Internal And Dispute Resolution Procedures

1157 Words5 Pages
Introduction Supply chain relationships are one of the most important topics that have a drastic impact on performance. Supply chain relationship is a crucial aspect in Supply Chain Management. Thus, ensuring having a strong relationship with key suppliers and distributors can guarantee the proper coordination of activities to successfully develop business decisions. Different of interest, misunderstandings, etc. are usually common issues when dealing within international negotiations. In Lucid-Black Box case, is evident that exist several conflicts that could be addressed by using SCR practices such as finding sources of conflict and dispute resolution procedures. Proper solutions of how to deal with the current situation will be also provided giving some insights of how develop trust-based relationships.

Lucid is a South American distributor of home entertaining goods. Black Box is manufacturer based on US looking for expanding its horizons in South America. Both companies agree upon an exclusive contract to serve the Latin American market under certain conditions of quantity, geographic distributions, and technology updates.
Black Box started its relationship with Lucid in the worst way, delivering the first shipment several months after the due date. Couple with this, Black Box also breached the exclusivity contract with Lucid by having different distributors offering its products. For all the reasons aforementioned, Lucid could not complete the
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