Parallel Imports Undercutting an Appointed Distributor in Its Own Territory
Parallel imports undercut appointed distributors when wholesale pricing gaps across territories exceed landed transport and tariff costs.
Serialisation
Meaning
The assignment of a unique identification code to each individual unit of a product allows for precise tracking from the assembly line to the final point of sale. This process, known as serialisation, is increasingly used in pharmaceutical, high-value consumer goods, and industrial component supply chains to combat counterfeiting and grey market diversion. It replaces batch-level tracking with individual unit history.
Track And Trace
Modern supply chain systems scan these unique codes at every transfer of ownership to build a secure digital history. This record contains the manufacturing date, the plant of origin, and the specific distributor to whom the unit was assigned. If a product appears in an unauthorized retail channel, a simple scan of the code reveals the exact point where the shipment was diverted.
This level of traceability encourages distributors to monitor their sales channels carefully.
Grey Market Detection
Manufacturers use the data collected from scanning to enforce territorial boundaries. When unauthorized brokers are found with serialized stock, the manufacturer can quickly identify which distributor sold the goods to them. This makes it possible to apply targeted financial penalties or reduce the offender’s allocation.
Recall Management
In the event of a safety issue, the unique code allows for a targeted recall of only the affected units. This precision avoids the massive cost of recalling entire production runs. It also minimizes the disruption to the distribution network and preserves brand reputation.