Original Equipment Manufacturer (OEM)
Candlefocus EditorAn OEM’s process starts at the factory, where components are purchased in bulk from a number of sources. These components are then customized, tested, and packaged before being shipped to the VAR which then combines the different components into a finished product. The OEM is occasionally involved in the assembly process as well. For example, some OEMs may provide installation services and have the ability to add custom features to their products such as unique software or hardware features.
The market for OEMs has grown significantly over the past few years, with both traditional computer manufacturers and non-traditional companies such as Apple and Google entering the space. The ability to outsource the production of their components to an OEM has allowed these companies to focus on the design and marketing of their products, while reducing their costs by not having to build and maintain their own factories.
OEMs also offer advantages over aftermarket products or original design manufacturers (ODM). When purchasing an OEM component, the buyer is guaranteed to receive a product that is of the highest quality and reliability as OEMs are specifically engineered for their purpose. In contrast, aftermarket products may be of a lower quality level and may not be tailored to the customer's exact needs. The cost of OEM components may be higher than those of aftermarket products, but the quality assurance provides customers with peace of mind that they are purchasing a product they can rely on.
In conclusion, original equipment manufactures offer a variety of services including component manufacturing, assembly, and installation services to a range of companies. They provide products of high quality and reliability that are tailored to their specific customer’s needs. OEMs provide numerous advantages to customers compared to aftermarket products and original design manufactures, as well as helping large companies to keep their costs low.