Product Diversion / Gray Market: The Authentication Answer
On this episode, our host Steve Tallant talks about Supply Chain Diversion with Systech's Director of Market Development Jim Sinisgalli.
Every manufacturer of premium branded products who rely on controlled distribution as part of their positioning most likely has a diversion problem. In a 2016 KPMG Report, “Gray markets: an evolving concern”, 90% of respondents reported found instances of product availability outside of the approved channel.
Distribution control is established through contracts that obligate your customers to restrict sales to approved channels, retail outlets and your approved pricing. The greater the number of distribution chain members, the higher the odds that someone will violate the terms of your contracts by selling to unapproved retail outlets at an unauthorized discount.
This discussion will center on how product Authentication is a critical tool in combating Product Diversion.
