Lower levy for suppliers with reliable supply info
December 21, 2022
The reliability of supply information is improving more and more. Good product information and truthful photos are crucial for the proper functioning of the marketplace. They improve buyers' purchasing experience at auction and therefore optimal pricing for growers. This is important in a world that continues to digitise and internationalise.
Royal FloraHolland's Quality department has a key spearhead to improve the reliability of supply information. We check the photos offered with the supply on the clock for accuracy of the information. Every day we adjust dozens of lots so that a buyer gets what he thinks he is getting. What you see, is what you get.
Royal FloraHolland's Quality department has a key spearhead to improve the reliability of supply information. We check the photos offered with the supply on the clock for accuracy of the information. Every day we adjust dozens of lots so that a buyer gets what he thinks he is getting. What you see, is what you get.
Quality Index
That these checks are paying off is shown by the trend in the distribution of growers' Quality Index (QI) scores. For instance, at the beginning of 2022, 43% of landers had an A score. That means their supply information was correct in more than 98.5% of cases.
See the table for the percentages of A, B and C growers:
See the table for the percentages of A, B and C growers:
| Quality Index | Correct supply info | Beginning 2022* | Now |
| A | > 98,5% | 43% | 47% |
| B | 94,55 -98,5% | 28% | 29% |
| C | < 94,5% | 18% | 12% |
* Reliable QI could not be calculated from 11% of captains at the beginning of 2022 due to insufficient supply.
After a year of checking, currently 47% of the captains have an A-score, 29% a B-score and 12% a C-score. So we can conclude that the supply on the clock has become more reliable. Good news for buyers. To further encourage this development, during 2023, we are adjusting the charges imposed for incorrect supply information. Currently, when supplying a product with, for example, an incorrect quality mark, all suppliers pay a levy of up to €40 per deviating lot to cover costs incurred. This levy will depend on the QI score and the deviation, see table below.
After a year of checking, currently 47% of the captains have an A-score, 29% a B-score and 12% a C-score. So we can conclude that the supply on the clock has become more reliable. Good news for buyers. To further encourage this development, during 2023, we are adjusting the charges imposed for incorrect supply information. Currently, when supplying a product with, for example, an incorrect quality mark, all suppliers pay a levy of up to €40 per deviating lot to cover costs incurred. This levy will depend on the QI score and the deviation, see table below.
| Type of levy | A | B | C |
| System charges | € 15 | € 15 | € 15 |
| Sort features | € 15 | € 25 | € 40 |
| Inspection marks | € 15 | € 40 | € 75 |
With this we are responding to a much-heard wish of growers who make relatively almost no mistakes, that "the auction covers all the bases". We reward, as it were, the suppliers who almost always supply the correct information. Suppliers who make relatively many mistakes, we encourage through the levies to do better.
Once all automation systems have been made suitable for this, we want to start charging differentiation from 1 April next or as soon as possible thereafter. This will benefit the reliability of the information on the platform and thus the platform itself and pricing.
Once all automation systems have been made suitable for this, we want to start charging differentiation from 1 April next or as soon as possible thereafter. This will benefit the reliability of the information on the platform and thus the platform itself and pricing.
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