Kenya's Rose Imports to Holland

Topics: Inventory, Kenya, Supply chain management Pages: 40 (14022 words) Published: August 14, 2011
International Management 2011
Group 7
5 March 2011

Hereby, we declare that this work submitted is our own work, and that it has not been previously submitted on any other course at another institution. Name| Student Number| Date| Signature|
Govert van Drimmelen| 9408596| | |
Frans Jacobs| 210234993| | |
Francois Viljoen| 201245922| | |
Frances Roets| 97082154| | |
Kaashni Pillay| 210234870| | |
Marisa Da Silva Valga| 98011161| | |
Mbhavi Raedani| 99026820| | |
Sarel Venter| 201194601| | |
Stephanie du Preez| 209315211| | |
Table of Contents
Background on Kenya5
Brief Overview of the business Environment5
The Kenyan Economy:6
Kenya Trade, Exports and Imports9
Kenya Trade: Exports9
Kenya Trade: Imports9
Flower growing in Kenya10
Why is Kenya so successful with flower growing?10
The Future Prospects and Trends of the Flower Industry in Kenya11
Background on The Netherlands (Holland)12
Background and Market Information12
Flower Industry Background13
The Dutch Flower Auction Concept14
Some Lessons the Auctioneers Learned16
Our Current Situation20
De Roos Florist – Amsterdam Sloten20
Supply Chain Diversification22
Definition: Supply chain diversification22
Advantages of diversification22
More emphasis on value chain innovation22
A stronger focus on cost reduction22
Increasing sales to present customers23
Building new or more flexible competition23
Supply Chain Decisions24
1.Location Decisions:24
2.Production Decisions24
3.Inventory Decisions27
4.Transportation Decisions27
Inventory Rules31
Types of inventory33
Supply Chain for Import34
Export and Import Regulations and Taxes36
Duties and VAT36
Customs Entries36
Open Account (OA)37
Documentary Letter of Credit (LC)37
Terms of Delivery37
Import Duties37
Import Taxes38
Import Regulations of the Netherlands on Plant Health38
Points of entry38
List of importers and Approved places of inspection38
Import Declaration Form (IDF)39
Quality Inspection39
Customs Import Entry39
Special Permits/Certificates40
The role of the exporters40
Distribution and Transportation Process42
The Cool Chain43

Background on Kenya

Brief Overview of the business Environment
Located in East Africa, Kenya lies on the Equator bordered by Somalia, Ethiopia, Sudan, Uganda, Tanzania and the Indian Ocean. It covers an area of some 592,909 sq. km and has a population of approximately 30 million people. Much of the country, especially in the north and east, is arid or semi-arid. Kenya is essentially an agricultural economy mainly dealing in horticulture and crops like coffee and tea. The country has been politically stable since it gained its independence in 1963, and the recent peaceful transition of power to the new administration has been widely praised as an impressive example of African democracy in action. The landslide victory of President Mwai Kibaki and the National Rainbow Coalition (NARC) in presidential and legislative elections in December 2002 marked the beginning of a new political era by ending almost four decades of one-party rule. The new administration has embarked on policies that focus on economic development, building up the country’s infrastructure and generating employment. The peaceful transition in 2002 demonstrated Kenya’s stability and political maturity. Further, a number of organizations and governments have based their regional headquarters in Nairobi. Moves to liberalize the economy taken over the last ten years have laid the groundwork for an investment-friendly environment in Kenya. The economic recovery strategy is targeted to achieve an 8% growth rate and industrial status for Kenya by 2025, creating 500,000 jobs a year in the...

References: 1. 2010 Ruud.L.M. van Uffelen & Nico.S.P. de Groot Floriculture World Wide; production, trade and consumption patterns show market opportunities and challenges Wageningen University and Research
3. Bizcommunity. (2011). (Accessed on 16 February 2011)
4 (Accessed on 23 February 2011)
6. Chris Collinson: The Business Costs of Ethical Supply Chain Management: Kenyan Flower Industry Case Study (May 2001) NRET – Natural Resources and Ethical Trade Programme
8. Dr. Sangita Ladha. Floriculture: The International Market. (Accessed on 21 February 2011)
9 (Accessed on 23 February 2011)
23. Jo Wijnands (October 2005) : Sustainable International Networks in the Flower Industry ;Lei wageningenur
25. Kenya – African Economic Outlook (2011). Kenya. [Online] Available from: [Accessed on 2 March 2011]
27. Kusi Hornberger Nick Ndiritu ; Lalo Ponce-Brito ; Melesse Tashu ; Tijan Watt (May 4, 2007) Kenya’s Cut-Flower Cluster Final Paper for Microeconomics of Competitiveness
29. Mtiambo, S. (2008). Floriculture Vale Chain - the Case of Kenya. ESAMI. [online] Available at {Accessed: 2 March 2011].
30. The Flower Expert. (2011) Netherland (Accessed on 3 February 2011)
31. Wikipedia. (2011) (Accessed on 3 March 2011)
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