This article aims to discuss the definition of what an Original Equipment Manufacturer and how it works.
The simplest definition of what an original equipment manufacturer is that this is a company that creates certain parts of products or goods being made by other companies. 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. As you might have already figured out, these products made by an original equipment manufacturer would be custom made parts of a final product and this is the main reason it becomes quite expensive. Get more information about www.parts.com
There are automobile companies out there that put together cars but the car parts they used are actually created by another manufacturer. If you would take your car and break it down into pieces, you would most likely see parts that are stamped with a different company name. All the OEM would have to do is create the custom made parts and send them to the automobile company where these parts are then assembled into a car. If the final product did not have parts made by other companies then you would expect it to be cheaper.
As the world rapidly advances, OEM also advances with it and now these companies have a new term used specifically by companies under the computer industry. The OEM is the one that would create a product, another company would buy the product, rebrand it by incorporating it into their product, and then sell it off under their company name. 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. Because the buyer of the software is the one that does the rebranding, they would be the company that is considered to be the OEM. Follow the link for more information about marketplace for Original Equipment Manufacturer
How does an OEM operate?
As you might have already realized, VAR and OEM companies are those companies that cannot stand alone on their own but rather, they work together to make a profit. 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. Find out more information about Original Equipment Manufacturer https://en.wikipedia.org/wiki/Original_equipment_manufacturer