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. All of its suppliers have access to a Web site that shows suppliers how they rate in quality, delivery, and management. This Web site could lead to ____ among ArvinMeritor's suppliers.
A) scrambled merchandising
B) horizontal conflict
C) the development of indirect distribution channels
D) vertical conflict
E) channel discord.

Question

Quizplus · Accepted Answer

Horizontal conflict occurs when two or more firms at the same level of the supply chain compete for the same customers. In this case, ArvinMeritor's suppliers are competing for the company's business. The Web site that ArvinMeritor has created could lead to horizontal conflict among its suppliers because it allows them to see how they rate in quality, delivery, and management. This information could lead to suppliers competing with each other to improve their ratings and win more business from ArvinMeritor.

ArvinMeritor Is a Company That Manufactures Parts for the Motor