Preventing Unauthorized Grey Market Sales

As a distributor, being able to keep up with shipments isn’t always a straightforward process. Shipments can be late, arrive at the wrong distribution center, or be stolen. In industries such as technology and medicine, there is also a risk of the items being re-routed and sold elsewhere for an inflated price. A practice referred to as grey market sales. This is especially prevalent in industries where product prices can vary wildly from country to country, and individuals can turn a quick profit from the unauthorized sales. Standard RFID tracking wouldn’t always be able to help in cases where the assets have been moved away from the normal pipeline. That’s where GPS tracking can come in.

Why GPS Trackers?

Integrating GPS trackers into your supply chain can offer the peace of mind of knowing right where your shipments are located. You would have the ability to track the shipment location from a mobile phone or web browser, while being sure that the shipment is on the right course. In the event of theft or potential gray market sales, the shipment can be located and tracking information can be shared with the proper authorities for a swift resolution.

Many devices are equipped with a magnet and could be easily mounted or placed with the shipment. You can monitor their location from anywhere. Whether you’re on site with the shipment or hundreds of miles away, you’ll always know where your assets are located.

The Impact Of Unauthorized Sales

Unauthorized sales as a result of grey market transactions can have a ripple effect that influences far more people than one might expect. In the medical field for example, a pharmacy can order a certain amount of a medication that is in short supply through the proper channels. They can then turn around and sell the medication to a wholesaler that can take the product elsewhere, and sell it with a significant mark up.

Forgetting for a moment the legal and ethical implications, the purchasing of that medication for outside sales can make it scarce or unavailable in areas where it is needed the most. This is a breach of the trade agreement in most cases, and the same principle can be applied to various goods, vehicles, and electronic devices as well.

Case Study

A consumer electronics group has a contract with a distribution company for a region, but notices that some of the shipments will end up in different areas than expected. The logistics manager begins to suspect that the product is potentially being transported elsewhere after delivery, and sold for much higher prices. Therefore breaking the terms of the trade agreement, and potentially breaching federal trade laws as well. The manager begins to implement GPS trackers into his shipments as a way to see exactly where they end up. Using the trackers, they were able to identify with certainty the shipments that were being taken and take the appropriate action.

Why Logistimatics?

We sell high quality tracking hardware that is affordable and easy to use. The software included is straight forward, and takes the guess work out of vehicle tracking. We test our hardware in all kinds of environments so that when you buy from us, you can be sure you’re getting a quality product. Our support team is ready to answer any questions you have. With Logistimatics you can easily track from the web or with with your iOS or Android device.

Interested?

You can take a look at our products here: https://logistimatics.com/products/

Feel free to contact us with any questions via hello@logistimatics.com or https://logistimatics.com/contact/

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