Definition of Terms

Tier 1 Supplier - is a supplier that invoices Cummins for goods and services rendered directly by that supplier. For more information about Cummins Supplier requirements, visit our supplier portal:

Tier 2 Supplier - (referencing the CUSTOMER, Cummins perspective) Is a supplier that invoices the Tier 1 supplier for goods and services rendered.

Direct Spend Tier 2 Purchases are defined as Second Tier supplier products and services, which CAN be identified in support of Cummins requirements.

Indirect Tier 2 Purchases are defined as products and services, which CANNOT be identified in support of specific Cummins requirements (for example, office supplies, janitorial services).

Indirect Spend Reporting Method - Use this reporting method when you CANNOT trace diverse expenditures to a specific Cummins requirement. The following formula may be applied to prorate your firm's MBE and/or WBE purchases.