OEM Full Form | Full Form of OEM
OEM Full Form - Original Equipment Manufacturer
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Original Equipment Manufacturer
- OEM stands for "Original Equipment Manufacturer".
- Its meaning has evolved over the time. In earlier times, it mentioned a company that manufactures products to be used as components by another company in its end products.
- For example, if Acme Manufacturing Co. Manufactures power cords to be used on Dell computers then Acme is that the OEM.
- On the contrary, in recent times, OEM refers to a company that uses products manufactured by other companies as components in its end products or rebrands the manufacturer's product to sell it under its own name.
- For example, most of the PC vendors like HP , Lenovo and Dell who do not have their own manufacturing units are OEM. They assemble the manufacturer's components and brand the top product with their own logo.
History
- The origin of the word OEM comes from the late 1900s from the Dutch expression, ‘Onder Eigen Merk’ which suggests ‘under own brand’ in English.
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The relationship between the OEM and VAR
- VAR (Value Added Resellers) offers goods from an OEM on the other hand integrate other additional features.
- The two have a beneficial relationship, as VARs support OEMs market their goods, and OEMs accept their product lines to VARs, enabling them to sell them with more improvements which will improve product service.
Advantages of OEM parts
Advantages of OEM parts
- Quality guaranteed
- Comes on warranties
- Simple to settle on which part you required
Disadvantages of OEM parts
- High Costs
- Mostly sold at discounts
- Hardly any variety in parts.