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this post was submitted on 30 Jan 2024
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So the chili sauce maker switched up the deal, and then tried to poach from the chili grower. What a dumb move.
On the other hand, it's a really bad idea to be locked into a single source for your raw materials. It sounds like Tran was trying to mitigate that risk in a fairly reasonable way. If he can buy and sell from other farmers, there's a buffer if the OG farm can't deliver. And he could also continue to use the OG farm as primary supplier, while selling off excess chilis to other producers.
All of this is why supply contracts and backup supply chain plans exist. Risk mitigation is normal. Like they said near the end of the article, businesses sometimes need to have an adult in the room.
Tran's attempt to force Underwood out of their shared enterprise, while still dependent on his supply, was clearly a lapse in judgement. The results speak for themselves in this case.
I wonder if Tran and Underwood ever had a conversation about the precariousness of both of their positions - one having a single source for product, and the other having a single buyer? Was there an attempt to find a win-win solution? Or did Tran simply think he could leverage Underwood into competing with slave labor imports?