Tier 1 supplier
From ACT Wiki
Commerce - supply chains - supply chain finance (SCF).
A tier 1 supplier is an individual or organisation that provides a final product directly to a customer.
All of our tier 1 suppliers are direct links to ourselves, in our supply chain.
Contrasted with tier 2 - and other tiers - further along our supply chain.
- Treasury support for suppliers through supply chain
- "There are also alternative [supply chain finance] support structures in use, in particular what is known as ‘deep-tier’ financing.
- This approach sees treasury at end customers provide support not just to tier 1 suppliers, but also to those in tiers further along the supply chain.
- Such suppliers are mostly smaller companies and more likely to be vulnerable to economic disruption."
- The Treasurer May 2023 Issue 2, p10.
