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Tier 2 suppliers. It’s simplest to identify tier 2 suppliers as the sources where your tier 1 suppliers get their materials. Again, using the apparel company example: That t-shirt factory receives its materials from a fabric mill. That mill is a tier 2 supplier to the apparel company. Tier 3 suppliers
Suppliers can be broken down into three tiers: Tier 1 Suppliers are your direct suppliers. Tier 2 suppliers are your suppliers’ suppliers or companies that subcontract to your direct suppliers. Tier 3 suppliers are the suppliers or subcontractors of your tier 2 suppliers.
Tier 2 suppliers play a significant role in cost management and supply continuity, while Tier 3 suppliers lay the foundation with raw materials. By focusing on each tier’s unique contributions and challenges, businesses can enhance efficiency, mitigate risks, and foster sustainability.
Tier 2 suppliers are known as secondary suppliers or second-tier suppliers. They supply components or assemblies derived from raw materials by Tier 1 suppliers. Tier 2 suppliers provide the OEMs with sub-assemblies and basic parts to complete a final product, such as construction vehicles or mobile phones.
Tier 2 suppliers provide resources for tier 1 suppliers. They are the direct suppliers to the tier 1 suppliers. Following the same example, a tier 2 supplier could be a lumber mill that processes wood that it sells to the tier 1 suppliers who turn it into furniture pieces.
Tier 2 Suppliers: These are suppliers to Tier 1 vendors, and they influence the sustainability of components and raw materials. By implementing green practices, they ensure that the supply chain upholds its commitment to sustainability deeper into the production cycle.
Tier 1 Suppliers: These are direct suppliers of the final product. Tier 2 suppliers: These are suppliers or subcontractors for your tier 1 suppliers. Tier 3 suppliers: These are suppliers or subcontractors for your tier 2 suppliers. These tiers can extend longer than three.
Think of a tier 2 supplier as the component essential to the tier 1 supplier's success. Without the tier 2 supplier, the tier 1 supplier could not provide the end product to the company in question.
What is a Tier 2 supplier? A Tier 2 supplier is a company that supplies raw materials, components or services to a Tier 1 supplier. In other words, they are the suppliers of your main suppliers.
Tier 2 suppliers are suppliers or subcontractors that provide goods or services to Tier 1 suppliers. They are responsible for ensuring that their goods or services meet the quality and quantity requirements of the tier 1 suppliers.