What is a Tier 2 reportable spend program?

What is a Tier 2 reportable spend program?

What is Tier 2 Spend? The amount of spend, or procurement dollars, that an organization’s suppliers spend with their tier 1 suppliers. In regards to supplier diversity, Tier 2 diverse spend represents only those dollars spent with diverse suppliers.

What is the difference between a tier 1 and Tier 2 supplier?

Tier 1 & Tier 2 suppliers refer primarily to suppliers of the automotive industry. A Tier 1 supplier supplies products (usually parts) directly to an OEM (What is an OEM?). The difference, then, is that a Tier 2 supplier supplies products to a Tier 1 supplier (who then supplies the parts to an OEM).

How do you manage Tier 2 suppliers?

Here are six tips for getting the most out of your relationships with multiple tier 2 automotive suppliers:

1. Put Communication in Their Court (and Focus on Being Responsive)
2. Consolidate Sourcing Whenever Possible.
3. Competition Is Good, But Ultimatums are Bad.
4. Cultivate a Culture of Self-Improvement.
5. Collaborate on Cost-Downs.

What is second tier diversity information?

Tier 2 diversity reporting is a process where suppliers can share their diversity spend with their customers. The process allows organizations to recognize the effect of their spend with suppliers who engage with diverse suppliers, as well as their direct spend with diverse suppliers.

How do you find a Tier 2 supplier?

It’s simplest to identify Tier 2 suppliers as the sources where your Tier 1 suppliers get their materials. Again, using the apparel company example: That t-shirt factory receives its materials from a fabric mill. That mill is a Tier 2 supplier to the apparel company.

What is a Tier 2 supplier in automotive?

Tier 2 suppliers are often experts in their specific domain, but they also support a lot of non-automotive customers and so they don’t have the ability or desire to produce automotive-grade parts. In the automotive industry, the term Tier 3 refers to suppliers of raw, or close-to-raw, materials like metal or plastic.

What are Tier 2 companies in India?

The so called “Tier 2″ firms such as Hexaware, Luxoft, Larsen & Toubro Infotech, Mindtree, NIIT Technologies, Syntel and Virtusa are now at the table and are given opportunities to eat their big brothers’ lunch.

What is a second tier customer?

Tier two customers are customers who return to time and again to make both large and small purchases. Businesses sometimes name tier two customers the loyal customers, and businesses usually spend most of their time and assets trying to appeal to this group of customers.

What are tier 2 companies in India?

Why does PNC offer a Tier 2 Supplier Diversity program?

It also allows PNC to communicate our expectations to large, non-diverse businesses that they too should have supplier diversity as a focus of their sourcing operations. To learn more about our Tier 2 program and begin reporting diverse spend, follow the steps below:

What are the different types of Supplier Diversity spend?

Tier 1 and Tier 2 Supplier Diversity Spend When it comes to diversity spend, there are two main categories: tier 1 and tier 2. In order to have a successful supplier diversity program, a company needs to include both types of suppliers. Tier 1 Suppliers

What are Tier 1 and Tier 2 suppliers?

When it comes to diversity spend, there are two main categories: tier 1 and tier 2. In order to have a successful supplier diversity program, a company needs to include both types of suppliers. Tier 1 suppliers are the companies that directly sell supplies and resources to the company.

What is the Tier 2 diverse spend reporting program?

The Tier 2 diverse spend reporting program is an important piece of PNC’s Supplier Diversity Program that aims to increase opportunities for diverse and small businesses. It also allows PNC to communicate our expectations to large, non-diverse businesses that they too should have supplier diversity as a focus of their sourcing operations.