As part of a series of articles I’m launching, I’m looking at the key issue for our sector: traceability and sourcing management. These meetings also feed into the events we organise with Gemmologie & Francophonie. Today, I’m looking at the system put in place by Nomad’s shortly after covid. To do this, I met Jazmin Hentschel, their European sales manager. Based in Milan, she was happy to answer a few questions to help you discover the grading method that reflects the level of traceability of the company’s stones. If you’d like to talk about your system, please contact me.
1-Can you tell us how your project around traceability and provenance came about? How long did it take you to communicate publicly about this project?
At Nomad’s, we’ve always been very clear about the origin of our stones, both in terms of processing and provenance. Over the last five years, we’ve seen a significant increase in the number of customers interested in the origins of our stones, as well as the extraction and processing techniques associated with them.
In the wake of the 2020 pandemic and the ensuing period of free time, we took the decision to structure and document all the knowledge we had about our stocks. It took us almost six months to develop the system we have today, in order to conceptualise the ‘provenance reports’ we produce and write the associated documents. It’s a continuous process of validation, in perpetual progress.
2-You decided to create a multi-level system with 4 levels of traceability. What led you to this decision? How did you establish these levels?
We wanted a system that was easy to understand and as accurate as possible. Something that could be communicated clearly between us and professionals to facilitate the sales process from our customers to the end consumer.
As gem cutters, we feel that we are the bridge between the source and the jewellers/creators. Depending on who and where we buy from, we have a certain level of certainty about the information we can gather about the raw material. If we buy from the source, or even work with the source to extract the material, we can be sure of the origin and the various factors involved in production and processing.
Of course, if we buy a stone that has already been cut from a retailer at a trade show, the level of certainty is lower. And there are steps in between. We felt that this system of 4 levels of ‘traceability’ reflected this reality in the most comprehensible way possible.
3-What are customers’ reactions to this system?
We have received very positive feedback from our customers. They appreciate the clarity of the system and they use the provenance report to provide their customers with as much information as possible. Having a written format was necessary. At least, that’s the feedback we get. We also have gem cutters and merchant colleagues who appreciate the logic of this system and also want to use it in their communication. If everyone adopts the same system and ‘speaks the same language’, we’ll clearly be much more effective on these issues.
4-Do you see a difference in your customers’ buying process regarding the different levels?
Yes, as some of our customers have become used to communicating by “levels”, they will automatically ask for a stone with a higher level rather than another if traceability is important to them. Sometimes they prefer to buy a stone with a higher level of traceability, depending on the end customer or their company’s philosophy. By internalising this system, communication has become simpler.
5-I’ve read that for level 1, you have a partnership with the mine. How do you decide to establish a partnership? What criteria are important to you locally?
We appreciate partnerships. If it’s possible, we’ll always do our best to involve the other party in a partnership that will benefit everyone, rather than simply buying from them. It’s part of our corporate philosophy. We believe that everyone has access to different resources and skills and that if we work together, we achieve much more than just financial transactions.
We have sales offices in strategic locations around the world. Size and sales are our areas of focus. If we can work with people who know mining, who have access to mining land or who have links with a mining community, that’s a win-win situation. It also gives us good visibility of the exact route that crude oil takes as soon as it is extracted, and perhaps even an influence on the way it is extracted.
As with all partnerships, transparency, honesty and values are essential for us to commit and maintain. Locally, we look for good extraction and sourcing practices that respect human, environmental and ethical rights. By engaging in partnerships, we have a better understanding of the reality on the ground and can make changes if necessary.
6-Do you think customers are really interested in traceability?
In many cases, there is real interest. Of course, not everyone is interested or concerned in the same way. Some customers won’t even commit to this type of approach. But for us, it’s important to separate the notion of traceability from an ethical assessment.
Many people are interested in the history of a precious stone, the particularities of its journey and its origin, because this is a large part of the fascination with gem materials. But many people don’t explore other factors such as human and environmental conditions.
Our aim is to give our customers the whole story, i.e. the facts that we know with a degree of certainty and can therefore provide so that they can make an informed buying decision – just as we do on our side when we buy.
7-What do you mean by an ethical extraction process and an ethical gemstone?
The world of coloured gemstones is complex and at the root of a trusting relationship is verifiable information from a seller. This is where our efforts are particularly valuable.
To have an ethical conversation, reliable information is essential. The success of a gem dealer relies heavily on trade secrets and closed-door transactions. However, with the information revolution via the Internet, trading habits have changed to become more transparent and participative. Questions from consumers, who are more aware of the realities on the ground, have played a crucial role in this evolution.
In a perfect world, an ethical gemstone would be produced under fair conditions for the workforce involved in its extraction and cutting. The issue of the flora and fauna present in the mining area also needs to be addressed. The way in which it has been transported and packaged also needs to be taken into account. There are so many factors to take into account that it would be reasonable to think that an ethical approach would encompass all these elements.
The implementation of human, social and environmental rights varies considerably from country to country. We are aware that in some regions it is easier to put them into practice than in others. The efforts made have increased considerably, and the questions asked by consumers and the concerns raised play an essential role in the purchasing process.
We therefore believe it is crucial that efforts are not simply shifted further down the supply chain. It is imperative that all parties involved take some responsibility for these issues.
8-If you start working with a new source or retailer, can you assign them a level from the outset? What is your procedure for adding a new source or reseller? Or are you thinking of a new level – 5 for example – for this type of new business relationship?
When we meet a potential supplier, we ask questions, we’re curious and we hope to get answers. The procedure we use, known as Know Your Supplier, helps us to make an informed purchasing decision. Remember that traceability relies heavily on the word of the person who came before us. This word is conditioned by the trust and the relationship that have been established.
This process involves acquiring information about the new supplier, asking questions about how it works, its system and its proximity to the source. Each new source will be systematically classified at level 4. Once we have established a relationship of trust and are able to confirm the information received, we will consider moving up to level 3.
9-Do the traceability processes have an impact on the price because of the extra administrative work involved?
No. We apply the same principles of information gathering and due diligence to all our stones, whatever their level of traceability. We see this as part of our evolution and an added value to our customer service.
See you soon!
