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OEM

Original Equipment Manufacturer — a company that produces goods to another company's design or brand.

Definition
Original Equipment Manufacturer — a company that produces goods to another company's design or brand.

An OEM (Original Equipment Manufacturer) produces products, parts or components that are designed or specified by another company and sold under that company's brand. In B2B sourcing, "OEM service" usually means the factory will manufacture goods to the buyer's design, specification, logo and packaging.

OEM differs from ODM (Original Design Manufacturer), where the factory supplies its own existing design that the buyer can rebrand. OEM gives the buyer full control over the product; ODM is faster and lower-cost because the design already exists.

Buyers seeking private-label or custom products typically look specifically for suppliers offering OEM capability.

Example usage

The buyer provides technical drawings and a brand logo, and the OEM supplier manufactures the power tools to that exact specification.

Also known as

Original Equipment ManufacturerOEM service
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