Product diversion tracking
Reduce the impact of product diversion by using GS1 standards
If you operate in the Retail industry, we can help prevent the damage caused to your business from product diversion. Our unique solution will protect your brand and your profits.
What is product diversion?
Product diversion refers to products sold by a manufacturer that are distributed into markets or sales channels other than those originally intended, potentially in violation of contracts, laws or regulations. When product diversion occurs, third parties can undercut a company’s price and reap huge profits. This can include goods that are destined for overseas markets being re-routed back to the original market at prices significantly below the manufacturer’s wholesale pricing.
How product diversion tracking can help your business
By tracking whether your products are being diverted you can:
- maintain the strength your brand’s integrity and value
- help reduce product piracy
- protect your intellectual property
- maintain the premium pricing of your products
- protect the price position in the market of your product range
- ensure you're receiving the full revenue for your product that you are entitled to and have budgeted to receive
How does product diversion tracking work?
Encoded RFID tags, with a globally unique GS1 identifier or Electronic Product Code (EPC), are placed into the product packaging. This enables the brand owner, at any point in the supply chain, to see where a product has come from or where it was intended for. Even at the point of sale it’s possible to identify if the product is being sold through the intended channel. Our solution prevents product diversion but also highlights if it has happened so action can be taken.
What standards are needed for product diversion tracking?
To track whether your promotions are being diverted, you can use a combination of GS1 identification keys with bar codes or RFID tags.
Get in touch
Contact Mark Gillott on 020 7092 3522 or Mark.Gillott@gs1uk.org
Useful documents & links