1, OEM (original equipment manufacturer) means "original equipment manufacturer" in Chinese, which basically means OEM. OEM products are tailor-made for brand manufacturers. After production, you can only use the brand name, and you must never use the producer's own name to produce.
2. The characteristics of OEM products are: technology is outside, capital is outside, market is outside, and only production is included. Therefore, the quality of OEM products may be different from that of original products.
3. "Original equipment manufacturer" refers to the manufacturer who produces according to the requirements and authorization of the sample manufacturer and the specific conditions of the manufacturer. All design drawings are manufactured and processed in full accordance with the design of the sample manufacturer.
4, OEM, also known as fixed-point production, commonly known as OEM (production), the basic meaning is that brand manufacturers do not directly produce products, but use their own key core technologies to design and develop new products and control sales channels.
5.OEM entrusts other manufacturers of similar products to produce specific processing tasks through contract ordering. After that, the ordered products will be bought out at a low price and directly labeled with their own brand trademarks. This cooperative way of entrusting others to produce is called OEM for short. The manufacturer who undertakes the processing task is called OEM, and the products it produces are called OEM products. It can be seen that fixed-point production belongs to the "OEM" mode in processing trade and is the export of labor services with commodities as the carrier in international trade.
Second, the specific instructions of OEM
1, OEM is the abbreviation of English original equipment manufacturer. Literally, it should be translated as original equipment manufacturer, which means that one manufacturer produces products and product accessories for another manufacturer according to its requirements, also known as OEM or authorized OEM. It can represent outsourcing or subcontracting. Domestic customs are called cooperative production and tripartite processing, commonly known as processing trade. First popular in developed countries such as Europe and America, it is a game rule for international companies to find their own comparative advantages, which can reduce production costs and increase brand added value. This mode of production is quite popular in domestic household appliances industry, such as TCL authorizing Suzhou Samsung's washing machine and Changhong authorizing Ningbo Sheng Di's washing machine.
2. Specifically, OEM (original equipment manufacturer) is the original equipment manufacturer, ODM (original design manufacturer) is the original design manufacturer, and OBM (original brand manufacturer) is the original brand manufacturer. Party A takes a fancy to Party B's production capacity and allows Party B to produce products designed by Party A and use Party A's trademark. For Party B, this is called OEM; ; Party A's technology and design are favored by Party B, and Party B introduces production and labels it with Party B. For Party A, this is called ODM；; A creates its own brand A, and B produces and sells the products of brand A. First of all, it is called OBM.
3.ODM entrusts the original factory to meet the needs of buyers through efficient product development speed and competitive manufacturing efficiency in product design and development activities. After the technical ability is sufficient, the design ability can be improved, and then the case can be accepted and the related affairs of design and development can be handled.
4. Brand manufacturers do not directly produce products, but are responsible for designing and developing new products by using the "key core technologies" they have mastered and controlling the "channels" of sales. But the production capacity is limited, and even there are no production lines and factories. In order to increase production and sales, reduce the risk of entering new production lines, and even win market time, they entrust other similar product manufacturers to produce by contract, and the ordered products are bought out at low prices and directly labeled with their own brands and trademarks.
Third, OEM development advantages
1, adapt to the development of science and technology
The rapid development of science and technology has led to the shortening of product life cycle. The competitive strategy of enterprises is changing from a production mode focusing on expanding production scale and reducing production costs to a market operation mode focusing on the application of new technologies and the rapid introduction of new products. According to IDG data, in 1950s and 1960s, the average life cycle of electronic products was 10- 12 years, but in 1990s, it dropped to 6- 18 months.
2. Brand development
Economic competition is more and more spread all over the world, and brands and channels are playing an increasingly important role in the final value of actual goods. The annotation of the original manufacturer's bid under OEM mode just illustrates the importance of this point.
3. Development of information management
With the development of science and technology, Computer Integrated Production System (CIMS) has been widely used in the production process, and quality has gradually become a controllable factor in the production process, making OEM manufacturers provide material guarantee for the products produced by consumers. This is one of the reasons why OEM is popular in the information industry with a high degree of production automation, and it is also one of the reasons why multinational companies such as IBM and HP, which have only hundreds of thousands of employees, promote sales of tens of billions of dollars. Putting limited resources into channel construction also provides a fundamental guarantee for enterprises to improve market response speed.
4. Customer solutions
In the era of information economy, the division of labor is becoming more and more detailed, new products are emerging one after another, and the high-tech content is gradually improving. It is impossible for final consumers to judge the applicability of products by their scientific and technological content, because they need all-round services based on solutions. In a sense, modern enterprise competition is to assess the ability of enterprises to find consumer needs and provide them with comprehensive solutions, and the importance of a single product is gradually decreasing. The real problem is how to meet the increasingly complex and personalized consumer demand.
5. Establish a competitive advantage
The development of modern economy has changed people's views on simple competition, and competition and cooperation have become the two major driving forces for the development of modern enterprises. In the products with their own advantages, the use of competitors' OEM products makes their advantages more prominent, and at the same time, competitors have new development space, and competition has become cooperation. At the same time, with the rapid development of science and technology, it is difficult for an enterprise to master all the patented technologies of a product at one time, and provide products to each other through OEM, which can ensure the integrity of intellectual property rights.