System supplier

The establishment of a proper, efficient and economically sensible supplier structure is of crucial importance for a company. In this context, a so-called system supplier assumes the provision of complex assemblies or parts as a first-tier supplier (tier 1 supplier). A classic example of the work of system suppliers is the automotive industry, where complete gearboxes or parts of the interior come from one and the same provider or supplier. The same applies in this context to the engine, i.e. central systems or modules of a complex end product.

Requirements for a system supplier

A system supplier stands for the production of assemblies of the highest order, which are primarily based on multi-part functional groups. Unlike their counterparts, the so-called module suppliers, a certain expectation is set and high demands are placed on the quality of such assemblies:

  • Clear demarcation in the mode of operation
  • High degree of complexity
  • High degree of integration
  • High degree of innovation

Important: The system supplier is responsible for the planning, development and procurement of product groups, as well as their production and delivery - including quality control. A company that relies on such system suppliers is therefore making use of external expertise and know-how and at the same time placing itself in an existential dependency on this company.

A so-called original equipment manufacturer (OEM) secures cost advantages in particular by commissioning a system manufacturer. The high level of specialization and the complete outsourcing of entire assemblies or product components, depending on the industry, can create synergies. The system supplier's extremely high level of in-house development work sets it apart from the module or parts supplier.


Logistik Lexikon Systemlieferant

Image: AlessandroBiascioli / Shutterstock

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