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OEM - Original Equipment Manufacturer

Summary

An Original Equipment Manufacturer in its simplest form is any company that makes parts that another company can re-brand as their own or that forms part of another companies products.

Qualifying OEM

OEMs are manufacturing companies that make parts such as hard disk drives or car parts or anything that another company can buy and stick their brand name on and sell as their own.

The advantage of using OEM parts is that companies do not need to set up manufacturing plants and factories in order to make the parts they need because they can buy them ready-made from OEM companies that are experts in making the components or parts required.

Last word

To qualify as an Original Equipment Manufacturer a company must be the producer or manufacturer of the parts that are sold to other companies wishing to use the parts in the manufacture and construction of their own products.

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Article date: 27th February 2011

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