Tier 3 Manufacturing Capability Soars
Tier 3 manufacturers are playing an increasingly vital role in the manufacturing arena. Over the last 2 decades, thanks to huge strides in technologies and accompanying technological expertise, tier 3 companies like Laser 1have upped their game substantially, becoming increasingly adept at manufacturing high quality, highly customized components to ship up the supply chain.
Definitions: What Are Tier 1, Tier 2, Tier 3?
Let’s step back and clarify the difference between the tiers in the supply chain. The terms express the commercial distance in the relationship between supplier and manufacturer.
OEM is an original equipment manufacturer, making products for the consumer marketplace. Examples include Ford, Toyota and Apple. They outsource entire components to tier One companies, which have large manufacturing and assembly capabilities.
tier One companies are direct suppliers to OEMs. Intel is an example: we’ve all seen those “Intel Inside” stickers on our laptops. They outsource manufacturing of some components to tier 2 companies. tier 2 companies are suppliers to tier one suppliers, and tier 3 companies supply tier 2. And so on….
A company can supply at multiple levels: it might be a tier one supplier for one product and a tier 2 supplier for a different product line in the same company. Likewise, it could be a tier one supplier to one company and a tier 2 supplier to different company.
Decisions to outsource are driven largely by economic considerations: Each company evaluates whether it can internally manufacture components profitably, or if it’s economically preferable to outsource the work.
Tier 3 Companies Expand Capabilities
As outsourcing increasingly became the norm, tier 2 and tier 3 firms have seized the opportunity for growth, expanding one-dimensional services to multi-departmental operations.
Laser 1 is no exception. In recognition of unutilized growth opportunities, we’ve been sinking serious investments into our company over the last five years, including over $2 million in cutting-edge technologies enabling us to vastly expand our services. These improved technologies mean higher quality, shorter production cycles, and savings to our customers.
We’ve also defined critical sequences of operations to meet production line requirements. By executing most elements in-house, we’re able to cut costs and ensure quality.
Here are some examples of our operational flow capabilities:
Flat sheet laser cutting → Forming → Welding → Finishes (painting, coating)
Flat sheet laser cutting
↕ } → Welding → Finishes (painting, coating)
Tube laser cutting
Flat sheet laser cutting → machining → welding
Stamping → 5th Axis Laser
Production flows like these create internal value, resulting in higher productivity, lower production costs, and higher ROI. End result: customers receive higher quality products for a very competitive price. An added advantage is significant savings on transportation costs which would be incurred if additional facilities were needed to complete the process.
Laser 1 Seeks Tier 1 and Tier 2 Manufacturing Partners
Laser 1 is actively looking for a manufacturing partner from tier one or tier 2. We’re ready crank up high-volume production lines and accommodate their component requirements.
Competitive Prices, Quality Products
How competitive we are? We are packing a second shipment of thousands of parts to Belgium. Even with overseas shipping costs, our customer is getting a better deal from Laser 1 than they could locally.
Learn more about our capabilities in this document, and give us a call at 651-451-3444. You’ll be directly connected with one of our knowledgeable employees who can make sure you get answers to every question.