In 2002 more than a hundred gem operators and traders established a new company to be the center of gems marketing. Even though the business was later dissolved, Mr. Pimla is convinced that the concept and rationale for the union remains valid and beneficial to all parties. Mr. Pimla wishes to build an organization where various gems business operators pool together resources and work together in an environment of cooperation. In this organization of cooperation and, gems demand and supply will be better matched, smoothly moving from factory to end user.
From Mr. Pimla’s gems manufacturing and trading experience, jewelry factories are at the heart of the market. These factories do not want to hold gem stocks but rely on the factories to manage gem stocks for them. In a tight market, stock management is critical.
Jewelry factories need gems factories and suppliers to be efficient in:
1. Holding sufficient amount of stocks
2. Making standardized finished gemstones
3. Providing continuous supply of stock
4. Setting suitable price levels
5. Being sincere and committed to completing the order
6. Continuously creating new product formats
Mr. Pimla wishes to establish a structure whereby suppliers can effectively deliver the six requirements above. A new organization comprising of a group of gems manufacturers and traders working together can address these requirements. The joint efforts can springboard the industry to further heights.
The new organization will be work as follows :
CBS 1 buys rough stones directly from the mines. Stones are graded and heat treated ready for sale.
CBS 2 (the lapidary) buys heat treated gems from CBS 1. Gems are cut and polished according to CBS established standards and ready for sale.
CBS 3 (sales and marketing) buys finished gems and sells them to jewelry factories. A sales and marketing structure is in place to develop and manage new and old customers.
The more efficient gems and transparent supply chain will save money. Gains will be distributed back to investors in a fair and transparent manner.