Supplier of Choice (SoC) is the result of a strategic review of the diamond industry carried out by De Beers in the late 1990s.

It was announced in 2000 and the first elements of the policy were introduced in 2002.

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)

The policy statement is aimed at defining the legal structure through which the DTC operates and increasing transparency of the criteria on which DTC base their supply decisions.

The DTC’s sales strategy, which aims to drive consumer demand for diamond jewellery is designed to address causes of underperformance within the industry.  The objective is to improve competitive performance through:

·         Efficient manufacturing

·         Distribution

·         Marketing

·         Branding

·         Distribution

·         Marketing

·         Increased consumer confidence

The DTC selects clients who can match its high standards in each of the above areas to become Sightholders.

SoC fundamentally changed the way the DTC conducts business with its Sightholders, linking assessment of degree of clients’ compliance to DTC criteria to allocated volumes of rough diamonds, and offering forecasted allocations for 12 month periods.

Sightholders enter into a supply contract and at the end of each contractual period, the DTC review their client list and companies outside the Sightholder group can apply for Sightholder status.

Another element of SoC is the suite of Best Practice Principles (BPP) to which all DTC Sightholders have to comply.

(See section on BPP).

The driving force behind this element of SoC is the concern that consumer confidence in the integrity of the product and its possible links to unsavoury employment practices may affect the image of diamonds as the ultimate romantic / self purchase gift.  DTC believe that by adhering to these best practice principles, Sightholders afford consumers the benefit of knowing that the product on offer is a natural, untreated, product, mined and processed in an ethical manner.