In recent months, Royal FloraHolland, together with Floriway and external experts, has conducted a strategic study into the future of Floriway. Various scenarios were calculated and weighed from a financial, commercial, and operational perspective. A hard precondition is the realization of profitability in the shortest possible term.
The study concludes that the chosen scenario for restructuring and repositioning is the most optimal scenario. It has been decided that in addition to further restructuring, a repositioning of Floriway will take place with a focus on closer cooperation and synergy opportunities with Royal FloraHolland. In recent months, new management has implemented numerous concrete interventions and improvements already bearing their first fruit. The result of the independent investigation is that the strategic relevance of Floriway for Royal FloraHolland and the floriculture sector has been confirmed. Moreover, there is now a clear plan for a financially healthy future.
Better Results
In recent months, Royal FloraHolland, together with Floriway and external experts, has conducted a strategic study into the future of Floriway. Various scenarios were calculated and weighed from a financial, commercial, and operational perspective. A hard precondition is the realization of profitability in the shortest possible term.
The study concludes that the chosen scenario for restructuring and repositioning is the most optimal scenario. It has been decided that in addition to further restructuring, a repositioning of Floriway will take place with a focus on closer cooperation and synergy opportunities with Royal FloraHolland. In recent months, new management has implemented numerous concrete interventions and improvements already bearing their first fruit. The result of the independent investigation is that the strategic relevance of Floriway for Royal FloraHolland and the floriculture sector has been confirmed. Moreover, there is now a clear plan for a financially healthy future.
Restructuring and Repositioning
"The restructuring consists of continuing significant productivity gains with targeted measures from a clear plan for the future. This opted for a sharpened focus on customers and process improvement to improve service and financial performance. The first results are visible: productivity is increasing, and the number of customer complaints is decreasing. An essential part of this decision is the repositioning, which aims to achieve maximum cooperation and synergy between Royal FloraHolland and Floriway. This will be achieved by integrating Floriway's internal logistics with those of Royal FloraHolland for more efficient, reliable, and sustainable distribution within the RFH hubs.
Improvements and Measures
In the past period, a start was made on reducing the number of indirect employees and other fixed costs. This included saying goodbye to rented spaces and docks in Aalsmeer and Naaldwijk and merging Floriway's boxes there for more efficient use of space. In addition, truck productivity, load factor, and box productivity have been significantly increased by tightening daily steering. Collectively, these measures provide a financially stable base, enabling customer promises to be realized. Several individual customer interviews confirm the growing confidence in Floriway's new direction.
Source: royalfloraholland.com