After all, an OEM product is the same product manufactured by the original manufacturer. Though there are cheaper versions, the price of the OEM product reflects its quality. Hardware can be easily bought off the internet, whether from a retail product manufacturer or through an OEM. However, OEM hardware is usually shipped incomplete of parts such as cables and adapters that are necessary for the installation and operation of the hardware.
- This team works closely with customers to understand their unique requirements and develop customized solutions that meet their needs.
- Before you secure an OEM to manufacture your product, you need to do thorough R&D, including design, engineering, and market research.
- OEMs typically sell product licenses to use their parts to the value-added resellers they market to.
- Although processors, motherboards, and so on can also be sold to individuals as retail products, OEM hardware is generally cheaper than their retail counterparts.
Zebra also has a dedicated team that focuses exclusively on providing original equipment manufacturer (OEM) solutions to help customers build custom devices that meet their specific needs. This team works closely with customers to understand their unique requirements and develop customized solutions that meet their needs. It is a term used in the manufacturing industry to describe companies that produce components or products that are sold to other companies to be integrated into their own products. OEMs provide parts or subsystems to the companies that use them in their own products without the end customer knowing it.
This fluidity makes for ambiguous relationships as lines blur among product designers, manufacturers and resellers. Before delivering a solution to end-users, companies figure out the best way to serve customers’ needs. They evaluate several options such as whether to buy, manufacture, build, or partner with someone to design the solution. By partnering with OEMs, an organization can minimize the investment in manufacturing and reduce production and material costs while gaining expertise in product design as well as a shorter product life cycle.
Original Equipment Manufacturer vs. Aftermarket
Aftermarket parts are made by a third-party manufacturer but may be compatible with the same vehicles. A Ford car owner may need to replace a car thermostat manufactured by the OEM ABC Thermostats. The consumer may buy the OEM part, a duplicate of their original ABC thermostat, or an aftermarket or generic part made by another company. Ensure to partner with an OEM who does not manufacture any competitor products.
Empower your field workers with purpose-driven mobile technology solutions to help them capture and share critical data in any environment. Aftermarket, on the other hand, is equipment, goods, or product made by another company that consumers can use as a replacement. Just like OEM hardware, some OEM software can be purchased as a standalone product—and as with OEM hardware, they’re usually much less expensive. When you buy these OEM products, know that it’s going to be challenging once you encounter technical issues.
Benefits of Buying Original Equipment Manufacturer Products
With Zebra’s easy integration, best-in-class technologies and dedicated OEM team, businesses can get their products to market faster than ever before. Zebra also helps reduce product development costs by leveraging its extensive knowledge and research and development budget to minimize costs while futureproofing application development. Additionally, Zebra offers flexible OEM approaches, including component integration, private label, or custom product development, to help customers create tailored solutions that fit their exact requirements.
Should the component supplier suddenly have problems in his production, this in turn would be a big problem for the OEM, as his production might stand still, as well. Access and download collection of free Templates to help power your productivity and performance. Essentially, Value-Added Resellers or VARs sell products from an OEM but incorporate certain added features before doing so. Zebra offers a variety of options that can help you progress your career path forward. The Zebra Knowledge Center provides learning expertise that can be tailored to meet the specific needs of your environment. Boost warehouse and manufacturing operations with Symmetry, an AMR software for fleet management of Autonomous Mobile Robots and streamlined automation workflows.
Companies that can’t handle high-volume goods or find that outsourcing the production is a lot less expensive, also work with OEMs. So, OEM manufacturing can be considered as a kind of outsourced or contracted manufacturing. OEM meaning can be simplified as a manufacturer who is willing and capable of making products according to your design and specifications. In the automobile and machine construction industries, the term is used differently. Here the OEM is the producer of a product put together from many others and sold under the own brand name.
Professional Services help you accelerate adoption, and maximize productivity without affecting your workflows, business processes and finances. Aurora Imaging Library™, formerly Matrox Imaging Library, machine-vision software development kit (SDK) has a deep collection of tools for image capture, processing, analysis, annotation, display, and archiving. Zebra Aurora Focus brings a new level of simplicity to controlling enterprise-wide manufacturing and logistics automation solutions.
What Is an OEM (Original Equipment Manufacturer)?
This eliminates the need for companies to duplicate these efforts and allows them to focus on their core competencies. Moreover, OEMs often have established supply chain networks and relationships with suppliers, allowing them to source materials and components at competitive prices. By leveraging the economies of scale, specialized expertise and established supply chains of an OEM, companies can effectively reduce their production costs and allocate their resources more efficiently. Companies can save money by outsourcing the production of components to an OEM, rather than investing in the resources needed to produce the parts themselves.
Similarly, Autodesk lets third-party solution developers or independent software vendors (ISVs) develop custom applications based on Autodesk’s computer-aided design software. Although processors, motherboards, and so on can also be sold to individuals as retail products, OEM hardware is generally cheaper than their retail counterparts. OEM hardware rarely comes with customer support, has very short (if any) warranty periods, and usually lacks some parts needed to combine it with other components of whatever system you’re building. For example, DVD drives might lack cables or ribbons for connecting to the motherboard. OEMs rely on their ability to drive down the cost of production through economies of scale. Using an OEM also allows the purchasing company to obtain needed components or products without owning and operating a factory.
You benefit from economies of scale since OEMs produce in bulk amounts, making the products cost-effective. You can pass on some of the benefits to your customers in terms of price, further improving customer satisfaction. While Zebra’s OEM scanners are designed for on-the-go scanning and data collection, the company’s OEM tablets are powerful and versatile devices that are ideal for a wide range of mobile applications.
If you are considering sourcing from China, then finding the right manufacturer is crucial. The OEM you work with must specialize in the product that you want to manufacture. Plus, the manufacturer should also be able to deliver high-quality products at a reasonable price. When you offer high levels of customer satisfaction, you automatically improve sales, attract new clients, and reduce disruption. Customer retention boosts revenues and helps your business maintain sustainability. Prioritizing customer satisfaction is crucial to ensure the growth of your business.