Product Diversion

Stop Product Diversion In Its Tracks

At Kessler International, we’re familiar with the signs of product diversion and parallel trade, and we know in what areas they most often occur: export sales, promotional offers, excess merchandise “destruction,” and charitable donations. Our experience in product diversion and parallel goods lets us pick up the “paper trail” almost immediately. We examine all records quickly and thoroughly, compare original contracts and “use” statements between the manufacturer and distributors, and analyze bills of sale, shipping orders, bills of lading, warehouse receipts, and other transportation invoices.

Because someone within the legitimate distribution network makes the diversion possible, either intentionally or through negligence, we establish informants and/or undercover operators in the distribution channels to determine exactly how and where the product diversion is happening. We document our findings, and suggest a feasible course of action.

Expanding your company’s products or services to the international marketplace is an exciting event. But what do you do when a foreign distributor approaches you to become a distributor for your product? How do you learn about this entity? How much do you know about this company that is operating in a foreign country? Those skilled in diversion and working in parallel goods often set up “phantom” or “shell” businesses that exist only to repackage and reship your goods to unintended markets for profit. How can you be sure that this doesn’t happen to you?

Kessler International is a leader in Anti-Diversion tactics. With the use of our expert investigators and researchers along with our state of the art software programs such as FERRET, you can be certain that you’re learning all the pertinent information about the firms you’re about to do business with. You’ll find out if the names and addresses you’ve been given are legitimate, and if there have been ties to diversion, parallel goods or counterfeiting activity in the past. Kessler International’s investigators and researchers will protect your firm both at home, and abroad.

Our experienced operatives know where it’s easiest to spot the diversion, and hone in quickly to any criminal activity. Most of the time, product diversion and the introduction of parallel goods start on the inside. We’re often called upon to place operatives in the work environment to spot the thief and stop him dead in his tracks. Once we uncover the crime and identify the criminals, we’ll follow through on suggested courses of action to prevent future occurrences. Meanwhile, our expert witnesses will stand by you at any criminal proceedings to bring the criminal to justice.

We won’t stop there though. Kessler International also gives you proactive measures to prevent product diversion from happening in the first place – or ever again. In addition to regularly analyzing all paperwork, we’ll help you establish stronger contractual agreements between manufacturers and distributors, and emphasize to all employees the legal ramifications of product diversion operations.

If you suspect product diversion at your company, or want to prevent product diversion in the future, call Kessler International today. We’ll make sure your products reach their intended destination.

Case Studies

  1. At the request of a consumer manufacturer the team at Kessler International was asked to determine if their products were being diverted to inappropriate markets. After a careful and thorough investigation our researchers and investigators noticed that when goods left the United States, the import export company used by our client was diverting them. The company shipped some of the products appropriately but others were sent through a different port and this was the cause of the diverted products. The company was informed and immediately stopped relations with this company and along with the assistance of law enforcement their illegal operations came to a halt.
  2. A pharmaceutical manufacturer suspected their products were being illegally diverted to third world markets. The Kessler International team was called in to verify the path of the products as they traveled across the United States and then overseas. Our researchers initially found several offers via their diverted wire, which offered the sale of our client’s products at inexpensive prices. After carefully examining the shipping data and investigating the import export company our experts found once our clients products reached their intended destination, they were then transferred to the third world markets.The company would document the products arrived and would then proceed with shipping them to third world countries for a profit. Our client was informed of these procedures and sought legal actions immediately.

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