A Tier 1 Supplier is a company that directly supplies products or components to a manufacturer, often referred to as an Original Equipment Manufacturer (OEM). These suppliers play a crucial role in the supply chain by providing high-quality materials or parts that meet the specific requirements of the OEM.
Typically, Tier 1 Suppliers have a close relationship with the OEM, allowing for better communication and collaboration. They may also manage their own network of Tier 2 Suppliers, who provide additional components or services needed for production. This hierarchical structure helps streamline manufacturing processes and improve efficiency.