When it comes to the aerospace sector, it has expanded at a very rapid pace over the years. Aerospace industry includes both civil and military aviation, as well as space research programs. The fact that countries from all over the world have increased their defence budget, has caused a hike in the military sector of the aerospace industry. Besides, there has also been a remarkable progress, in the domain of civil sector. New and up dated mechanism are being introduced, research and development project are carried out at an industrial scale, investments of billions of dollars are coming in. It needs to be mentioned in this regard, that the aerospace industry is one of the most vastly expanding sectors in the world, and it generates staggering amount of revenue.
Considering its volume and magnitude, it is quite understandable, that it involves a huge volume of human resources, who are involved in carrying out different types of activities. There are suppliers, engineers, maintenance staffs, management workers and so many of them. However, the group which is absolutely essential to ensure that this industry operated smoothly and efficiently are the suppliers. They are the ones who are responsible for supplying different types of raw materials and other essential elements which are required to manufacture the finished product.
What are Tier Suppliers?
A Tier supplier in the field of aerospace industry is the one who supplied different types of essential materials and commodities which are required to manufacture finished products. There are different types of segregations as far as tier suppliers are concerned. There are Tier 1 suppliers, Tier 2 Suppliers and Tier 3 Suppliers.
In the following section of this article, you will be offered a brief insight into some of the features of these different tier suppliers. What they are, what they do and how important that are for the success of the aerospace industry.
Tier 1 vs Tier 2 vs Tier 3
Like any other industries, the aero space sector also runs on proper and smooth supply chain. There are different tiers which are involved in the process of supply chain of the aerospace industry. These tier companies have some specific roles to play and have been instrumental when it comes to the overall success of the aerospace industry. Here is a brief overview on some them
- Tier 1 Company: They are traditionally system manufacturer or system assembly companies. They would generally receive the part or subsystems from the Tier 2 and will send the final system to the OEM. As far as supply chain of aerospace sector is concerned, a tier 1 company is considered to be as one of the most important members. They are responsible for supplying different components directly to the OEM or the original equipment manufacturer. One of the main characteristic of the supply chain management is creation of a tiered supply chain. One of its major objectives is linking different important functions of a business along with its processes. A tier 1 company, basically forms the backbone of a supply chain mechanism and is hugely responsible in making sure that the entire operation is being carried out in an effective and efficient manner.
- Tier 2 Company: They are responsible of parts manufacture or subsystem assembly. They receive components from Tier 3 and send their final product to the Tier1. When it comes to the tier 2 companies of aerospace industry, they are no less important as opposed to the tier 1 ones. However, their scope of operation is restricted and limited in what they are capable of producing. Usually, the tier 2 companies are smaller in terms of size and magnitude, and are less technically equipped compared to the tier 1 companies. If they happen to be the supply chain’s first link, in that case, they are the ones who starts the ball to roll from the final product of the OEM. This essentially means, that these companies are absolutely vital when it comes to speeding up the rate of production. There is another important aspect pertaining to the tier 2 companies which needs to be mentioned; they need to be very rigorous and strict in terms of standards and safety compliance. The reason being, if something doesn’t go right, then it cannot be bypassed to tier 1.
- Tier 3 Company: They are typically component manufacturers that will ship their products directly to Tier2 companies in order to manufacture the requested parts or subsystems. Tier 3 companies are usually pretty big players compared to Tier 2 companies that could be family owed machine shops.
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