Ever wonder how those exotic blooms at your local florist make their way from far-off fields? The journey is far more complex than most realise, involving multiple layers of trade and logistics before a single flower reaches the shop.
“At the heart of the trade are the growers, many of whom are small-scale producers with a passion for cultivating unique flowers,” explains Mr Robert Wetzler, Managing Director of Otani Trading. From there, exporters gather flowers from various farms, preparing them for international markets. Importers then receive these shipments, working with wholesalers to distribute them to retailers and florists around the world.
“Beyond these direct trade layers, you’ve got freight forwarders, airlines, and customs agents, all crucial to moving delicate blooms from one continent to another,” adds Mr Wetzler. Transporting flowers is a logistical feat, especially since they can’t be shipped with fruits or vegetables due to ethylene gas emissions that can spoil them mid-transit.
For growers, one of their greatest hurdles is the unpredictable nature of demand. Flower production is heavily event-driven by occasions such as weddings and Valentine’s Day, but planning needs to begin years in advance. “Growing flowers takes time,” Mr Wetzler says. “Some crops can take three months from seed to harvest, while bushes may take up to two or three years to fully mature. But no one can predict how many weddings or events will happen in a given year.”
To solve these problems, Flower Meister International (FMI) was developed. This cloud-native, business-to-business platform is revolutionising the industry by connecting the entire supply chain from growers to florists.
Developed by Mr Wetzler as part of his capstone project at the NUS-ISS Master of Technology programme, FMI consolidates information, payments, and freight. This helps to enhance collaboration and streamline processes across all trade layers.
Reducing cost and hassle
Digital transformation often revolves around eliminating middlemen and shortening supply chains. But in the flower industry, each trade layer – from farms to exporters, importers, wholesalers, and retailers – is crucial and cannot be simply removed, says Mr Wetzler. “We needed to figure out how to (address the industry’s challenges) without cutting out these vital links.”
FMI does so through the consolidation of information, payment and freight.
“Our system allows every participant in the supply chain to access and update a unified source of information,” Mr Wetzler says. This means that growers, exporters, importers, wholesalers, and retailers all work from the same set of data, eliminating the need for manual data re-entry and reducing errors. Each participant controls what downstream layers can see, ensuring that all parties have the most accurate and relevant information at their fingertips.
FMI also simplifies the payments by centralising them. Traditionally, each player in the supply chain makes payments to multiple other players, creating a web of transactions that is both costly and inefficient. “Instead of managing numerous individual transactions, participants make payments to FMI, which then handles disbursements,” Mr. Wetzler explains. This system significantly reduces the number of payment connections, saving time and money. Participants can leverage FMI’s local currency accounts to make payments in their own currencies, avoiding the high fees and delays associated with international transfers.
Finally, the platform addresses freight consolidation. In the current system, smaller shipments often result in higher per-kilo costs and increased logistical expenses. FMI’s platform consolidates smaller shipments into larger ones, reducing overall shipping costs. “By grouping shipments together, we lower the per-kilo rate and cut down on additional charges,” says Mr Wetzler. This approach not only makes shipping more cost-effective but also ensures that all participants receive their products in a timely manner.
Connecting the world through flowers
To maximise the number of businesses that can benefit from its features, FMI adopts an API-first strategy. This ensures that every participant in the supply chain can access and integrate FMI's functionalities seamlessly, whether they use FMI’s web interfaces or their own systems.
“While we provide web interfaces, users can also connect to FMI using their own purchase management, inventory systems, and accounting tools,” says Mr Wetzler. Documentation for these APIs is readily available on FMI’s homepage, making integration straightforward and accessible, he explains.
What’s next for FMI? Work has commenced on exploring the use of machine learning and potentially generative AI to enhance the platform, Mr Wetzler shares. These innovations will further enhance FMI’s capabilities, driving even greater efficiency and connectivity in the global flower trade.
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