Supplier of Choice

The strategy was implemented in 2003 and is aimed at growing the market for diamond jewellery while building a more efficient channel for rough diamond distribution and maintaining ethical transparency.

An important element was to introduce a set of stringent criteria for choosing clients, or 'Sightholders'.  As demand for diamonds outstrips supply, these criteria allow the DTC to decide on an objective basis which applicants will be offered Sightholder contracts.

For the new supply period, each applicant submitted a Contract Proposal for each of the sixteen categories of rough diamonds available for supply. 

After applicants submitted their Contract Proposal, the DTC conducted an objective assessment of all submissions based on applicants’ satisfaction of the Sightholder Criteria and Considerations.  

The Sightholder Criteria and Considerations provide a framework for the DTC to make an impartial and objective assessment of applicants, which ultimately enables the fair and efficient allocation of rough diamonds.

The Criteria are divided into two groups: mandatory compliance criteria and relative performance criteria. 

The mandatory compliance criteria must be satisfied in full by all Sightholders and include full compliance with De Beers Best Practise Principles plus the provision of audited and consolidated financial statements. 

The relative performance criteria are used to determine the relative strength of applicants’ requests for supply of the particular categories of rough diamonds they require, and which are assessed based on the information submitted to the DTC in a Contract Proposal. 

These criteria include manufacturing expertise, distribution and marketing capabilities and market position. 

The Considerations take into account issues such as the availability of supply and various commercial, political and economic factors.

The outcome of the assessment against the Sightholder Criteria and Considerations enables the DTC to offer goods to applicants that have demonstrated the strongest satisfaction relative to the applicants with which they are competing.

The applications for rough diamonds far exceeds the Diamond Trading Company’s availability.

The full list of Sightholder Criteria is as follows, in no specific order:

• Technical ability (relative performance)
• Distribution and marketing ability (relative performance)
• Core strengths (relative performance)
• Financial standing and reliability (mandatory)
• General business reputation (mandatory)
• Compliance with the DTC’s Best Practice Principles (mandatory)
  

Diamond Trading Company Sightholders enjoy a range of benefits from their relationship with the DTC, including the following:

• Access to DTC industry insights, expertise and technology that position the DTC as the most credible and relevant industry partner.
• Sustainable arrangements that deliver a stable and efficient supply of goods. 
• The Intention To Offer (ITO) system, which provides each client with a 10 Sight plan of the volumes and categories of rough diamonds the DTC intends to offer for sale to them over the 12 month ITO period
• Consistent assortments of rough diamonds
• Key Account Management

Download the current version of the Supplier of Choice Contractual documents for London and Kimberley Sights together with a copy of the Contract Proposal Questionnaire and associated Notes  >