The OEM is now an integral part of the production chain for many products. From IT to automotive, many sectors benefit from it.
Materials, gadgets and individual parts go through a long, unnoticed production process before they reach us. Therefore, not all components may come from the manufacturer itself, there are those that come from an OEM. But what is it really about? We talk about it.
OEM: original equipment manufacturer
A OEM or OEM (Original Equipment Manufacturer) can be defined by a company that manufactures products or parts for another company. She then sells the latter under her own brand to her own customers. In other cases, too, a completely new system is built with these assets.
In general, OEM affects devices in the fields Automotive and IT. For example, the parts that make up a computer Lenovo not all necessarily made by the brand. On the contrary, it is quite possible that certain parts (processor or memory module) are products of an OEM.
How is an OEM product built, paired and resold?
In fact, before launching a solution, companies first look for the best way to meet their customers’ needs. As such, they are able to evaluate multiple options. This contains the purchase, manufacture, construction or partnership. Therefore, by partnering with an OEM, a company has the opportunity to minimize manufacturing investments. It not only lowers the material and production costs, but also has know-how in product design. And all this on top of an obviously shorter life cycle. This allows the organization to focus on its core competency while using the best components.
In addition, OEMs do not have to add anything more to the product. On the contrary, they can easily mark their logo there. In addition, this does not deter other companies that do not sell anything under their brand. Likewise, there are also those who do both.
OEM and ODM: what are the differences?
ODM is the abbreviation for ” Original design maker “. ODMs also manufacture devices, but rely on another company’s product specifications or designs. The device henceforth bears the brand and logo of the device manufacturer that manufactures it. The main benefit here is the low production costs associated with outsourcing are.
Less expensive products
In fact, an OEM’s products are cheaper. The main reason is economies of scale. In fact, the company joins forces with other organizations to mass-produce goods. This significantly reduces the price and production time.
OEM vs Aftermarket
As the name suggests, an OEM producesoriginal equipment. The aftermarket, on the other hand, designs similar products and equipment that can be interchangeable with those of the OEM (aftermarket products). This means that these products are not original. Manufacturers are local or foreign companies without authorization from the device manufacturers. And of course there is no guarantee that such products will work as well as the OEM products.
Original Equipment Manufacturers vs. Value Added Resellers
Value Added Resellers (VARs) market the products of an OEM. Although before taking any action, they incorporate certain Additional functions. The two share a mutually beneficial relationship. VARs are of great help when it comes to selling products. For VARs, they sell the OEM products with more must-have features.
For example, Company A manufactures memory cards with multiple versions. These products are then sold to various computer manufacturers or retailers. These are then referred to as “value-added resellers”. You will sell the goods directly to the target audience.
Other OEM features
Sale of licenses
Original equipment manufacturers typically sell product licenses. This is to use their parts for the VARs that market them.
OEM in hardware
The OEM is generally a company that manufactures a “product” for end users. In particular, this can be a PC or a printer. Apple, HP, Dell, Canon or Brother are specific examples of OEMs. OEM hardware, on the other hand, is the term used to refer to the processors, fans, motherboards, hard drives, memory chips, and many other parts that make up the aforementioned “products”. OEM hardware can be easily purchased online, from a retail product manufacturer, or through an OEM.
However, OEM hardware is almost always incomplete. It is rarely accompanied by customer support, its warranty periods are also very short. Sometimes these materials are missing some of the many accessories like cables or adapters needed for their operation. In fact, an OEM hardware is mainly developed for OEMs, as the name suggests. So, to use it for a complete system, you need to add certain elements like technical support or guarantees.
OEM in the software
Manufacturers such as HP, Dell or Samsung often purchase Windows as OEM software from Microsoft. Then they package it with the PC they make. This is the form of OEM in software. On the other hand, manufacturers of printers, scanners or digital cameras also buy OEM software. Typically, these devices come with an accompanying app. This is OEM software. So, like hardware, OEM software doesn’t come with much other than the base software and its license key.
Why buy OE products?
Buying products from OEMs is very beneficial. Here are some of those strengths.
A good quality
Although there are cheaper versions, an OEM product reflects its quality. In any case, it is actually a product developed by the original manufacturer.
Apart from their good quality, OEM products are also durable. For example, to buy a spare tyre, it is of course always better to opt for an original tire than a spare tyre. This way you can be absolutely sure of the materials used in the manufacture. The same applies to all other products.
Compared to aftermarket parts, the lifespan of OEM parts is often longer.