According to Rockwell Automation , the emergence of a Grey Market in Australia and New Zealand mirrors what has happened in markets in Europe and the United States and customers should be aware they may be exposed to a range of negative impacts.
The Grey Market is the buying and selling of goods that are not what they purport to be. Grey Market goods enter the marketplace in a variety of ways. For example, companies seeking a certain number of a particular component may order a greater quantity to qualify for a cheaper price. The excess might then be resold as discrete items for a profit.
Other potential entry points are liquidation of stock by companies that have over purchased, perhaps for spare parts, or insurance liquidators trying to make a profit on fire or water-damaged goods.
Many companies are unaware they are purchasing Grey Market goods, but those who are should be aware of the risks involved. It is important to ask the question: if a company’s products and success depend on production lines working reliably, is the risk of increased downtime worth a few dollars that might be saved?
“One of the major potential difficulties is significantly greater downtime, either due to the failure of products that would not otherwise fail, or longer lead times and expense on repairs,” says Twain Drewett, Managing Director Australia and New Zealand, Rockwell Automation.
Within Australia, Rockwell Automation is represented by NHP Electrical Engineering Products and Inaco Automation Controls; NHP also represents Rockwell Automation across New Zealand. These two long established relationships form Rockwell Automation's authorised distribution network.
The quality of products, timeliness and certainty of robust supply chain management, extensive technical support and industry experience, as well as access to manufacturer warranties, are all key reasons for choosing to use a Rockwell Automation authorised distributor.
“The combination of Rockwell Automation and high quality strategic partners like NHP and Inaco, adds value for customers in so many ways, and they safeguard customers from Grey Market products," says Drewett.
"Our distributors are invested in our customer’s success, and they partner with customers to help them make the best automation decision. This is what makes our distributor channel unique,” he concludes.