In 2016, Royal Flora-Holland was the largest co-operative floriculture auction house in the world, serving 4,500 grower members, including 750 members from outside the Netherlands.
Royal Flora-Holland had 2.7 million square meters of auction buildings in total, featuring 38 physical auction clocks.
Each year, about 12.5 billion cut flowers and 1.5 billion plants were sold through Royal Flora-Holland, generating an annual turnover of €4.4 billion in 2014.
In January 2016, Rob Koppes, the program director of Royal Flora-Holland and a supply chain consultant met to develop a supply chain strategy that would allow Royal Flora-Holland to adapt to the changing competitive environment that jeopardized its business model.
ROYAL FLORAHOLLAND_ THE DUTCH FLORICULTURE SUPPLY CHAIN
1. FLORI CULTURE
PRESENTED TO: PRESENTED BY:
MISS RAMANDEEP KAUR PANKAJ SAINI
ASSTT. PROF. PRINCE KUMAR
DEPTT. OF MANAGEMENT ADITYA KUMAR
PREM CHOUDHARY
2. INTRODUCTION
In 2016, Royal Flora-Holland was the largest co-operative floriculture auction
house in the world, serving 4,500 grower members, including 750 members from
outside the Netherlands.
Royal Flora-Holland had 2.7 million square meters of auction buildings in total,
featuring 38 physical auction clocks.
Each year, about 12.5 billion cut flowers and 1.5 billion plants were sold through
Royal Flora-Holland, generating an annual turnover of €4.4 billion in 2014.
In January 2016, Rob Koppes, the program director of Royal Flora-Holland and a
supply chain consultant met to develop a supply chain strategy that would allow
Royal Flora-Holland to adapt to the changing competitive environment that
jeopardized its business model.
3. IDENTIFICATION OF THE MAIN
PROBLEM AND ISSUES
Pressure for Supply Chain cost reduction and Innovation
Following 100 years old & Traditional physical auctioning method
Industry consolidation
Understanding the difference between image auctioning and remote
buying
Challenge of managing environmental sustainability.
4. SOLUTIONS AND STRATEGIES FOLLOWED BY THE
COMPANY TO OVERCOME THE ALL ISSUES AND
PROBLEMS
With the goal of improving its supply chain, there were four key initiatives that
Royal Flora-Holland had recently been involved with:
Green-Rail
Green-Barge
Hub-ways
Cool-Chain
The others two are:
Image auctioning
Connect service
5. ADDITIONAL RESEARCH AND
FINDINGS ABOUT THE CASE
Royal Flora-Holland Trade fair Aalsmeer
Lucas' vision
Herman de boon’s viewpoint
6. Strategies that will be followed by the
Royal Flora-Holland in future
Royal Flora-Holland is preparing for the new ‘af-tuin veilen’ auctioning system.
In the ‘Het Nieuwe Veilen’ programme, part of the Flora-Holland 2020 strategy,
Flora-Holland made a definite choice for the ‘af-tuin veilen’ auctioning system.
This means that in the near future, plants and flowers will still be in the nursery
when they’re auctioned. The next day, plants and flowers that were sold at the
auction will be delivered to the customers.
Flora-Holland is also working on the launch of a 24/7 online transaction
platform:
A first version of Flora-Mondo 2.0 will go live in 2017.The auction’s main role will
be to assist growers and customers with the intricate logistics process.
7. CONCLUSION
The company Royal Flora-Holland had so many changes in last 20 years and
company is grow with floriculture industry growth.
Image auctioning system also helps a lot to the company to reduce supply chain
and logistic costs.
Improvements in storage and refrigeration had enabled distant competitors in
non-traditional flower-growing regions—where the competitors could enjoy low
production and labour costs—to emerge and compete.
There was an important challenge for the Royal Flora-Holland which was ensuring
that the entire supply chain was as sustainable as possible
Royal Flora-Holland, and the floriculture industry, has always been able to
innovate and improve.