Aalsmeer Flower Auction E-Business

Aalsmeer Flower Auction E-Business

On a daily basis Bloemenveiling Aalsmeer sets the world price for flowers and plants. This happens by bringing supply and demand together by means of the auction clock- a captivating process during which large and small batches of flowers are sold within fractions of seconds. Each day, 19 million flowers and two million plants are sold through 13 clocks at 'Bloemenveiling Aalsmeer is said to have the largest trade building in the entire world.

In the early 20th century, Aalsmeer growers as a corporative united forces to offset the power of the middlemen. This resulted in the foundation of two local auctions, both located in a little village in the west of the Netherlands. Growers in Eastern Aalsmeer founded an auction named "Flower Love", they offer their export flowers in a café' in December 1912. In January 1912, the other auction, "Central Aalsmeer Auction" in Aalsmeer village was started and also operated out of a café'.

Both auctions were excelling from initiation, there turnovers where actually quiet similar. After four years of preparation, the two auctioned merged on March 6th 1968. Even after the merger, the two companies still worked independent of each other, however, soon after, most of the growers who supported the merger came to the realization that in order for them to expand and develop they would need to combine the enter business under one central place that would have been sufficient to all their present and future needs.

As a result, in 1972 the completion of a brand new auctioning complex nears the former building of Flower Love. The complex was very large and housed facilities for auctioning, storage, processing and logistics. In 1973 the following year the company expanding from auctioning cut flowers only to huge uniform batches of plants. His was the cash and carry center where wholesalers served smaller buyers. This development of Aalsmeer Flower Auction became the international center for supply and demand of floricultural products.

According to Statistic Netherlands, 1985 Netherlands was once the main flower exporting country in the world, resulting in almost every part of the global flower trade was controlled through auctions in this country, for example, pricing, packaging, distribution and quality control. As time passed, other countries such as Colombia, Ecuador, Israel, Kenya, Spain and Tanzania began producing flowers with all intent to trade theses products through the Netherlands. The strategy was to achieve strong currencies and to become connected to a well established network. Here, global growers handled the production allowing the company to take a passive role since they creates a facility for both buyers and sellers to meet.

Aalsmeer extensive history has shown that this organisation has been able to evolve whenever the need arises, as shown in its decision making to merge the two companies to build a stronger floricultural industry, its versatility to provide numerous functional cores under one facility and to open its marketing to the world.

STATEGIC ANALYSIS OF THE ORGANISATION

Value Chain

By facilitating marketing channels for suppliers, buyers and logistics has mad Aalsmeer Flower Auction an imperative tie in the global chain of flowers and plants. Tim Van Dantzig et al , 2005 stated that in 55,000 transactions an average of 19 million flowers and 2 million plants changed hands every day within a surface area of 1million m2. The flowers and plants are supplied by around 7 thousand growers worldwide, and bought by 1,375 wholesalers and exporters. Within a couple of hours they are exported to almost every country in the world. These figures show an insight to how high pace and how efficient the organisation is required to perform.

The value chain of Aalsmeer figure1 shows as previously mentioned growers being the primary suppliers. Exporters, importers, cash and carry