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In the automotive industry, the supply chain is typically structured into different tiers, with Tier 1 and Tier 2 being the most important levels. Tier 1 suppliers work directly with OEMs and are responsible for delivering complete systems or modules, while Tier 2 suppliers provide components or sub-parts to Tier 1 companies. This structure allows the automotive supply chain to operate efficiently while assigning different responsibilities to each level.
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