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 global Automotive OEM Coatings Market study comprises a thorough profiling of some of the major and emerging players.
Though this business model transition is just beginning-or not even started-for most OEMs, many people, like Jain, are convinced that selling an outcome-based service rather than a product is the future for OEM manufacturing.
This creates significant time pressure for OEMs as it is often a huge effort to put together complex quotes.
Symmetry Surgical would be able to pursue a broader surgical instrument market to optimize sales channels and cost structure without the financial limitations associated with the current capital structure or potential conflicts with OEM customers, and the performance of the new independent public company no longer will be impacted by the volatility associated with capital spending by OEM customers, officials said.
Are you OEM #1, OEM #2, a little of each, or neither?
In the end, suppliers hold increased leverage with OEMs. Increasingly, as holders and purveyors of the much-required technologies necessary for increased fuel economy gains, improved safety and customer delight, suppliers have an important role.
VERICOM can also create custom OEM product solutions with the R&D capabilities that are available.
In addition to SD cards and USB flash drives, other consumer memory devices used in OEM designs may include SDHC, microSD and CompactFlash cards.
Service offerings such as board and box level Design For eXcellence (DFX) are often the first engagement an OEM will make with a CM.
An OEM will likely meet with the best and brightest people their overseas supplier has to offer.
While Carl Zeiss offers a wide spectrum of such application driven customer solutions for a large segment of the market, OEM companies often develop highly customized solutions for specific niche applications.