Are you using the Grey Market?
Value Beyond Price.
Purchasing from the Grey Market can pose significant risks and drawbacks, especially for high-value, technical products like Siemens SIMATIC automation components. These risks can negatively impact both the short-term functionality and long-term reliability of the products and systems in which they are used.
Find out why it is always good practice to purchase through authorised channels.
Overview
The risks of using the Grey Market
When purchasing Siemens products or working with authorised distributors like Parmley Graham, the risks of buying from the Grey Market (unauthorised channels) become particularly significant. Siemens, like many large manufacturers, emphasises the importance of buying through authorised dealers to ensure product authenticity, warranty coverage, and reliable customer support.
Products purchased through the Grey Market often lack Siemens’ official warranty. This means if the equipment fails or malfunctions, Siemens or Parmley Graham will not provide free repairs or replacements. This is especially risky with high-value automation equipment where repairs can be costly.
As an authorised distributor, we offer technical support, installation advice, and troubleshooting assistance for Siemens products. However, when buying from the Grey Market, you forfeit access to these critical services.
Here, we outline those associated risks to help you understand the impact of not purchasing through a Siemens Approved Partner.
Associated Risks
Product Quality Concerns
- Used, Repaired, or Counterfeit Products: Grey Market products may not be new. They could be previously used, repaired, or even counterfeit, which raises concerns about their quality and performance.
Outdated Products: These products may not be current models and could lack the latest security updates and features, compromising their functionality and security.
Potential for Operational Disruption
- Increased Risk of Downtime: Using Grey Market products increases the risk of product failure, which can lead to machine or factory downtime. This not only affects productivity but also incurs additional costs for repairs and replacements.
- Impact on Customer Relationships: Operational disruptions caused by Grey Market products can damage customer relationships due to perceived unreliability and increased costs.
Source of Products
- Excess Stock: Products in the Grey Market typically come from excess stock of end users or OEMs (Original Equipment Manufacturers) which are often sold on to resellers at extremely high discount prices to support cash flow. As a result, the condition and relevance of these products may be questionable.
Warranty and Support Issues
- Limited Warranty: The warranty period will be reduced due to time taken to get to market. Global warranty on Simatic products is 18 months from date of shipment from Siemens’ factory. It is very possible that through extended delivery routes to the UK market, manufacturer’s warranty could even have expired at the time of delivery.
- Restricted Technical Support: First-line technical support is provided by the product supplier. Customers need to verify the level of technical support offered by the Grey Market supplier before purchasing, as Siemens’ global support may be restricted through these purchase routes, with an 8-hour response time being typical. No support through Siemens UK.
The key benefits of having Siemens Serial Numbers
Reliable Source means Reliable Product: How good practice brings more value
Parmley Graham adheres to strict guidelines with Siemens to ensure that our distribution is legitimate and transparent. This protects customers from counterfeit or unauthorised products, which may lack the proper warranties or performance guarantees.
Siemens serial numbers are typically used to verify the authenticity of a product, providing traceability and product identification. They can however be manipulated or used in ways that benefit unauthorised sellers. Grey Market sellers may exploit this by obtaining genuine products with valid serial numbers, allowing them to sell them outside of authorised channels. The presence of a valid serial number can make it difficult for buyers to distinguish whether the product was purchased through authorised means or not.
When processing a warranty claim, it’s imperative to have a serial number so that the particular model of item can be easily identified.
Valid Serial Numbers - how good looks
Quickly evaluating a Siemens Serial Number
See how particular numbers and letters of the serial number example below are used to formulate a quick evaluation of the location of manufacture and date of manufacture (month & year):
S C-S3A0C35P
C Refers to ‘Manufactured in Amberg’ | S Refers to ‘Manufactured in 2024′ | 3 shows ‘Month of Manufacture is March’
(VP – Karlsruhe | LM – Furth | C – Amberg)
The disadvantages of Siemens Serial Numbers in the Grey market
Unreliable Source means Unreliable Product: How bad practice can be costly
Siemens products are often regionally controlled, with serial numbers linked to specific regions to ensure compliance with local laws and standards. Grey Market sellers can source products from regions where prices are lower and sell them in higher-priced markets using the same valid serial numbers, circumventing regional pricing strategies and warranty policies.
Grey Market sellers can sometimes avoid detection by selling products with Siemens serial numbers that are genuine but not properly registered with Siemens or associated with unauthorised channels. This makes it harder for Siemens or customers to trace the origin of the product and distinguish it from legitimate goods.
Serial numbers may also be used by counterfeiters to make fake Siemens products appear legitimate. By using or duplicating serial numbers from genuine Siemens products, Grey Market or counterfeit sellers can give the impression that the product is authentic, even though it may not meet Siemens’ quality or safety standards.
How bad looks
Serial numbers are made up of manufacturing facility:
VP – Karlsruhe | LM – Furth | C – Amberg | Year, then Month of manufacture followed by a sequential number.
S VP B5556xxx
S VP B5556xxx
A purchase from the Grey Market
Below is an example of CP343-1 purchased as new from the Grey Market this year:
S VP B5556xxx – VP
VP Manufactured in Karlsruhe | B Manufactured in 2011 | 5 Month of Manufacture is May
S VP B5556xxx – VP
VP Manufactured in Karlsruhe | B Manufactured in 2011 | 5 Month of Manufacture is May
This indicates that both modules are in excess of 13 years old, which isn’t necessarily a problem as Siemens hardware is fantastically durable, but they have no known provenance.
Additionally, these modules are HW version 5, which was shipped with V2.3.2 FW, there have been 2 hardware revisions with improvements around EMC and 5 firmware updates since the manufacture of this module, with multiple bug fixes, functional enhancements and security advisory fix.
So why buy through Parmley Graham?
It's your guarantee of Quality, Expertise and Service.
As an accredited partner of Siemens for our expertise, technical consultation and support, we add genuine value to our customers.
We are rigorously tested to ensure we meet the global standards set by Siemens, guaranteeing quality at every stage, from product/solution consultation through to supply and support.
Additionally, by buying through us you get the following enhancements over and above our global offerings:
- Extended 4 YEAR warranty on SIMATIC PLCs and IO, ET200 Distributed IO and SIMATIC HMI.
- Comprehensive and class leading technical support on product selection, system solution advice, post-sales support and green light support.
- Latest hardware available from stock.
- Additional technical support from Siemens UK if required with a one-hour response time through our technical support helpdesk – we have the ability to highlight customers purchasing through the grey market and refer them directly back to their supplier.
For more information, email us at support@parmley-graham.co.uk or call 0191 478 0404.
Conclusion
Adhere to good practice
While the Grey Market may initially seem like a cost-effective option, the associated risks can lead to higher total costs of ownership and operational disruptions. With our provision of enhanced support, extended warranties, and reliable products, we ensure better overall value and risk mitigation.
We encourage customers to consider these factors and opt for authorised distributors to safeguard their investments, and maintain smooth operations.
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