Understanding Manufacturing Tiers
As you probably know, the pieces in any given device or machine these days weren’t all made by the brand name printed on the outside. Instead, they’re built externally by a manufacturing company.
The parts used by this supplier, in turn, come from another supplier third-party manufacturer, and so on.
These different levels of suppliers and manufacturers are referred to as supply tiers. It’s through these tiers that we end up with all of the devices and equipment we use today. At the head of the supply tiers, we have the OEM.
What is an OEM?
OEM stands for original equipment manufacturer. The OEM is the company whose name and brand is on the final package. For example, BMW is an OEM for cars, HP is an OEM for computers, Samsung is an OEM for…well, a lot of things.
Despite being referred to as the OEM, they make little to nothing of what’s in the final product. They do, however, handle the design, branding, and overall scope of the project. At the end of the day, it’s considered their product.
But in order to actually make that product a reality, they turn to tier 1 suppliers.
Tier 1 Suppliers
Tier 1 suppliers are manufacturers that deal directly with OEM companies. These are often major companies in their own right. You may recognize names like Bosch or BASF. Though Bosch is primarily a tier 1 supplier for the automotive industry, they’re also well known for their own power tool product lines.
That means they’re also an OEM. This isn’t unheard of. Samsung is also a tier 1 supplier. Their parts can be found (ironically) in iPhones, for example.
Parts from a tier 1 supplier tend to be primary (and complex) components.
Tier 2 Suppliers
While tier 1 suppliers are creating parts and equipment, they generally don’t make the pieces that make up those parts. For that, they turn to tier 2 suppliers. Tier 2 suppliers deal directly with the tier 1 suppliers, not the OEMs.
However, in certain situations, a tier 2 supplier may also serve as a tier 1 supplier for other companies.
The number of tiers involved in a product depends largely on its complexity. A tier 3 supplier can be the company providing raw material like steel or plastic, thus making them the end of the supply chain. Or the tier 3 company may be a manufacture as well, meaning there’s a 4th tier that supplies the materials.
Where Does Ever-Roll Fit In?
Depending on the situation, Ever-Roll acts as a tier 2 or tier 3 supplier, manufacturing high quality parts for both tier 1 and tier 2 companies. Our products can be found in everything from automobiles to crop dryers.
While it might seem like tier 2 and tier 3 companies don’t matter as much as the OEM and tier 1 companies, this couldn’t be further from the truth. The parts we make as a tier 2 or tier 3 company are the foundation of complex machines.
If they can’t handle the extreme conditions these products are placed under, they will fail and the machine will break. That’s why we put the utmost care into our welds and tube bends. For quality burner rings, welded rings, tubes, and more, contact Ever-Roll today.
bent on perfection.
bent on perfection.
3988 Lawrenceville Dr.
Springfield, OH 45504
Phone: (937) 964-1302 (Office)