There are few reasons
to align with an OEM...
Quick response times: With an OEM, you're dealing with a
precision product component expert. They can turn around a request or a product
delivery request in a short amount of time, given their experience and
expertise in building a specific product component.
Quality component: When you ink a contract with an OEM,
you're getting a production partner with years of experience in building
specialty products and components. All parts built by an EOM are tested for
quality and to ensure they match the partnering company's exact specifications.
Good customer service: A solid OEM
partner knows that if they don't deliver the product and support a
partnering company needs, they'll go elsewhere to get it. Consequently, an OEM
doesn't only deliver quality products, it's expected to back that product up
with robust technical and engineering support.
You get a warranty: Companies that partner up with an OEM
should expect to get a manufacturer's warranty. If there are any problems or
product defects, the warranty protects the partnering company's investment.
Adding value to your product. OEMs also provide a good
return on investment to their business partners. Their parts, components, and
products extend the life of the partnering company's product, thus maintaining
top performance and saving money with replacement parts, thus increasing the
company's financial bottom line.
How Do OEMs Work?
To best understand how OEMs work, you need to understand how
OEMs and principal manufacturers work together.
OEMs and principal partners work under the following
arrangement:
The OEM develops a product, part or component, and sells the
product to a principal partner, who resells the product, usually directly to
the public, under its own brand.
The principal partner does have some flexibility in dealing
with OEMs. For example, a principal partner can structure a deal where it has
an option to only work with selected products and under flexible terms.
Under that arrangement, the reseller can elect to purchase
specific components or can have the OEM manufacturer complete products for it
to resell. These products come in plain boxes and aren't for sale, by and
large, in retail outlets.
That scenario is changing, though, as online retailers are
beginning to market OEM products directly to end-users for a discounted price.
Auto enthusiasts rebuilding a new car or technology lovers who buy parts to build
their own customized computer are good examples of end-users who buy parts,
often online, direct from retailers.
Comments
Post a Comment