Amazon is sued by Gilimex- a Vietnamese supplier for breaching agreement

Gilimex Inc.- a Vietnamese supplier of warehouse storage systems filed a $280 million lawsuit on Monday, December 12, in New York state court against Amazon.com Inc., claiming the e-commerce giant abruptly reduced orders leaving the manufacturer with surplus manufacturing capacity and raw materials.

According to Gilimex Inc., as a key partner of Amazon from 2014 to , the company invested tens of millions of dollars in manufacturing facilities to build the steel-and-cloth storage pods used to organize inventory in Amazon warehouses. Those pods are carried by robots, speeding the fulfillment of online orders so workers don’t have to race around the sprawling facilities on foot.
The lawsuit somehow reveals Amazon’s relationships with suppliers which helped the ecommerce giant to fuel its rapid expansion during the pandemic. But it also shows that these relationships pose great risks to suppliers. Based on the 32-page complaint, the partnership was built around «trust,» which made Gilimex rely on the accuracy of Amazon’s forecasts to make necessary investments to meet Amazon’s demand.

Since many people sheltered at home and spent much more money online during the pandemic, Amazon’s sales soared and hit new records. The first quarter of 2021 witnessed a 220% increase in Amazon’s profits. As a result, Gilimex increased to more than 7,000 personnel across multiple factories to build more than 1 million warehouse storage units annually in response to the ecommerce giant’s demand. Over the course of the eight-year partnership, Gilimex’s production for Amazon surged 20-fold.
Gilimex claimed that it has a long-standing agreement with Amazon regarding transparency about anticipated demand in order to secure the supplies, factory capacity, and employees needed to meet Amazon’s expansion. However, Amazon “immediately changed and reduced the projected demand” for the remaining months of and 2023 to a tiny portion of earlier projections in April and May.

According to the lawsuit, Amazon was Gilimex’s biggest client, with purchases worth $146.6 million in 2021. In order to satisfy Amazon’s demands, Gilimex ignored other significant clients including IKEA and Columbia Sportswear.
Gilimex had to relocate its production and packing facilities in order to continue manufacturing through Covid outbreaks and navigate around government safety regulations in order to meet Amazon’s demands during the pandemic.
Gilimex said in the lawsuit: «Thus, while Amazon enjoyed unprecedented increases in revenue during the pandemic due in large part to the explosion in online ordering by consumers from the safety and comfort of their homes, Gilimex management and laborers literally risked their lives on a daily basis to make such record growth a reality,» .

Amazon has not yet responded to Gilimex’s complaints. In an effort to reduce costs, the company started phasing out experimental projects and laid off 10000 employees this fall. This cost-reduction is projected to go until 2023.

Google Maps to revolutionize navigation with Satellite features, eliminating dead zones

East Asia’s Growth Outpaces Global Average Amidst China’s Economic Challenges, Says World Bank

EU Probes Apple, Google and Meta for Potential Violations of New Digital Law

Massive Changes Coming to Google Chrome Threaten to Reshape the Modern Internet

Reddit makes a splash with spectacular stock debut

In a highly anticipated market debut, Reddit stock took off, closing its first day of trading with a staggering 48% surge from its initial public offering (IPO) price of $34 per share. The social media giant’s stock concluded the day at $50.44, propelling its market capitalization to over $8 billion.

Vietnam’s Vingroup Makes Strategic Move with $1.6 Billion Sale of Vincom Retail Stake

In a significant move in Vietnam’s corporate landscape, Vingroup, the country’s largest conglomerate, has completed the sale of a 41.5% stake and other assets in its retail arm, Vincom Retail, for a staggering $1.6 billion. This transaction ranks among the largest mergers and acquisitions (M&A) deals in Vietnam in recent years, underscoring the dynamism of the country’s economy and corporate sector.

NVIDIA and Johnson & Johnson MedTech’s AI Collaboration Revolutionizing Surgery

The integration of artificial intelligence (AI) into various facets of healthcare has revolutionized patient care, and its impact on surgery is poised to be profound. Leveraging AI’s capabilities to connect, analyze, and predict based on operating room data holds the promise of enhancing surgical efficiency and clinical decision-making. Recognizing this potential, NVIDIA has partnered with Johnson & Johnson MedTech to explore new AI capabilities within the realm of surgery, with the goal of advancing the company’s connected digital ecosystem for surgical procedures.

Alphabet-Apple Collaboration Unveiling Gemini AI for iPhone Innovation

Landmark Verdict: $60 Million Penalty Imposed on Mead Johnson in Enfamil Baby Formula Case

Devin AI: Pioneering the future as the first AI software engineer

In the fast-paced world of software development, innovation is the name of the game. Cognition, a leading tech company, has introduced a groundbreaking solution that promises to transform the industry as we know it: Devin AI, the world’s first AI software engineer. Devin AI is not just another tool in the developer’s toolbox; it’s a game-changer that leverages the power of artificial intelligence and machine learning to automate coding tasks and streamline the development process.

Job Interview Red Flags: Phrases to avoid according to a former Google recruiter

When it comes to acing a job interview, there are certain tactics that can help you stand out and impress prospective employers. From showcasing your passion for the role to demonstrating problem-solving skills, there are plenty of strategies to employ. However, it’s equally important to be mindful of phrases that could raise red flags during the interview process.

US Pushes for ByteDance to Sell TikTok, But China Likely to Refuse

The ongoing saga between the United States and ByteDance, the Chinese tech giant behind the popular social media platform TikTok, has taken another turn. With the House approving a bill requiring ByteDance to divest TikTok within roughly six months, the possibility of a forced sale or effective ban looms large.