Views:18 Author:Site Editor Publish Time: 2017-04-11 Origin:Site
Original equipment manufacturer (OEM) is a term used when one company makes a part or subsystem that is used in another company's end product. The term is used in several ways each of which is clear in context. It can refer to a part or subsystems maker, an end product producer, or an automotive part that is manufactured by the same company that produced the original part used in assembly.
Generally, an OEM is the company that makes a part that is marketed by another company typically as a component of the second company's product. For example, if Acme Manufacturing Co. makes power cords that are used on IBM computers, Acme is the OEM.
Confusingly, OEM can sometimes also refer to companies like value-added resellers. If, for example, Hewlett-Packard sells circuit boards to Acme Systems for use in Acme's security systems, HP refers to Acme as an OEM. Similarly, among IT vendors, companies such as IBM and HP that buy parts (e.g. servers and storage systems) and software from vendors and package them for final retail sale act as an OEM in that the final sold product carries the seller's brand (IBM or HP) and is warrantied by that seller.
When referring to auto parts, OEM refers to parts and manufacturers involved in the final assembly of a vehicle—in contrast to whoever made aftermarket parts that were installed later. For example, if Ford used Autolite spark plugs, Exide batteries, Bosch fuel injectors, and Ford's own engine blocks and heads when building a car, then car restorers and collectors consider all of those brands as OEM brands, in contrast to aftermarket brands (such as Champion plugs, DieHardbatteries, Kinsler fuel injectors, and BMP engine blocks and heads). This can mean that Bosch injectors, for example, are considered OEM parts on one car model and aftermarket parts on another model.