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Grey market a threat: Rockwell Automation

ROCKWELL Automation has highlighted the threat of a growing grey market in Australia and New Zealand.

Grey market is the term used to describe the buying and selling of goods which are not what they purport to be.

Grey market goods can enter the marketplace in a variety of ways. For example, a company may take advantage of bulk quantity offers and order excess stock of a component.

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.

According to Rockwell Automation, many companies are unaware they are purchasing grey market goods, but those who do so knowingly should be aware of the risks they are running.

Rockwell Automation warns the quality of grey market products can be inferior, which can lead to failure, longer lead times and expense on repairs.

Rockwell Automation is represented in Australia by NHP Electrical Engineering Products and Inaco Automation Controls. Products and support should be obtained from this authorised distribution network.

Read more: Emergence of the grey market and its disadvantages by Daryl Hom.

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