Project Report | Design Innovation 4.0 in Supply Networks

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4. Supplier Relations Outsourcing Delivery Services The baggage must be physically transported from the cruise ship terminal to the airport terminal. Considering SITA’s core competencies and the company's strategic vision, baggage transportation must be outsourced. Given this, baggage delivery service providers are the main suppliers in this research. The possible relationships are analysed using the Karlijk matrix, which serves as a strategy for modern purchasing (Kraljic, 1983). This matrix can be seen in Figure 3. Two feasible relationship models were analysed : • Routine Transactional Relationships: The product or service is easily available in a routine transactional relationship. In such a relationship, the actors are not deeply invested in each other, and the switching cost is low. Therefore the purchasing risk is low. SITA may work with several delivery service providers to arrange ad-hoc services in the given context. • Strategic collaborative relationships: The buyer and supplier develop a partnership built on long term contracts, fair agreements and collaborative support. While the risks involved are high, they are often shared, and strategic interfirm collaboration results in higher responsiveness and superior performance of the supply network (Kim & Lee, 2010). Strategic collaboration also facilitates inter-system communication between SITA systems and delivery service providers. This

Figure 3. Karlijk Matrix

can be instrumental in ensuring bags are tracked, traced and accounted for during the transfer process. The analysis shows that the benefits of a strategic collaborative relationship outweigh the routine transaction relationship in this case. Further insights from market data emphasizes a predictable passenger influx that does not require an ad-hoc service. Therefore, we recommend strategic collaboration as the preferred relationship model between SITA and the delivery service providers, fostering reliability, resilience and service excellence.

5. User Overview

to direct and validate service design choices seems a must-

including variants on the four main types (LOTAME, 2019). To come up with the different customer types, some desk research on cruise line customers is conducted. Afterwards, people were interviewed who recently have been on a cruise ship.

do. In this chapter, customer segmentation is established,

The information obtained can be found in Appendix 6:

Passengers are the end-users who will use the luggage service provided by SITA. They will purchase the service from SITA’s customers, namely, cruise lines and airlines. Both customers benefit by providing extra value for passengers. Therefore, looking at passengers more closely

and different customer personas are created.

5.1 Customer segmentation The four primary categories of market segmentation are demographic, psychographic, behavioural, and geographic segmentation. However, one can apply many additional tactics,

Cruise Ship Customers and Appendix 7: Interview Cruise Ship Customers, respectively.

This desk research and interviews resulted in a behavioural and partly demographic segmentation. Since the project's scope is within the Netherlands, the segmentation is geographic 9


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