What is an Original Equipment Manufacturer (OEM)?
Original Equipment Manufacturers (OEMs) create items and sells them to other businesses. After that, the acquiring business will brand the item before selling the finished products to customers. OEMs are employed to conserve money and time.
Significance of Original Equipment Manufacturer (OEM) in E-commerce Logistics
Using products generated by the original equipment manufacturer is less expensive and more convenient. Here are some more advantages of original equipment manufacturers (OEM) to consider:
- Product availability: Although it can be challenging to find ready-to-use products that meet the required specifications, original equipment manufacturers (OEMs) can manufacture a wide range of goods that are appropriate for their end product.
- Quality products: Original equipment manufacturer (OEM) organizations deal directly with their clients. As a result, they are better equipped to develop products that operate exactly as their customers want. This frequently results in high-quality and longer-lasting products.
- Improved customer service: When you work with an OEM, you get a quick response from designated engineers to all consumer inquiries about any problems discovered.
Pre-requisites of Original Equipment Manufacturer (OEM) and How It Works
By selecting an Original equipment manufacturers (OEM), they will obtain some components, assemble them, and offer the finished product to the user. The following are some prerequisites for choosing OEM:
- Labor availability and skills
- Manufacturing process and technology
- Warranty and guarantee services
- Reverse logistics and core procurement
Use Case With Original Equipment Manufacturer (OEM)
A mobile seller on e-commerce platforms purchases back covers from original equipment manufacturers. This back cover is packed along with mobiles and delivered to customers as the final product.