Arbitration

In the supply chain context, "arbitration" refers to a method of dispute resolution where parties involved in a contractual agreement agree to submit their conflicts to an impartial third party, known as an arbitrator, instead of going to court. Arbitration provides a more private and streamlined alternative to litigation, allowing for the resolution of disputes in a less formal and often more efficient manner. The decision made by the arbitrator, known as the arbitral award, is binding and enforceable. Arbitration is commonly used in supply chain agreements to resolve disputes related to contracts, pricing, performance, and other commercial matters.