Armando Paoloni, AP Network:

"Outsourcing: "the best option when entering new markets"

"Shortening the supply chain is a trend. More and more companies are working with direct partners as this will reduce their costs and increase their yields. However, when entering new markets - and many growers/exporters are forced to do so due to the situation in Russia, for example - these benefits might vanish as companies have to deal with higher risks/costs. Then outsourcing can be a good option to consider."

This is explained by Armando Paoloni of AP Network, an independent business developer, who is active in the acquisition, sales and interim management for companies around the globe. "Our aim is to 'relieve' companies from time consuming, cost intensive and risk involving activities."

Armando Paoloni.

Supplying the customers of your customers
The flower supply chain is becoming shorter as the ornamental sector has to deal with thin margins. More and more companies are supplying the customers of their customers. "A recent trend we see, is that companies are establishing a farm abroad which supplies to their home market, where they also have an office. Some large growers, for example, established a farm in South America and an office in the Netherlands. Their flowers are being grown abroad and are being supplied directly to the florist in Europe. In this way, no exporter/importer or middlemen is needed anymore, so the yield is higher," says Paoloni.

More direct partners more risks
However, the majority of growers/exporters do not have their own office abroad, but are dealing with direct partners. Even though this way of supplying increases the yields, it also involves more risks. When searching for new markets - and many growers are currently forced to do so due to the decrease in demand and prices in for example the Russian market , a major market for many - finding the right and trustworthy buyers is not always that easy. This also counts the other way around. Also increasingly more buyers are looking for direct partners as it will reduce their costs. Therefore, they also have to deal with more risks. In order to reduce the risks, for both the growers and the buyers, Paoloni started to offer a service which will 'relief' both parties. "As I am in the business of exporting flowers and plants for 25 years, I can find and connect the growers with the right buyers and the right buyers with the right growers. Besides that, there will be no language-barrier as my team and I master the English, German, Italian, Spanish, Chinese and Dutch language."

Save time and money
The services of AP Network will not only reduce the risks but will also save companies time and money. "Usually when a grower/exporter wants to enter new markets they have to put in a lot of energy and costs to successfully enter this new market. For example, they have to invest time in discovering the market themselves or invest money in hiring a new employee who will evaluate the opportunities in a certain market. As AP Network is working on a interim basis, this will save the company both time and money."

Commercial support
Besides finding new markets, ways to enter these markets and connecting companies, AP Network also assists companies in their commercial activities. "For Atlantis, for example, one of my partners is an exporter with companies in Italy and Austria, and I handle a part of the sales here in the Netherlands. I know the Dutch market, master the language and the office is strategically located in Woubrugge, the Netherlands; within 20 minutes I am at the Westland area, Schiphol and FloraHolland. Therefore Atlantis does not have to put more effort in his sales over there. And as I am doing this job on an interim basis, they can make use of my services whenever they want," he says.
For more information:
AP Network
Armando Paoloni, business developer
Elzenlaan 1b
2481LZ Woubrugge NL
M: +31 (0)6 12 049 709

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