A chemical manufacturer supplies plastic to a container manufacturer that is then used for packaging detergent made by a detergent manufacturer. What tier supplier is the chemical manufacturer to the detergent manufacturer?

A tier one supplier directly supplies goods or services to the manufacturer of the final product—in this case, the detergent manufacturer. Since the chemical manufacturer supplies the container manufacturer, it does not qualify as a tier one supplier; that role is reserved for those who supply directly to the end manufacturer.

A tier three supplier is further down the supply chain, providing materials or services to a tier two supplier. The chemical manufacturer is not a tier three supplier because it supplies directly to the tier one supplier (the container manufacturer), thus making it a tier two supplier instead.

A tier four supplier is even further removed, supplying to a tier three supplier. Given the direct relationship between the chemical manufacturer and the container manufacturer, labeling the chemical manufacturer as a tier four supplier is inaccurate, as it does not reflect its immediate role in the supply chain.