Understanding the Automotive Supply Chain: From OEM to Tier 2 and Beyond

With more than 28 years of experience in the automotive sector, OSFplastic stands out as one of the leading TIER 2 companies specializing in plastic appearance parts components for bumpers and dashboard, truck switchboard mounts, and vehicle interior technical parts.

Our long history has established us as a leader in the production of high quality parts, demonstrating our commitment to excellence and innovation.

What does the term OEM and TIER 2 mean?

The automotive industry is a complex web of companies and suppliers that work together to produce vehicles and their components.

To understand how these companies relate to each other, it is common to use terms such as OEM, Tier 1, Tier 2, Tier 3 and Tier 4. These terms describe the position of companies within the supply chain and the level of involvement in the production of a final product.

OEM (Original Equipment Manufacturer)

OEMs are companies that produce components or end products used in new vehicles.

They are responsible for the design, development and manufacture of parts to defined specifications. An OEM can be an automobile manufacturer such as Ford, Toyota, or Volkswagen, but it can also be a company that manufactures components that are integrated into another company's end products.

OEMs are the backbone of the automotive industry and often have long-standing relationships with their suppliers.

Tier 1 (First Tier)

Tier 1 companies supply components directly to OEMs.

These companies produce critical, high-quality parts, such as engine systems, chassis, transmissions, and advanced electronics.

They work closely with OEMs, participating in the development and production of final products.

Tier 1 suppliers often have research and development capabilities and are constantly innovating to meet exacting industry standards.

Tier 2 (Second Level)

Tier 2 companies, i.e. OSF supply components and sub-assemblies to Tier 1 companies.

Although we do not work directly with OEMs, we are vital to the supply chain, producing less complex but critical parts and systems.

OSFplastic, a TIER 2 company

Tier 2 companies like OSFplastic can manufacture electrical systems, brakes, vehicle interiors, and other essential parts.

Tier 2 suppliers tend to specialize in specific areas, allowing Tier 1 companies to focus on the integration and assembly of components.

In our case, at OSF we manufacture appearance parts such as the various bumper covers, grilles, as well as dashboard parts for trucks.

We also manufacture technical parts such as: control unit brackets, sensor brackets, cable brackets.