Secondary supplier

The position held by the competitor who is the second largest supplier of a product to a customer. Many, but not all, customers have a Secondary Supplier.
(See also Primary Supplier, Tertiary Supplier)

Example 1:

The late 1980s witnessed a weakening in traditional customer/supplier relationships in the cement industry as managements changed and customers tried to protect themselves from disruptions in supply. Customers were concerned that suppliers might not produce due to labor disputes at the plant and that a rush order might not be filled.
(Year 1988-SIC 3241)

Explanation: The uncertainty of guaranteed supply from the Primary Supplier created the need among many customers in the cement industry for a Secondary Supplier.

Example 2:

Although the division does not compare in size to larger motor manufacturers, such as Emerson or GE, AO Smith is well positioned in the market as a profitable, reliable, and preferred Secondary Supplier to the bigger names in the industry.
(Year 1997-SIC 3621)

Explanation: AO Smith follows Primary Suppliers, Emerson or GE, in Secondary relationships with the Very Large and Large motor manufacturers in the industry. They provide back-up supply.

Example 3:

AMD is the second source for Intel's microprocessors. As such, it is the last to get orders and the first to lose them.
(Year 1986-SIC 3674)

Explanation: AMD licensed Intel's technology to produce Intel compatible chips. It became a Secondary Supplier of those chips to its customers, providing the back-up supply.

Example 4:

Due to its lack of brand name recognition among consumers, Cooper continues to be a Secondary Supplier to its customers. Cooper enables the customer to fill out its product line and offer a product of good quality at a slightly reduced price.
(Year 1991-SIC 3011)

Explanation: Cooper fills the Secondary Role with many of these retail customers. In that role, it completes the product line offered by the Primary Supplier and provides the customer with Price Information or Price Leverage against that Primary Supplier.

Example 5:

Currently, General Instrument Co. controls about 60% of the analog cable box market, while No.2, Scientific Atlanta, controls about 20%.
(Year 1996-SIC 3825)

Explanation: Scientific Atlanta is the Secondary Supplier in many relationships to the industry's major Primary Supplier, General Instrument.