Tiered Supply Chain Structure
Tiered Supply Chain Structure is a supply chain organization mechanism in biology and business.
Tiered supply chain structure mirrors hierarchical biological organization where modules contain sub-modules at multiple scales, with defined interfaces at each level enabling coordination without requiring direct interaction between all elements.
Business Application of Tiered Supply Chain Structure
Tiered supply chain modularity organizes suppliers hierarchically: Tier 1 suppliers provide complete modules directly to assembly, often with engineering responsibility; Tier 2 suppliers provide components to Tier 1. This reduces coordination burden and enables specialized expertise, but the 2011 Tōhoku earthquake revealed that theoretical substitutability doesn't automatically translate to practical interchangeability.