Royal FloraHolland's logistics process is unique in its kind because of the day-fresh nature of the products. It is so special that it has been a popular tourist attraction for years. Visitors from all over the world are invariably impressed by the efficiency with which the flowers find their way to the buyer. It is a process that cannot be witnessed on such a large scale anywhere else in the world. The process has been optimised and perfected over decades. This is due in part to the availability of electric tractors, the standard sizes of trolleys and packaging, and the development of custom-developed software for our logistics. And, of course, years of practical lessons learned. The success is partly due to the seamless connection to the logistics on the grower and buyer side. The latest development in their logistics is time slot delivery. "This offers great advantages for both buyers and us", explains Leendert-Jan Plaisier, COO Royal FloraHolland.
" When I started as COO three years ago, the focus was entirely on delivering the products as quickly as possible within our predicted end time based on prognoses. Once the products were sold during the auction, it was a matter of getting them to the customer as soon as possible. This for all products to all customers, without discrimination. As a result, working hours were short and varied greatly from day to day, which proved unattractive to employees as the labour market tightened."
Spread of supply offers buyers benefits
Meeting that generic end time, has since come under increasing pressure, he continues. "We did not only discuss internally whether we could do things differently, but also with our customers. Discussions show that more and more buyers are also adapting their processes and working methods step by step. They too have a challenge in terms of logistics staff. Spreading supply offers buyers advantages. Although the primary interest remains reliable and predictable delivery. This applies to the products they buy on the clock and to the direct flow we process on behalf of our growers."
"A crucial development for improving predictability and reliability of delivery is delivery in time slots. Initially for the clock. Instead of aiming for one end time, it turns out that buyers actually prefer to get some of their purchased products later. Like us, they want to move to staggered times to engage employees and use space and resources efficiently. Also, some buyers prefer not to receive their products before 8 o'clock, for instance, because it allows them to work more efficiently themselves. With order picking, this is possible, if you give the system the right instruction. We use the ability of the order picking system to deliver in time slots chosen by buyers."
More certainty and predictability
"We have previously created Select Delivery time slots for clock pre-sales (KVV), for example. But also, for the regular process, we are now moving to time slot delivery. This offers customers more certainty and predictability, than working with the one-size-fits-all end time. We successfully tested this in a pilot last summer. Buyers could choose delivery by 11am or by 12pm, or a combination of both at the location where they buy. Together with Select Delivery for KVV purchases (before 08.00) and/or Priority Delivery (urgent sale service), buyers can create a flow that seamlessly fits their processes. A pilot is also running for late delivery of clock purchases with Select Delivery (10.00-13.00) and getting delivered before 12.00 at another location; for example, getting delivered at 12.00 in Aalsmeer what was bought in Naaldwijk or Rijnsburg. Spreading the total over several time slots is very important to us in order to allow employees to work longer, make better use of space and resources and deliver reliably."
Upward trend since summer
"Looking at the figures, we have been on an upward trend since the summer. The time slots for regular delivery and Select Delivery combined with some targeted improvements in the system and fewer order picking errors are paying off. With the growing number of buyers who have set time slots for regular delivery, reliability remains high and stable at over 98%. We are now in the process of mapping all buyers' delivery preferences by day in Naaldwijk and Rijnsburg. What is striking is that more than 50 per cent of the buyers chooses a later delivery time, e.g. before 12 or even between 10am and 1pm."
"Soon, when everyone has chosen time slots for regular delivery, the hubs where we pick orders will no longer have a single end time that varies from day to day. This also means that on days with lower volume, we can take our time to deliver all products. Indeed, that is the agreement with our buyers. We go step by step and experience, learn and optimise each time before taking the next big step. This is how we ensure that buyers can count on high-quality, reliable and predictable logistics services, even during change. This is what we stand for because in doing so we contribute to Royal FloraHolland's objective, optimal pricing at the lowest possible cost."
Source: Royal FloraHolland