Metrology Glossary: Original Equipment Manufacturer (OEM)
What Is An Original Equipment Manufacturer (OEM)?
An Original Equipment Manufacturer (OEM) is a company specializing in the production of equipment or components designed for incorporation into the products of other businesses. OEMs play a crucial role in the supply chain, as they create essential building blocks that are then distributed to value-added resellers (VARs). These VARs are intermediary businesses that take these OEM components and integrate them into their own final products, often adding value through customization or additional features. These completed products are then made available to consumers in various industries. This collaborative relationship between OEMs and VARs enables the efficient creation and delivery of a wide range of consumer goods and technology products.
Why Are OEMs Important?
OEMs serve as the foundation of numerous industries, focusing on crafting components or machinery integrated into the final products of other enterprises. These components span from intricate automotive engines and computer chips to everyday essentials such as household appliance motors and smartphone displays. Retailers also work with OEMs, engaging them to manufacture private label goods marketed under their own brand identities. This collaborative model allows for efficient manufacturing processes and enables a wide variety of consumer products across different sectors.
