Nine Measures to Ensure Dispute Resolution Processes Are Consistently Followed Between Suppliers and Customers

Jim Bergman

A Cross-Sector Guide to Embedding Discipline, Transparency, and Trust in Conflict Management

Disputes between suppliers and customers are inevitable in long-term commercial relationships. What distinguishes resilient organizations is not the absence of conflict, but the presence of consistent, well-managed resolution processes. When dispute resolution protocols are clearly defined and reliably followed, they protect performance, reduce risk, and preserve trust.

Here are nine practical measures to ensure dispute resolution processes are consistently followed across sectors – from healthcare and education to manufacturing, logistics, finance, and faith-based organizations.

1. Embed Resolution Protocols in Contracts and Onboarding

Start with the contract. Every supplier agreement should include clear dispute resolution clauses—defining triggers, timelines, escalation paths, and preferred methods (negotiation, mediation, arbitration). These protocols should also be reinforced during onboarding.

Why it matters: Embedding resolution expectations early ensures both parties understand the process before issues arise.

2. Create a Standardized Dispute Workflow

Develop a repeatable workflow that outlines each step in the resolution process – from issue identification to closure. Include roles, documentation requirements, and decision checkpoints.

Why it matters: A standardized workflow reduces ambiguity and ensures consistent handling across teams and contracts.

3. Assign Clear Ownership and Escalation Roles

Designate individuals or teams responsible for managing disputes. Clarify who initiates resolution, who reviews evidence, and who makes final decisions. Include escalation paths for unresolved issues.

Why it matters: Role clarity prevents delays and ensures accountability throughout the resolution process.

4. Maintain Centralized Documentation and Case Tracking

Use a contract management system or shared repository to log disputes, correspondence, resolutions, and lessons learned. Include timestamps, attachments, and status updates.

Why it matters: Centralized tracking supports transparency, audit readiness, and continuous improvement.

5. Establish Communication Protocols and Tone Guidelines

Define how disputes should be communicated – tone, channel, timing. Encourage respectful, constructive dialogue and discourage reactive or adversarial messaging.

Why it matters: Thoughtful communication preserves relationships and supports collaborative resolution.

6. Conduct Regular Performance Reviews and Issue Spotting

Use scheduled reviews to surface concerns before they escalate. Encourage both parties to raise issues early and document them clearly.

Why it matters: Early intervention prevents minor issues from becoming formal disputes.

7. Train Teams on Resolution Procedures and Tools

Provide training for procurement, legal, operations, and vendor-facing teams. Include mock scenarios, tool walkthroughs, and role-specific guidance.

Why it matters: Training builds confidence, consistency, and procedural discipline.

8. Offer Structured Alternatives to Litigation

Encourage mediation, arbitration, or joint reviews as alternatives to legal action. Include these options in contracts and workflows, and provide access to qualified facilitators.

Why it matters: Alternative resolution methods are often faster, less costly, and more relationship-preserving than litigation.

9. Monitor Compliance and Refine Processes

Track how often resolution protocols are followed, where breakdowns occur, and what outcomes result. Use this data to refine workflows, update training, and improve contract language.

Why it matters: Ongoing monitoring ensures that resolution processes evolve with business needs and stakeholder feedback.

Final Thought: Consistency Builds Credibility

Dispute resolution is not just a legal safeguard – it’s a relational discipline. These nine measures help organizations embed consistency into how they manage conflict, ensuring that every dispute is handled with clarity, care, and contractual integrity.

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Published by Jim Bergman

Jim Bergman is a commercial contract professional with global experience spanning the USA, Latin America, UK, Europe, China, South Korea, Japan, India, SE Asia, the Middle East, Africa and Australia. He has worked on a wide range of direct and indirect spend categories in numerous sectors, developing a deep knowledge of services, goods and technology procurement and sales. Across this wide array of commodity and services experience, Jim has found the keys to success in maximizing value for money through customer-supplier relationships founded on innovative category management and strategic sourcing practices, key performance metrics and measures, as well as Total Cost of Ownership principles and collaborative contracting tenets. He has shared his knowledge through advisory engagements, as well as in developing and delivering training programs both on-line and in classrooms, in both open-enrollment and internal environments. Jim has assisted his clients through all phases and steps of contracting, negotiation, strategic sourcing and bidding processes, demonstrating value generation in excess of $250 million. His audiences and clients have included over 7,000 attorneys and commercial professionals students from over 1,000 corporations and public-sector entities.

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