28 March 2017
Information for plant FPCs, Plant Advisory Committee, Strengthening the Plant Clock Sounding Board Group,
growers and buyers
Update on Strengthening the Plant Clock, March 2017
Together with suppliers and buyers, Royal FloraHolland is working on strengthening the plant clock. We would like to
inform you about our progress with the different projects. This update was also presented to the Strengthening the
Plant Clock Sounding Board Group on 16 March 2017.
1. Optimising the purchasing process at the clock
The New Auctioning Programme
The agenda of the Sounding Board Group was dominated by The New Auctioning programme. The status of the
Today for Today and Today for Tomorrow projects was highlighted.
Today for Today
A nationwide virtual clock ensures a stable price for growers. Buyers get an overview of the available supply
nationwide in one place, and our growers know that their supply can be seen by all buyers. Its impact on the Royal
FloraHolland ICT systems and on the purchasing processes of large and small buyers is considerable. Therefore, it
was decided to conduct a few limited experiments with individual auction groups in the autumn. They do not cover all
of the preferences for a nationwide clock, so there will be no “countdown” yet. For these experiments the flower
auction groups were chosen, because flowers have already implemented the step from physical auctioning to image
auctioning.
Today for Tomorrow
Today for Tomorrow is part of the hybrid model for the ‘Marketplace of the Future’ while also answering the wishes of
different target groups. By uncoupling the transaction and delivery aspects, the logistic (chain) costs are kept low,
leading to a more demand-oriented logistics in the day trade. The experiments will test whether this concept meets
the needs of buyers and growers. In mid-April a technical ‘Proof of Concept’ will start. After the peak period (midJune), we shall begin experimenting with a live version for growers and buyers. The initial scale will be small, working
with just one product group (cut flowers) and several buyers and growers at the Aalsmeer location. This will then be
gradually scaled up. The design principles are now being elaborated in detail.
2. Optimal and stable price-setting
Multi-transaction auctioning pilot stopped at Plant Clock in Naaldwijk
In consultation with the Strengthening the Plant Clock Sounding Board Group, it was decided to terminate the Multitransaction auctioning pilot at the plant clock in Naaldwijk. The pilot stopped on 29 March 2017.
Multi-transaction auctioning allows more than one transaction within one auction session. Two pilots have so far
explored what the effect of multi-transaction auctioning is on the price-setting. The first conclusion is that prices did
become slightly more stable. No effect on the optimal price-setting was noted. The pilot also revealed that the auction
duration is shortened by 10%. The definitive analysis of the 2nd pilot (buying within one time slot) will be discussed in
June, but it is not expected to arrive at a different conclusion.
We have obtained a lot of information from the two pilots about the effects of multi-transaction auctioning. In the first
pilot several transactions were awarded within one clock stop. The second pilot concerned one time slot, leading to
at most two prices being set in one auction session.
The New Auctioning programme is examining whether multi-transaction auctioning can form part of the Today for
Today and Today for Tomorrow clocks (still to be developed).
3. Improving the information at the clock
Product photos at the clock
An important milestone for the clocks has just been reached. All growers are now supplying product photos for their
clock lots. This is a great result of our joint efforts. It is a response to one of the buyers' biggest wishes. It is also an
important precondition for the continued virtualisation and digitisation required for the implementation of The New
Auctioning.
In the coming months, we are going to work on representative product photos. They need to improve! The photos
must perfectly match the lot on offer at the clock. Buyers must be able to rely on this. We shall organise workshops
together with suppliers and buyers to elaborate a plan to achieve the representative aspect.
From April 1, lots without a product photo will no longer be auctioned. An exception will only be made in cases when
the EDF was created but was delayed in the chain and thus does not arrive at the auction in time, if there is a
delivery note containing a QR code with a link to a product photo.
Pilot of A1 and A2 with concurrent auctioning
After consultation with the Sounding Board Group, a pilot will be initiated after the peak period, at the end of June
2017, involving two auction groups of plants to be specified later in which A1 and A2 quality are auctioned
concurrently. The current policy is to auction A2 quality at the end of the clock auction. As a result, some suppliers
take a chance on auctioning their products in the A1 auction group without an inspection code. With concurrent
auctioning of A1 and A2 it is expected that suppliers will be more likely to specify their inspection code, which will
contribute to the reliability of the supply information and may reduce the costs associated with this process. Flowers
of A1 and A2 quality are already being auctioned concurrently. After the pilot the effects will be analysed and the
result discussed in the Sounding Board Group; a decision about a follow-up is expected around November 2017.
Composition of Strengthening the Plant Clock Sounding Board Group:
Buyers:
Suppliers:
Peter Straathof
Waterdrinker
Ad van Marrewijk
Concorde Orchids
Peter van Gijlswijk
Quattroplant
Arno Vollebregt
Vollebrecht Cyclamen
Jan Robbe
Leo Lamboo
IBH
Holland Indoor Plants
Willem van der Voort
Hein Visser
Sjaloom
VDE Plant
Rene Vellekoop
Henk Buurman
Hamiplant BV
Buurman Planten
Henny Zwinkels
Berry Jongerius
Kwekerij De Bonfut
Kwekerij Jongerius
Aat van den Eijk
Ben Dames
Van der Eijk Planten
Dames Plants
Nannie Cohen
Vincent Groenewegen
Nannie Cohen
Floris Holland
Manon Velthuis
VGB
Do you have any questions about Strengthening the Plant Clock?
Please contact Judith Hulspas, T 06 51235496 or E [email protected]