Mar 11/22

What Does It Mean To Be a Tier 1 Supplier in the Automotive Industry?

Tier 1 supplier


In spite of global challenges, the global automotive industry is still expanding. In fact, the United States’ new car market is expected to sell 15.2 million units in 2022.

These increasing sales figures are occurring despite supply shortages and inflationary pressures. To keep the industry growing, auto manufacturers are relying on the best automotive suppliers more than ever.

Read on to learn about Tier 1 suppliers in the auto industry. Explore how Mayco international qualifies for a spot on Tier 1 automotive supplier lists.

What Is A Tier 1 Supplier?

Top-tier suppliers provide parts or services directly to an Original Equipment Manufacturer (OEM). It is not easy to reach this status. Major car manufacturers such as Chrysler and BMW rely on top-tier suppliers for their parts.

What many people do not realize is that OEMs do not produce their own parts. Instead, they rely on suppliers for all parts and components. The OEM’s job is to assemble all the parts and components provided by its Tier 1 suppliers into an end article.

Take Mayco International as a perfect example. They provide interior and exterior systems to OEMs for integration into the completed production unit. They also provide automotive plastic and tooling as part of their top-tier supplier status.

Without quality suppliers like Mayco, automotive manufacturing companies cannot complete production. They have delayed meeting production schedules and delivering finished products late to the dealerships.

Diminished sales are the end result of a broken supply chain. Car dealerships cannot keep up with consumer demand if suppliers are not delivering quality parts on time.

Where Do Other Suppliers Fall In The Supply Chain?

There are also Tier 2 and 3 suppliers. The supply chain is essentially a hierarchy with the OEM at the top.

At the lowest level, Tier 3 suppliers provide raw materials to the second tier. Tier 2 takes these raw materials and integrates them into their product or component.

This subcomponent then delivers to top-tier suppliers. They are responsible for integrating multiple sub-components into a higher-level assembly ready for production.

What Are Other Important Considerations?

OEMs are looking for quality parts that are produced environmentally friendly. For example, there are various quality certifications that set top-tier suppliers apart from the rest. Mayco holds QS-9000 and ISO-14001 certifications to cement its quality credentials.

OEMs and suppliers alike are interested in environmental protection. The best suppliers have implemented production processes that conserve water and use recycled parts. Mayco recycles scrap material and also uses recycled material in its plastic production process.

Why Are Top-Tier Suppliers Critical?

It is clear now that OEMs rely on elite suppliers to maximize sales and meet other organizational goals. OEMs cannot complete production units without quality parts from top-tier suppliers.

These delays hurt the bottom line and leave lasting damage to an OEM’s brand. If you are looking to order parts from a Tier 1 supplier, contact us today to speak with a sales associate.