'Better spread in delivery helps us a lot with predictability'

The fact that buyers can increasingly control when they get their trade delivered allows for better distribution. This allows them to better predict the time of delivery. Danny van Bergen Henegouwen, purchasing director for cut flowers at FM Group*, is positive about this development. 'It helps us a lot.'

Royal FloraHolland is redesigning its logistics step by step. Instead of distribution, we are switching to order picking and delivery on time-slots. That really is a different delivery dynamic, because the auction order no longer says anything about the delivery time, which used to be an indication. The great thing is that buyers can increasingly influence those delivery dynamics themselves. With Select Delivery, we deliver at a chosen time-slot. For the regular delivery process, buyers can now also choose in which of the two time-slots they want their merchandise delivered. They determine by modes of their own end times. Per hub, per day and per buyer plate. For FM Group this is quite an improvement, Danny says.

Leaving on time and complete is crucial
"We find it very important to know when we get our products in, because leaving on time and complete is crucial. Thousands of batches come in to us every day. With our Preferred Suppliers, we started project BOB two years ago. PDO stands for Correct Loading, On Time Delivery, Barcode by Lot. BOB helps us process incoming lots efficiently so we can deliver on our promise to customers."

"Previously we only had the auction order as an indication of delivery time and sometimes had to wait a very long time for the last products to arrive. Now with time-slot delivery it works much better for us: we have more direction. I now know what time my last batch will be in."

Not everything has to be early
With Select Delivery, FM Group can now also activate a time-slot per buyer plate. "That's exactly what makes it so interesting, because I can then get parts of the trade earlier and parts later. Because not everything has to be early. Some customers don't need their products until the next day. Then it is not a problem if that is delivered later. In fact, the time of delivery becomes more reliable if the trade is spread out more."

What wishes are there for the future? Danny: "The ultimate would be if I could specify even more specifically when I want what. Now it goes down to the buyer plate level, but within such a plate there are sometimes 100 lots. Maybe I would like to have a few parts, or even parts of them, in earlier. But that's still in the future."

Thinking along
FM Group participated in pilots in Rijnsburg and Naaldwijk for period delivery. Danny: "That means an extra challenge for us, because we are based in Aalsmeer and therefore also have to take into account transport from Rijnsburg and Naaldwijk." Still, FM Group is happy to cooperate with pilots and new initiatives. "We cooperate with Royal FloraHolland in many areas and participate in the customer platform and in guidance teams around auction and logistics developments. We enjoy doing that. Then you can exercise influence and you are not taken by surprise. If you show that you like to think along, you are also more likely to be asked for pilots, we find."

*FM Group comprises 16 brands, including FleuraMetz and Hilverda de Boer. About 5,400 suppliers supply FM Group, which serves some 32,500 customers in more than 100 countries.