The logistic performance of Royal FloraHolland is under pressure. Buyers and growers have unfortunately experienced this personally in the past period and certainly in the past week. For example, we did not meet our end times or the flowers we bought were delivered incorrectly. With all its consequences. We understand that this has a major impact on business operations and offer our sincere apologies. We would like to explain the causes and, most importantly, what we are doing to prevent this situation from happening in the future.

Causes

Over the past week, a concurrence of several circumstances has had a negative reinforcing effect. As a result, the impact on deliveries, late or incorrect, has been many times greater than we could have anticipated. The most important general causes of this are: an increase of the clock volume by 25-30% and the personnel shortage at Royal FloraHolland. All of this has had a major impact on our negative results and therefore on our customer.

Naaldwijk

In addition to the above causes, there were specific issues at our location in Naaldwijk. This week in Naaldwijk we have switched to 100% flower order picking, because this will eventually lead to solutions for some of our challenges. The switch to 100% flowers will help us to focus on optimization because we no longer need to run two processes alongside each other. Unfortunately, this week we had 3 IT-related problems in our logistics process at Naaldwijk. All 3 separate items which have been resolved, but which did lead to a lot of impact with the buyers. In addition, some of our buyers are experiencing problems with the way products are set up for auction in the new logistics and the options they have for viewing. All of this leads to a performance that has been below par.

Forecast

We are working tooth and nail every day to deliver as many products as possible to our customers on time. We expect our logistics performance to improve every week due to the high influx of new employees. However, the realistic forecast is that the rush will continue for some time. We do see improvements in the very short term: there is a lot of new staff and we have had the biggest peak pressure. We are also getting better at order picking, at times when the system is running stably. We also make sure the system is stable before we plan further roll-outs.
In the coming period, we will continue to keep our growers and buyers informed about how we are doing and the progress we are making.

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