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Ganz Says Tenders Present a Threat to Future Diamond Supply

Aug 1, 2011 5:22 PM   By Ricci Dipshan
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RAPAPORT... The president of the International Diamond Manufacturers Association, Moti Ganz, said that he is not against diamond tenders per se, but urged large diamond suppliers to return to the direct supply method.

Ganz warned that the practice of selling production through tenders is threatening the stability of diamond manufacturers, according to his article published in HaYahalom, a diamond inustry magazine in Israel. 

"There are so many tenders that the trend is threatening to interfere with our lives. And if the rough producers don’t wake up in time, it won’t be a mere interference, but a blow to our very existence, capabilities and survival," Ganz wrote.

Ganz warned that the practice is dangerous throughout the supply chain.  “When we examine these aspects of tenders, we realize that they weaken each and every link along the diamond value chain. The most prominent victims are manufacturers and retailers. However, there is also another victim – the rough producer, so dazed by the hefty profits that it doesn’t notice the danger lurking around the corner."

Despite his resistance to tenders, however, Ganz noted that there is still a place in them for the marketplace if they are used in moderation.  "When the large rough producers add a tender here and there, as a window to the market, to sell especially large goods or for other special reasons, everyone can continue to breathe normally. But when the tender becomes a method in its own right, when it becomes the central marketing channel, increasingly pushing regular supply to the margins, it’s time to put a foot on the brakes – and the sooner the better."
Tags: direct, Ricci Dipshan, supply, Tenders
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Aug 2, 2011 10:29AM    By rabbi dany
moty ganz and other sightcostumers dont understand goods on open market so they are afraid to be out of the game ... just increase the tender systhem
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