On Bringing Transparency in Jewelry Supply Chains

Editor’s Note: Jerome Brustlein is COO of Fenton

COVID-19 has disrupted supply chains across the globe. Businesses quickly realized that pre-coronavirus consumer data that was previously leveraged to create supply chain efficiencies was no longer relevant. Lockdown restrictions combined with Brexit have only added to the complexities of the situation.

The spiralling costs of shipping goods from Asia is causing a shortage of consumer goods in Europe for importers of everything from children’s toys to home furnishings. Needless to say, there has never been a more challenging time to be in supply chain management.

Much attention has been drawn to how supply chains are being affected but one notable topic seems to have been completely overlooked. Ethical supply chains require much more vigilance from brands to set up and to crucially oversee. As a result of the uncertainty sweeping across Europe, Asia and Africa, many ethical supply chains have faced severe disruption and ethical brands are having to quickly react to ensure they protect the livelihoods and futures of the communities they strive to support.

At Fenton, we’re on a mission to bring transparency and accountability to the jewelry industry, an industry that was once synonymous with opaque supply chains, full of middlemen adding no value to the product and driving prices up. For instance, it is estimated a blue sapphire changes hands 10-15 times before being showcased in a jewelry’s storefront in the UK.

Thus, our business model centers around diligently overseeing our supply chain and sourcing exclusively from world leaders in ethical mining such as Sri Lanka and overseeing the whole production process ourselves with select workshops, thus cutting middlemen out of the process. Each of which present their own unique challenges due to the macro-environment factors currently at play.

As opposed to discussing the tough realities of the situation, I would rather take the opportunity to offer tangible advice from my experience at Fenton to other ethical brands who may find themselves in similar positions.

Firstly, it’s paramount to spread the risk posed by localized lockdown restrictions. Ethical brands must decrease their dependency on medium and high risk sources (similar to the old saying: “don’t put all your eggs in the same basket.”

In the case of Fenton, our team began by identifying suitable workshops located in lower risk countries, assessing the infrastructure in these regions and the logistical costs of having to switch production.

Of course, building new supplier infrastructure takes time and capital but it’s key to building adaptability and the continuity of the business.

Prior to the first wave of lockdowns in 2020, the Fenton team already had a business continuity plan that included four scenarios (A, B, C and D) that would enable us to switch production should our primary workshops be shut down. Later that same month we found ourselves in the position of having to switch production from one country to another within 48 hours as India was plunged into a 4-month lockdown and our ability to seamlessly transition to our “scenario A” plan was mission critical to our success.

Since the pandemic has swept across the world, change has been the only constant. Continued volatility is inevitable for the remainder of 2021 and supply chains must be ready to adapt.

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