Tier 1 Supplier
ProcurementDefinition
A supplier that sells directly to the purchasing organization (also known as a direct supplier or prime supplier).
More Information
In corporate procurement, Tier 1 suppliers have direct contracts and relationships with the buyer. Many corporations track and report diverse spend at the Tier 1 level. Becoming a Tier 1 supplier typically requires meeting vendor qualification requirements, capacity to deliver at scale, and ability to invoice directly.
Example
A WBE packaging supplier becomes a Tier 1 supplier with a Fortune 500 consumer products company.