The difference between Tier1 and Tier2 manufacturers

Difference between tier1 and tier2
In the business world, Tier1 and Tier2 are often terms used in manufacturing. In the process of manufacturing and selling products, the relationship between OEMs and their Tier manufacturers is critical. Typically, OEMs will aggregate many tiers in the supply chain. Tier2 manufacturers provide products for Tier1 manufacturers. At every step in the manufacturing process, these manufacturers pass very stringent quality tests and must meet government and corporate standards.

Why the supply chain?
It is very inefficient that the same company is responsible for the production and marketing of all products at the same time, so it is common that several companies are responsible for the products they are good at. The way Tier1 and Tier2 manufacturers cooperate can allow companies to get more professional personnel and equipment. Government regulations also require the use of iter. In a sense, all products are regulated by the government, and tier manufacturers know best how to make their products more in line with government requirements.
What is Tier1
Typically, Tier 1 vendors offer the most advanced processes in the supply chain. This is the final step before the product reaches the OEM, which typically assembles the product or prepares it for distribution by organizing shipments, marketing, or delivering the product to the end user. Tier manufacturers eliminate middlemen for OEMs, and they have a very good reputation with OEMs because they have to prove that they are a company that can produce reliable parts on time and strictly adhere to safety and standard procedures.
What is Tier2
Tier 2 companies are generally smaller in scale and less technologically capable than Tier 1 companies, and because they can produce limited things, they are less important in the supply chain. Tier 1 companies are the first link in the entire supply chain, driving the entire production process forward. This also means that their production speed is very important. Tier1 must also strictly ensure safety and comply with relevant standards, and any problematic products cannot enter Tier1
In reality, the supply chain of OEM manufacturers may be longer, but tier1 and tier2 can reveal their operation process in this way: Tier2 provides products for Tier1, and the OEM uses the products of Tier1 to produce final goods. A supply chain is only as strong as its weakest link, so maintaining healthy business practices is important at every layer.