Moving towards appropriate logistics [part 2]
December 10, 2024
In this second instalment of Royal FloraHolland's logistics strategy, René Krukkert, Logistics Strategy & Business Development Manager, elaborates on the specific steps Royal FloraHolland is taking now and in the coming years to make our logistics services more flexible and efficient. What have we done and what else will change for growers and buyers?
Great strides made
"We have already made great strides in rolling out our logistics strategy in recent years. For example, the transition from distribution to order picking, delivery in time slots with Select Delivery, our growing 'Stock & Order picking' service, Hub-to-Hub transport with Floriway, and making our transport packaging more sustainable via co-creation with the supply chain. Ultimately – as explained in the previous article – we want to make the floriculture chain’s logistics processes more efficient, achieve economies of scale, and digitise where possible and necessary.
The aim is to organise our logistics operations so members and suppliers can sell their products the way they want, whereby we subsequently provide them with a full-service, sustainable logistics solution from nursery to buyer. Today's market dynamics demand the ability to switch between buying and selling channels easily and at the last minute. This makes it necessary for us to adapt the logistics process,not least because there is an increasing need for more finely-meshed delivery by appointment and buyers need more control over delivery times," according to René.
Channel-independent logistics
René continues: "For this reason, we are innovating and improving our processes and exploring where we can provide added value. We are currently working in collaboration with Zentoo and Marginpar to develop channel-independent logistics. This will enable growers to bring all their products to Royal FloraHolland and it will no longer matter whether trade is auctioned or sold directly through Floriday or their own webshops. It is even possible to sell products while they are still at the nursery or in transit to our hubs."
This will offer growers many benefits, especially in terms of products they want to trade via finely-meshed sales. "Some experience efficiency, as trade no longer needs to be split at the nursery in advance. For others, it potentially opens up a whole new sales market, because they can exploit new sales channels easily and without additional investments. But also because they can serve their customers quickly and cheaper."
Order picking of flowers at Aalsmeer
For channel-independent logistics to work, the step-by-step introduction of order picking is necessary. For plants, we now have each hub completely covered, for flowers, we only still have to do that at Aalsmeer. We expect to start scaling up after the 2025 peak period. We process the largest volume of flowers at Aalsmeer, so careful roll-out is of great importance.
René: "We are constantly busy with further optimisation of our logistics to make it align with the processes and challenges of our growers and buyers more and more seamlessly. It doesn’t matter how a flower or plant is bought or sold, our logistics adapts to that."
Time slot delivery: Floriday
"We have started a shared journey with buyers”, René explains. The transition to order picking has changed the delivery of products. "Buyers in Naaldwijk, Rijnsburg, Eelde and Aalsmeer plants now choose when, where and how they want to receive their products. Since September, buyers have been able to adapt their Select Delivery time slots in Floriday themselves and coordinate their process accordingly.
This was not possible with our old way of working 'directly linked to auctioning'. Not least because each hub used to have its own logistics practices and systems. Many buyers say we make their work far more efficient with time slot delivery. Other buyers still have to get used to the opportunities presented by time slot delivery in terms of spreading the work in their own logistics process."
A single smart and uniform IT system
"Whereas in the past we had a different system at each hub, we can now achieve economies of scale with a single uniform system at all hubs, as well as work more efficiently by optimising a single system," René explains. "We are working closely with colleagues from Data Science and IT. We are developing a smart algorithm for order picking, allowing us to deliver more efficiently and reliably in time slots.
The algorithm will first be tested in Rijnsburg and will inform the deployment of employees based on the priority of orders. In this way, we aim to minimise driving times and the number of carts required. If Rijnsburg gives the green light for use of the algorithm, we will also roll the pilot out across Naaldwijk and Aalsmeer."
Dock Services app
We are investing in the future and in the growth of the industry with our logistics strategy. We are also trying to remove barriers internationally, not just within the Netherlands. A good example of that is the investment we recently made in Dock Services. A faster and easier way of working by investing in mechanisation, as well as making processes more transparent with an app in Floriday.
"Many agents had wanted an app like this for some time. The app shows growers and agents the status of air or sea freight shipments, enabling them to plan their work. We are responding to their needs. In addition to service delivery in the Netherlands for our international growers, we are also exploring how we can support them with logistics to other regions, such as the Middle East."
A menu of logistics solutions
All developments are contributing to an extensive menu of services. Coming from a one-size-fits-all logistics process linked to auctioning, we are now moving towards a logistics platform with a menu of standardised logistics solutions from which to choose. René elaborates proudly: "Both growers and buyers are coming to us because they are hearing positive feedback or have experience of changing logistics. You could hardly be paid a bigger compliment."
Want to provide input?
Input from growers or buyers about our logistics strategy and the specific steps we are taking is very much welcome. If you would like to provide input, please contact your account manager or our Customer Contact Centre.
Great strides made
"We have already made great strides in rolling out our logistics strategy in recent years. For example, the transition from distribution to order picking, delivery in time slots with Select Delivery, our growing 'Stock & Order picking' service, Hub-to-Hub transport with Floriway, and making our transport packaging more sustainable via co-creation with the supply chain. Ultimately – as explained in the previous article – we want to make the floriculture chain’s logistics processes more efficient, achieve economies of scale, and digitise where possible and necessary.
The aim is to organise our logistics operations so members and suppliers can sell their products the way they want, whereby we subsequently provide them with a full-service, sustainable logistics solution from nursery to buyer. Today's market dynamics demand the ability to switch between buying and selling channels easily and at the last minute. This makes it necessary for us to adapt the logistics process,not least because there is an increasing need for more finely-meshed delivery by appointment and buyers need more control over delivery times," according to René.
Channel-independent logistics
René continues: "For this reason, we are innovating and improving our processes and exploring where we can provide added value. We are currently working in collaboration with Zentoo and Marginpar to develop channel-independent logistics. This will enable growers to bring all their products to Royal FloraHolland and it will no longer matter whether trade is auctioned or sold directly through Floriday or their own webshops. It is even possible to sell products while they are still at the nursery or in transit to our hubs."
This will offer growers many benefits, especially in terms of products they want to trade via finely-meshed sales. "Some experience efficiency, as trade no longer needs to be split at the nursery in advance. For others, it potentially opens up a whole new sales market, because they can exploit new sales channels easily and without additional investments. But also because they can serve their customers quickly and cheaper."
Order picking of flowers at Aalsmeer
For channel-independent logistics to work, the step-by-step introduction of order picking is necessary. For plants, we now have each hub completely covered, for flowers, we only still have to do that at Aalsmeer. We expect to start scaling up after the 2025 peak period. We process the largest volume of flowers at Aalsmeer, so careful roll-out is of great importance.
René: "We are constantly busy with further optimisation of our logistics to make it align with the processes and challenges of our growers and buyers more and more seamlessly. It doesn’t matter how a flower or plant is bought or sold, our logistics adapts to that."
Time slot delivery: Floriday
"We have started a shared journey with buyers”, René explains. The transition to order picking has changed the delivery of products. "Buyers in Naaldwijk, Rijnsburg, Eelde and Aalsmeer plants now choose when, where and how they want to receive their products. Since September, buyers have been able to adapt their Select Delivery time slots in Floriday themselves and coordinate their process accordingly.
This was not possible with our old way of working 'directly linked to auctioning'. Not least because each hub used to have its own logistics practices and systems. Many buyers say we make their work far more efficient with time slot delivery. Other buyers still have to get used to the opportunities presented by time slot delivery in terms of spreading the work in their own logistics process."
A single smart and uniform IT system
"Whereas in the past we had a different system at each hub, we can now achieve economies of scale with a single uniform system at all hubs, as well as work more efficiently by optimising a single system," René explains. "We are working closely with colleagues from Data Science and IT. We are developing a smart algorithm for order picking, allowing us to deliver more efficiently and reliably in time slots.
The algorithm will first be tested in Rijnsburg and will inform the deployment of employees based on the priority of orders. In this way, we aim to minimise driving times and the number of carts required. If Rijnsburg gives the green light for use of the algorithm, we will also roll the pilot out across Naaldwijk and Aalsmeer."
Dock Services app
We are investing in the future and in the growth of the industry with our logistics strategy. We are also trying to remove barriers internationally, not just within the Netherlands. A good example of that is the investment we recently made in Dock Services. A faster and easier way of working by investing in mechanisation, as well as making processes more transparent with an app in Floriday.
"Many agents had wanted an app like this for some time. The app shows growers and agents the status of air or sea freight shipments, enabling them to plan their work. We are responding to their needs. In addition to service delivery in the Netherlands for our international growers, we are also exploring how we can support them with logistics to other regions, such as the Middle East."
A menu of logistics solutions
All developments are contributing to an extensive menu of services. Coming from a one-size-fits-all logistics process linked to auctioning, we are now moving towards a logistics platform with a menu of standardised logistics solutions from which to choose. René elaborates proudly: "Both growers and buyers are coming to us because they are hearing positive feedback or have experience of changing logistics. You could hardly be paid a bigger compliment."
Want to provide input?
Input from growers or buyers about our logistics strategy and the specific steps we are taking is very much welcome. If you would like to provide input, please contact your account manager or our Customer Contact Centre.
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