Posted on 14 October 2020
by Daniëlle van der Peet

Through contract trading, Floriday is now facilitating long-term agreements between growers and buyers

Many growers and buyers carrying out direct trade do so on a contractual basis. That means they have fixed arrangements with each other concerning regular orders and deliveries. Until recently, there was no functionality to establish this in a straightforward manner. Both to meet this market demand and to be able to work 100% Digital by the end of the year, Floriday has developed a functionality simplifying ‘contract trade’ between growers and buyers.

This functionality provides the sector with a tool that actually establishes mutual arrangements, and with both parties being able to adhere to these. For growers and buyers, this functionality being available means they can now carry out all forms of direct trade through Floriday; a major milestone for the 100% Digital programme.

“Better overview of our deliveries”

Testing has been conducted with growers and buyers over the last few months to optimise this functionality. Kreling Chrysanten is one of these growers. Kreling, a cooperative of seven chrysanthemum growers since 1 January, wants all its sales processed through one central point. “The contract module is an important component in this. We establish our arrangements with buyers in Floriday, and can call off buyers from there”, says Kreling Chrystanen’s Peter Murray. “We’ve started testing with Superflora, so we’re still coming across a few improvements. These are reported to the Floriday team, and will be dealt with in the near future. I have full confidence in this functionality, which should eventually make things easier for us and our buyers.”

How does the contract-trade functionality work?

This functionality makes establishing a contract between a grower and buyer possible in Floriday. The contract is entered with the specifications discussed, and confirmed by either the grower or the buyer. Following confirmation, buyers or growers can both place orders on demand on this contract. Below are a few of this functionality’s features:

  • Contracts can be created for existing products within Floriday.
  • The contract establishes what the packing configuration, contract period and delivery terms and conditions are. The number of items to be purchased is set weekly, making it possible to work within a bandwidth of both numbers and price.
  • The functionality provides insight into sales over the course of the contract. Floriday creates an anticipated-purchase schedule. This adds up all the contracts together, but can also be viewed for each contract.
  • The grower can only initiate a call-off itself within the context of a contract. If the call-off comes within the contract’s bandwidth, the buyer’s agreement is not required.
  • In addition, you can propose interchangeable products (or even substitutes) in the contract. For instance, the buyer calls off on a red-coloured variety, and the grower ultimately specifies which variety is actually delivered.
  • The arrangements made between grower and buyer are established in a contract, and cannot be viewed or accessed by other users.
    All functionalities available in Floriday
  • With the contract trade functionality completed, Floriday is now functionally prepared for growers and buyers to be able to perform all forms of sales and purchasing using the platform. Growers can create a clock delivery, offer to clock presales and organise their direct sales. Growers can also activate a store and send buyers a purchasing tip. Buyers can purchase directly through the Floriday screens and accept purchasing tips. In addition, growers and buyers now also have the possibility to organise their contract trade through Floriday.

Find more information about contract trade on this page >>

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