For example, if a company wants to incorporate a new technology into its product, it may need to invest significant resources into researching and developing the technology itself. However, if the company works with an OEM, it can leverage the OEM’s expertise and resources to access the technology more quickly and at a lower cost. By working with an OEM, companies can benefit from the investment that OEMs put into creating this new technology without these companies having to incur the costs related to development themselves.
In industrial machinery, OEM products cover various items, including hydraulic systems, pumps, motors, and control panels. These components contribute to the efficiency and productivity of various manufacturing processes. While they might not bear the brand name you recognize, they play a crucial role in the overall functionality and performance of the end products. Whether it’s your computer’s processor, car’s engine, or smartphone’s camera module, many of these essential components are OEM products. In the automotive world, OEMs supply parts such as engines, brakes, and electronics to car manufacturers. OEM stands for Original Equipment Manufacturer and plays a vital role in the manufacturing world.
- According to reports, more than eighty per cent of vehicles sold in North America are manufactured with OEM parts.
- It should be noted that using aftermarket parts on your vehicle does not void the warranty, unless those specific parts are the cause of that warranty claim.
- At its core, an OEM is a company that manufactures products or components that are used in another company’s end products.
- So, while the brand gets the glory, the OEMs are the unsung heroes that make it all possible.
- OEMs manufacture different components to be used in the products of other companies, and they play a crucial role in the manufacturing and supply chain ecosystems.
What Are the Advantages of Choosing Zebra as Your OEM Partner?
In this article, we will provide a comprehensive comparison between OEM and original, shedding light on their definitions, characteristics, and benefits, allowing you to navigate the market with confidence. OEM parts represent authentic components manufactured by the original equipment manufacturer. They are meticulously crafted to meet the precise specifications of the equipment they are intended for. When you opt for OEM parts during a purchase, you can anticipate superior standards, seamless compatibility, and enhanced reliability.
- It can help ensure you get as close of a match as possible to the original part.
- As a result, the industry historically had limited visibility into the existing installed base and minimal connectivity (or engagement) with the end-user/end-customer base.
- Original Equipment Manufacturers do many things for both their business clientele as well as consumers.
- However, there is always a possibility of receiving lower-quality parts than an OEM would provide.
- This concept has since been extended to other industries, such as IT, electronics, and machinery.
In spite of typically being priced at cheaper levels, the aftermarket products what does oem stand for and services are not guaranteed to function at the same level of performance as the actual product. OEM companies, competing with aftermarket businesses, increasingly innovate supply chains and product lines to deliver a superior product at competitive pricing. OEM and aftermarket companies may use technologies such as 3D printing to efficiently create on-demand parts and make their supply chains more flexible. These companies incorporate the individual components and create the final product for the end user.
What Is an OEM (Original Equipment Manufacturer)?
OEMs manufacture different components to be used in the products of other companies, and they play a crucial role in the manufacturing and supply chain ecosystems. By specializing in specific areas, OEMs can develop deep knowledge, expertise and advanced manufacturing capabilities in their chosen fields. This enables OEMs to produce components, products or subsystems at scale and with consistent quality, meeting the demanding requirements of their customers.
Original equipment manufacturer (OEM) stands for companies that carry out bulk productions, while original design manufacturer (ODM) stands for the company that designed the product. 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. Economies of scale mean aftermarket parts can be cheaper and more widely available. However, these generic parts may fit many different vehicles, and lack the snug fit of an OEM part. A lower-quality part may also have a shorter lifespan, or even damage your vehicle.
Put simply, an OEM creates parts and components that are used by other companies in their finished products. VARs work closely with the OEM, which often customizes designs based on the VAR’s needs and specifications. Siemens is a German conglomerate with a vast portfolio of products and services. As an OEM company, Siemens is known for manufacturing various industrial equipment, including automation systems, electrical components, and medical devices. By leveraging the existing infrastructure of OEMs, brands can accelerate the development and release of new products to the market. 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.
OEM Software
In many cases, OEMs and brand manufacturers establish long-term partnerships. This stability allows for smoother production planning, continuous improvements, and mutual growth. They are responsible for designing, manufacturing, and supplying these components to the smartphone brand. The brand, in turn, assembles these components into the final product and puts its name on it. So, while the brand gets the glory, the OEMs are the unsung heroes that make it all possible.
Access to New Technologies and Expertise
Their processors power a significant portion of the world’s computers and devices. OEM products are prevalent in the automotive industry, encompassing everything from engines and transmissions to electrical systems and infotainment units. The seamless integration of these components ensures the smooth functioning of vehicles.
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. The Zebra Aurora suite of machine vision software enables users to solve their track-and-trace, vision inspection and industrial automation needs. Boost warehouse and manufacturing operations with Symmetry, an AMR software for fleet management of Autonomous Mobile Robots and streamlined automation workflows. Create an agile operation that can navigate unexpected schedule changes and customer demand to drive sales, satisfy customers and improve your bottom line. Zebra’s environmental sensors monitor temperature-sensitive products, offering data insights on environmental conditions across industry applications. With Zebra’s family of fixed industrial scanners and machine vision technologies, you can tailor your solutions to your environment and applications.
A company may choose to work with an ODM to save on its own research and development costs. And, ODM products usually have a low minimum order quantity, making them attractive to smaller clients. OEMs have often been in the game a long time, which means they know how to do what they do quite well. They can reliably create durable, trustworthy parts at scale that you can feel confident using in the assembly of your final product. As established specialists in their product of choice, an OEM likely doesn’t need the longer lead times an inexperienced in-house engineering team might require to develop a comparable part or product. They have the right knowledge, production capacity, and expertise to move quickly and supply you with the parts you need when you need them.
An OEM is often the direct client of a retail company that sells directly to consumers. For instance, a Lenovo laptop computer’s parts aren’t all manufactured by Lenovo. Some parts, such as its processor or memory module, may be the products of an OEM.
When shopping for electronic devices or vehicle parts, you may come across terms like OEM and original. While they might sound similar, they actually refer to different types of products. Understanding the distinction between OEM and original is crucial in making informed purchasing decisions, as it can greatly impact the product’s quality and compatibility.