Forum Discussion
Terryallan
May 12, 2013Explorer II
travelnutz wrote:
Terryallen,
Sorry I didn't get back to your post earlier as it's Mothers Day and lots of happenings at church this morning.
"bimbert84" had posted what tier literally means and it's 3rd down the line of suppliers. Tier 3 is a component sub-supplier to tier 2 who is a component partial assembly sub-supplier to tier 1 who has the actual supplier contract to supply the finished assembly using components from sub-supplier tier levels, be it black box, or gray box item complete ready to install at the assembly line of the manufacturer on a JIT (Just In Time) basis.
Manufacturer's today usually have a max inventory of 4 hours line run time supply of vehicle components on their floor especially if the component is of any physical size. This does not include items such as fasteners and other small bulk type items. The tier 1 supplier is the controller of and the responsibility of their contractural agreement with the manufacturer and physically/controls the inventory themselves to supply JIT. Be it in house in transit to the assembly line and dictates to it's sub-suppliers as to the inventory they are authorized and required to have on hand and also materials purchasing releases for purchased items. That is why they are called TIERS. It's a pipeline of JIT as much as practical or possible to the final assembly line of finished items/assemblies for vehicle build. GM, Ford, Chrysler, etc do NOT inventory components in house and haven't for many years, like since the 1980's.
Tier 3 is way down the line of component supply levels!
Then I guess I was wrong. Or miss informed, Not the first time for either. Because our product goes directly to GM, Ford, who ever, fully assembled, and it bolted on with no added componets from any one else. It even arrives at the line full of oil, and already ran, and checked for noise. For Vetts it arrives married to the trans.
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