What Is An OEM Company + Why Does My Business Need One?

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OEM-Chispa MagazineThere are many things a business needs to keep up its operations on a daily basis. However, it’s likely you’ve not been told that your business needs an OEM. In fact, it’s highly possible that you’ve never even heard of an OEM company if you’re new to the startup business game.

So, this article has been created to shed some light on OEMs and how they’re important to your business. Find all the relevant information down below:

What Is An OEM?
Naturally, you want to know what an OEM is and what this stands for. Well, OEM stands for Original Equipment Manufacturer. In essence, they’re companies that manufacture goods which will then be passed on to other companies to use when they manufacture their products. For example, take a look at your smartphone. No doubt it’s probably manufactured by a brand like Apple or Samsung. However, that doesn’t mean Apple and Samsung manufacture all the parts within that device. They have OEM companies working with them and supplying them with different parts to fit in their device. So, your phone could be made by Apple or Samsung, but the battery is probably manufactured by a different company behind the scenes. As you can see here businessinsider.com, there are loads of different companies behind the many different parts in a single iPhone.

Can you start an OEM company? Of course you can, in fact, it;s a great idea for a small manufacturing business. Focus on making specific parts for other machines, and you’ve already got a bunch of potential clients. There are plenty of sites like digsemi.com that sell things an OEM can use to create parts. That’s really all you have to concern yourself with, gaining access to the right equipment to get your job done, as well as finding the raw materials. If you can do this, then there’s no reason you can’t start an OEM company of your own.

Why Does Your Business Need An OEM?
For starters, let’s clarify what types of business actually need OEM companies. If you run something like a retail store or restaurant or any business that offers a service, you probably won’t need an OEM. However, if your business involves making products and selling them to people, then you probably will need to have contact with OEMs.

Why? Well, that’s simple, they help provide you with important things that you either can’t make yourself or can’t afford to make yourself. Any manufacturing company will tell you that making products requires a lot of resources and effort. So, it’s counterproductive to add more resources and effort by making different parts of a product that you can purchase elsewhere and just add to your final design. You need to find OEMs to help supply your business with essential items to ensure you can create the best products for your customers.

Hopefully, you can now see what an OEM is and won’t be nervous when you see this term again. If you want a business idea, then why don’t you start an OEM company? If you already have a business and need an OEM, do your research and find the best ones to partner with.

Photo by Samuel Zeller

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Milo Senalle

Milo Senalle

Managing Editor at Chispa Magazine
As one of the managing editors of Chispa Magazine, Milo Senalle is the go-to man for all things technology, ethical, and financial concerns. Providing laughs with his style of writing and problem-solving techniques, Milo is a voice of reason among the girly staff at Chispa. Married with children, living in Atlanta, he works 24/7 on becoming a man of courage and believes honor begins at home.

Milo Senalle

As one of the managing editors of Chispa Magazine, Milo Senalle is the go-to man for all things technology, ethical, and financial concerns. Providing laughs with his style of writing and problem-solving techniques, Milo is a voice of reason among the girly staff at Chispa. Married with children, living in Atlanta, he works 24/7 on becoming a man of courage and believes honor begins at home.