OEM-ODM Manufacturing Company
An original equipment manufacturer (OEM) is a company that makes a part or subsystem that is used in another company's end product. For example, if Iron Systems Inc. makes server appliances that are used on Dell computers, Iron Systems Inc is an OEM. However, the term is used in several other ways, which causes ambiguity.
When referring to auto parts, OEM refers to the manufacturer of the original equipment, that is, the parts assembled and installed during the construction of a new vehicle.
OEMs rely on their ability to drive down the cost of production through economies of scale. Also, using an OEM allows the purchasing company to obtain needed components or products without owning and operating a factory.
OEM Manufacturer, OEM Manufacturing Company
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