What does OEM mean?
Definition What does OEM mean?
OEM means original equipment manufacturer (OEM). They are a company that produces parts and/or the finished equipment which may, in turn, be marketed by other companies. This definition of OEM has been widely accepted over the years, but there seems to be a broader perspective to it lately. This wider approach tends to further incorporate later roles of OEMs.
Typically, Original equipment manufacturers refer to a company that manufactures the main components used by another company to build a finished piece of equipment. Similarly, OEM may equally refer to a company that solely rebrands another company’s product and sells it to clients as theirs.
A good example of the definitions of OEM can be seen in the technology industry. Computer manufacturers like HP and Dell produce PCs that run the operating systems of Microsoft. Microsoft here is an OEM while Dell and HP sell their network equipment using a component from the OEM. In the hardware industry, the likes of Dell and HP are equally OEMs. This is because they design products that are targeted for use by various customers.
The OEM business model involves a Business to Business (B2B) transaction. B2B is a viable business model that often involves two companies such as manufacturers and wholesalers. There are security advantages in this model of business as there is a certainty that the seller will deliver and the buyer pay for the ordered goods. This eases the supply chain and creates an enhanced performance for the businesses involved.
There are several benefits of buying OEM products. Some of them include
1. Better maintenance culture.
The Original equipment manufacturers of a product are undoubtedly in the best position to offer top-notch maintenance services for it. The same class of certified engineers who made the product are also in charge of the maintenance operations. No one else fits this job more than them.
When you buy a piece of equipment from the original manufacturer it often comes with a default maintenance schedule. This aims to keep your equipment running without hitches while offering you free or thoroughly discounted maintenance services.
Another unique strong point of OEM maintenance strategies is the assurance that you’re getting the best available OEM replacement parts or upgrades for your equipment. Certified technicians from the original manufacturers will offer you a plan for replacement parts that suitably align with your warranty. The service contracts offered are based on your preference and convenience.
2. Certified Engineers and Technicians.
Original manufacturers have engineers and technicians who clearly understand the art and science of production and maintenance tips. They in addition receive continual education which keeps them abreast with technology innovation.
When you buy OEM products you get access to their network of trained engineers who are well groomed in industry standards of operation. They will be present to help you make the best of your purchase. With the help of their maintenance team, they will also respond in cases of emergency, preventing you from having downtime.
3. Reduced risk of poor quality work
Some third-party providers who are non-OEM technicians can in the course of maintaining your equipment spoil it even more. Aside from the poor work done, there is also an enhanced risk of failure and reduced life span of the network equipment. This and more are the reasons why it is always beneficial to choose OEM services instead of third-party vendors.
4. Value for money spent.
Sometimes, maintenance costs and the cost of ownership of OEM products can be high. However, this high cost reflects in its quality, thus there is value for every penny spent. OEM products and spare parts are of better quality than cheaper generic versions. They are also durable; you’re guaranteed that the material from which they are made is original.
Also, OEM technicians and engineers offer reliability-centered maintenance. All jobs are done efficiently and in time such that you need not worry about any delays. Time saved by such prompt intervention will eventually translate to increased revenue for your business.
5. No extra charges
Third-party maintenance from technicians and engineers who lack experience typically takes a longer time. This is because they may find it hard to navigate themselves through the equipment’s maintenance manuals. The time wasted and other unplanned work can not only lead to break-in maintenance but also incur extra expenses for you. At the end of the day, you may be paying the exact amount or even more than you would’ve paid if you were using the services of OEM technicians.
6. Reliable Warranty.
When you purchase equipment from the original manufacturer, you get a reliable warranty which usually spans a year or two. Typically, an OEM warranty comes in two phases: the initial and extended warranty.
The initial warranty phase comes with your hardware immediately after purchase and lasts for a period between 1 year and two years. During this period, the OEM provides support and maintenance for your equipment if any problem arises. Most times, the support provided at this point comes embedded in your initial purchase and at no additional cost.
The extended warranty kicks in after the initial warranty has expired. Here, you can get support and assistance from the OEM but at a service charge. You are getting the same types of network maintenance as you did in the initial stage, just that you may have to pay for it. In any case, the money paid is always worth the services.
7. Access to unique maintenance plans.
Sometimes you spend more money on a routine maintenance schedule with third parties than you would’ve done with OEMs. This is because instead of letting you spend money on scheduled maintenance which may achieve little or no results, the OEM drafts site-specific and equipment-focused maintenance contracts for you.
The maintenance schedule drafted by the OEM offers a unique and flexible plan for you, which you can work with. This reduces the need for you to pay for routine maintenance and channel the energy to the more effective and equipment-targeted maintenance offered by the OEM.
8. Availability of genuine spare parts.
When you deal with the original manufacturer instead of independent service providers on issues concerning hardware maintenance, you are guaranteed quality spare parts for your equipment. It gives you peace of mind knowing that your technicians are going to use the best parts available to repair and maintain your system.
9. Steady backup in event of any contingencies.
While repairing or maintaining your system, OEM technicians and engineers have a robust support system that can come in handy in event of any unexpected event. First, they have access to the company’s database and operating manual which they can easily use as a reference. More so, there is an avalanche of other professionals and maintenance resources from which they can seek a second opinion from. In all, OEM technical support offers immeasurable and cost-effective services that businesses can always tap into.