Page 21 - Simply Electronics Grey Market Article

Diagram 19: SE: Order Completion Buffers

SE’s Value Chain and Business Model shows how the company may manipulate its inherent supply chain
flaws by developing a strategy which enables it to seek sourcing solutions after orders are placed or order
critical mass is reached (Diagram 20).

Simply Electronics Limited earns a triple profit on their activities:

Profit 1: arbitrage
Profit 2: cost or near cost purchases plus undercutting margins discounts
Profit 3: internal cash flow manipulation (retained cash over 43 days, as in GoPro example, before
refund or goods dispatched)