OEM stands for Original Equipment Manufacturer. It is a term commonly used in the manufacturing industry to refer to a company that produces components, parts, or products that are then marketed or sold by another company, known as the reseller or value-added reseller (VAR), under their own brand name.
The OEM company is responsible for designing, engineering, and manufacturing the products according to the specifications provided by the reseller. The products are typically made to fit the requirements or needs of the reseller's target market, allowing them to offer customized or specialized solutions to their customers.
OEMs often have a strong emphasis on quality control and adhere to strict manufacturing standards to ensure that the products meet the specified requirements. They may also provide technical support and warranty services for the products they manufacture.
In many cases, OEMs work closely with the reseller throughout the product development process, from design to production, and may engage in continuous improvement activities to optimize the performance, functionality, or cost-effectiveness of the products.
OEMs can be found in various industries, including automotive, electronics, computer hardware, and industrial equipment manufacturing. Their role is crucial in enabling the reseller to offer a wide range of products without having to invest in the entire manufacturing process.