OEM( Original Equipment Manufacture )

'Original Equipment Manufacturer - OEM'

PCS Global, helps original equipment manufacturer (OEM), to setup India operations, in its traditional definition, we help Principle Company whose goods are used as components in the products in INDIA or another company, which then sells the finished item to users. PCS Global helps firm to used the terms value-added reseller (VAR) for its product lines (because by augmenting or incorporating features or services, it adds value to the original equipment manufacturer; PCS works closely with the OEM, which often customizes designs based on the VAR company's needs and specifications and try to sell them in INDIA.

One of the most basic examples is the relationship between a manufacturer and makers of various parts. Parts manufactured by a wide variety of OEMs. The OEM parts are then sold to an Industry, which then assembles them into a finished products. However, there is a second, newer definition of OEM, typically used in the computer industry. In this case, OEM may refer to the company that buys products and then incorporates or rebrands them into a new product under its own name. For example, Microsoft supplies its Windows software to Dell Technologies, which incorporates it into its personal computers and then sells a complete PC system directly to the public. In the traditional sense of the term, Microsoft is the OEM and Dell the VAR. However, the product guide for the computer is most likely to refer customers to Dell as the OEM.

In other words, OEM can mean the company that sells a component to a VAR; but in some cases, it refers to the VAR acquiring a product from an OEM. If this sounds confusing – it is.


Why Does OEM Have Opposite Meanings?

This somewhat contradictory evolution in the use of the term OEM (which can also be used as an adjective, as in "OEM parts" or even a verb, as a manufacturer saying it plans to OEM a new gizmo) is normally attributed to the computer hardware industry. Some VAR companies such as big brands started to accept branded parts from outside sources in their own products.

PCS Global strongly believe that over time, OEM came to refer to those companies that rebrand or openly use other manufacturers' products for resale. Most of this had to do with which company was responsible for warranties, customer support and other services, but also reflected a subtle shift in the manufacturing dynamics. In one real-life instance, Dell stopped using chips from anonymous makers, and switched to Intel for the computer processors in its computers. Since Intel is a brand name, it brings added value to Dell’s computers. Not only does Dell advertise this prominently ("Intel Inside!"), its marketing materials also suggest that Intel and Dell are equal partners in the processor and computer design – as opposed to Dell just telling Intel how to build the processors, as it did with its old suppliers. All of this makes Dell the OEM, both in the minds of companies supplying the assembled parts and in the public's mind (after all, they think of the finished hardware and software package they buy as "a Dell computer").


How OEMs Work

However squishy the definition, the fact remains that VARs and OEMs work together. OEMs make sub-assembly parts to sell to VARs. Although some OEMs do make complete items for a VAR to market, they usually don't play much of direct role in determining the finished product. A common example might be the relationship between an OEM of individual electronic components and a company such as Sony or Samsung that assembles those parts in making its HDTVs. Or a maker of buttons who sells its little fasteners to Ralph Lauren sometimes customized with the letters RL stamped on them. Typically, no one integrated part from an OEM is recognized as playing an especially significant role in the finished product, which goes out under the corporate brand name.

Traditionally, OEMs focused on business-to-business sales, while VARs marketed to the public or other end users( Business to Customers ). However, an increasing number of OEMs are selling their parts or services directly to consumers (which, in a way, makes them a VAR!). For example, people who build their own computers can buy graphics cards or processors directly from Intel or retailers that stock those products. Similarly, if a person wants to do his own car repairs, he can often buy OEM parts directly from the manufacturer or a retailer who stocks those parts.


OEM vs. Aftermarket

OEM is the opposite of aftermarket. OEM refers to something made specifically for the original product, while aftermarket refers to equipment made by another company that a consumer may use as a replacement.

For example, say a person needs to replace his car thermostat, created expressly for his Ford Taurus by ABC Thermostats. He may buy the OEM part – a duplicate of his original ABC thermostat, used in the original manufacturing of the vehicle. Or he may buy an aftermarket part, an alternative made by another company. In other words, if the replacement also comes from ABC company, it is OEM; otherwise it is aftermarket.