What is an Original Equipment Manufacturer (OEM)?

Original Equipment Manufacturer Definition

An original equipment manufacturer (OEM) typically describes a company that designs a product, but then licenses it out to a manufacturer (contract manufacturer) to produce. As an example, the Apple iPhone was designed by Apple and then licensed to Foxconn to produce the product.

What is an Original Equipment Manufacturer

FAQs

What is an OEM manufactured product?

OEM products are goods that can be sold to another company and used to build a new finished product under their brand name. Auto parts are examples of OEM goods that are sold to car manufacturers to build a final product.

*Source: https://www.masterclass.com/articles/what-is-an-oem

What is the difference between OEM and original parts?

Original or genuine parts are components that are included in the product when it is first built at the factory. OEM parts are designed and produced by the original manufacturer; however, they are typically used as replacement parts.

*Source: https://www.ace-autoparts.com

What is the difference between OEM and ODM?

Original equipment manufacturers (OEMs) design and produce a product according to their specifications and then contract with another company for mass production. Original design manufacturers (ODMs), on the other hand, design and build products that can be private-labeled by customers.

Source: https://www.mpofcinci.com

Best Practices for Manufacturing & Supply Chain

Learn how to streamline manufacturing processes and supply chain management to bring products to market faster by reading our best practices.

Understanding Electronic OEMs and Their Distinction from Traditional OEMs

An electronic OEM (original equipment manufacturer) is a company that designs, manufactures, and markets electronic components or products under the brand of another company. These producers are important participants in sectors like medical devices, telecommunications, automotive systems, and consumer electronics. An electronic OEM might, for instance, manufacture circuit boards, microprocessors, or entire electronic devices for other companies that either sell them as completed goods or incorporate them into their own products.

The more general term OEM refers to any manufacturer that produces goods or components that another business rebrands or incorporates into products. OEMs operate in a variety of industries, including software, automotive, aerospace, and manufacturing, in addition to electronics. For example, a car manufacturer may purchase transmissions or engines from an OEM that specializes in these components.

The primary differences lie in their breadth and specialization. An electronic OEM focuses exclusively on electronic hardware and technology, whereas an OEM may concentrate on a variety of components or systems. Advanced skills in precision manufacturing, electronic design, and adherence to strict industry standards are necessary for this specialization.

There are also differences in the manufacturing environments. Since the failure of electronic components can have serious repercussions, electronic OEMs frequently work in extremely regulated environments to guarantee low defect rates. Depending on their product category, non-electronic OEMs may face less complex manufacturing procedures or supply chains. Even though both support supply chains, electronic OEMs only concentrate on electronic advances, allowing for breakthroughs in industries that rely heavily on technology.

The Crucial Role of PLM and QMS for Electronic OEMs

PLM (product lifecycle management) and QMS (quality management system) solutions are essential to maintaining the effectiveness, caliber, and compliance of electronic OEM business processes.

Connection to PLM

PLM aids in process optimization, time-to-market reduction, and maintaining design and engineering change accuracy in light of the electronics industry’s quick innovation cycles. It guarantees that all stakeholders—from supply chain partners to design teams—operate with synced, current information. PLM systems are essential for helping electronic OEMs manage complex product information, maintain version control, and encourage cooperation among geographically dispersed teams..

Connection to QMS

QMS (quality management system) solution is essential for electronic OEMs to maintain high levels of quality in their devices and components. A QMS ensures that every stage of the manufacturing process meets predetermined quality criteria, which is crucial given the delicate nature of electronics and their frequent exposure to stringent regulatory regulations. It assists electronic OEMs in conducting root-cause investigations, implementing remedial measures, and continuously improving procedures to minimize errors and downtime. For electronic producers, a strong QMS also aids in guaranteeing adherence to industry standards like ISO 9001 or IPC requirements.

By combining PLM and QMS, electronic OEMs can ensure innovation and customer happiness, maintain product quality, and collaborate seamlessly in their fast-paced sector.