What is Supply Chain Management?


Supply Chain Management is the systemic approach to managing the flow of information, material and services from raw material suppliers to the end customer. Within the diamond supply chain, management must be focused on optimizing global suppliers and production and distribution network. This can be found in the Tiffany & Co. supply chain.


Laurelton Diamonds

To help ensure the integrity their supply chain, Tiffany created Laurelton Diamonds.Laurelton is a wholly owned subsidiary that procures rough diamonds and manages the worldwide supply chain that sources, cuts, polishes and supplies finished stones to Tiffany.
Laurelton Diamonds sources diamonds from known sources across the globe, primarily in Africa, Canada and Russia.In creating Laurelton Diamonds, Tiffany recognized early on that diamond-producing countries want, and indeed deserve, to benefit from their diamond resources. We wholeheartedly support this process of producer country "beneficiation." We believe that diamond activities should be used to further develop and sustain economies, to create employment opportunities and to support the
broader social goals of communities and nations. It is our responsibility to contribute to this effort.
Tiffany’s first investment in a producer country was in Yellowknife, Canada in 2002. Since then they have invested in diamond sourcing and polishing operations in South Africa, Botswana and Namibia.
Tiffany’s claims to approach investing based on long-term sustainability. Their facilities are equipped with custom-designed, state-of-the-art equipment and their employee development and training programs are designed to equip the local workforce to meet Tiffany’s exacting quality standards.

Tiffany has been an early and active supporter of the work of the
World Diamond Council, the industry group that works with
governments, nongovernmental organizations and civil society
to halt the illicit trade in conflict diamonds. Tiffany & Co. has
taken a leadership role in working toward the eradication of trade
in conflict diamonds, and our efforts have been recognized
as model for the industry.

In keeping with our desire to encourage ethical business conduct throughout
the jewelry industry, in 2006 Tiffany & Co. was a founding member of the
Council for Responsible Jewellery Practices(CRJP). Concerned with the entire
supply chain—from mining through manufacturing to the retail showcase—
CRJP has developed Principles and a Code of Practices to which all members
must adhere. Tiffany fully subscribes to the Principles and the Code of
Practices and will remain strongly committed to this vital initiative.
Tiffany is also supporting the Initiative for Responsible Mining Assurance
(IRMA). The group includes participants from three broad sectors: mining,
nongovernmental organizations and retail, with additional representation
from labor groups and communities impacted by mining. We are hopeful
that, working collaboratively, this diverse group of stakeholders can clearly
define best mining practices as the critically important first step toward
building a responsible mining framework.
Tiffany’s own facilities—spanning diamond cutting and polishing, jewelry
crafting and distribution—are operated at the highest standards in the industry.
No less rigorous are the standards we use to evaluate our vendors and suppliers.
We have established a multidimensional Social Accountability Program that
includes comprehensive guidelines on the manufacture of the materials we use,
all designed to ensure that our vendors and suppliers are held to the same
exacting standards that we are proud to uphold.

Laurelton Diamonds is an important link in the chain of supply that gives us more control over the sourcing of our diamonds," says Michael J. Kowalski, Tiffany & Co.'s chairman. The development of the cutting facility follows Tiffany's 1999 purchase of a 14.7% equity (valued at $71 million) in Aber Diamond Corp., a diamond mining company based in Canada. At the time, Tiffany also entered into an agreement with Aber to purchase a minimum of $50 million in diamonds annually for ten years.

Tiffany says it is the first retailer to enter into such an agreement to source rough stones directly from a mine. In addition to establishing a direct supply of high quality rough diamonds, the Diavik mine meets Tiffany's standards for securing materials in an environmentally and socially responsible manner.