In my first column, I’d like to discuss New Auctioning and how this can positively contribute to Royal FloraHolland’s logistical performance. In addition, it also provides a huge cost reduction for all of the auction’s customers. When I say “New Auctioning”, I mean the REAL New Auctioning. And by real, I mean: ‘af-tuin veilen’.
The moment of sales should in my opinion be disconnected from the moment of transport. On day 1, flowers are bought through a virtual national auction clock or an alternative modern, electronic transaction system. On day 2, the purchased products are shipped directly from the nursery, in the right packaging and at the desired time, to one of our companies.
In this scenario, FloraHolland manages the last-mile distribution process and quality control and they also support growers with the appropriate technology. Many of our growers, both in the Netherlands and abroad, are already preparing orders in line with our specific requests, both for supermarkets and for wholesalers.
I am convinced that this system will lead to a huge cost saving for FloraHolland’s logistics chain. And growers are charging the appropriate prices for services requested by buyers.
And we, FloraHolland’s customers, will be able to work much more efficiently as well. I estimate that savings within our companies could consist of at least one hour per employee each day. Our customers, who often don’t receive all ordered products in the current system, will experience much more optimal supplies in the new system.
The world is changing and if the auction doesn’t respond to this rapidly changing world, the cooperative will lose its purpose. So, if we really want to take a step in improving the logistic performance in our chain, I am convinced that we should soon convert from the current auction system to New Auctioning.
It will require courage and leadership from FloraHolland’s side to accelerate the implementation of it.
Let’s make a start together, to ensure REAL progress, in the interests of the cooperative, the trading companies and the Netherlands as a horticultural country.
Marco van Zijverden,
CEO Dutch Flower Group
