2012-2015 Supplier of Choice (SoC) contract begins

De Beers’ Diamond Trading Company (DTC) announced the start of the 2012-2015 Supplier of Choice (SoC) contract (on 31 March 2012), following the announcement of the provisional qualification of 72 Sightholders in December 2011.

With the success of its pilot announced in August 2010, the new contract period also hints at the beginning of a more dynamic and integrated distribution model which will enable De Beers to take into account the demand demonstrated by all its rough diamond customers (DTC Sightholders and Diamdel registered businesses) in allocating its finite availability.

Philippe Mellier, CEO of the De Beers Group, said: “This is an exciting time for De Beers’ rough diamond customers. The new SoC contract introduces a series of innovations to enhance the dynamic nature of our distribution strategy, offering wider access to our rough diamonds and enabling us to manage our distribution risk better.”

For the first time, Sightholders and non-Sightholders demonstrating consistently strong demand at Diamdel auctions will, subject to availability, have the annual opportunity to compete for an Intention to Offer (ITO) by being invited to submit a Contract Proposal Questionnaire (CPQ). DTC’s new process for replanning future ITO allocations will better reflect individual Sightholder demand as demonstrated during the preceding ITO period. This could result in future ITO allocations increasing or decreasing in line with the demand demonstrated.

Varda Shine, CEO of DTC said: “We have great confidence in the Sightholders that have qualified for the new contract period and we look forward to offering them the right buying opportunities as their businesses evolve and as we move our sorting and sales functions to Botswana.” Neil Ventura, CEO of Diamdel, said “This latest evolution of the De Beers sales strategy provides more businesses with more opportunities to buy the products they require at auctions, and provides a potential path to longer term supply from DTC.”