A tier 2 vendor is a smaller and less well-known provider as compared to a tier 1 vendor, and is often also limited in its geographic coverage as well. As a consequence, a tier 2 vendor is generally regarded as a secondary source rather than the preferred source. Pricing and other terms may not be as favorable as with tier 1 vendors, but you may establish tier 2 relationships as "backup" vendors for situations when the preferred vendor may be unable to meet your needs in an acceptable time frame.
Contributor(s): Stephen J. Bigelow
This was last updated in August 2007