Royal FloraHolland | Quality Index

Quality Index

The Quality Index

Buyers need to be able to trust what is delivered. Whether you use the clock, Clock presale, Direct Bidding or make direct appointments through Floriday, reliable supply information is vital for both growers and buyers. For buying on the clock and clock presales, the Quality Index indicates how reliable the supply information is.

What is the Quality Index?

The Quality Index (QI) shows on the clock front the reliability of the supply information, such as the product picture and the inspection and grading characteristics, in the form of an A, B or C score. The score indicates the percentage of lots that are supplied without error, so growers can distinguish themselves in reliability. For buyers, the Quality Index is an aid when selecting flowers or plants.

Why is the Quality Index needed?

Especially in a world that is rapidly digitising, reliable supply information is very important. Buyers must be able to trust what is delivered. The Quality Index helps with this, as it provides insight into the level of reliability. Correctness of supply information leads to higher buyer satisfaction and ultimately to optimal pricing for both grower and buyer. This helps our marketplace function well. Reliable supply information is always important, not only for the clock, but also for direct trade. Read all the tips on Floriday's website.

Working on reliability pays off

Since the introduction of the Quality Index, and in particular the differentiated charges, we see that the reliability of supply information has increased. There are more growers with an A and B score (47% and 30% respectively) and fewer growers with a C score (11%). The proportion of 'no score' has remained the same.

However, a large proportion of the claims are caused by a relatively small group of suppliers: growers with a C score account for 4% of the clock supply, but are responsible for 27% of all claims. They therefore pay a higher levy in case of a quality observation than A and B growers.

Would you like to improve your supply information? The inspector can help you with a free inspection request.

How is the Quality Index calculated?

The reliability of product information and photos is crucial for the proper functioning of the marketplace and for improving buyers' purchasing experience. The Quality Index (QI) shows the reliability of supply information, such as the photo and inspection and grading characteristics. The index indicates the percentage of lots that are supplied without error. Below, we explain how we calculate the Quality Index.

How is the Quality Index calculated?

The percentage of lots that are supplied error-free is based on the number of deviations in supply information that growers have received on clock lots in the past 62 weeks. These deviations may have been detected both before the auction (through quality checks) and after the auction (through complaints). Suppliers will only receive a score if they have supplied at least 50 clock lots in the last 62 weeks. Landlords who land less than 50 lots in 62 weeks will not receive a score. This affects about 0.2% of the batches offered.

A, B or C score?

Growers are awarded an A, B or C score based on the percentage of lots that are delivered without error. A margin of error of 1.5% has been included, because every grower can sometimes be wrong and there can always be an unintentional deviation. If the error percentage is higher than 1.5%, this is reflected in a lower QI score. The captain is then given a B or C status.

  • Class A: more than 98.5% of games without deviation
  • Class B: 98.5% to 94.5% of games without deviation
  • Class C: < 94.5% games without deviation
  • No score: if fewer than 50 lots have been supplied

The Quality Index in practice

To clarify how we calculate the Quality Index, you will find two examples below:

Example 1
Grower A feeds at three locations. The grower delivers 1,000 lots in 62 weeks and receives six complaints on this supply. Two claims can be traced back to the same lot, so there are claims on 5 unique lots. In addition, Royal FloraHolland adjusted 2 other lots for auction. This means that 993 of the 1,000 lots were in order, i.e. 99.3%. This puts this grower in class A.

Example 2
Grower B supplies at one location. The grower supplies a seasonal product and has delivered 200 lots in 4 weeks. On 5 unique lots, 2 complaints came and 3 adjustments were made.

But 56 weeks ago, the grower had also supplied: 200 lots and 4 complaints. These fall within the 62 weeks and therefore also count: QI = (400 - 9)/400 = 97.75%. This puts this grower in class B.

Quality Index charges

The reliability of product information and photos is crucial for the proper functioning of the marketplace and for improving buyers' purchasing experience. To encourage the delivery of reliable supply information, growers who make fewer mistakes will pay a lower charge per observation on incorrect or incomplete supply information.

The better you do, the less you pay

Growers pay a differentiated charge per observation. Growers who make fewer mistakes and therefore have A status pay a lower amount than growers with B or C status. In contrast, suppliers with C status pay more. So working on reliable supply information pays off.

We work with four categories of charges:

1. Unknown value on EAW
These are changes made from the system on the lot information, i.e. an error message if the EAW cannot be processed. The lowest rate (regardless of QI score) applies for these.

2. Change of grading/prescription
These are changes on a clock lot that are determined before auctioning. These may be grading characteristics, an incorrect product code or a deviation in the photo instructions. This is subject to the medium rate and depends on the QI score. Maturity is a typical example that falls under this category.

3. Product advertisement
This refers to a product advertisement that is determined after the auction. This is subject to the medium-high rate and depends on the QI score.

4. Change quality/photo
These are changes to a clock lot concerning quality features (quality aspects) and in the case of a non-representative photo (quality feature 998), which are determined before the auction. The highest rate applies and depends on the QI score.
Quality Index chargesQ.I.-score AQ.I.-score BQ.I.-score No Q.I.-score (<50 lots)
1. Unknown value on EAW€ 15,-€ 15,-
€ 15,-
€ 15,-
2. Change of grading/prescription€ 15,-€ 25,-
€ 40,-
€ 15,-
3. Product advertisement€ 15,-
€ 25,-
€ 40,-
€ 15,-
4. Change quality/photo€ 15,-
€ 40,-
€ 75,-
€ 15,-
Calculation examples
To get a good idea of how these charges work, below are some real-life examples:

1. At the product advertising counter in Aalsmeer, a buyer comes with a batch of tulips. The ripeness is different from what was stated on the clock front. The grower in question has stated the incorrect ripeness and has B status on that auction day. Then the charge is €25.

2. A grower with a C status brings in peonies with damaged flowers, but has not stated this on the supply letter. The inspector adjusts the delivery information and the charge is set at €75 per deviating lot.

3. A buyer in Rijnsburg had a lot of Wax delivered that was lighter than specified by the grower. The grower in question had an A-status that auction day. The charge is then €15.

4. During the photo inspection from home, the inspector observes that no cask is visible in the product photo. This is not according to the photo requirement. The grower has C status and the charge is then set at €40.

5. During the product inspection, the inspector in Naaldwijk sees that a longer product is shown in the photo than was actually supplied. The inspector uses the RFH Photo app to take a new product photo for the grower, who has B status on that day. The charge is €40.