Four tips for optimal use of contracts

In the floriculture industry, a lot of work is done on the basis of contracts. These contracts set out long-term agreements between grower and buyer. A buyer wants to record these agreements in advance, so that the buyer is sure to have the right items at the right time. A grower can adjust the cultivation to this and has the certainty that the agreed quantities will be purchased. This is because there’s an obligation to purchase if the agreements are laid down in a contract. 

Contracts module in Floriday

In Floriday you can very easily lay down long-term agreements using the contracts module. Both the buyer and the grower can determine the fixed quantities on a weekly or monthly basis. The agreements made become customer-specific supply lines in Floriday, which both parties can easily use for processing orders. During the term of the contract the content can always be changed in consultation. As soon as both parties agree, the new agreements apply.
The contracts module is available in the Floriday screens. For more information on linking the contracts module with your own software package, please refer to the software supplier. In this article we give you some tips to make the best use of the contracts module in Floriday.

Tip 1: Using bandwidths, you ensure the right quantities at the right time.

A contract is quite static; in this dynamic sector, it is difficult to state exact quantities. In this case, you can set a bandwidth. By setting the number of pieces in combination with a minimum and/or maximum margin, a bandwidth is created within which the grower and buyer can call upon against the contract. If it turns out that it is not the right quantity in that week, there is the possibility of under or over ordering against the bandwidth. In this case, the approval of the other party is always required. The margins can be set for price and quantities; they cannot yet be set for length and weight. 

Tip 2: Add an alternative item and go for optimum delivery guarantee.

Should a particular item not be available, it is possible to offer/choose an alternative on the same terms. By adding an alternative to the item in the contract in advance, you ensure optimum delivery guarantee upon order.

Tip 3: Delivering multiple packing configurations.

By adding alternatives, it is also possible to add multiple packing configurations to an item in the contract. This way you can ensure that the order is always delivered in the right way.

Tip 4: Make ordering against the contract as easy as possible.

Once a contract has been established, both the grower and the buyer can easily process orders. You can place an order for one day, but also for several days at a time. In that case, you use an ordering schedule. In addition, the grower can also choose to approve the standing orders automatically. When this is set, a standing order immediately becomes a sales order. 

Setting to work with contracts

The above tips make working with contracts in Floriday even easier. Do you want to know more about the contract trading functionality? Then have a look at our help centre for growers and buyers. For questions about the composition of contracts or problems with compliance, we refer you to the Order Risk Advisors of Royal FloraHolland. Read more about the Order Risk Advisors.