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What Do OEM (Original Equipment Manufacturers) Do?

oem original equipment manufacturer

You’ve just come up with a genius blueprint and need to implement it but don’t have the tools or the know-how to make your design come to life. What should you do? Where do you go from there? OEM Original equipment manufacturers are some of the most important organizations in the world.

The parts they make and the designs that they produce to keep the world as we know it spinning every day. If you were wanting to learn more about OEMs and what they do, you’ve come to the right place.

What Is an OEM Original Equipment Manufacturer?

An OEM (or Original Equipment Manufacturer) makes OEM parts or components of a part for their buyers. These buyers can be separate companies that sell those parts to consumers or other companies under their own brand.

As an example, a manufacturer of factory equipment might assemble the equipment. From there, a lot of the parts were manufactured by an original equipment manufacturer.

What Do OEMs Do?

The primary function of original equipment manufacturers is to produce new parts for a product, but they do much more on top of that. OEM sell parts to consumers or businesses seeking replacement parts for products they have purchased.

These parts can be sold through the market or vendors, or to business through business-to-business sales. Some companies will even set up partnerships with OEMs in which the OEM will manufacture the part and send it to the company for them to re-brand and use.

Who Does Business With OEMs?

A major source of business for OEMs is the work that they do with value-added resellers. Value-added resellers are companies that purchase OEM parts and upgrade or augment them to add more value before selling them.

The value that VARs add to these products is usually in the form of software upgrades or special features. VARs also take these products and bundle them together to make new products to sell under their own brand.

In most cases, original equipment manufacturers work in a business-to-business capacity. The last few years have seen increasing amounts of OEMs that are beginning to sell replacement parts directly to consumers.

There are two main industries in which consumers are purchasing OEM parts. They are the technology industry (particularly computers) and the automotive industry.

Both industries have a large number of people who work on and build their own devices or machinery. It is less expensive for them to source the original part and complete the work themselves. It also keeps the warranty for their device or machinery in place.

Benefits of Original Equipment Manufacturers

There is a multitude of benefits that come with getting new parts from the original equipment manufacturer:

  • Top Quality: There are a lot of ways to get replacement parts, but nothing will beat the original equipment manufacturer part. It is identical to the original part that it is replacing. Though it may cost more than other options the quality is better.
  • Durability: OEM parts are more durable. They come with the added benefit of knowing the materials used to make them, and they tend to be better made.
  • Lifespan: OEM parts last much longer before requiring a replacement part. The processes used to make them and the materials that make up the parts are both top-notch.

OEM parts are made specifically for the product that is being used and will work perfectly as a replacement. They are made to precise specifications and most times they come with lifetime warranties. If the part does go bad and requires a replacement that replacement part can be obtained for free.

These benefits also spill over into the bottom line of your business. Working directly with original equipment manufacturers can save you money and time.

By working with an OEM, a company can save money in investment into the manufacturing of the parts they need. This also shortens the turnaround time that it takes for producing those parts.

Other OEM Services

There are a lot of other services that original equipment manufacturers provide that can be a valuable asset to you and your company.

Some OEMs are able to customize procedures and create specialized in-house processes for manufacturing OEM parts for you and your business.

Depending on what you need, original equipment manufacturers can produce new innovations that you draw up. OEMs are able to create new equipment and parts for whatever your needs may be.

OEMs can also be a great resource for outsourcing important tasks or parts of the manufacturing process. This can be especially important if you wish to keep your design safe and secure.

Best of all, original equipment manufacturers are able to implement these specialized processes at their own manufacturing plant. This can give them an opportunity to apply their expertise and make manufacturing efficient.

Another service that OEMs can provide is helping you to secure intellectual property patents. This is a great idea if you develop new ideas and innovations. Doing this protects your ideas from being stolen and implemented by other manufacturers.

OEMs work with companies that will look after your intellectual property. It doesn’t matter if it is copyrights, trademarks, or patents.

How to Start

Now you know all about OEM original equipment manufacturers and how they can benefit you. Whether you are a business using a certain product, a VAR looking to upgrade parts, or a consumer trying to source a replacement part, OEMs are here to help.

Get started today with all of your original equipment manufacturing needs.