OEM

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OEM

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OEM

(Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and resells them. However, the reseller is often the designer of the equipment, which is made to order. Many of the largest PC vendors are OEMs, including HP, Dell and Lenovo. Essentially, any PC company that does not have its own manufacturing facilities is an OEM.

Added Value or None
The OEM often does not add anything to the equipment and merely brands it with its own logo. The OEM's name is either placed on the devices by the contract manufacturer that makes the equipment or by the OEM itself. However, OEMs may indeed add value. For example, a "value added reseller" will purchase a computer, add its own software and/or hardware and sell it as a turnkey system. See VAR and turnkey system.

There are numerous companies that specialize in OEM manufacturing and never sell anything under their own brand (see contract manufacturer). Many companies do both. They manufacture and sell retail, but also have a separate OEM division for goods that are private labeled.
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References in periodicals archive ?
"The indirect effect of proactive service like this is that OEMs get happier customers, which of course has bottom-line impacts across the board," Jain says.
There is increasingly more competition among OEMs on bids frequently initiated by CPG procurement function.
Among the reasons Sullivan cited for the decision to spin off Symmetry's OEM division were recent transactions that "imply a risk of consolidation in OEM Solutions' competitive market, increasing the need for Symmetry Medical to explore acquisitions--in orthopedic implants and adjacent medical device categories--to maintain a leadership position," he said.
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Doing more with less is the mantra as OEMs seek increased flexibility and speed to market.
While most embedded system components are sourced from OEM focused manufacturers, portable memory devices are a grey area.
OEMs that look to their CM to provide cradle to grave solutions for products can rapidly increase their product portfolio.
An OEM will likely meet with the best and brightest people their overseas supplier has to offer.
The OEM team brings together expertise across disciplines, including PhD level optical and biochemistry engineering; physics; electrical engineering; mechanical engineering; and software development.