How do we deal with excesses?
13 January 2021
Regular and predictable supply is important for optimal and stable pricing on the auction clock. However, every day, Royal FloraHolland auctioneers are confronted with supply deviations that could potentially lead to excesses. How do we deal with these excesses? Read it here.
With Valentine's Day approaching, the excess policy is an important topic again. At the beginning of 2020, the policy with regards to excesses was sharpened a bit. The most important changes of the policy are that the contact between suppliers and auctioneers has been stimulated. In addition, the consequences of excess have been made more insightful for suppliers.
The most important basic principles
- Length of sanctions: variable, is decided per excess per day by the Auctioneer;
- Place of sanctions: removal from the auction group (= the last auction group of the corresponding clock);
- Regular supply based on history or supply based on prognoses;
- For supply of less than 10 trolleys: supplier does not create excess, unless;
-
- (More) contact between supplier and Auctioneer with regards to supply pattern;
- Final establishment if supply is a distortion in the market (including mitigating circumstances) is decided by an Auctioneer, followed by a potential action.
Rules of Play
- Supplier provides a prognosis ( 6 - 4 - 2 weeks prior to the exact date);
- Contact between Auctioneer and supplier in case of an excessive prognosis;
- Together, try to ensure more regularity in the supply to avoid an excess;
- Excess during supply on day x is more than the past 5 auction days together;
- Minimum of supplying 3 days a week.
Any questions? Please contact the Auctioneer
Our auctioneers work to match supply and demand every day and can give you advice in the case of any deviations in your supply. If you want to know how we handle excesses in practice, please watch the following video:
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