EXPO is an exporting company of vegetables and fruits in the Netherlands that strengthened its
position in the supply chain network and its performance by climbing the integration ladder.
EXPO exports more than 300 product groups (distinguishable by product type, size
and quality class) to over 400 customers in the world. The strategic goal of EXPO is to
play a leading role in the marketing and distribution of vegetables and fruits and to obtain
sustainable profits in order to guarantee continuity. Customers of EXPO are either large retail
organizations or wholesalers at wholesale markets. The most important customers are the large
retail organizations that have strict logistical demands for EXPO deliveries. They want a variety
of products with the requested quality delivered within 24 hours at a low price. An average
customer order comprises about 50 different products.
EXPO buys its products at several auctions, from importers and/or directly from growers.
For each transaction the transfer price, product quality and delivery lead time can and usually
will be different. In general, all bought products are transported to a central place, a distribution
centre, where they are regrouped and sometimes repacked depending on the customer order
specifications. It is also possible for EXPO to buy products for speculation, i.e. the products
are stored until they can be sold at a higher price. The storage of products can either take place
at EXPO or at the auction.
There are several ways to obtain products from the auction. The traditional way is to
buy products at the ‘auction clock’; products are presented to multiple buyers and prices are
determined by auction. These products are delivered to the auction in the previous afternoon.
After quality inspection, products with matching characteristics are grouped (in a so-called ‘block’)
and positioned in the auction hall. During the auctioning, uniform blocks are offered; buyers can
take a number of products out of the blocks for the price set by the clock. After the auctioning,
products that have been bought are grouped at the dockside of each buyer. If the packaging does
not satisfy the buyer, products can be repacked at the auction or at their warehouse.