Design Con 2015
VELOCITY     Accelerating Your Supply Chain Success
The leader in global supply chain solutions

Amazon's Gray Market May Give OEMs a Black Eye

NO RATINGS
View comments: newest first | oldest first | threaded
Hailey Lynne McKeefry
User Rank
Blogger
Re: Xilinx Suing Flextronics
Hailey Lynne McKeefry   12/30/2013 1:36:00 AM
NO RATINGS

@Jessie, thanks for pointing this one out. This is a good one to watch, as you said. In an ideal world, you would think that buying from an authorized distributor would be sufficient but clearly there are moments when monitoring is critical. Anybody want to weigh in: What are the best and most useful counterfeit monitoring measures your organization uses?

jesse_securecomponents
User Rank
Stock Keeper
Xilinx Suing Flextronics
jesse_securecomponents   12/27/2013 4:15:53 PM
NO RATINGS

Another pending case worth monitoring, and tangentially related to this Amazon / J&J issue, is the suit Xilinx recently filed against Flextronics alleging unauthorized resale of electronic components and more alarmingly the alleged remarking of parts.

Similar to this Amazon/J&J dust-up, Flextronics is an authorized distributor. Normally there is no reason for customers to question or be on alert for anything other than what they've ordered from a company like Flextronics. The thought that they would be receiving remarked parts likely would not enter their thoughts.

Again, at this point these are simply allegations, but it certainly bears monitoring. Here is a link to the story http://www.businessweek.com/news/2013-12-11/xilinx-sues-flextronics-alleging-fraudulent-resale-of-chips-1

Himanshugupta
User Rank
Supply Network Guru
Re: Amazon - utterly unacceptable practice
Himanshugupta   12/27/2013 11:16:41 AM
NO RATINGS

@_hm this is very serious matter because J&J products are for babies and new borns. If any counterfiet happens in the supply chain then this is not be easy for Amazon to escape.

_hm
User Rank
Supply Network Guru
Re: Amazon - utterly unacceptable practice
_hm   12/27/2013 10:42:07 AM
NO RATINGS

@Halley: To my surmise what happen next is lawyer and lagal action. Some customer orders items from Amazon and consumes them. They may suffer if it is not genuine. If the suffering is loss of life or of similar nature, legal lawsuit will follow to eventually improve these practices.

 

Hailey Lynne McKeefry
User Rank
Blogger
Re: Amazon - utterly unacceptable practice
Hailey Lynne McKeefry   12/27/2013 1:51:14 AM
NO RATINGS

@hospice, i have seen evidence that Amazon is working toward solving some of its problems in these areas. For example, it came to their attention that there were a lot of false reviews or reviews from non amazon customers. The company began to marke "verified purchase" when people were reviewing a product they actually bought. that made those reviews more valuable. I thought that was a good solution. I agree that the solution only comes if it gets i the way of customer satisficatoin thought. The squeaky wheel gets the grease.

Hailey Lynne McKeefry
User Rank
Blogger
Re: Amazon - utterly unacceptable practice
Hailey Lynne McKeefry   12/27/2013 1:48:23 AM
NO RATINGS

_hm, i think the issue is basic in terms of being ubiquitious, but not basic in terms of the ease of solving it. This extended supply chain makes it harder to monitor the activities of all involved. How do you monitor all that activity? Any ideas of best practices?

TaimoorZ
User Rank
Supply Network Guru
Re: Amazon - utterly unacceptable practice
TaimoorZ   12/26/2013 5:09:32 AM
NO RATINGS

@_hm: I don't think you can correlate the two issues. Just because Amazon is believed to be involved with gray market products does not mean that they should stop all innovations on their other aspects of the business. It's a huge company and issues like the gray market products are a norm. It shouldn't affect other business areas and new developments.

TaimoorZ
User Rank
Supply Network Guru
Important issue
TaimoorZ   12/26/2013 5:06:27 AM
NO RATINGS
1 saves

"For dozens of OEMs and their supply chains, if Amazon starts to seem unreliable, so will everyone upstream along the retailer's supply lines -- fair or not."

@Marc: Interesting post. I do agree that it's an important issue that Amazon must deal with. It's interesting how no electronics OEM never raised this issue but a consumer goods company like J&J raised it. Amazon must address the issue of gray market before other companies start taking a note of it and take similiar actions.

Hospice_Houngbo
User Rank
Supply Network Guru
Re: Amazon - utterly unacceptable practice
Hospice_Houngbo   12/24/2013 12:53:41 PM
NO RATINGS

_hm: The answer to your question is simple: Amazon is already satisfied with its level of customer satisfaction index. The whole idea of drone delivering packages will come with its own challenges that may bring more negative critics to Amazon. We will see how Amazon will handle that.

_hm
User Rank
Supply Network Guru
Amazon - utterly unacceptable practice
_hm   12/24/2013 6:58:48 AM
NO RATINGS

This looks to be utterly unacceptable, unethical practice. Customer should never be served with gray market products. Sooner or latter this may become few class action law suits.

Why does Amazon dreams of drones for delivery when they are unable to resolve these basic issues?



More Blogs from Marc Herman
Talk about analytics has many people nearing saturation. However, the electronics supply chain appears to be a potential beneficiary of this technology trend.
Alibabi's logistics plans have gotten a lot of attention as a business deal, but it's time to consider what it means for the supply chain.
The TV arms race has implications for the entire electronic supply chain, as screens consolidate their position as the focus of device design across the entire industry.
If Taiwan is to really get in the game, it will have to catch up to competitors not just on capacity, but also on research and development.
Latest Poll
EBN Newswire
Twitter Feed
EBN Online Twitter Feed