Multi-Tier

Multi-Tier refers to the different levels or nodes of a company's supply chain. Multi-tier supply chains are multiple single-tier collaborations, which leads to multiple supplier-buyer relations within one supply chain. From materials sourcing to manufacturing to assembly, multi-tier supply chains enable high-scale production, but due to increased interdepencies, there is increased supply chain risk. For example, a manufacturer may contract with a Tier-1 supplier, who may in turn work with Tier-2 suppliers. While the risks facing the different tiers are not always definite, a supply chain disruption at the Tier-2 level would most likely impact the Tier-1 level and potentially impact the manufacturer.

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