This article aims to discuss the definition of what an Original Equipment Manufacturer and how it works.
There are some companies that do not make all the parts of whatever final product they are producing and it would be the original equipment manufacturer company that produces these parts for them. The term value-added reseller or VAR can be applied to this practice since the price of the final product can be increased due to some parts being made by other companies. Original equipment manufacturers create custom made parts for their clients and the effect of this kind of service would be an increase in selling price of the final product because nothing custom made ever comes cheap.
There is a wide variety of car parts that original equipment manufacturer custom made for reputable companies. The sole role of OEM is to produce components because other tasks such as assembly or incorporation of these components to the final product would be the job of the company they are working with.. Once the product has been completed, it will then be sent to the car company sellers to be sold to whoever wants a new car.
The computer industry is one of the industries these days that is booming faster than the rest and they have made a new definition for original equipment manufacturers. Rebranding is the most important terminology here because this is exactly what companies do tot he products or components that they buy off other companies. If we are talking about the computer industry, the most common occurance would be once computer company creating a certain software and then selling it off to another computer company for then to incorporate in their final product, a product that they brand with their name only. The OEM in this case would be the company tat does the incorporation and rebranding of the computer component they bought from another company.
The following paragraphs will now discuss the process that goes within OEMs.
It cannot be denied that the OEM and the VAR would always be companies that work hand in hand. The production of certain parts is an important aspect in the finish product and in making a sale, which makes EOMs very valuable to VARs. It would be very rare for you to see an OEM asked to be a part of the decision-making process on the final product because they just usually make parts and sell them to VAR companies, nothing else.