Frequently asked questions about 100% Digital for growers13 November 2020
In the run-up to the end of this year, with all direct trade going 100% Digital, there are a number of frequently asked questions that often arise. In this news item, we would like to examine these and provide you the right answers.
Update 25 November:
Temporary leniency scheme in the event of not meeting 100% digital
Growers, buyers and agents who are not yet ready to trade 100% Digital for direct transactions on 1 January 2021 can make use of a temporary leniency scheme until 31 March 2021 at the latest. This temporary leniency scheme is aimed at growers, buyers and agents who are waiting for the link with their software package, or at parties that are already working 100% Digital, but the other party isn't yet. The application for this leniency period should be made through software suppliers.
1. As a grower, what can you say if your buyer presses for alternative payment methods?
The withdrawal of Connect EAB means growers and buyers will start processing their direct trade on or through Floriday. It is sometimes the case that buyers ask growers to start doing this in an alternative manner from the new year. This is down, among other things, to buyers not properly understanding what they can and cannot do next year. As a grower, how can you respond to this? Here are a number of tips for your conversation with buyers:
- For you as a grower, settling through another party becomes a more expensive alternative. Although the Royal FloraHolland transaction levy for buyers is being cancelled, the extra costs of another service provider are added to the current Royal FloraHolland rate.
- If your buyers state that they are still waiting for a link with their software supplier, you can tell them that they can already work in Floriday to place orders until the link is ready.. Buyers can create an account for this, and start purchasing. Orders placed here are settled directly.
- If a buyer still continues communicating orders by telephone, you can state that in future, you will be sending a purchasing tip through Floriday that the buyer will see again on their Floriday dashboard. The buyers receive notification of this on their telephone, and can approve the order in no time.
- If your buyers currently purchase through a VMP link or submit Florecom orders based on their package, they can continue doing so in the same way. You can state the the VMP link and the Florecom orders need to be linked to Floriday. To do so, buyers can enquire with the Floriday support team.
- If your buyers currently order through FloraXchange or FloraMondo, in principle this will not change next year. You can state that buyers can simply continue doing this that way next year.
And what you yourself do as a grower to have growers order digitally?
Ensure that your supply is in Floriday correctly and your store is activated, so that buyers can order the right products.
By having all direct flows run through Floriday, we will position ourselves more strongly as a cooperative in the chain. The more this occurs outside Royal FloraHolland, the lesser this position becomes, with possible consequences for the floriculture industry. Your commitment as member of the cooperative is important for the future and strength of the cooperative.
2. Which options does my buyer have to purchase from me in a 100% Digital way?
Buyers have the option to purchase their direct trade 100% Digital in various ways:
- They can do so by linking their software package through the Blueroots or Floriday API.
- Buyers can also link their systems to Floriday via a VMP link.
Through this VMP link, buyers retrieve the supply from Floriday and
Please note: From the end of 2020, the direct VMP link between growers and customers can no longer be used to settle purchases via Royal FloraHolland. The VMP must then be linked through Floriday. To achieve this, buyers can contact Floriday Support.
- If the buyer's software package can send orders, these can be sent to Floriday.
- Buyers can furthermore work directly on the Floriday screen, where they can receive purchasing tips from growers, among other things. This is a straightforward operating environment buyers soon get to grips with. Should buyers have any questions about this, they can always contact the Floriday support desk, or visit www.floriday.io/nl/helpcenter. In seven minutes, the instruction video for buyers shows all the functionalities, ensuring your buyers can get to work.
- Contracts can easily be established in Floriday. Following approval from both parties, as a grower you can then call off and deliver according to the agreed schedule.
- And besides the options above, next year buyers can also continue purchasing through the FloraMondo and FloraXchange screens.
Refer buyers to the Floriday support team for assistance in determining which way of working is right for them.
3. To what extent can PSD2 be also applied to other parties?
PSD2 applies throughout the European Union and has been implemented in every EU member state. This means PSD2 not only focuses on Royal FloraHolland but also on other auction houses and companies that offer and provide payment services.
We have carefully investigated this in consultation with legal experts and De Nederlandsche Bank (DNB). It was thereby established that our service for the clock channel already complies, and is not subject to authorisation for the direct channel under this legislation, if using the exception as 'commercial agent'. To be able to do so, we must have a demonstrable, active role in realising the direct transaction. Although we do not have this at present with Connect-EAB, we do if we have direct transactions occur through Floriday.
Other parties (potentially) state that they have arguments for why they are not subject to PSD2 authorisation. We use the discussion we ourselves held with DNB as a basis. We are also actively examining what potential competitors, and to what extent they might act contrary to PSD2, and are considering our measures against this. It cannot be the case that certain parties believe they can circumvent this legislation, and then compete unfairly in that manner. We also wish to warn and protect members and other clients against the fact that their trade through these parties will soon no longer be permitted, and they must divert their administrative processes once again. The route through Royal FloraHolland and Floriday is been guaranteed as 'compliant' and therefore futureproof.
4. Why is working according to SWIFT or SEPA not sufficient for Royal FloraHolland?
Royal FloraHolland is acting in its role as a 'commercial agent' on behalf of the grower(s) trading with customers. In this role, it is essential that the deal is actually concluded, and registered. This already applies in the clock process, but in many cases not yet in direct trade.
The chosen route is that the order for the direct sale is created on or through Floriday, and the transactions take place through Floriday (or through a link with it).
Just like other auctions and companies in the sector, Royal FloraHolland uses SWIFT and SEPA in order to collect and perform payments. Although SWIFT and SEPA both come under to PSD2 legislation. However, using them not an exception to the PSD2 legislation. This argument, which is often used by other parties in the sector, is therefore incorrect.
5. What does this mean for me selling through Veiling Rhein-Maas and Plantion?
For both Plantion and Veiling Rhein-Maas (VRM), a link has been created between these auctions and Floriday. Specifically, this mean you can create a clock delivery and perform direct sales for both auctions and have the settlement occur through VRM and/or Plantion. The option to assign clock presales supply for Veiling Rhein-Maas is still in development.
To see how to create a clock delivery and direct sales in Floriday and assign these to Veiling Rhein Maas or Plantion, you can take part in one of the workshops: www.floriday.io/workshops. Or view our Help Center, go to 'grower' > 'Clock' and 'Direct' for tutorial pages and videos.
For growers and buyers, we are organizing weekly online workshops explaining how to use Floriday. You can register at www.floriday.io/workshops. You will also fin instruction pages and videos in our Help Center that help growers and buyers get to grips with Floriday. You will also find the Flori2days workshops in this news item.
Our support team is also here to help! For more information or advice on the questions above, please contact the Floriday support team at email@example.com or on 0174-352070.