Department in the spotlight: Procurement

You don’t get a second chance to make a first impression. This is precisely why our employees in the purchasing department are so crucial. As product specialists, they know what is going on in the market, what the customer needs and which offer matches it. So it’s about the right product, right quantities, availability, sustainability, risk management and a host of other parameters. ... The key? Strategic collaboration. Even more so today than yesterday. These are the words of purchasing manager Pieter Van De Velde.

How is the procurement department organised?

Pieter: “At Floréac, we choose to work with central purchasing. In concrete terms: our purchasing team is responsible for purchasing for our two logistics platforms as well as for all customers. Here, cooperation between purchasing and sales is essential. The partnership with our customers stands or falls with the quality of the products they receive from us every week and the service we offer them.”

Why does Floréac choose central procurement?

Pieter: “There are several advantages to this. I will explain the three biggest ones.

• Central buying gives economies of scale. The growers know what they can expect from us in terms of volumes, spread... That makes it easier to make good agreements, for example on the right price.

• Our buyers are driven product specialists . They know what is happening in the market and have up-to-date info on their product category and growers. This is how they manage to create the ideal product/supplier combination for each customer.

• For growers, our buyers are the face of the company . As professionals, they speak the same language as the growers. And that comes in handy when good agreements have to be made. And you know: in a logistics operation, those agreements are crucial to get the product to the customer correctly.”

What do we do with our knowledge?

Pieter: “We may buy centrally, but ultimately everything revolves around our customers. And that’s why we actively participate in customer clusters built around our largest accounts and markets. With this knowledge, we are optimally committed to serving our customers even better.”

Where and from whom does Floréac buy?

Pieter: “Our biggest procurement markets are Belgium and the Netherlands. We are also active in Germany, Denmark and Southern Europe . Not all suppliers are the same, we divide them into categories. Our main suppliers are our A-suppliers. They represent 30% of the suppliers but do account for more than 80% of our turnover. We involve these suppliers, partners actually, closely in our operations and with our customers.

How has the procurement department evolved in recent years?

Pieter: “Quite radical, I think. Twenty years ago, a buyer mainly went out to check which plants were at their best at which moment and with which grower.

If the price, quality, flowering stage and availability did not meet expectations, they would sometimes switch growers. Today, this ‘product shopping’ is no longer done. And there are several reasons for this.

• There are far fewer growers and those that are there have a more consistent quality.

• We are not just buying plants but also looking at the most optimal logistics route. Efficiency in the chain between grower and customer plays a much bigger role today.

• Sustainability is an important criterion. As a company, we are aiming for 90% responsible procurement by 2025 and we are also increasingly scrutinising the use of packaging.

• Data and its sharing are gaining in importance. Five years ago, this was nonexistent.

• Everything used to be available everywhere and now you have to meticulously specify in advance what you are going to buy. If you don’t, shortages threaten. Delivery reliability will be the challenge of the future.

All these factors mean that we will make increasingly conscious choices about which growers we work with, and therefore which growers will be A-labelled.

What does the future look like?

In a market that is shrinking, both on the supplier side, and on the export side, it is increasingly important to work strategically with our partner suppliers. We will put extra effort into cooperation agreements. More predictability in an unpredictable sector is also a focus. The companies that have this best under control will be armed for the future.

The most profit can be made from data, a turn-off we have already taken in procurement. And we will specialise in this even further so that we remain a reliable partner for our suppliers and our customers.

What do you need to be able to do to work in the procurement department ?

Pieter: “As a buyer of plants, you need to have a number of specific skills. Obviously product knowledge is important, buying products and sharing the knowledge with the organisation is still the core task of our department. But stress-resistance also comes in very handy. Because not everything can be planned and predicted with data. After all, we work with plants, i.e. living products. The seasonal nature also causes spicy peaks during the year. As a buyer, you are also the first seller of your product. It is important that you can bring your other colleagues along with you in the choices you make. You have to motivate salespeople to sell the products in an enthusiastic way. So communication skills are extremely important, especially in a fast-changing market.

Comes with more and more: data-driven. For the buyer of the future, this will be an additional challenge.”

Meet the team

Employees with a customer and market focus:

• Jacco: range manager Germany

• Johan: range manager France

Both of them are responsible for the composition of the daily retail assortment in their core market. From this role, they also direct sourcing on the products they need to be successful in that core market.

Employees who are mainly in contact with suppliers:

• Alex: Orchids

• Geert: seasonal plants

• Lisette: flowering houseplants

• Marlon: green plants

• Sabrina: plant dishes, themes, added value, Danish products and magazine

• Steven: garden plants

• Francis: buyer of Belgian products