Original Equipment Manufacturer (OEM) - Definition
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What is an Original Equipment Manufacturer (OEM)?
An original equipment manufacturer (OEM) is referred to as the company producing components to be used in the final products manufactured and sold by another company. The company purchasing from an OEM manufacturer is called the value-added reseller (VAR), since by acquiring the goods or components or services from OEM, it adds value to its original item. The VAR and OEM work collaboratively. The OEM can also customize the goods/components designs as per the requirements of VAR company.
How OEMs Work?
OEMs provide sub-assembly components for VARs. Consider a common example of the relationship between the OEM manufacturing electronic components and a business like Samsung or Sony that assembles these parts to make its HDTVs.
OEM means something made particularly for the original product, while aftermarket means the equipment manufactured by another company that a customer might use as a substitute.
Academic Research on Original Equipment Manufacturer
- Guidelines for an original equipment manufacturer starting a remanufacturing operation, Lund, R. T., & Skeels, F. D. (1983). Massachusetts Inst. of Tech., Cambridge (USA). Center for Policy Alternatives.
- Applying Value Stream Mapping to eliminate waste: a case study of an original equipment manufacturer for the automotive industry, Lacerda, A. P., Xambre, A. R., & Alvelos, H. M. (2016). International Journal of Production Research, 54(6), 1708-1720.
- How to achieve leagility: A case study of a personal computer original equipment manufacturer in Taiwan, Huang, Y. Y., & Li, S. J. (2010). Journal of Manufacturing Systems, 29(2-3), 63-70.
- Multidyadic industrial channels: Understanding component supplier profits and original equipment manufacturer behavior, Dahlquist, S. H., & Griffith, D. A. (2014). Journal of Marketing, 78(4), 59-79.
- The introduction of QFD in a UK original equipment manufacturer, Parkin, N., Linsley, M. J., Chan, J. F. L., & Stewardson, D. J. (2002). Managerial Auditing Journal, 17(1/2), 43-54.
- After sales strategies for the original equipment manufacturer of electric mobiles, Dombrowski, U., & Engel, C. (2013). In Re-engineering Manufacturing for Sustainability (pp. 347-352). Springer, Singapore.
- Power Plant Technology on Two Continents From the Perspective of Engineering, Procurement, and Construction Contractor and Original Equipment Manufacturer, Stein-Brzozowska, G., Bergins, C., Kukoski, A., Wu, S., Agraniotis, M., & Kakaras, E. (2016). Journal of Energy Resources Technology, 138(4), 044501.
- Environmental quality in the supply chain of an original equipment manufacturer: what does it mean?, Nagel, M. (2006). In Greening the supply chain (pp. 325-340). Springer, London.
- A customised lean model for a Chinese Aerospace OEM (Original equipment manufacturer), Li, C. (2011).
- A new look at OEM (original equipment manufacturer) service agreements., Gregory, S., & David, G. (1995). Radiology management, 17(3), 54-58.