H.P.M. Veeke

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Master thesis (1)

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Het bepalen van KPI’s en normen voor het beheersen van het logistieke proces van FloraHolland

Master thesis (2014) - L.W. Lock (author) , H.P.M. Veeke (mentor)

The floriculture sector is globalizing and digitizing rapidly. This affects the flows in the supply chain and the way of doing business with FloraHolland. Customers are becoming more demanding and are expecting more service. Growers decrease the use of the auction clock, and do more business via direct flows. The Logistics and Facilities Department is partly responsible for optimizing the logistics process. In this process the available data is processed in a large number of different reports. While possessing this large number of reports, FloraHolland is looking for the Key Performance Indicators (KPI’s) for the logistics process. The logistic process of FloraHolland is analyzed according to the Delft System Approach. During this analysis a number of issues were found referring to the control of the logistics process. The first observation is that the logistics process is controlled via financial control instead of logistic control. This leads to a lack of focus of an efficient logistics process and makes it hard to initiate the right process improvements. ‘Distribution Flowers’ is the largest of 13 logistics departments. This department is responsible for 39% of the working hours of the logistic process. However, the deployment of staff for this distributionprocess is determined by a planning-tool that is based on an outdated process. Also, there is no standard set for the productivity of the staff, but the productivity is chosen based on intuition and experience. In the distributionprocess the distributors transfer the casks from the auctioned trolley to trolleys which are delivered at buyers locations. The productivity of the distributors is dependent on the purchasing behavior and number of distributors because of congestion. The research question of this report is: With which KPIs and standards can FloraHolland control their logistics process in a changing environment? FloraHolland provides logistics services to growers and buyers. The demands of the growers and buyers on the logistics process can be divided in reliability, quality, throughput time and efficiency. The first three can be expressed in the percentage of casks that are missing, damaged, or took more handling time than the agreed throughput time. For an efficient process a workload should be processed with minimal resources. The most important and most expensive resource is the staff. At different stages of the process the departments are dealing with various types of workloads...