logistics.

Carnival, which operates a fleet of ten ships under the Cunard and P&O Cruises brands, wanted more efficient and cost effective storage and delivery of goods bound for ships in Southampton or wherever they are in the world.

Meachers facilitated a series of workshops across the country to evaluate opportunities. More than 50 of Carnival’s key suppliers attended the sessions covering subjects such as, lead times, consignment sizes, forecasting, and the consolidation of goods.

Carnival UK supply manager Richard Brooksbank said: “The supply chain for the cruise industry is a potentially complex business that requires precise planning and the coordination of many suppliers. Our constant focus is delivering the most reliable and cost effective supply chain service to our fleet however; we must do this in such a way that the end quality of our product is never compromised.”

The line estimates that the efficiencies have reduced the cost of their logistics supply chain by approximately 20 per cent. These savings have been shared with Carnival’s suppliers as part of the firm’s gain share scheme.

Cunard’s fleet includes the liners Queen Mary 2, Queen Victoria and Queen Elizabeth, while P&O Cruises has a fleet of seven ships.

Meachers commercial director Gary Whittle said: “Carnival’s gain share approach has been hugely successful in encouraging everyone to work towards a common goal.

“By implementing new supply chain concepts, such as the consolidation model, we have been able to take greater control of the many thousands of products received into and dispatched from our 50,000 square foot dedicated warehousing space in Southampton.”