Netherlands: IFlow working on good and stable price-setting in day trade

Can we structurally improve and better stabilise the price-setting of horticultural products in the day trade? How can revised logistics contribute to this process?

To answer these questions, growers, trade representatives, FloraHolland, Rotterdam School of Management (RSM), Erasmus University (Rotterdam) and Wageningen University collaborated on the iFlow project. The objective is to support the day trade between growers and customers and thus ultimately strengthen the power of the Netherlands as a marketplace.

Price-setting at the clock highly determinative

The clock has always been an effective and efficient instrument for determining a good market price and for rapid commercial and logistical processing of a multitude of transactions. The direct flow between grower and customer has increased considerably, however. The price-setting at the clock has always been highly determinative of the price-setting in the total market. At the same time, the influence of various factors has made this price-setting less stable. The instability of the price-setting at the clock leads in turn to pressure on the price-setting in the direct flows. The logistical processing associated with the clock is still crucial in the day trade processes.

Revising the day trade process

The use of new ICT enables us to revise the day trade process and the logistics chain network. We can also make them more competitive and sustainable. Research by RSM has shown that it is possible to support growers and customers in making better decisions about buying and selling flowers and plants. In the iFlow project we take this conclusion further by looking for tools to put it into practice so we can work on good and stable price-setting. Wageningen University, previously involved in the DAVINC3I project, is continuing to research demand-driven logistics.

Financing

Financing for the four-year project was provided by the Top Knowledge Institute of Horticulture, the Product Board for Horticulture and the participating companies. The project was coordinated by FloraHolland and the Rotterdam School of Management, Erasmus University (Rotterdam).

Source: FloraHolland.com