Tertiary supplier
The position held by the competitor who is the third largest supplier of a product to a particular customer. Some, but not all, customers have a Tertiary Supplier.
(See also
Primary Supplier
, Secondary Supplier)
Example 1:
In response to Procter and Gamble's "everyday low pricing" for retailers, some chains with thousands of stores, such as Rite-Aid drugstores, A&P and Safeway, pruned their variety of P&G sizes or eliminated marginal brands, such as Prell and Gleem. Wholesaler Certified Grocers has dropped about 1/6 of the 300 P&G varieties it stocked.
(Year 1992-SIC 2840)
Explanation: Products such as Prell and Gleem were Tertiary products for these large retailers. More popular brand names and the stores' own private label products formed these retailers' Primary and Secondary Roles.
Example 2:
Retail customers maintain tire suppliers in the Tertiary Position for off-sized tires (Yeari.e. 14 in. or 19 in.) or to ensure availability of specialty Price Leader or Performance Leader products. Customer use competitors in these Tertiary Positions for SKU fill-ins.
(Year 1994-SIC 3011)
Explanation: Tire suppliers offering these special products are usually Tertiary Suppliers, behind the Primary and Secondary Suppliers to the customer.
Example 3:
The average number of farm equipment suppliers has been decreasing over time. In the early 1980s, only Deere offered a full product line. All other dealers had multiple brands to cover several product groups, such as combines or balers. The majority of dealers had two major line suppliers and several suppliers for special products. By the late 1980s, after several national mergers and acquisitions, the three major competitors, Deere, JI Case, and Ford-New Holland, each offered a full product line. By then, dealers had one major line supplier and continued to have several "short-line" suppliers for special, niche product categories.
(Year 1982-SIC 3523)
Explanation: In the early 1980s, the Tertiary Suppliers to the majority of dealers, which had two major-line suppliers as Primary and Secondary suppliers, were the producers of special products for the industry. These special products had relatively low levels of demand. By the late 1980s, most dealers got the much of their product needs from one of the three majors. Still, the marginal suppliers of special products remained primarily Tertiary Suppliers.
Example 4:
Growing consumer preference for non-traditional beverages is forcing fountains to broaden selections to include juices. Juice consumption in the fountain segment has increased approximately 10% in the last 2 years.
(Year 1993-SIC 2037)
Explanation: Fountains are having to add juices manufacturers as Tertiary suppliers to their business. These manufacturers provide a special product to the fountains' menus and complement the Primary and Secondary suppliers, who are soda and other carbonated drink manufacturers.