Dec 04/24
Secure Better Automotive Parts: Working With a Tier-One Supplier
The global automotive industry was valued at $3,564 billion in 2023 and is expected to almost double by 2033. In such a massive and diverse production market, it can be difficult to distinguish good manufacturers from mediocre ones. More precisely, it can be hard to find one that matches perfectly with your unique production needs and budget.
For this reason, there are many benefits to going with a tier-one auto manufacturer. This article explains what those are. Keep reading to determine if a tier-one supplier is right for your business.
What Is a Tier-One Auto Parts Supplier?
A tier-one supplier refers to a company that directly makes components for a manufacturer. Put another way, a tier-one (vs tier-two) supplier is the first level of production in an automotive supply chain.
In the auto industry, this could mean they produce entire modules like:
- Braking systems
- Engines
- Exhaust systems
- Fuel-injection systems
- Transmissions
However, tier-one suppliers could also make chassis and body components, such as doors, hoods, and wheels. They might produce interior parts, like panels or seats.
Some tier-one suppliers deal with electrical and electronic components, like infotainment systems, sensors, or lights. Other suppliers work with safety components, like airbags and anti-lock brakes.
What Are the Advantages of Working With a Tier-One Supplier?
There are many benefits of working with tier-one auto parts suppliers. Here are the main ones to consider.
Quality and Consistency
Look for an automotive tier-one supplier with a proven track record of providing high-quality components to major companies. They will have in place rigorous quality control measures to ensure their components (and the end products) meet industry standards and related certifications.
A related benefit is reliability and consistency in parts supplies. This means you can expect the same level of quality and function with every part, regardless of how small or large the order is.
Efficiency and Reliability
Tier-one suppliers often invest heavily in the most advanced technologies. This has a lot to do with quality, but turn-around time as well.
In many cases, tier-one suppliers become integrated into clients’ supply chains. This lets them anticipate client needs and more efficiently work around any challenges that arise. That means you can expect deliverables to be on time and when you need them.
Cost Savings
Due to efficiencies and economies of scale, you can expect tier-one suppliers to have competitive pricing. Also, removing intermediaries means they can offer you the lowest prices possible.
Long-Term Partnerships
One of the biggest advantages of a tier-one auto supplier is that it creates a solid partnership. These naturally foster trust in supply chain security, as well as collaboration moving forward.
The tier-one manufacturer will want to make needed adjustments or changes to production. They will work with you to further innovations and, in turn, improve components and systems.
Learn More About Tier-One Suppliers
There are many advantages to choosing a tier-one supplier for your auto parts needs. They can ensure quality, reliability, speed, and collaboration, to meet the highest production demands.
Mayco International is a tier-one automotive components supplier headquartered in Michigan but with affiliates throughout the world. We can meet the needs of customers through every phase of development, validation, tooling, and manufacturing. Reach out to us today to learn more.