OEM Manufacturing
What Are the Benefits of Using an Original Equipment Manufacturer?
The presence of critical spares in your business is essential, but sometimes you encounter unexpected breakdowns. You’re caught in between making a hurried order from the original equipment manufacturer (OEM) or outsource from local suppliers.
With minimal repair time, most businesses prefer the latter, not knowing its financial implications. But before you make this critical choice, here are the benefits of using original equipment manufacturer parts in your business.
What Is OEM?
An Original Equipment Manufacturer also referred to as OEM, manufactures products and sells them to different companies. The purchasing company will then brand the product before selling it to its customers as a finished item. OEMs are common in the IT and auto manufacturing industries.
OEMs can be best described as business-to-business entities because they only deal with value-added resellers. The primary goal of the OEMs is to manufacture product components according to customization requirements.
Top Benefits of Using an Original Equipment Manufacturer
As a busy tech, health, or auto company, you’ve limited time to produce high-volume goods.
Thus, outsourcing the products from the original equipment manufacturer becomes cheaper and convenient. You also get high-quality and authentic products that fit your products.
Here are the benefits of using OEM:
Guaranteed Quality Parts
OEM products are pure quality, and their precision is top-notch. When you make an order from an original equipment manufacturer, you’re confident of getting the exact parts.
Using the original component blueprint and design template, OEMs craft accurate products.
You don’t need to describe the materials used because they know what to use at every stage of the parts manufacturing. Whether you’re in the robotics, medical, or health industry, you’ll get the exact product you’re looking for.
Using precision machining ensures that all products meet hyper-specific requirements.
Before dispatch, the manufacturers test the parts to ensure they meet the original specification. You get compatible parts that match the factory specs.
Manufacturer’s Warranty
What happens when a spare part breaks down a few days from its date of purchase? Buying from an OEM saves you from component defects and losses when the device cannot perform.
If the parts don’t work, they’ll replace the elements or repair them for free.
With a manufacturer’s warranty, the equipment lifespan is enhanced. Also, it reduces your downtime, saves money, and maintains its peak performance in the long run.
Should you experience part defects, call, and the manufacturer will resolve the problem.
Value
Your product value is what maintains your customer base and attracts more prospects. Stocking generic spares in your business can affect the product value.
The OEM in-house upgrades, engineering, optimization, and modifications maintain the component value. It’ll serve you past a specific duration and will be resilient between maintenance schedules.
With enhanced lifespan and minimal repairs, buying from an OEM gives you great returns on investment. It’s worth the wait and money spent on every component bought from these manufacturers.
Components Availability
Unlike generic suppliers who take time to imitate the original products, OEM requires less time to avail the required product. To beat downtime, most OEMs stock essential machine components ready for dispatch in case of a breakdown.
OEMs ensure that operations resume fast after unplanned shutdown by holding stock on consignment. They maintain catalogues of critical components and make them available.
Excellent Customer Service
Virtual description of different spare parts to an engineer can lead to wrong interpretation and production of a faulty part. When you partner with an OEM, you get a fast response to all your inquiries from designated engineers.
The professionals understand the parts and know how the blueprint and design work.
If the equipment is faulty and may not need a replacement, the engineers will virtually guide you through troubleshooting it. The exciting part is; you get to work with engineers that designed the components.
Also, they’re conversant with every aspect, making it easy for you to get the right answers to every of your question. The OEMs become silent partners whom you can trust with different component issues whenever there’s a complication.
Competent Prices
Dealing with OEMs opens up your business to competent product prices. Since the manufacturers will create bulk goods for your supply business, you can utilize the economies of scale.
At the start of the component production, the OEM will check and develop parts that match the budget. Though aftermarket items are cheaper, you can still match the price when buying from an OEM in bulk.
Yet, you’ll have better quality and customized parts, helping you save more.
Fast Production
What happens to old machine parts whose production ceased and the availability in the market is scarce? The availability of blueprints and raw materials simplifies the OEM production process.
No matter how old the vehicle or medical equipment is, the manufacturer has everything it takes to produce the required part. Upon request, the manufacturer will start production, ensuring that it meets factory specs.
Durability
Products obtained from an OEM are 100% percent durable. You don’t have to worry about the materials or the product strength in challenging conditions because it’s made with precision.
The manufacturers understand how component quality matters to consume and cannot compromise it.
OEM knows the duration that each component takes before wearing out. With an idea of when the changeout is due, you can plan on the new replacement.
Choosing an Original Equipment Manufacturer
Choosing an ideal manufacturing partner is overwhelming for the first time. Below is a list of things to look at before contracting an OEM:
• Expertise and capabilities
• Track record
• Quality
• Pricing
• Communication
• Licensing
• Flexibility
Entrusting your blueprints to a manufacturer requires trust and the ability to build a long-term relationship. Checking on the above facts before hiring one will safeguard your products and ensure your expectations are met.
Get a Reliable Original Equipment Manufacturer Near Me
It’s no secret that dealing with an original equipment manufacturer has many benefits to your business. Besides an impressive return on investment, you get quality products and a warranty for every product you buy.
Are you a startup and need a reliable OEM for your IT, electronics, medical, or food industry? At Shield Works Precision Manufacturing, we provide diverse manufacturing services. For more information about our services, get in touch with us today.
A Complete Guide to Original Equipment Manufacturing (OEM)
Manufacturing is a vital part of the U.S. economy. It accounts for more than 11 percent of total output and about 8.5 percent of total jobs.
This also means remaining competitive can be a challenge. Doing so entails producing superior products for your customers.
If you are new to manufacturing or looking for new opportunities for production, assembly, or warehousing, consider original equipment manufacturing (OEM). This alternative can make all the difference in the price you are paying for parts and the quality of the end-product you are offering.
There are many advantages to choosing the OEM option. This original equipment manufacturing guide will give you an idea of what these production methods entail. It also will offer some insights into how your business could benefit from them.
What Is Original Equipment Manufacturing (OEM)?
Original equipment manufacturing (OEM) means that a company makes components for other businesses. These value-added resellers (VAR) then sell the end-product under its own brand.
OEM companies market to other manufacturing retailers, while VARs focus on sales to the public. The computer, electronic, and automotive industries are the most common types of businesses that use OEM.
For example, a computer company will not manufacture all the components in the machine. An OEM will make the processor, disc drive, or other hardware, then the company assembles and sells the completed computer. Similar arrangements are found in automobile manufacturing.
OEMs are distinct from aftermarket parts manufacturers. These companies make parts that look and function like original components. They are generally less expensive, although that is not always the case.
Examples of aftermarket parts include fenders, rims, or cargo racks for vehicles. These are less common in computer manufacturing but are prevalent in the manufacture of a variety of electronic products.
Most aftermarket parts do not function with the same reliability as OEMs. There are exceptions, but it depends on the product. For instance, people might buy tire rims that drive better than generic ones that come with their vehicle.
What are the Advantages of OEMs?
There are many advantages an original equipment manufacturing company can provide. Here are a few significant ones to consider.
Quality
The most obvious advantage of OEMs is that they function as intended. Unlike aftermarket parts, OEM components fill an original, specific function. This means that in most cases, they are more reliable and durable.
A reputable OEM company will have some type of guarantee for the parts they are producing. Warranties differ by company, but you can expect to get the components they promise and that they will perform as intended.
Customization
Another advantage of OEMs is customization. If you are ordering these parts for a specific purpose, you will be starting from scratch with the production company. They will design a process for producing the part with precision.
Besides basic parts production, OEM companies will often offer extra assembly options. They are more likely than other manufacturers to work with you on getting the final combination of components that best suits your production demands.
Support
You can expect a more personal and interactive customer relationship with OEM companies. This is because, from the outset, you must be in conversation with them about components and their function. They are more likely to be in tune with how to meet your product and assembly needs.
OEM companies will send you samples and adjust specifications based on your recommendations. Likewise, they can adjust the production process where necessary. This is something you will not get from many aftermarket manufacturers.
Cost
Aftermarket parts can be cheaper for consumers looking for a quick replacement. But this is not always the case for VARs with larger manufacturing needs. In fact, due to economy-of-scale, OEM companies can keep production costs low and pass those savings along to their clients.
Once OEMs have design and manufacturing processes in place, production is cost-effective. Depending on the size of your order, this is likely to mean cheaper costs to you, especially in the long term.
Planning
OEM companies can estimate the cost of production with precision. This will allow you to budget long-term. It also allows you to eliminate the guesswork of what parts may cost––and how quickly you can get them–months down the road.
This also means you can return to that OEM at a later date and expect to receive the same part. This can translate to huge efficiencies for your business. Since you will not be starting from scratch, you can fill new orders quicker without having to worry about accessing the parts you need to do so.
Warehousing Capabilities
Warehousing is a big part of manufacturing. Another benefit of going with an OEM company is their ability to assist in this endeavor. OEM companies are more likely to offer a variety of third-party logistics (3PL) services, such as repackaging and labeling.
Warehousing is another add-on service that OEM companies are more likely to offer than aftermarket parts businesses. It can be a huge asset for larger orders and shipping efficiency.
Warehousing provides you with greater flexibility for inventory management as well. Prominent OEM companies are likely to offer cloud-based management services. Such programs can make it easier for you to manage your parts on-hand and get them where they need to go.
This can translate to serious cost savings for your business. It helps you manage larger orders and do direct shipping to customers. It also may allow you to reach a broader market base.
Find Original Equipment Manufacturing Near Me
Now that you have an idea of some original equipment manufacturing tips and what OEM entails, you can decide if it is right for your business. Find a reputable company that can meet your specific production needs and provides value-added services that can help you provide a better product and manage delivery processes.
At Shield Works Precision Manufacturing, we provide original equipment manufacturing (OEM) production, assembly, and warehousing solutions to our international clients. We offer quality custom manufacturing at globally competitive speeds and prices. Reach out to us today for a free quote and consultation.
How to Find an OEM Manufacturer for Your Products
China’s factories ran at record-high levels in the second quarter of 2021. High demand for Chinese exports in places like the US and Europe fueled this production.
Would you like to take advantage of the benefits a Chinese OEM manufacturer can bring your business, but you’re not sure where to start? Are you wondering how to choose an OEM manufacturer?
Learn more here about how to find the right OEM manufacturer for your products.
Why Use an OEM Manufacturer?
Many companies don’t have the resources for high-volume manufacturing or highly specialized products. You can outsource manufacturing to reduce costs and avoid the complexities of keeping production in-house.
An Original Equipment Manufacturer (OEM) makes the components for your product. You provide the design specifications for anything the OEM produces. You receive the parts and assemble them into the finished product with your trademark.
An OEM with experience making products similar to yours knows the product assembly process. They already have a supply chain in place. You can put this experience to work for you.
Domestic or Overseas Production?
Before you start looking for the right OEM manufacturer, you need to decide if you want to use a factory in the US or overseas. The best solution for your product manufacturing depends on your business priorities.
Pros and Cons of Domestic Manufacturing
Domestic manufacturing has some advantages. Using a factory in the US can give you more direct control over production. You can visit the site more regularly. You avoid dealing with tariffs and international shipping logistics.
American factories usually let you order small batches of a product. Overseas factories often have large minimum orders.
The main disadvantage of using an American factory is that you’ll almost always pay more. In addition, you may not be able to find a domestic manufacturer for some types of products.
Pros and Cons of Overseas Manufacturing
Using a factory overseas has several benefits. A factory in a country like China will almost always be cheaper than a factory in the US.
You have more options. The vast number of companies that have outsourced their manufacturing to China means that you’ll usually be able to find several sites with experience making your type of product.
Possible challenges include longer shipping times and handling import/export regulations. You’ll also need to navigate differences in business cultures. However, you can address many of the issues surrounding overseas production when you start vetting potential manufacturers.
Start Looking for a Chinese Manufacturing Plant
You can get suggestions for Chinese manufacturers you may want to use from many sources. Your industry trade association can give you potential names. The small business network for your industry is another resource.
You can also get recommendations from business contacts and networking groups.
International trade shows in the US that attract Chinese manufacturers are a good starting point as well. You can meet manufacturers and make connections with exhibitors selling products similar to yours.
Online directories of overseas manufacturers are a good resource. These sites include:
- Alibaba
- Global Sources
- Global Sourcing Specialists
- Kompass
- MFG
- ThomasNet
Searching by industry or product category can help you find manufacturers with expertise in your area.
Narrow Down Your Choices
You can use several factors to narrow down your list of potential manufacturing partners. One of the most important considerations is to find a factory that makes products similar to yours. Some manufacturers will offer to make anything, but the quality will likely be lower.
Look for online ratings and reviews to see what other buyers say about the manufacturer.
Finally, look for manufacturers that primarily export to the US and other western countries. These manufacturers already have experience complying with the necessary quality standards, product safety standards, labeling regulations, and packaging requirements. They’re more likely to have the international shipping logistics you need.
You can also look for a Wholly Foreign Owned Enterprise (WFOE). A WFOE manufacturer has its production facilities in China. However, the company has non-Chinese ownership and management.
Depending on its ownership, a WFOE will give you the quality and service western businesses expect.
Protect Your Intellectual Property
Protecting your intellectual property (IP) is critically important as you begin the process of outsourcing your manufacturing. Copyrights, trademarks, and patents are some tools you can use. Be sure your legal protections are designed for international situations.
A non-disclosure agreement (NDA) is a legally binding contract. It helps protect you against other companies copying your product. Before you start getting quotes from potential manufacturers, they should sign an NDA.
Questions to Ask a Potential OEM Manufacturer
Once you’ve narrowed down your list, it’s time to start asking some detailed questions. Ask about the labor practices of any factory you’re considering. Be sure to verify this information the best you can. Unsafe working conditions or abnormally low compensation for workers are at minimum a PR risk for you.
Ask to see a business license and documentation of the quality control system. Recent proof of inspections or third-party audits is also important. A reputable company will give you this information.
Other questions to ask include:
- What is your experience making this type of product?
- Who are some of your current clients?
- Do you do all the work in-house or subcontract to other factories?
- What is the minimum order size?
- How long will it take to make my order?
- What is the price for samples?
- What is the price for production?
- What are the payment terms?
With this information, you can choose two or three finalists and ask them to make a sample of your product. Comparing the results will show you which Chinese manufacturing plant you should use.
Choose Your OEM Manufacturer
The process for finding and evaluating an OEM manufacturer in China can seem overwhelming. Thorough research will help you find the best factory for your products.
Avoid the hassle and choose Shield Works for your product manufacturing. We’re a 100% British-owned WFOE. You get benefits like full IP protection, a live video stream from your manufacturing zone, and ISO standard quality control.
We also offer warehousing and logistics. Contact us today to find out how we can be your outsourcing solution.
5 Benefits of Using OEM Manufacturing You Need to Know
Are you looking for manufacturing services but aren’t sure where to turn? Electronics companies and more usually outsource their manufacturing to expert facilities that engineer their products with precision. In a computer or smartphone, every component has to be carefully constructed to create a positive end user experience. There isn’t much room for error. Because of this, brands often turn to OEM manufacturing to create their components to get the best possible quality and safety for their products.
OEMs, or original equipment manufacturers, don’t just work in the electronics industry, however. Besides OEM phone manufacturers and PC manufacturers, you can find companies producing all kinds of consumer products. Practically any business can utilize OEM manufacturing and enjoy its many benefits in their field.
Best of all, when you turn to OEM for your manufacturing needs, you get the same quality and reliability that top brands rely on.
Some businesses turn to other types of manufacturing: aftermarket manufacturers or value-added resellers. These alternatives work well in the industries where they excel. But nothing compares to the precision and service offered by top OEM manufacturers, whether your company produces business electronics or consumer products.
If you want to better understand the benefits of using OEM, then you’ve come to the right place. Keep reading for the top five benefits of OEM manufacturing.
1. Reliable Quality
Earlier, we mentioned aftermarket manufacturers and value-added resellers as being alternatives to OEM. But neither option provides the same level of customizability or support that OEM offers.
Aftermarket manufacturers make parts that are meant to imitate OEM-manufactured components. This often comes at a cost, as aftermarket parts are often low-quality compared to OEM parts. Aftermarket manufacturers are also limited in the level of customization they can provide to their customers.
Value-added resellers take OEM parts from other manufacturers and enhance them. They do this by adding new features and capabilities with additional components.
While VARs fill an important role in the market, they’re limited by the availability of OEM parts. VARs don’t create entirely new components from scratch, which can hold some businesses back.
As their name implies, original equipment manufacturers specialize in manufacturing brand-new parts based on original designs. This means they’re capable of building necessary components from scratch. It also makes OEM manufacturers well equipped to provide remarkable levels of customization to their customers.
OEM companies work directly with their customers. Because of this, they’re better prepared to produce products that perform exactly as their customers need them to. This often leads to sturdier, longer-lasting parts than aftermarket manufacturers can provide.
Best of all, the best OEM manufacturers are constantly working to improve the quality of their products.
2. Competitive Pricing
One of the highlights of OEM manufacturers in the competitive prices they offer. Despite providing excellent support and service, manufacturing parts with an OEM is well within the budgets of most businesses.
While aftermarket parts are sometimes cheaper, their low prices often come at the cost of both quality and customization. And when you buy OEM parts in bulk, you can save even more. You may even match the prices of top aftermarket manufacturers.
3. Faster Production
You probably wouldn’t expect the production of physical parts to happen very quickly, but with an OEM, production times can be short. OEM manufacturers try to keep designs on hand for as many parts as possible, including older parts no longer in production. This means they can often find blueprints for needed parts immediately and start production right away.
What about when existing designs for necessary components aren’t available? OEMs offer quick turnaround, even when working with original designs from their customers.
OEM companies know they exist within a highly competitive market. They’re careful to make sure their customers are satisfied with their services.
4. Excellent Support
OEM manufacturers work directly with their customers. When you contact your manufacturer, you have the opportunity to speak with an engineer responsible for your product. This means OEM customers have a wide range of technical and engineering support.
OEMs work closely with their customers to ensure each component works exactly as intended. Precise manufacturing is key, so manufacturers go above and beyond to meet customer demands.
Not only that, but OEM companies often offer excellent warranties on their products. If you should ever get a part with any defects, your manufacturer should make it right.
5. Return on Investment
The most important part of any business endeavor is getting a return on your investment. Original equipment manufacturers make it easier for businesses to turn a profit with their products.
OEM parts are specifically designed from the ground up to fit their applications. This means the functionality and lifespan of OEM products are usually excellent. As a result, businesses working with an OEM can expect to save money and reduce downtime in the long run.
Most importantly, your own customers will be far more likely to have a good experience with your products.
Get Started With OEM Manufacturing From Shield Works
And there you have it: the top five benefits of OEM manufacturing, from quality to ROI. As you can see, a business can’t go wrong when choosing to work with any OEM manufacturer.
Not all OEMs are created equal, however. That’s why you should seek out the best, whether you need OEM barrel manufacturing or are looking for a great OEM PC manufacturer.
Whatever your OEM needs, Shield Works has your business covered with some of the best features and services in the industry. Contact us today, and let’s start taking your business to the next level.
OEM vs. ODM: Selecting Your Manufacturer in China
If you have decided to outsource production to China, you must find a reliable contract manufacturer to partner up with. They can make or break your business. During your search, you’ll come across the terms OEM and ODM. You must understand these unique business services before contacting a manufacturer. In this post, we evaluate OEM vs. ODM manufacturing to help you choose the right producer to meet your needs.
OEM vs. ODM Meaning: What is OEM Manufacturing?
The abbreviation OEM stands for Original Equipment Manufacturer. It means that the production factory manufactures products as per the design specifications provided by the original company. An OEM firm plays a purely manufacturing role in the supply chain, allowing both companies to benefit from their strengths.
In many cases, a firm doesn’t have the resources needed to produce high-volume or highly-specialized goods. Outsourcing production to an OEM company cuts down on costs.
The client usually commissions the supplier to manufacture parts, components, and subsystems according to their specifications. Once the components are delivered to the client, they go through assembly. The client affixes the finished product with the company trademark, and sells it on the market under their name, and at competitive prices.
Common product categories that benefit from OEM production include the automotive industry, electronics, ICT equipment, plastic parts, cosmetics, toys, and garments.
Advantages of OEM
Some of the benefits of OEM vs. ODM manufacturing include:
Cost-Effective Products
The cost of producing components is highly competitive due to the economies of scale. Streamlined processes, large volumes, and efficient supply chains in countries like China make OEM components quite cheap. This translates to higher profit margins, increased sales, and more revenue.
Specialized Technology
Don’t have the right equipment or expertise to create certain components? Take advantage of the specialized technology offered by OEM manufacturers to get it done. This access to better technology and expertise leads to quality products.
Intellectual Property Rights
OEM gives you complete control over the trademarks and intellectual property rights. This allows you a better bargaining position, which makes it easier if you ever need to switch suppliers.
Disadvantages of OEM vs. ODM Manufacturing
The main disadvantage is that there is a limited selection of OEM suppliers for specialized items. This doesn’t allow you a good opportunity to capitalize quickly on innovative or new products. Requesting product samples can help circumvent this issue.
Many OEM suppliers prefer dealing with companies that can create a lot of demand. As such, this may not be your ideal route if you can’t sell goods fast.
There is also the risk of infringement of your intellectual property rights. The designs you create for components could be sold to competitors.
You cannot rely on OEM suppliers to troubleshoot or correct any faulty designs as they manufacture products based solely on the data you provide.
OEM vs. ODM Meaning: What is ODM Manufacturing?
The abbreviation stands for Original Design Manufacturer and refers to companies that design and manufacture products. The products are then sold to other companies, which rebrand and market them as their own.
ODM manufacturers produce goods in bulk. This allows smaller companies to benefit from the expertise of the manufacturing firm and economies of scale.
ODM companies are categorized under White Label & Private Label Production. White label suppliers distribute generic finished products to different retailers who sell them as their own. Private labeling firms sell finished products exclusively to a particular retailer.
Product categories that benefit heavily from ODM manufacturing include cosmetics, food, electronic cigarettes, consumer electronics, medicine, and clothing. Many supermarkets with their range of basic items share the same ODM supplier.
Advantages of ODM Manufacturing
Top benefits of manufacturing ODM vs OEM you should consider include:
Speeds Things Up
ODM companies don’t have to worry about researching, developing, and testing a product. They already did that a long time. All they have to worry about is rebranding an already made product to be uniquely linked to your firm.
Cheaper than Manufacturing Your Products
Designing and testing the effectiveness of a product requires capital and time. Partnering with an ODM manufacturer saves that much more money and allows you time to focus on the core aspects of your business.
Reliable and Tested Products
Depending on how complicated a product is, certification is required before it goes to market. ODM manufacturers handle all the quality inspections and testing and obtain product certifications long before you place your order.
Disadvantages of ODM Manufacturing
Working with an ODM manufacturer makes it difficult to stand out from the competition. The same product you purchase will be sold to other companies, with minimal variations. Unless you get creative with marketing or are a well-known brand, your product will get lost in the crowd.
If you do manage to kill it in sales and customers request an upgrade, convincing your ODM supplier to help you will be tough. Many ODMs aren’t quick to develop new products, especially if it calls for a partial or full redesign.
The intellectual rights belong to your supplier. As such, you’ll never have complete control over any legal decisions regarding the product, or who else the supplier sells to.
ODM vs OEM Manufacturing: What’s Right for Me?
The main difference between OEM vs. ODM lies in the approach to product development. This poses obvious implications for you as an importer in terms of lead time, IP ownership, and costs. Let’s take a closer look at a comparison between the two:
- There is no difference in price per unit
- Product development takes 1-8 months in OEM and 1-4 weeks in ODM
- Injection molds and tooling is paid for by OEM buyers and ODM supplier
- Both offer mass production
- The buyer provides the product design in OEM while ODM manufacturers handle product design
- OEM buyers and ODM suppliers own the intellectual property rights
Whether working with an ODM or an OEM works for you depends on your product, market, and goals.
OEM vs. ODM: Contact Shield Works to Learn More
Whatever your business model, outsourcing production can improve the efficiency of your supply chain and spark business growth.
Shield Works provides reliable precision assembly services that you can rely on for increased output and enjoy the benefits of product assembly in China. Contact us today to learn more about OEM vs. ODM manufacturing.
The Ultimate Guide to Original Equipment Manufacturing (OEM)
If you work in an industry that deals with physical devices, you understand how each part needs to function properly for the product to be a success. The average vehicle, for instance, has about 30,000 parts, and each one is important for the car to work. That is why knowing how each component is produced is vital to the overall quality of the machine. If you are unfamiliar with original equipment manufacturing (OEM) and its many benefits, keep reading.
The information below will explain the distinctions between OEMs and their alternatives. It will give you a sense of how your business will profit from these components and why you should find reputable manufacturers to work with.
What Is OEM Manufacturing?
Original equipment manufacturing (OEM) refers to the production and sale of products directly to customers. This means that the components of a product are manufactured for that machine and its uses. The automotive and electronics industries are some common industries where you will find OEM parts.
There is a distinction between OEMs and ODMs, which are original design manufacturers. ODMs created the design and specifications of a product. OEMs, by comparison, do not have to be the original designers but must be licensed to produce them using the original specifications.
OEM Alternatives
Aftermarket manufacturers make parts that are meant to look and function like OEM parts. They are often cheaper, although there are some deficits, including diminished quality, that come with the lower price tag.
There are exceptions to this. Some aftermarket parts can enhance performance. These are most common in the automotive industry. A good example is custom vehicle floor mats or upgraded stereo equipment.
It is worth noting that these are more the exception than the rule. And, even with these products, it is difficult to be certain of the heightened quality and performance.
There is a third option: value-added resellers (VAR). These are businesses that use OEM parts but incorporate different features and functions.
VARs and OEM parts manufacturers have a mutually beneficial relationship. VARs help sell OEM parts, and OEM manufacturers supply the parts for upgrade.
OEM Manufacturing Benefits
There are many advantages to purchasing OEM parts. Here are a few major ones to consider.
Better Quality
OEM companies work directly with customers. This means they are better situated to produce a product that performs the way you need it to. OEM manufacturers are much more likely to be able to customize parts for you.
OEM manufacturers make parts for their intended uses. So, you can expect them to function better and last longer than aftermarket ones. For this reason, you will find more comprehensive warranties with OEM parts.
OEMs will have higher quality standards than aftermarket companies. That is because they know that cheaper alternatives are available.
Since OEM companies are not trying to “fill a gap,” they are always improving the quality of their products. This means that the parts you buy from them tomorrow will be better than the ones they made today. This evolution in quality is not always present in aftermarket companies.
Competitive Cost
While aftermarket parts are often touted as cheaper alternatives, many OEM manufacturers can provide better pricing, especially with bulk orders. That is due to economy-of-scale production that is not achievable by aftermarket companies.
While aftermarket parts can be cheaper, you may be “rolling the dice” when it comes to value. With OEM parts, you can be more assured that you are getting what you pay for.
Also, the longer lifespan of OEM parts can more than offset any cost savings from cheaper parts that break down more often. Depending on your industry, this also can translate to thousands of dollars in savings due to avoided downtime.
You may find higher installation costs associated with aftermarket parts as well. Since they are not made to original specifications, there is no guarantee that you can incorporate them with the same ease as OEM parts.
Quicker Production
Faster turn-around is one of the biggest advantages of using OEM. That is because you are buying directly from the manufacturer and cutting out the “middle man.” An aftermarket company will take longer to identify the part and ensure they have it in stock.
OEM companies are more likely to have older parts as well. It is common for OEMs to have a more expansive storage capacity than smaller manufacturers.
Aftermarket companies often produce components to fill a need for a limited time. But OEM manufacturers are better situated to retain designs and production methods for older products. This can be a huge advantage if you need specific components that are otherwise no longer available.
Better Support Services
You can expect OEM companies to provide superior engineering and technical support. They will have unique knowledge about their products. That is because they are involved in everything from design to production and testing.
OEM companies can only exist if they are meeting the needs of their clients. They understand that alternatives are available and will do everything in their power to provide a quality product that works as intended.
Establishing a relationship with an OEM company will guarantee that, should products not meet your expectations, they will do everything they can to make it right. This can afford peace of mind that is not achievable with alternative product manufacturers.
Find Original Equipment Manufacturing Parts for Your Business
Now that you have an idea of what original equipment manufacturing entails and what the benefits are, you can decide on products that meet your manufacturing needs. Be sure to find a reputable manufacturer that can meet your product demands and offer superior support and customer service.
Shield Works provides customized OEM manufacturing, assembly, and warehousing solutions to clients around the world. We pride ourselves on open communication and services so that you will receive prompt communications and short lead times for product customization. Reach out today to learn more about our products and services.
How Does OEM Manufacturing Work?
OEM manufacturing is a part of most people’s lives, whether they realize it or not.
The products that people use in their daily will have parts from OEM manufacturers. These include automobile, electrics, and computer software products that benefit from OEM manufacturers.
In this article, we’re going to take a deep dive into the world of OEM manufacturing. So take a seat, buckle up, and enjoy the ride!
OEM Manufacturing
An original equipment manufacturer (OEM) is a company who manufactures parts to be used in another companies’ products. The purchasing company then sells the end product to the consumer.
Take, for example, a car that’s driven daily. An OEM manufacturer is the one that manufactures parts such as the steering wheel or tires that are then assembled and sold to individuals.
Traditionally, OEM manufacturers have only dealt with business-to-business transactions. Recently they have been selling directly to consumers with the help of the internet. Say an individual consumer wants to buy a graphics card. They can then purchase the graphics card directly from the OEM manufacturers or retailers with the OEM product in stock.
Contract Manufacturing
Like OEM manufacturers, contract manufacturers also develop products based on their client’s designs. However, contract manufacturers have the added benefit if a company wishes to expand its range of products.
A company looking to hire a contract manufacturer typically has a design or a formula for the product they want to sell to individual consumers.
One example would be a cleaning supply company. They would hire a contract manufacturer to produce the product according to their design, then throw on a private label specific to them.
Some contract manufacturers also provide warehousing options. This means that they can provide services including:
- Manufacturing the product
- Storing the product
- Labeling
- Shipping directly to the consumer
In today’s globally connected world, the services above become a valuable part of any profitable business plan.
Working together with a contract manufacturer has an added benefit – giving the business owner more time to focus on customers rather than worrying about their supply chain.
Benefits of OEM Manufacturers
Working with an OEM Manufacturer in China has its advantages that blow its competition out of the water. Here are some of the most important.
Cost
Manufacturing in China has been a practice that is recognized not only in the U.S. but also globally. The main reason for the recognition is the significant decrease in production costs. The advantage is competitive pricing. This enables the selling company to decrease the product’s price while maintaining a higher profit margin.
The competitive pricing that OEM manufacturers located in China provide makes working with them ideal. The higher overhead costs of domestic OEM manufacturers only lead to higher prices for both parties.
Scale
The fact that OEM manufacturers in China produce goods for companies globally is a well-known fact. Due to the demand, these manufacturers can scale their production well beyond any domestic company for a fraction of the price.
Limited storage space is a problem for many small business owners and companies. But it’s a problem that OEM manufacturers in China with warehousing services solve. Specifically, warehouses that can provide next-day shipping.
Let’s say a company wants to expand its products or dip its toes into a new market. An OEM manufacturer in China or contract manufacturer can develop the product line for the company with a quick turnaround.
Assembly
Several well-known companies contract out their production of parts to OEMs. However, they assemble their final product themselves. Unfortunately, this isn’t always possible or even profitable for smaller businesses.
Contract manufacturers provide another solution to a problem here. Some contract manufacturers provide assembly services in addition to manufacturing, warehousing, and shipping. Thus, they are essentially an all-in-one shop.
Quality
Some people tend to think that products made in China are of lower quality because the cost to produce is so low. That’s not the case whatsoever.
A large majority of these OEM manufacturers have been implementing the same production process for decades. This makes them experts on that process. Many companies and small businesses make the costly mistake of attempting to produce a product on their own. That mistake doesn’t make sense when they have the option to contract an OEM manufacturer in China with decades of experience.
Cost-Effectiveness
Another benefit we want to discuss also has to do with the cost-effectiveness of OEM manufacturers. For example, say a company wishes to produce its product domestically.
This means that a large part of their investment will have to go into the factory as well as the purchase of expensive equipment. It also includes the added cost of raw material prices fluctuating in the market. Yet, manufacturers in China can mitigate the risk. The OEMs lock in costs per unit over a fixed period. This protects them against fluctuations in currency and raw materials costs.
Disadvantages of OEM Manufacturers
Working with OEM manufacturers is not all roses and sunshine. However, the disadvantages discussed below can be avoided with proper research.
The most apparent drawback of working with an OEM manufacturer overseas is the lack of complete control over the final product. The lack of total control can be mitigated by building a relationship with the manufacturer. This entails clear, consistent communication from both parties.
An international agreement entails two different legal systems. Before signing a contract, a company must understand which legal system the contract falls under.
In addition, culture and language differences are also a cause for concern for many business owners.
Despite the disadvantages, companies looking to work with an overseas OEM manufacturer can avoid the risks. Proper research is a vital step towards a fruitful relationship.
Change the Game
Shield Works is a 100% British-owned and managed company headquartered in China with offices in the U.K. and the U.S.
We are the one-stop-shop for all your OEM manufacturing needs. We provide a range of services, including assembly, manufacturing, warehousing, or management needs. That’s in addition to any other custom services you require. To better serve our clients, we leverage our C2W membership to provide supply chain services as well.
Get in contact with us to change the game.
How To Choose Original Equipment Manufacturers
Original equipment manufacturers (OEMs) can help a business with its production processes at a cost-effective price.
They can also be a reliable source that helps drive your business to the next level by taking care of some essential business tasks.
However, if you choose the wrong partner, this can cause production problems. Delivery delays could even result in your company losing customers.
Fortunately, there are several crucial aspects you can look for when deciding how to choose an original equipment manufacturer.
Read on to learn how to find the right OEM supplier for your business.
Original Equipment Manufacturers Quality Standards
Customers have more options than ever before, and if your products fall below their standards, they will simply buy from one of your competitors.
There are many stories about companies purchasing cheap goods that suffer from a severe lack of quality.
While you will want to keep your production costs affordable, it’s important to remember you may have to pay slightly more to obtain superior merchandise.
You should ask if the OEM service adheres to ISO standards throughout their manufacturing process. In addition, the company should train all their staff and ensure that employees are encouraged to report any potential issues.
When a company can identify potential problems early on, there is less likely to be a delivery delay. This can be a vital factor if you need a supply of high-demand products quickly to satisfy your customers’ needs.
A reliable OEM will be proactive and agree on the standards you require before they begin the production process. Then, they can examine their finished items in line with these terms.
By checking all products before they leave the factory, an OEM ensures you do not have to return items when they reach your premises.
OEM Transparency
When deciding how to choose an OEM, an open and honest line of communication is essential. To maintain your high standards, you can ask the company if they provide access to their site.
There is no need to have a physical presence on the premises because you can use technology to gain 24/7 access.
Whether you are at your desktop computer or using a mobile device, you can always get a live update on the production process.
If the OEM is happy to allow you to view their work through a secure video feed, this provides peace of mind that they will deliver what they promise.
You can even request access to specific locations along the production process. For example, you could view their quality control area to ensure you are satisfied with the finished article.
Independent Testing
You may be wondering should you get an OEM if you are worried about the quality of their work. After all, if you haven’t worked with them before, you only have their word that they manufacture high-quality merchandise.
But, you can have more confidence when you partner with an OEM that uses independent third-party testing. When choosing your supplier, you can ask how you can communicate with the independent testers.
It’s best if you can discuss your product quality with them directly. This means you have the reassurance that the factory is working to the agreed standards.
Although the factory should also have its own internal quality control team, an extra layer of testing is reassuring. There is a reduced chance of inferior products slipping through the net.
OEM Analytics
It can be challenging to outsource your production needs to a company based in a different country. If companies don’t provide you with real-time information, then how do you follow the order progress?
You may also have to inform customers when they can inspect their goods. In this scenario, it’s important to have access to production analytics at all times.
You may be in a different time zone from your OEM and don’t have time to wait for a manager to get to the office.
Before partnering with an OEM service, you can query if they use a manufacturing software system.
For example, you may want to know about the production output, so you know when your order will be ready for shipping. In addition, if deliveries are later than expected, you should be able to view production downtime.
If a supplier consistently has too much downtime, you can decide to move your business to a different OEM.
Access to analytics can also be important as you will expect your supplier to take corrective action when there are issues.
Business doesn’t always run smoothly, and your OEM needs to know how to fix any issues that could have a negative impact on your company.
If you can see this information through the analytics software, it can be reassuring that your products are in good hands.
OEM IP Protection
If other companies steal your Intellectual Property (IP), they could target your customer base. Therefore, when selecting your OEM service, it’s good practice to ask about IP protection measures.
You can query if they have designated zones for specific processes. Also, how do they protect your information? Your partner company should have robust hiring procedures and use the latest technology to protect your data.
It’s also a good idea to work with a company that helps you register your IP in China. This can make it easier to obtain the protection you need for your products without having to navigate the required steps on your own.
Partner with Shield Works Today
Shield Works is a British-owned and managed OEM based in China. We are one of the leading original equipment manufacturers and have been providing our services to satisfied clients for over 15 years.
We operate to the highest quality standards and use the latest technology to provide our clients with the products they need.
We work closely with our partners to ensure we meet delivery times and exceed expectations.
Contact the Shield Works sales team to book a consultation today.
What Are the Benefits of OEM Manufacturing: Your Ultimate Guide
Have you ever received parts for your equipment and products that don’t work as expected? This is a common problem businesses face when they don’t partner with an OEM manufacturing company.
Choosing aftermarket products to save money will end up costing you more in the end. Parts will fail, take longer to ship, and don’t meet the required specifications of your products.
OEM manufacturing, however, delivers quality parts designed to fit your equipment and products. Every product you receive will work as expected and comes with additional warranties and support.
Do you want to invest in long-lasting parts guaranteed to work with your products? Check out these benefits of OEM manufacturing.
What is OEM Manufacturing?
When you see OEM manufacturing on an item, it stands for Original Equipment Manufacturer. An OEM manufacturer is a company that produces original products or parts to a product. Another company purchases the OEM parts and products to use in their products or sell to buyers under their branding.
The companies reselling the OEM parts are Value-Added Resellers or VARs. The VAR sells OEM products with added features to enhance its benefits. VARs and OEMs have a mutually beneficial relationship.
Your car is a perfect example of an OEM and VAR relationship. The brand of the car is the VAR but they don’t manufacture every part of their vehicles. An OEM company manufactures these parts, such as the tires, seat belts, or the car battery.
OEM Manufacturing Benefits
Working with an OEM manufacturing partner guarantees the products you buy are high-quality and will properly fit in your products. Some aftermarket companies may offer similar parts but they may not fit nor offer the same compatibility.
Here are a few reasons why you need to work with an OEM original manufacturer.
Faster Response
When you need a specific part for a project or as a replacement, ordering from your top OEM manufacturers will take less time. There’s no “middle-man” as you can directly order parts from the OEM manufacturer.
Working with a third-party distributor, broker, or aftermarket company will take significantly longer. These companies may take longer to identify the part and determine whether they have a particular part or product in stock. In other cases, it will take longer for them to locate it in their storage warehouse since they distribute other products as well.
Reputable OEM manufacturers take pride in delivering their products as quickly as possible. Many monitor their delivery methods to ensure your receive your parts and products on time.
Additional Support
OEM manufacturers offer superior support when it comes to ordering or asking questions about a specific part or product you’ve ordered in the past. This is because the original engineers are a part of the OEM manufacturing company. You have access to engineering and technical support directly from the engineers.
OEM manufacturers have the greatest knowledge base of their products. They designed and crafted their products to fit a specific need or needs. From there, they tested the products to ensure they meet requirements and to find out their limitations.
OEM manufacturers know their products best. You’ll receive the most accurate information and answers to your questions directly from the source.
Quality Products
OEM manufacturers take pride in the products they create and place their name on every part and product. The OEM’s pride and confidence translate into high-quality products. OEM manufacturing companies work directly with their customers to ensure their parts fit their customers’ needs perfectly.
The success of an OEM manufacturing company largely depends on keeping their customers satisfied. Their parts and products need to continuously meet their customers’ expectations. Failing to do so can result in lost customers and a loss in sales.
What do you do if you need a part or product replaced? OEMs offer replacements that are identical, if not better, than the original part. OEMs craft their parts to meet the original part’s specifications and compatibilities.
Warranties
Parts and products manufactured by an OEM company come with a manufacturer’s warranty. This is also true for replacement parts—an advantage you can’t always get with any aftermarket company or distributor. Many OEMs will happily replace parts and offer a warranty on the replacement parts as well.
If you find a component or product has flaws, you can contact the source and request a new one. Again, OEMs value their customers’ satisfaction and are happy to help your business with any issues you may run into.
Added Value and a Longer Lifespan
OEM manufacturers like Shield Works, craft parts that are identical to the parts before. New and improved pieces meet the same specifications ensuring they offer the same performance as before.
Any spare parts offered by an OEM manufacturer will outlast and outperform any aftermarket product. OEMs use high-quality materials and regularly test all of their products for durability and reliability.
Opting for an aftermarket part or product may have cheaper upfront costs but the cost of installation and running the part will cost you more. These parts are likelier to fail and possibly damage your equipment. An aftermarket part won’t have the same specifications, warranties, and lifespan as OEM products.
A Greater Return on Investment
Partnering with an OEM manufacturing company will offer you a greater return on investment. You can order custom manufactured parts better suited for your products and equipment. Since OEM parts must meet specific requirements and specifications for your products, they’ll improve the longevity of your equipment. This level of reliability and longer lifespan will save you money and time.
OEM manufacturers look to and prepare for tomorrow meaning they’re continuously looking for ways to improve their products to better fit their clients’ needs. Working with an OEM manufacturing company will give your company and equipment an edge over the competition.
OEMs can make more accurate improvements to their parts as they already have the knowledge, design plans, molds, and testing of their current products. OEM clients can enjoy newer technology and upgrades to parts faster.
Shield Works OEM Manufacturing Is Right For You
OEM manufacturing companies believe in crafting strong business-customer relationships by offering unparalleled expertise and high-quality products. OEMs take the time to understand your business and your needs to ensure you receive the best service and products for your company.
Do you have a project you want to share? Let us know. We have the experience, knowledge, and skills to make your next big project a success!
What Do OEM (Original Equipment Manufacturers) Do?
You’ve just come up with a genius blueprint and need to implement it but don’t have the tools or the know-how to make your design come to life. What should you do? Where do you go from there? OEM Original equipment manufacturers are some of the most important organizations in the world.
The parts they make and the designs that they produce to keep the world as we know it spinning every day. If you were wanting to learn more about OEMs and what they do, you’ve come to the right place.
What Is an OEM Original Equipment Manufacturer?
An OEM (or Original Equipment Manufacturer) makes OEM parts or components of a part for their buyers. These buyers can be separate companies that sell those parts to consumers or other companies under their own brand.
As an example, a manufacturer of factory equipment might assemble the equipment. From there, a lot of the parts were manufactured by an original equipment manufacturer.
What Do OEMs Do?
The primary function of original equipment manufacturers is to produce new parts for a product, but they do much more on top of that. OEM sell parts to consumers or businesses seeking replacement parts for products they have purchased.
These parts can be sold through the market or vendors, or to business through business-to-business sales. Some companies will even set up partnerships with OEMs in which the OEM will manufacture the part and send it to the company for them to re-brand and use.
Who Does Business With OEMs?
A major source of business for OEMs is the work that they do with value-added resellers. Value-added resellers are companies that purchase OEM parts and upgrade or augment them to add more value before selling them.
The value that VARs add to these products is usually in the form of software upgrades or special features. VARs also take these products and bundle them together to make new products to sell under their own brand.
In most cases, original equipment manufacturers work in a business-to-business capacity. The last few years have seen increasing amounts of OEMs that are beginning to sell replacement parts directly to consumers.
There are two main industries in which consumers are purchasing OEM parts. They are the technology industry (particularly computers) and the automotive industry.
Both industries have a large number of people who work on and build their own devices or machinery. It is less expensive for them to source the original part and complete the work themselves. It also keeps the warranty for their device or machinery in place.
Benefits of Original Equipment Manufacturers
There is a multitude of benefits that come with getting new parts from the original equipment manufacturer:
- Top Quality: There are a lot of ways to get replacement parts, but nothing will beat the original equipment manufacturer part. It is identical to the original part that it is replacing. Though it may cost more than other options the quality is better.
- Durability: OEM parts are more durable. They come with the added benefit of knowing the materials used to make them, and they tend to be better made.
- Lifespan: OEM parts last much longer before requiring a replacement part. The processes used to make them and the materials that make up the parts are both top-notch.
OEM parts are made specifically for the product that is being used and will work perfectly as a replacement. They are made to precise specifications and most times they come with lifetime warranties. If the part does go bad and requires a replacement that replacement part can be obtained for free.
These benefits also spill over into the bottom line of your business. Working directly with original equipment manufacturers can save you money and time.
By working with an OEM, a company can save money in investment into the manufacturing of the parts they need. This also shortens the turnaround time that it takes for producing those parts.
Other OEM Services
There are a lot of other services that original equipment manufacturers provide that can be a valuable asset to you and your company.
Some OEMs are able to customize procedures and create specialized in-house processes for manufacturing OEM parts for you and your business.
Depending on what you need, original equipment manufacturers can produce new innovations that you draw up. OEMs are able to create new equipment and parts for whatever your needs may be.
OEMs can also be a great resource for outsourcing important tasks or parts of the manufacturing process. This can be especially important if you wish to keep your design safe and secure.
Best of all, original equipment manufacturers are able to implement these specialized processes at their own manufacturing plant. This can give them an opportunity to apply their expertise and make manufacturing efficient.
Another service that OEMs can provide is helping you to secure intellectual property patents. This is a great idea if you develop new ideas and innovations. Doing this protects your ideas from being stolen and implemented by other manufacturers.
OEMs work with companies that will look after your intellectual property. It doesn’t matter if it is copyrights, trademarks, or patents.
How to Start
Now you know all about OEM original equipment manufacturers and how they can benefit you. Whether you are a business using a certain product, a VAR looking to upgrade parts, or a consumer trying to source a replacement part, OEMs are here to help.
Get started today with all of your original equipment manufacturing needs.