Diamond and Supply Chain
Vonkel Enterprises have recently purchased Thembeka, a company that specializes in the sale and distribution of gold and diamond jewelry. This company designs, manufactures and markets fine jewelry throughout South Africa. It had previously been a family run business, and following the death of the founder and CEO, family members decided to sell the enterprise. Vonkel saw the potential for this business and purchased it, with intentions of improving supply chain performance.
The domestic supply chain involves inbound shipments of raw materials from a number of small suppliers to a manufacturing location in Pretoria. Once the jewelry has been created, shipments are sent through a transportation intermediary to retail stores in Cape Town, Durban and Johannesburg. The challenges Thembeka face are common to the fashion industry. Rapidly changing styles and preferences require the company to react quickly and adapt designs to suit consumer demands. The peak demand periods occur throughout December and in mid-February, with a smaller demand peak in the spring. The Thembeka brand and style is well established throughout South Africa, and Vonkel decides that it will keep the name to maintain brand loyalty.
In addition to making supply chain improvements, Vonkel Enterprises are planning to export their products to the UK. The jewelry market has experienced a steady increase over the past ten years, and has continued to grow over the past year despite predictions for an overall industry slow-down. South Africa’s participation in the Kimberley Process should help accelerate Vonkel’s move to the British market. The Kimberley Process is an international certification scheme designed to regulate and prevent the trade in conflict diamonds. Although a certificate is needed in the export of rough diamonds, Vonkel can provide a warranty on their polished diamond jewelry that states the gems have been purchased from legitimate sources and are in compliance with United Nations
The domestic supply chain involves inbound shipments of raw materials from a number of small suppliers to a manufacturing location in Pretoria. Once the jewelry has been created, shipments are sent through a transportation intermediary to retail stores in Cape Town, Durban and Johannesburg. The challenges Thembeka face are common to the fashion industry. Rapidly changing styles and preferences require the company to react quickly and adapt designs to suit consumer demands. The peak demand periods occur throughout December and in mid-February, with a smaller demand peak in the spring. The Thembeka brand and style is well established throughout South Africa, and Vonkel decides that it will keep the name to maintain brand loyalty.
In addition to making supply chain improvements, Vonkel Enterprises are planning to export their products to the UK. The jewelry market has experienced a steady increase over the past ten years, and has continued to grow over the past year despite predictions for an overall industry slow-down. South Africa’s participation in the Kimberley Process should help accelerate Vonkel’s move to the British market. The Kimberley Process is an international certification scheme designed to regulate and prevent the trade in conflict diamonds. Although a certificate is needed in the export of rough diamonds, Vonkel can provide a warranty on their polished diamond jewelry that states the gems have been purchased from legitimate sources and are in compliance with United Nations