Royal Flora-Holland is the largest flower auction house in the world. In 2016, it served 4,500 grower members and facilitated the sale of over 12.5 billion cut flowers and 1.5 billion plants annually, generating €4.4 billion in revenue. However, the flower industry is facing pressures from low margins and rising costs that threaten Royal Flora-Holland's traditional auction model. The company is developing new strategies like an "at-farm auctioning" system and 24/7 online platform to adapt to these changes while ensuring sustainability across the supply chain.

1. ROYAL FLORAHOLLAND: THE DUTCH
FLORICULTURE SUPPLY CHAIN
PRESENTED BY:-SHIVAM KR.
SHRIVASTAVA
JITENDRA KR. BHAR
SHIVAM BHARDWAJ

2. INTRODUCTIONFloriculture
“The cultivation and management of flowering and ornamental plant”.
It includes:-
Cut flowers, loose flowers, dry flowers, ornamentals & flowering plants.
Example: Rose, Jasmine, lily, Orchid, Gerbera, Tulips, Marigold, Alstromeria,
Snapdragon , Anthurium, Chrysanthemum, Gladiolus, Daffodils.
Production is growing at a rate of 8 - 10% per annum.
There are nearly 120 countries, which are active in floriculture production
on a large scale.
The economy of some countries - Netherlands, Israel and Colombia - is
dependent on floriculture industry.

3. INTRODUCTION TO CASE STUDY
 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.

4. 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.

5. SUPLLY CHAIN NETWORK OF FLORICULTURE INDUSTRY
GROWER/EXPORTER
AUCTIONS WHOLESALES RETAILER
CONSUMER
AGENTS

6. PROBLEMS AND SOLUTION TO THE CASE STUDY
1) Flora Hollands sits at intersection of the global flower, it would be
discuss about current state of industry and how its has evolved?

7. PROBLEMS AND SOLUTION TO THE CASE STUDY
2).Now we would like to a a bit more about how the auction model works
and creates value ?

8. PROBLEM AND SOLUTION TO THE CASE STUDY
3).flower industry flower is an interesting we think because being an
agriculture industry they think about being low margins and that’s
continually being squeezed how do they see the modal and auction model
evolving in this setting ?

9. PROBLEMS AND SOLUTION TO THE CSE STUDY
4).Another trends that we are seeing is that there a rising input cost from
you know energy costs etc.and coopetition that is increasing from
emerging markets how are they addressing these trends?

10. PROBLEMS AND SOLUTION TO THE PROBLEMS.
5).As response to the increasing pressure it seems that flora Holland has
innovated a lot as long with the other element of the ecosystem of the
cluster.Could you speak up about more about how these innovation occurs
or give us few examples?

11. CONCLUSIONS
 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.

12. THANK YOU