What Is OEM In Manufacturing?
In the vast manufacturing landscape, a hidden force fuels innovation, drives efficiency, and ensures the highest quality in our daily products. This force is known as an OEM, or Original Equipment Manufacturer. Little do people know, OEMs actually shape our every day behind the scenes, from the automotive industry to the technology industry.
In this blog post, we’ll embark on a journey into the world of OEMs in manufacturing. We’ll unravel the critical aspect of production, explore its role in various industries
, and understand how it helps companies deliver the goods.
Whether you’re a seasoned industry professional or simply curious about how the products you love come to life, this exploration of OEM will shed light on a fundamental, yet often overlooked, aspect of manufacturing.
What is an OEM?
An Original Equipment Manufacturer (OEM) is a company that produces components or products that are used as part of another company’s final product. Let’s think of an OEM as a “behind the scenes” company that doesn’t require recognition for manufacturing a product.
What does an OEM do?
Typical OEMs provide specialized parts or subsystem integrations for a more extensive product by the company that designs and markets the final product.
Who partners with OEMs?
The company that buys the parts or integrations is a VAR, which stands for value-added reseller. A lot of the time, VARs contract or partner with OEMs to build smaller components that go into a more complex product. Dimar serves an extensive amount of OEMs in multiple industries locally and globally. To partner up with Dimar on your next project, get in touch.
Popular OEM Industries
OEMs are super popular in a variety of industries. The most popular include:
OEMs play a crucial role in the supply chain, as they often specialize in producing high-quality components efficiently.
Why Use OEMs?
There are many ways to use OEM manufacturing. Even if you’ve never heard of an OEM or are just getting into an industry where an OEM is used, they are truly a staple of the global economy and have made countless commercial products cheaper.
Innovations in robotics, warehousing, and assembly line manufacturing all help improve efficiency. A lot of the time, an OEM comes at a lower cost. Alright, you may not see that initial cost as low when hiring an OEM, but think about how much it would take to hire an OEM to be produced in-house, including the employees and machines needed.
You can secure the highest quality components using an OEM for the most competitive price. This leads to a division of manufacturing operations. Western factories and manufacturers can focus on finishing products.
Let’s use the technology space as an example. Technology companies may rely on an OEM to produce many of their data center components, maybe a particular sub-assembly of the data center structures in and of themselves.
These pre-assembled parts are then finished in the VAR company’s facility. This process gets the most out of OEMs to produce high-quality local products. The OEM parts are still high-quality and selected by the VAR. Before being used, they also pass all necessary inspections.
Will You Partner With An OEM?
OEMs play a pivotal role in shaping the world of manufacturing. From the custom components they create to the sub-assembly of products before shipping off to a VAR, OEMs change the manufacturing game behind the scenes.