NL: From clock evolution to platform revolution
"Pressure on the current business model continues to increase," is what Ronald Teerds, Program Director of Tomorrow's Auction had to say about it. "This will not change. Direct sales have increased by 65%, which means that auction clock sales will continue to decrease. There are also a greater number of larger growers and customers who continue to grow both in quantity and size. Finely-meshed logistics, i.e. the delivery of ever decreasing quantities, is on the rise as well. There is a great need to separate commerce from logistics in order to keep the processes affordable."
Growth in Asia
"In addition, we see a further internationalization outside of Europe. What is quite extraordinary is that the floriculture industry is still growing at about 6% per year. There is still room to expand our market share in Europe, but the biggest growth can be found in Asia. The growth opportunities for the Dutch floriculture industry are much further away than we are used to, literally and figuratively, and increasingly, we are faced with disruptive changes. And this in a playing field that is continuously changing. Consider factors such as increased competition, changing market dynamics and the availability of big data. This may feel threatening, but what it also does is create new opportunities for the floriculture industry."
Online transaction platform
"We believe in a 24/7 online transaction platform," Ronald continued. "It will contribute to the most favorable and stable pricing. And it will, of course, be very user-friendly! We envision a platform where the grower has a great deal of control over what happens to his products. Reliable delivery is very important here, as are the extra opportunities to cash in on added value. The auction is still very much a part of this. We have plans for a virtual and efficient morning clock in combination with an ambitious reduction in costs. For this reason, it is essential to ensure the best possible reliability and quality."
The future
"We are going to redesign the logistical flows. The increase in density could, for example, be facilitated through mechanization. How best to do that will be researched during the summer. For now, we have determined the direction and the next step is to refine the design. We will discuss this with all parties involved in the near future. We will also initiate small pilot schemes to gain some experience and by December, there will be an action plan in place."
Source: Royal FloraHolland