Random grower lots: 'Can't really be any fairer'

With the transition to the order picking system, we are increasingly moving towards a single way of lotting. At the hubs where we pick orders, the auction order no longer depends on the logistics set-up. This allows us to determine the auction order in a more fair way: by random grower lots (per administration number). How exactly does it work? Léon Haasbroek, Manager Operations Dealmaking at Royal FloraHolland and Simon Vermeer of nursery Leekade explain.

"For many years, we have determined by drawing lots the order in which the flowers and plants we auction through the auction clock take their turn," Léon explains. "The auction sequence is important for many growers. When the market ends, it is often more pleasant if you are at the front. Our auctioneers regularly get questions from growers who are concerned about whether the draw process is fair." According to Léon, random grower lots are the fairest.

Every grower stands a chance every day
"In the past, Royal FloraHolland used perhaps ten different ways of drawing lots. In the past, there was also often a dependency with physically showing the products in front of the auction clocks in the auction room, relative to the lead times of logistics. Nowadays, there are only three: row lots, start nursery lots and random nursery lots. Thanks to order picking, we can pick flowers and plants at any time, so the auction sequence no longer depends on the set-up sequence. This allows us to use a different auction sequence every day. Every grower is drawn by lot every day, regardless of his place in the row, large or small, late or early supply and regardless of his past history. Moreover, the draw can only be done once a day by a very limited number of officials, who are also logged. As a result, it cannot be 'tampered with'."

"This makes every grower equally likely to be auctioned in front every day. Growers should realise that it can therefore also happen that they end up at the back several times. I understand that this is annoying, but usually growers also only make themselves heard if they finish at the back, not if they are at the front three times."

Mixed noises
Simon is chairman of the FPC Cutting Orchid. He himself speaks highly of random lots, but sometimes hears different noises within the FPC. "I should add that we supply small-flowered cymbidiums ourselves, which is a relatively small auction group. The large-bloomed cymbidiums are a much larger group, and I can imagine that for those growers the auction sequence is more important. If 100 trolleys are supplied, I can well understand that you want to be among the first 25. And as chairman, I also include the interests of those growers."

"I also get regular questions from the FPC. Some growers argue that the process is not fair because they are always auctioned off at the back. But it is not true that being auctioned at the back gives the right to be allowed at the front again next time. It doesn't work that way. You have the same chance every time. I also wonder what Royal FloraHolland would gain by not conducting the draw fairly."

Independent IT audit
Léon also points to the IT audit, an independent study Royal FloraHolland recently commissioned from IT audit & consultancy firm Noordbeek, to check whether the 'random grower lottery tickets' lottery system is actually working properly. This revealed that the system is indeed random loot and complies with the guidelines. The firm writes: "Based on our IT audit, we conclude with a reasonable degree of certainty that the control measures Royal FloraHolland has put in place to implement random grower lotteries have been effective in design, existence and operation during the investigation period from 1 October 2022 to 30 September 2023. The lottery system complies with the generally accepted guideline for random lots."