Ruud Knorr joined Royal FloraHolland last April. The new Chief Commercial Officer knows the auction world inside out and he understands the nature of a cooperative. “It’s clear that during the past few years, many knowledgeable people have left Royal FloraHolland. Everyone seems to think that I know a lot, so they get me involved in everything. I don’t mind it though; I’ve been in this situation before.”
One of Knorr’s responsibilities within Royal FloraHolland (RFH) is internationalisation. If products are going to be marketed anyway, the auction might as well manage the transactions and the quality, is one of RFH’s arguments for increasing its global market share in the floricultural industry.
But they also want their members and customers to benefit from the scale effects, in the form of optimal price formation and overall supply. And they’re thinking of the economics. Knorr: “If there’s no growth, you need to adjust your cost items.
Growth and optimal price formation. Do they go together?“
”A broad and deep assortment can contribute to optimal price formation. Because you’re offering buyers a one-stop shopping experience. If buyers could only buy Dutch tulips here, but no African roses, I don’t think that would help optimal price formation. Because they’d have to purchase twice. Remember 1995, when TFA in Amstelveen opened. That didn’t benefit the trade at all. It meant that there were two auction locations. One national auction and one international auction, adjacent to each other. For us, scale means that buyers can buy everything they need at our marketplace. It’s one of the principles that makes our auction system so attractive. Buyers can pick up their entire product pallet within a few hours after making their purchase.” (..)
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