Following the Supplier of Choice initiative which was announced by the DTC in 2000, selection and supply decisions were based on the following criteria:

·         Financial standing

·         Market Position

·         Distribution abilities

·         Marketing strengths

·         Technical and manufacturing ability

·         Compliance with the DTC's BPP (Best Practice Principles)

For the 2008 - 2011 contract period, the strategic objectives remain to:

·         Drive consumer demand

·         Encourage efficient distribution

·         Uphold the good reputation of diamonds

But in addition, as the market continues to mature, greater emphasis will be placed on:

·         More efficient distribution of rough

·         More cost-efficient marketing investment

·         The individual strengths of Sightholders

The key features of the 2008 - 2011 contract will be:

·         3 year contract period

·         12 month Intention to Offer (ITO)

·         Rough distribution will more clearly reflect expertise of Sightholder

·         Based on excellence, regardless of the place in the diamond pipeline the Sightholder occupies

·         Emphasis on personal commitment by principals to BPP

·         Greater beneficiation in Southern Africa (supply of locally produced goods to locally-based companies)

Clients must submit a Sightholder profile that outlines their abilities in all the above areas. A key area of support that Hennig provides is helping clients develop their profile submissions and optimise their score in each category. Competition for DTC supply is rigorous and Sightholders have to present the best case possible.

Diamond companies wishing to attain Sightholder status, will typically approach a DTC broker, such as Hennig, to help them negotiate the time-consuming and costly application process.  We use our experience to assess the clients who approach us, advising them as to the likelihood of their successful application and helping those clients who choose to proceed.  Our competence in this assessment is borne out by our high success rate among applicants whom we advise to apply.

The Profile Assessment is one of three parameters that determine success.  Clients also have to submit a pro-forma application for the type and volume of goods they would wish to purchase from DTC, over the next selling period (typically 12months; 10 sights).  DTC will then check its forecasted availability of each category of rough, compare it to the applications for the corresponding rough and determine to whom and how much it will sell. 

The three criteria:

·         Assessment (of the company profile)

·         Application (for specific types of rough diamonds)

·         Availability (DTC inventory)