"OEM way" (OEM way) usually refers to the "Original Equipment Manufacturer" way in business. This approach involves one company producing parts or equipment, which are then purchased by another company and sold under the brand name of that purchasing company. For example, one company might make cell phone components, and then another company would buy those components, assemble them into phones, and sell them under its own brand. This collaborative model is common in the electronics and automotive industries, as well as many other manufacturing industries.
1. Market research and product planning:
- The client company (usually the brand owner) conducts market research to determine consumer needs.2. Looking for OEM partners:
- Client companies look for OEMs that can produce these products.3. Design and sample production:
- OEM manufacturers design products according to the specifications provided by the customer company.4. Sample testing and modification:
- The client company tests the samples to ensure they meet expected quality and performance standards.
5. Mass production:
- Once the sample is approved, the OEM starts mass production.6. Quality inspection and compliance certification:
- Products are subject to quality inspection both during and after production.7. Logistics and Distribution:
- Completed products are packaged and shipped to the client company or directly to the market according to contractual arrangements.8. Marketing and after-sales service:
- The client company is responsible for the marketing, sales and after-sales service of the product.OEM stands for "Original Equipment Manufacturer". This term is used to describe a business model in which one company manufactures products or product parts that are then purchased by another company and repackaged and sold under its own brand. The OEM business model is common across multiple industries, especially in the electronics, automotive, computer hardware, and industrial equipment industries.
1. Cooperation between manufacturers and brand owners:
OEM involves two main entities - the company that makes the product (OEM manufacturer) and the company that markets the product (usually the brand owner).2. Customized production:
OEM manufacturers typically produce products to the purchasing company's specifications and requirements. These products may be complete end products or individual components or parts.3. Brand tag:
Although products are produced by OEM manufacturers, they are ultimately sold under the brand owner's brand name. Consumers may not know the actual manufacturer of the product.
4. Quality and Standards:
OEM manufacturers are usually required to adhere to strict quality control and meet the brand owner's standards.5. Cost-effectiveness:
OEM is a cost-effective way for brand owners as they can leverage existing manufacturing capabilities without having to build their own production lines from scratch.6. Intellectual Property Rights:
An OEM relationship may involve the transfer or sharing of intellectual property, particularly where proprietary technology or designs are involved.
