Understanding Tiered Automotive Suppliers (And How PPO Can Help)
Original Equipment Manufacturer (OEM)
The name brands we know and love such as GM, Ford, Volkswagen, etc. Arkestro’s Predictive Procurement Orchestration (PPO) can sort through the countless tiers of automotive suppliers to find the best prices and suppliers to get the job done.
Tier 1 Suppliers
Supply products close to their finished state (brakes, car seats, windshields). Reliant on the timeliness of Tier 2 & 3 suppliers. PPO automates the purchasing process so the OEM procurement team can focus on the strategic relationships with automotive suppliers.
Tier 2 Suppliers
These suppliers provide small and complex parts such as computer-chips. Typically held to strict safety standards, so when issues arise, production comes to a halt. PPO provides supplier rankings for slow response time, ethical practices, and cost to offer up alternative suppliers to engage with.
Tier 3 Suppliers
Provide raw materials (metals, rubber, and plastics), sourced all over the world. PPO provides “always-on” insights to help flag supply chain impacts across the globe.
Learn how Arkestro can support your automotive sourcing strategy.