Global Sourcing Services makes international services more widely available02 January 2020
Global Sourcing Services (GSS) makes it possible for buyers to buy floricultural products directly via Royal FloraHolland without having to look for local suppliers themselves.
It is a paid service of Royal FloraHolland. Manager Sebastiaan Hoogendoorn of GSS talks about it.
Sebastiaan knows that "In the floriculture industry, purchasing is a little more complex than just saying yes". "Each company has its own purchasing process, but that doesn't always fit in with specific sales channels. You may therefore find yourself faced with surprises: clock trading is suddenly insufficient or you receive demand for supply that is only for sale in Italy or Spain. This results in more direct, international trade. And that has its own challenges."
"From the grower's point of view, GSS is highly cooperative. Working together makes you stronger. With GSS, Royal FloraHolland is expanding the market for groups of members. This makes them less dependent on that single buyer, strengthens their market position, improves their pricing and ensures a better return on their investments. The goal is not to offer something that will be cheap next week."
Sebastiaan: "And the transaction as such is the ultimate goal. We attempt to create long-term relationships between parties and year round lines. These are services that ensure a successful transaction with member products that would not otherwise be traded."
Understanding the culture
GSS specialists work in a variety of fields in different countries. They know the culture and speak the language, because people do business differently around the world. In Kenya, you have to deal with Kenyans, Indians, British people and Dutch people. While things in Northern Italy are just that bit different than in Southern Italy. The potential for complications is apparent. Sebastian discusses the GSS services: "Based on the specific buyer demand, we make it clear what quantities of supply are available during which periods. If it comes to a transaction, GSS will make sure that what's purchased is delivered."
"For example, we guide the purchase of Kenyan flowers through an auction in Tokyo. They indicate a specified total order quantity for the coming period. We facilitate the realisation of the transactions, conduct the quality control, and supervise the logistic handling at the airport. So, they receive the quantities, qualities and packaging they ordered in Tokyo. At the agreed time."
"We can also help large trading companies, with partial order guidance or quality controls, although they are perfectly able to source independently," says Sebastiaan. "For smaller and medium-sized companies, finding suppliers independently is much more difficult. Not because of the transaction size,but because there are so many barriers and costs surrounding a transaction that it simply becomes too expensive. Seen in this light, GSS adds value. And that's exactly why we can't wait to connect GSS's services to Floriday."
"GSS makes our company stronger"
Marketing Manager Irene Njeru of Winchester Farm Limited in Kenya is pleased with the services of Global Sourcing Services (GSS). "We use almost the entire package.
- Market research
- Customer Acquisition
Through sourcing and acquisition we can sell more in different markets. Market research leads to better sales and marketing decisions. The quality controls encourage us to be the best on the market and thus strengthen our market position. Furthermore, together with GSS, we create attractive packaging and transport rates, which makes our product extra competitive. As far as we are concerned, GSS must above all continue along this path. Hopefully with even more customers, so that our relationship with GSS will be further strengthened."
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