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Essay / Research Paper Abstract
A 10 page paper that discuses the tier supplier system in the automotive industry. Tier 1, Tier 2, Tier 3 suppliers – what does it all mean? This paper provides a comprehensive explanation of what these tiers mean and how they are used, as well as how a company might move up to a higher level tier. Specific examples are provided. Bibliography lists 4 sources.
Page Count:
10 pages (~225 words per page)
File: MM12_PGautspl.rtf
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Unformatted sample text from the term paper:
where communication interactions occur more in a vertical mode than in a horizontal mode. The procurer is the automotive manufacturing company. The company purchases the supplies and materials it needs
to build vehicles. In many cases, the materials, components and/or equipment the automotive manufacturer needs are components that are already built, such as steering wheels or tires or CD players.
To make the example understandable and to make it easier to follow, we can apply brands to the components. Lets say, Ford is building a Taurus. It is going
to use Pioneer audio equipment. Ford does not build its own stereo equipment to install in their cars, they buy it. Ford will also install Goodyear tires on the Taurus
model. In turn, Pioneer must purchase the component parts to build the CD player and Goodyear will purchase the raw materials to make the tires. Each of these other
companies, i.e., suppliers, represents a tier in the automotive supply chain. Pioneer or Goodyear would be identified as a first-tier supplier because they provide the fully built components to
Ford. In turn, the companies who supply materials or entire components to Pioneer and Goodyear are second tier suppliers. The companies who sell components or materials or both to second
tier suppliers are identified as third tier suppliers. Should any of these suppliers purchase from other companies, these other companies would be fourth tier suppliers. To recap, the automotive manufacturing
company purchases supplies, components, whole fully built products that will be used directly in the vehicles. These suppliers are Tier 1 suppliers. Tier 1 suppliers need materials and equipment to
build their products and the companies from whom they purchase what they need are Tier 2 suppliers. Any companies that provide components or materials to the Tier 2 suppliers are
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