Supplier Tier

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1. Supplier Tier define the direct (Tier 1) or indirect (Tier 2 onward) supply of product and services to an organization.
  • Note 1:: A Tier 1 supplier is a company that provides product and services to the company or a manufacturer of goods making the final component or product.
  • Note 2:: A Tier 2 supplier provide product, services, materials or parts to another company that then supplies them to a third party or the manufacturer assembling the final product.
BCMBoK Competency Level
BCMBoK 0: BCM Fundamentals CL 1B: Foundation (BC)

(Source: Business Continuity Management Institute - BCM Institute)

2. Supplier Tier is the measure of the distance of a supplier from the organisation.

  • Note 1:: A tier 1 supplier directly supplies products or services to the organisation usually through a contractual arrangement.

(Source: ISO 22318 Societal security – Business continuity management — Guidance on supply chain continuity)