Horizontal coordination in a supply chain refers to coordination between which entities?

• A. Coordination between companies at the same level.
• B. Coordination between different levels (supplier and manufacturer).
• C. Coordination between a company and its customers.
• D. Coordination across international borders.

Answer: (A)

Horizontal coordination focuses on aligning activities with other organizations that occupy the same place in the supply chain. That means working with peers at the same level—such as manufacturers coordinating with other manufacturers, or retailers coordinating with other retailers—to share forecasts, synchronize production or replenishment, and agree on standards and timing. This kind of collaboration helps smooth the flow of information and materials among peers, reducing inefficiencies like stockouts or excess inventory. Coordination with entities at different stages of the chain (suppliers with manufacturers, or manufacturers with customers) is vertical coordination, while handling things like customers directly or cross-border issues involves different dimensions beyond the same-level focus. So, horizontal coordination is coordination between companies at the same level.