{"id":5805,"date":"2022-12-28T14:49:11","date_gmt":"2022-12-28T07:49:11","guid":{"rendered":"https:\/\/indochinapost.com\/en\/?p=5805"},"modified":"2022-12-28T14:49:11","modified_gmt":"2022-12-28T07:49:11","slug":"amazon-sued-by-supplier-alleging-breach-of-agreement","status":"publish","type":"post","link":"https:\/\/indochinapost.com\/en\/amazon-sued-by-supplier-alleging-breach-of-agreement\/","title":{"rendered":"Amazon Sued by Supplier Alleging Breach of Agreement"},"content":{"rendered":"

Amazon Sued by Supplier Alleging Breach of Agreement<\/strong><\/h1>\n

A Vietnamese warehouse equipment maker says the e-commerce behemoth\u2019s robotics business pledged support and then slashed orders<\/h2>\n

A Vietnamese warehouse equipment manufacturer is suing\u00a0Amazon.<\/span>\u00a0com Inc.\u2019s robotics business, claiming that the e-commerce giant backed away from promises made early in the Covid-19 pandemic to support the supplier with millions of dollars in new purchases.<\/p>\n

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Gilimex Inc., which makes steel and fabric storage containers for use in automated warehouses, says in the lawsuit filed Tuesday in New York that it dramatically expanded its operations over eight years to accommodate Amazon\u2019s rapid growth. That included establishing more production sites, more than doubling its workforce and severing ties with other large retail customers such as IKEA,\u00a0Columbia Sportswear\u00a0Co.<\/span>\u00a0and Decathlon SA, according to the lawsuit.<\/p>\n

Gilimex said Amazon scaled up its purchasing in 2020 and 2021, when e-commerce sales were booming as the pandemic shifted consumer behavior, then abruptly pulled back orders this year as online sales growth receded and Amazon halted its rapid logistics expansion.<\/p>\n

\"Amazon
Amazon Sued by Supplier Alleging Breach of Agreement<\/figcaption><\/figure>\n

An Amazon spokesperson said the company had no immediate comment on the suit.<\/p>\n

The lawsuit follows a period of growing\u00a0strains between buyers and suppliers\u00a0triggered by the upheaval in business during the pandemic as companies sought to adjust to a fast-changing and uncertain economic environment.<\/p>\n

Gilimex alleges in its court filing that Amazon promised to help guard Gilimex against business downturns by giving it advance notice of changes in Amazon\u2019s demand forecast and by scaling down purchasing gradually in case of a downturn so the manufacturer could gradually ramp down production. Gilimex claims Amazon pulled back its forecast for the year sharply in May, to far lower levels than projected and refused to compensate the supplier.<\/p>\n

The lawsuit says the change resulted \u201cin the immediate and virtually total destruction of Gilimex\u2019s business.\u201d<\/p>\n

Gilimex is seeking about $280 million in damages to recoup costs, including those for the storage containers it has already made, the raw materials it has purchased and the investments it made in manufacturing facilities during the pandemic.<\/p>\n

Rob Handfield, a supply-chain management professor at North Carolina State University, said tensions between buyers and their suppliers have been\u00a0rising during the pandemic\u00a0and as companies have sought this year to adjust their purchasing, manufacturing and distribution agreements.<\/p>\n

Retailers in 2020 pressed suppliers to increase production of items such as toilet paper and disinfectant wipes, and then looked for more goods in 2021 as supply-chain disruptions left shelves short of key consumer goods. This year, companies have ordered early and in big numbers in a restocking drive that has left some retailers\u00a0overstuffed with inventories\u00a0and\u00a0canceling orders in response.<\/p>\n

\u201cMost companies over-expanded in 2022 and said, \u2018OK we\u2019re going to order more than we think we need, we think demand is going to continue to be high,\u2019 and all of a sudden we had inflation, we had other shortages, and they were stuck with too much inventory,\u201d Mr. Handfield said. \u201cThen they\u2019re telling their suppliers, \u2018Oh, we overcommitted.\u2019\u201d<\/p>\n

Gilimex said in its lawsuit that due to the cyclical nature of Amazon\u2019s orders and the length of time it took to make the products, Gilimex maintained production throughout the year and stockpiled inventory to be able to fill Amazon\u2019s orders in the busiest months. The containers are designed specifically for Amazon and cannot be sold to other customers, the supplier said.<\/p>\n

The supplier says Amazon asked Gilimex to sign an agreement formalizing their relationship in January 2021 after Gilimex had begun making big investments to increase manufacturing capacity. The agreement allows Amazon to terminate the relationship without cause with 30 days of notice and requires Amazon to provide Gilimex with rolling six-month forecasts for planning purposes, according to the lawsuit.<\/p>\n

The suit, which alleges breach of contract, breach of fiduciary duty, unfair trade practices and negligent misrepresentation, was filed in New York State Supreme Court. New York-based law firm Kasowitz Benson Torres LLP is representing Gilimex.<\/p>\n<\/div>\n\n\n

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Amazon Sued by Supplier Alleging Breach of Agreement A Vietnamese warehouse equipment maker says the e-commerce behemoth\u2019s robotics business pledged support and then slashed orders A Vietnamese warehouse equipment manufacturer is suing\u00a0Amazon.\u00a0com Inc.\u2019s robotics business, claiming that the e-commerce giant backed away from promises made early in the Covid-19 pandemic to support the supplier with […]\n","protected":false},"author":3,"featured_media":5806,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[402],"tags":[1448,1449],"class_list":["post-5805","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-amazon","tag-logistics-news"],"acf":[],"yoast_head":"\nAmazon Sued by Supplier Alleging Breach of Agreement - The leading Logistics and Cargo in Asia<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/indochinapost.com\/en\/amazon-sued-by-supplier-alleging-breach-of-agreement\/\" \/>\n<meta property=\"og:locale\" content=\"vi_VN\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Amazon Sued by Supplier Alleging Breach of Agreement\" \/>\n<meta property=\"og:description\" content=\"Amazon Sued by Supplier Alleging Breach of Agreement A Vietnamese warehouse equipment maker says the e-commerce behemoth\u2019s robotics business pledged support and then slashed orders A Vietnamese warehouse equipment manufacturer is suing\u00a0Amazon.\u00a0com Inc.\u2019s robotics business, claiming that the e-commerce giant backed away from promises made early in the Covid-19 pandemic to support the supplier with [...]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/indochinapost.com\/en\/amazon-sued-by-supplier-alleging-breach-of-agreement\/\" \/>\n<meta property=\"og:site_name\" content=\"The leading Logistics and Cargo in Asia\" \/>\n<meta property=\"article:published_time\" content=\"2022-12-28T07:49:11+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/indochinapost.com\/en\/wp-content\/uploads\/0x0.webp\" \/>\n\t<meta property=\"og:image:width\" content=\"960\" \/>\n\t<meta property=\"og:image:height\" content=\"540\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/webp\" \/>\n<meta name=\"author\" content=\"Internship\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"\u0110\u01b0\u1ee3c vi\u1ebft b\u1edfi\" \/>\n\t<meta name=\"twitter:data1\" content=\"Internship\" \/>\n\t<meta name=\"twitter:label2\" content=\"\u01af\u1edbc t\u00ednh th\u1eddi gian \u0111\u1ecdc\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 ph\u00fat\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/indochinapost.com\\\/en\\\/amazon-sued-by-supplier-alleging-breach-of-agreement\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/indochinapost.com\\\/en\\\/amazon-sued-by-supplier-alleging-breach-of-agreement\\\/\"},\"author\":{\"name\":\"Internship\",\"@id\":\"https:\\\/\\\/indochinapost.com\\\/en\\\/#\\\/schema\\\/person\\\/2799e2dd06a01387826e24f5aecbfe98\"},\"headline\":\"Amazon Sued by Supplier Alleging Breach of Agreement\",\"datePublished\":\"2022-12-28T07:49:11+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/indochinapost.com\\\/en\\\/amazon-sued-by-supplier-alleging-breach-of-agreement\\\/\"},\"wordCount\":684,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/indochinapost.com\\\/en\\\/amazon-sued-by-supplier-alleging-breach-of-agreement\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/indochinapost.com\\\/en\\\/wp-content\\\/uploads\\\/0x0.webp\",\"keywords\":[\"Amazon\",\"logistics news\"],\"articleSection\":[\"News\"],\"inLanguage\":\"vi\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/indochinapost.com\\\/en\\\/amazon-sued-by-supplier-alleging-breach-of-agreement\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/indochinapost.com\\\/en\\\/amazon-sued-by-supplier-alleging-breach-of-agreement\\\/\",\"url\":\"https:\\\/\\\/indochinapost.com\\\/en\\\/amazon-sued-by-supplier-alleging-breach-of-agreement\\\/\",\"name\":\"Amazon Sued by Supplier Alleging Breach of Agreement - 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