Innovation, logistic

Why has flower production internationalization over the past few decades? First, once the flowers were cut, they were extremely perishable. As the result, the longevity of cut flower is the main concern for the retailers. Although the flowers were delivered though a perfect distribution system with boxes protected and temperature control, the longevity was still shortened for one or two days. Second, transport costs for flowers shipped overseas ranged from 60%-90% of the total cost to produce a flower. Besides, the air freight cost for flower was based on volume which exults in the over-packed cost.Through international production, traders may decrease the logistical cost and the waste of over-packed. In addition, the greenhouse technique may get over the difficulty of climate. 3-2: How are the flower clusters in the various countries connected? 1 . International auction International auction published the price and advise on industry for growers. 2. Dissemination of production techn ology Dutch suppliers started to spread the Information on production such as product innovation, and invested in foreign production and logistic In late 1950. 3.LTO(Land- en Tinnitus Organist Underlain ) The organization provided the programs to Improve management. Besides, It also facilitated studying trips to foreign countries to promote exchange among growers. 3-3: How do they compete? Traders among different countries competed on price, Innovation, logistic and even packaging at the auction. At beginning, the price of the flower Is high, and then It decreased at a steady rate. Buyers can decide the acceptable price and the quantity they want. Finally traders may make some adjustment on production according to the deal price and volume.