FLOW: cooperating to add value in the floriculture supply chain03 March 2017
How can we cut costs in the supply chain and add value at the same time? The strategic programme FLOW tries to answer this question, in cooperation with other stakeholders. Programme director Edwin Wenink: “We want to help the floriculture sector to become more competitive, so we’ll be ready to face the future.”
To achieve this, we need more in-depth knowledge of the logistics of today. This is why over a hundred interviews were held in 2016 with people working in floriculture, both from the Netherlands and abroad. The interviews resulted in an overview of trends and developments. FLOW can use this to achieve its goal. Edwin: "What will we have to deal with these coming years? What is it the consumer really wants? What will the floriculture sector look like in 2020? What will be the challenges for logistic companies?"
FLOW notices, for instance, more traffic going directly from the nursery to the buyer, and a decrease of the acreage used for floriculture in the Netherlands. Which will result in a changing market for the transport of floriculture products. With this information, FLOW can start making plans.
Mapping the chain
The interviews show that in the field of ornamental horticulture, people differ strongly in their view on the role Royal FloraHolland should play in logistics. There's a wide variety of preferences, from no role at all to taking logistical care of all direct trading. What kind of problems did the interviews reveal to the FLOW team? "Well, some growers don't fill up their carts entirely, and therefore have relatively high transport costs per plant. On average, carts are only filled for about 60 per cent, which is a pretty low percentage. And it also affects the load factor of the truck. We expected that factor to be much higher", Edwin states.
Cutting costs by 15 per cent
In the eyes of FLOW, the logistic process begins as soon as the grower starts harvesting. And that process goes on right until the products reach the client. "We want to cut the costs of this process by 15 per cent. And it's not only about the transport itself, but also about the auxiliary stuff, such as the usage of buildings and machines."
Two hundred ideas
What else has FLOW in store for us this year? "Well, the interviews brought forth two hundred ideas about how to cut costs. We'll draw up a list of priorities from those, in cooperation with other stakeholders and strategic programmes, and get to work on that. This all fits in with our motto: co-creating value in the floriculture supply chain worldwide."
Subscribe to our newsletter and receive each week:
- current and relevant news
- based on your own profile
Do not display againSubscribe