Tier 2 supplier
From ACT Wiki
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.
