Tier 2 Supplier
ProcurementDefinition
A supplier that provides goods or services to a Tier 1 supplier rather than directly to the end buyer.
More Information
Tier 2 diverse spend represents purchases by prime/Tier 1 suppliers from certified diverse businesses. Many corporations now track and report Tier 2 diverse spend and encourage their Tier 1 suppliers to use diverse subcontractors. Tier 2 relationships can be a pathway to becoming a Tier 1 supplier.
Example
An MBE printing company supplies marketing materials to an advertising agency (Tier 1) that serves a major corporation.