Automotive tier one suppliers are equipment manufacturers who sell products directly to a company without using the services of middlemen. This helps to build a good business relationship between the manufacturers and their customers.
In the automotive industry, suppliers are identified by their roles, for example, tier one, tier two, tier three and so on. Tier one suppliers sell directly to the automotive manufacturing firms. Tier two supply to tier one, while tier three suppliers supply to tier two. All the supplies must meet the ISO-9001 standards. Supplies must be delivered on time, must have no defects and the supplier should ensure continuous improvement of all the processes.