ArvinMeritor is a company that manufactures parts for the motor vehicle industry. It once used 15,000 different suppliers around the world. In 2002, the company announced plans to reduce its number of global suppliers to 1,000 by 2010. As ArvinMeritor determines which suppliers can meet or exceed its list of predetermined performance requirements, _____ is likely to occur.
A) channel empowerment
B) channel conflict
C) distribution discord
D) channel power hogging
E) channel vision

Question

Quizplus · Accepted Answer

Channel conflict is likely to occur as ArvinMeritor reduces its number of suppliers. This reduction process can lead to competition among existing suppliers and disagreements on the distribution of roles and resources, causing conflicts within the supply channel.

ArvinMeritor Is a Company That Manufactures Parts for the Motor