In the run-up to Mother's Day, Royal FloraHolland could not only report on the good turnover on their market place, but could even report a week record turnover of over 170 million euros. This is partly thanks to the clock, Ruud Knorr, CCO of Royal FloraHolland reports in his column.
Ruud Knorr, CCO Royal FloraHolland
According to Knorr, the average price of cut flowers went through the ceiling. The share of the clock has declined in small steps in recent years to 40% last year. But cut flowers are still for the most part traded on the clock. The clock share of cut flowers in terms of turnover is 60% and in terms of volume 54%. This shows that the prices for cut flowers are higher on the clock than in the direct streams.
An auction by means of an auction clock is a unique instrument which is even called a 'Dutch auction' in English. The clock proves its worth day in and day out. Last year, € 1.8 billion worth of turnover was sold via the clock. This happened via almost 6,300 KOA connections divided among almost 1,500 customers. The clock as a good sales instrument is, after the good financial settlement, the main reason for growers' satisfaction with Royal FloraHolland's services, Knorr reports. The fact that 93% of the growers supply the clock underlines its importance. Clock buyers even place the clock at number one. Of all buyers, 84% are active on the clock. According to Knorr, there is no better instrument for achieving optimal pricing and the success of the clock over the past hundred years is proof of that. Moreover, there is a transparent market environment where an enormous diversity of supply and demand is brought together.
Of course, the clock does not stand alone. It is in fact a combination of deal-making, logistics and financial settlement. The clock thus fulfills the needs of users. "We also do this by improving the reliability of information about product quality and developing a good and unambiguous complaints process. These are preconditions for a well-functioning clock. Another success factor is how and to what extent we can connect to the buyer's business processes in the future. Fulfillment logistics is our answer," says Knorr.
Read the complete column at www.royalfloraholland.com.
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