Shipping cut flowers by sea reduces costs and carbon emissions compared to air transport.
Consumer perception and willingness to pay for environmentally friendly flowers present marketing and branding challenges.
Deep dives
Carbon Footprint of Flower Supply Chain
The podcast delves into the carbon footprint of the flower supply chain, particularly focusing on the transportation of cut flowers from Kenya to various global markets. Scholars Willie Shee and Mike Toffle explore the environmental impacts of different transport modes, comparing the high carbon emissions of air transport to the more sustainable option of shipping by sea. By analyzing the steps involved in the supply chain and calculating the carbon footprints, the case study offers insights into the complexities of reducing environmental impact in global logistics.
Logistics Challenges and Solutions
The discussion highlights the logistical challenges faced by companies like Sea on Flowers due to the long-distance shipping of cut flowers and the need to maintain freshness. It explores the innovative solutions employed, such as controlled atmosphere shipping containers, to preserve the flowers during the lengthy transit. The strategic shift towards ocean shipping presents both challenges and opportunities, including cost efficiency and extended flexibility in flower harvesting and distribution.
Market Dynamics and Consumer Perception
The podcast reflects on the market dynamics and consumer perception surrounding cut flowers, emphasizing the potential marketing opportunities for companies like Sea on Flowers in offering reduced carbon impact products. It raises questions about consumer willingness to pay for environmentally friendly flowers and the branding implications of promoting low carbon footprint products. Additionally, the discussion underscores the importance of data-driven decision-making in balancing environmental considerations with business profitability.
Headquartered in Kitengela, Kenya, Sian Flowers exports roses to Europe. Because cut flowers have a limited shelf life and consumers want them to retain their appearance for as long as possible, Sian and its distributors used international air cargo to transport them to Amsterdam, where they were sold at auction and trucked to markets across Europe. But when the Covid-19 pandemic caused huge increases in shipping costs, Sian launched experiments to ship roses by ocean using refrigerated containers.
The company reduced its costs and cut its carbon emissions, but is a flower that travels halfway around the world truly a “low-carbon rose”? Harvard Business School professors Willy Shih and Mike Toffel debate these questions and more in their case, “Sian Flowers: Fresher by Sea?”
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