8.1.1: Tiered Suppliers
Most manufactured goods rely on many different parts from various suppliers. Suppliers are tiered or vertically stratified based on their specialization and expertise. The automotive industry, for example, has a three-tier supply chain consisting of entire-systems manufacturers on top as first tier, components builders in the second tier, and individual parts suppliers in the third tier.
Read Sections 1 and 2 of this article. The study investigates how automotive original equipment manufacturers (OEMs) design supply networks. In Table 2, notice how personal ties and contractual, transactional, and professional network ties play a role.