We had a bright and early start this morning at 5:30 am for our tour of the FloraHolland! This was a self guided tour, and we got to see the process of exporting the flowers before, during, and after the auction. Auctioning begins at 6:00 am, and it takes place on their website. The products are sold and shipped out for delivery within 90 minutes. For clients that are in different regions and further away from the warehouse, they deliver the flowers by an airborne shuttle on an overhead runway system. This process repeats everyday!
Most of the products are from producers in The Netherlands, but some of the supply also comes from Africa, Latin America, and the Mediterranean. In fact, Columbia is a major supplier for a lot of their flowers. FloraHolland is a cooperative company, and they rely heavily on their suppliers to sustain a reliable business for their buyers.
From a business perspective, it was interesting to see the logistics and the behind the scenes of how their product goes from the producer to the consumer. It was clear that it would not have been possible without engineering practices. Every staff member was accompanied by a small motorized cart that had shefs of flowers attached to the back of it. They all moved like a well-oiled machine! We also saw that some of the shelfs were attached to the ground, and with a small push from the staff, were guided to their destination. We also saw what looked like the Monster’s Inc doors moving around above the flowers! I really enjoyed seeing how business and engineering practices overlap so much, and how they can impact a business.
After finishing up, we headed to a tulip farm! We were met by the owner, and he told us the process of harvesting the tulips. First, they plant the seeds in the fall, and they take about 8 months to fully bloom, which is from April-May, and that is also during the flower festivals. We learned that the business is mostly the bulbs, and not the actual flower. He explained that he harvests 60% of the tulips, and only sells 40%, because harvesting the bulbs and replanting them is how he makes the most money. They also practice sustainability by reusing bulbs and rotating where they plant the flowers. The flowers that are not used during the harvesting season are sold to make displays for the flower festivals.
He also informed us about the colors! Red, yellow, and purple or the most common, but he was fortunate enough to have a red tulip that mutated into an orange one. When he replanted the orange, he was able to sell a lot and increase his revenue exponentially because orange is such an important color in The Netherlands because of Kings Day.
After attending both site visits, we were able to reflect on how these businesses interact. At the tulip farm, we were told that they sell around 300,00 tulips per year, which only makes up a fraction of the 1 billion. The flower industry is so intricate, with small farms like the one we went to being the front end of the industry, and FloraHolland is the intermediary for buyers and sellers.
In comparison to the United States, their business and engineering practices, at least within this industry, seem much more efficient. Everyone has a role, and they stick to it. I cannot say that I have seen a warehouse that moves that well, but if there is one in Pittsburgh, I would love to go!