Original Equipment Manufacturer - OEM
Categories: Company Management
Our company, So Cool, LLC, manufactures cooling sensors. And not just any cooling sensors, but the ones installed in brand-new Vroomus sports cars, the latest and greatest competitor in the world of fast luxury vehicles. Know what this makes us, other than awesome? That’s right: it makes us an original equipment manufacturer, or OEM.
“Original equipment manufacturers” are companies that make a finished product—like a cooling sensor—that then becomes a part of another finished product—the Vroomus QXP5252 sports coupe—before the latter product is sold to consumers.
We see OEMs everywhere, from the tech industry to the auto industry to retail and beyond. Think about the Asus laptop that comes with a Microsoft operating system, or our favorite pair of JNCO jeans with the zipper manufactured by YKK Zippers. That operating system and zipper are produced by OEMs. Once the OEMs manufacture their wares, they’re sold to VARs (value-added resellers) like Asus and JNCO for use in their products.
