Tier 2 Program

We partner with our prime suppliers to extend Tier II opportunities as part of our commitment to building an inclusive, high-performing supply chain. Through these partnerships, we help create meaningful pathways for small and diverse businesses to participate in our work, gain visibility, and grow alongside our enterprise. Collaborating with our prime suppliers strengthens competition, drives innovation, and supports long-term economic impact in the communities where we operate. 

 

• Tier 1 (Prime) suppliers are the companies that directly sell supplies and resources to the end user. Here’s an example:            
  • Cargill needs a particular type of software. In order to fill this need, our procurement department sources this software from a business. The business directly sells the software to Cargill. This makes the supplier a Tier 1 (Prime) supplier.  
• A Tier 2 supplier is the company that provides the Tier 1 (Prime) supplier with the product or service that will be provided to end user.   Here’s an example:  
  • The Tier 1 supplier may or may not be a diverse owned business, but they get the products they sell from suppliers that are diverse owned businesses. These suppliers are known as Tier 2 suppliers.   
  • Cargill partners with a Tier 1 (Prime) MSP/VMS for management services such as temp labor. The service provider fills temp positions using another company. This 3rd-party is considered a Tier 2 supplier.  The 3rd-party spend is counted by Tier 1 (Prime) in its reports to Cargill.  
  • The Tier 2 does not sell directly to the Cargill, but they supply the Primes that do. 

Prime suppliers interested in participating in our Tier II reporting program or learning more about our expectations are encouraged to contact our Supplier Diversity team. We welcome conversations about how we can work together to deliver measurable results and shared success.