Original Equipment Manufacturer

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Original Equipment Manufacturer

1. A company that makes a product that its customers then use in creating their own products. For example, the manufacturer of an automobile part may sell the part to a car maker, which then builds its own products. In this case, the original equipment manufacturer is the automobile part maker. OEMs often work closely with their customers to integrate their products; for example, an OEM may design a certain product exclusively for one customer. OEMs are especially common in computer and other technology sectors.

2. A company that buys a product from another company and uses it to make its own product. This definition contradicts the above one, and is used predominantly informally. An OEM in this sense is more properly called a value-added reseller.
References in periodicals archive ?
The OEM data is an important added value for Vision users.
The order went from OEM to components supplier to rubber fabricator to the materials supplier.
It would be difficult for us to manipulate our inventories and processing schedules in a JIT system if we didn't have that consistency from the OEM.
We are leveraging the OEM infrastructure that MIPS created some five years ago and have combined it with Silicon Graphics' OEM efforts.
Supports OEMs through branding, validation, signing, and certification
Toyota, long considered the quintessential keiretsu OEM, still favors Toyota Group suppliers, but the company is reforming the structure of its supplier organization and encouraging mergers and acquisitions among its keiretsu suppliers in line with Toyota's own global outlook and vision for future technology .
In choosing which form factor is right for a given customer, an OEM must consider the available space, how quickly the I/O technology is being adopted, and how quickly that technology is changing.
The OEM just counts the money left in this leaking pocket at the end of the year, looks at the "savings" made by purchasing and claims, "Thank God, if it hadn't been for purchasing we would have lost a lot more money this year.
We are pleased to announce a key next generation design win that demonstrates our continued leadership in the embedded OEM market," commented Peter Leparulo, chief executive officer of Novatel Wireless.
At the 2004 Management Briefing Seminar in Traverse City, CAR's David Cole noted that 45% of the OEM middle and upper management retired between 1995 and 2003.
Electronics OEM survey respondents identified 'reducing the amount of time it takes to introduce new products into the market' as one of their key business objectives.
So if OEMs are attempting to reduce platforms and consumers want more choice, how are both apparently conflictive agendas integrated?