Logistics Report
Eindhoven, December 2010
Coordination and optimization of the inter-auction transport of floricultural products at FloraHolland by J.D.G. Dat (Diederik)
BSc Industrial Engineering and Management Science - TU/e (2008) Student identity number 0577763
in partial fulfilment of the requirements for the degree of Master of Science in Operations Management and Logistics
Supervisors: Dr. T. van Woensel, TU/e, OPAC Prof. Dr. A.G. De Kok, TU/e, OPAC M. Van Veen MSc, FloraHolland, Concern Logistiek
TUE. School of Industrial Engineering. Series Master Theses Operations Management and Logistics
Subject headings: operations research, logistics, transport
2
Abstract
This Master’s thesis concerns the analysis of the organization of the transport of floricultural products between six auction centres in the Netherlands. Based on the analysis of the current situation, three redesign scenarios are developed, which aim at coordinating and optimizing the inter-auction transport. Furthermore, several concepts related to these scenarios are presented that can improve the efficiency of the transport network and realise supply chain cost reductions.
3
Management summary
The Netherlands have a historical dominant global trading position in the floriculture sector. Several trends in the sector, like globalization of production and market areas, virtualization of the auctioning process (e.g. remote buying via the internet) and the increase in direct trade between growers and buyers, cause that it is not evident anymore that flowers and plants are traded through the Netherlands. The organization of FloraHolland dominates this sector with a 98% market share in the Netherlands. FloraHolland is a primary cooperative, owned by the producers of floricultural products as members (4.900 in total) in 16 regions of which 13 in the Netherlands. In total, there are around 8.000 growers, located in the Netherlands or abroad, that supply products to FloraHolland. Also
Coordination and optimization of the inter-auction transport of floricultural products at FloraHolland by J.D.G. Dat (Diederik)
BSc Industrial Engineering and Management Science - TU/e (2008) Student identity number 0577763
in partial fulfilment of the requirements for the degree of Master of Science in Operations Management and Logistics
Supervisors: Dr. T. van Woensel, TU/e, OPAC Prof. Dr. A.G. De Kok, TU/e, OPAC M. Van Veen MSc, FloraHolland, Concern Logistiek
TUE. School of Industrial Engineering. Series Master Theses Operations Management and Logistics
Subject headings: operations research, logistics, transport
2
Abstract
This Master’s thesis concerns the analysis of the organization of the transport of floricultural products between six auction centres in the Netherlands. Based on the analysis of the current situation, three redesign scenarios are developed, which aim at coordinating and optimizing the inter-auction transport. Furthermore, several concepts related to these scenarios are presented that can improve the efficiency of the transport network and realise supply chain cost reductions.
3
Management summary
The Netherlands have a historical dominant global trading position in the floriculture sector. Several trends in the sector, like globalization of production and market areas, virtualization of the auctioning process (e.g. remote buying via the internet) and the increase in direct trade between growers and buyers, cause that it is not evident anymore that flowers and plants are traded through the Netherlands. The organization of FloraHolland dominates this sector with a 98% market share in the Netherlands. FloraHolland is a primary cooperative, owned by the producers of floricultural products as members (4.900 in total) in 16 regions of which 13 in the Netherlands. In total, there are around 8.000 growers, located in the Netherlands or abroad, that supply products to FloraHolland. Also
References: Table A1.1: Key figures of auction locations FloraHolland in 2009 (Annual report FloraHolland 2009) Figure A1.1: Some impressions of the operations of FloraHolland (Source: FloraHolland) 77 Figure A1.2: History of mergers FloraHolland (Source: FloraHolland, 2007) Figure A1.5: Overview logistic flows FloraHolland (Adapted from Eindrapportage Besparen in Ketens – Sierteeltsector, EVO, 2009) Seven logistic flows are depicted in figure 1.3