What does the Supplier of Choice (SOC) program involve?

What does the Supplier of Choice (SOC) program involve?

• A. Program adopted by De Beers in 2001, in which it required its sightholders to help increase market demand for diamonds
• B. A program that certifies ethical mining practices
• C. A vendor discount program for retailers
• D. A consumer protection policy for diamond complaints

Answer: (A)

The main idea is that the Supplier of Choice program ties the allocation of rough diamonds to the marketing and demand-building efforts of the buyers. In 2001, De Beers introduced SOC to ensure that sightholders don’t just take delivery of stones but actively help increase market demand for diamonds through marketing and demand-generation activities. That connection between supply access and demand-building is what the option describes. The other options refer to different concepts—ethical mining certification, retailer discounts, and consumer protection policies—that aren’t what the Supplier of Choice program is about.

The main idea is that the Supplier of Choice program ties the allocation of rough diamonds to the marketing and demand-building efforts of the buyers. In 2001, De Beers introduced SOC to ensure that sightholders don’t just take delivery of stones but actively help increase market demand for diamonds through marketing and demand-generation activities. That connection between supply access and demand-building is what the option describes. The other options refer to different concepts—ethical mining certification, retailer discounts, and consumer protection policies—that aren’t what the Supplier of Choice program is about.