Tier 2 supplier

Commerce - supply chains - supply chain finance (SCF).

A tier 2 supplier is an individual or organisation that is part of our supply chain, but not a direct supplier to ourselves.

The tier 2 supplier is a second level connection of ours, supplying goods or services to our tier 1 (direct) suppliers.

All of our tier 2 suppliers are therefore indirect links to ourselves, in our supply chain.

Deep-tier financing supports tier 2 and other suppliers

"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."

The Treasurer May 2023 Issue 2, p10.

See also

• Contractor
• Customer
• Deep-tier financing
• Subcontractor
• Supplier
• Supply chain
• Supply chain finance (SCF)
• Tier 1 supplier
• Tier 2
• Tier 3 supplier
• Treasury