Supply Chain Management at Cruise International, Inc.

Bob Bristol, your boss at Cruise International, Inc., just called to tell you that he was impressed with your progress thus far in familiarizing yourself with operations at CIIboth the strategic details pertaining to its mission, competitive priorities, etc. and the specific details concerning its services and processes. He tells you that, with all the buzz about supply chain management (SCM) that you hear these days, CII is actively interested in exploring how different SCM concepts and techniques could be used in their operations. Maintaining an adequate, assured supply of a variety of mechanical equipment, entertainment equipment, retail merchandise, food products, and supplies for maintaining the ship is critical to CII. Meghan Willoughby, Chief Purser aboard the Friendly Seas I, has a couple of specific assignments that you will work on later. But for now, Meghan would like a concise research report for the top management team addressing SCM issues relevant to CII.

"Leila Jensen liked your write-up on the CII service package and delivery system. Meghan Willoughby wants you to prepare a similar report addressing SCM issues relevant to CII. Senior Administrators at CII are actively involved in exploring how SCM concepts and techniques could be adopted in their operations. Prepare a concise report addressing the specific questions that Meghan has put together for you. I look forward to receiving your report, which I am sure will provide insight for SC applications at CII."

1. Provide a comprehensive explanation of the essential concepts of SCM and explain to what extent SCM is applicable to a service operation such as CII.

2. Evaluate how partnering with some of the suppliers could benefit CII. What issues should CII consider when developing partnerships?

3. Purchasing, a major function in SCM, is critical in the cruise line industry. Critique the potential conflicts of interest or ethical issues facing the purchasing function.