{"id":5434,"date":"2021-10-04T05:37:52","date_gmt":"2021-10-04T11:37:52","guid":{"rendered":"https:\/\/limblecmms.com\/?p=5434"},"modified":"2025-05-30T13:06:17","modified_gmt":"2025-05-30T19:06:17","slug":"oem","status":"publish","type":"post","link":"https:\/\/limblecmms.com\/blog\/oem\/","title":{"rendered":"What Is An Original Equipment Manufacturer (OEM)?"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row kd_background_image_position=&#8221;vc_row-bg-position-top&#8221;][vc_column][vc_column_text]<span style=\"font-weight: 400;\">Original equipment manufacturers (OEM) are an integral part of modern industrial production. Most of the products we use in our daily lives are comprised of OEM parts. Yet, most consumers tend to be unaware of the role played by these companies, since they exist largely in the B2B market.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The same cannot be said about industrial maintenance professionals \u2013 they cannot afford to ignore OEMs! In this post, we will explore how to use the OEM as an indispensable resource in your maintenance strategy, and how and when to consider alternatives. <\/span><span style=\"font-weight: 400;\">But first, let\u2019s take a closer look at OEMs in general.\u00a0\u00a0<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row kd_background_image_position=&#8221;vc_row-bg-position-top&#8221;][vc_column][vc_column_text]<\/p>\n<h2><b>What does OEM mean?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Before industrialization, most products only had a few moving parts. Manufacturers created basically everything they needed in-house.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">These days, products are infinitely more complex. Cars, computers, heavy machinery, TVs, mobile phones \u2013 everything contains hundreds, sometimes thousands of different components.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-5436\" src=\"https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning.jpg\" alt=\"oem meaning\" width=\"640\" height=\"215\" srcset=\"https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning.jpg 1200w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning-300x101.jpg 300w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning-1024x345.jpg 1024w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning-768x259.jpg 768w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning-451x152.jpg 451w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning-554x187.jpg 554w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning-93x31.jpg 93w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning-540x182.jpg 540w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning-100x34.jpg 100w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Even the largest of corporations don\u2019t attempt to keep everything in-house. Outsourcing and relying on third-party vendors for specific parts is not only cheaper, but far more convenient as well.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is where original equipment manufacturers come into the picture. It is almost impossible to envision modern industry without OEMs. They provide many benefits, some of which we take for granted:\u00a0<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\">OEMs allow other manufacturers to cut production costs<\/span><\/li>\n<li><span style=\"font-weight: 400;\">They enable competitive pricing of products through <\/span><a href=\"https:\/\/www.investopedia.com\/terms\/e\/economiesofscale.asp\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">economies of scale<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Through specialization, they encourage technology innovation<\/span><\/li>\n<li><span style=\"font-weight: 400;\">They help maintain high-quality standards in industrial production<\/span><\/li>\n<\/ul>\n<h3><b>OEMs provide components for finished products<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">This is the classic definition of an OEM \u2013 a company whose products are used as components in the creation of a finished product by another company.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For instance, <\/span><a href=\"https:\/\/www.brembo.com\/en\/car\/original-equipment\/categories\/sport\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Brembo<\/span><\/a><span style=\"font-weight: 400;\"> is a famous Italian manufacturer of high-performance brake pads. They are the OEM for the brakes used in many sports cars from manufacturers like Ford, Chevrolet, and Dodge.\u00a0\u00a0<\/span><\/p>\n<h3><b>OEMs provide equipment<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Manufacturing involves the use of specialized CNC machines, foundries, cranes, loaders, hydraulic presses, drills, and a wide range of other advanced machinery. In many instances, companies buy them from OEMs that specialize in the design and manufacturing of industrial equipment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A good example here would be <\/span><a href=\"https:\/\/www.lincolnelectric.com\/en\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Lincoln Electric<\/span><\/a><span style=\"font-weight: 400;\">, a global leader in the production of CNC machines and welding equipment.\u00a0<\/span><\/p>\n<p><b>OEMs can supply software and hardware<\/b><\/p>\n<p><span style=\"font-weight: 400;\">Another example comes from the tech industry. Many companies in the software space work as OEM suppliers for other companies. In this arrangement, the OEM will give out licenses of their software products to other companies.<\/span><span id=\"relationship-between-VARs-and-OEMs\"><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Microsoft is one of the biggest examples of a software OEM \u2013 their Windows OS and MS Office suites are bundled on laptops and PCs sold to end-users by computer manufacturers like HP and Dell.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The hardware part of the computer industry is even more famous for OEMs &#8211; hard drives, graphics cards, and processors for retail products are manufactured by a handful of companies, with giants such as Intel leading the market.<\/span><\/p>\n<h2><b>The relationship between VARs and OEMs<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">A Value Added Reseller (VAR) is any company that buys components from an OEM and sells it to customers with additional features that enhance the original. A VAR is similar to a reseller but distinguishes itself from the latter by adding tangible value to the OEM product.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A company specializing in custom PC building can be considered as a VAR \u2013 they source all components from OEM brands like Intel, Nvidia, Asus, Samsung, Corsair \u2013 do the assembly, take care of the operating systems and apps, and deliver a finished product built to the specifications of the buyer.\u00a0<\/span><span id=\"role-of-OEMs-in-maintenance\"><\/span><\/p>\n<p><span style=\"font-weight: 400;\">A car dealership can be also considered as a VAR \u2013 they source the cars from the automaker and add features\/services and additional components \u2013 a service plan, insurance, finance options, entertainment systems (from other OEMs) before selling to the final customer.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">VARs act as a worthwhile distribution and marketing channel for OEMs, leaving them free to focus on their core activities like production and R&amp;D.\u00a0<\/span><\/p>\n<h2><b>The role of original equipment manufacturer in maintenance<\/b><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-5437\" src=\"https:\/\/limblecmms.com\/wp-content\/uploads\/OEM-maintenance.jpg\" alt=\"OEM maintenance\" width=\"640\" height=\"158\" srcset=\"https:\/\/limblecmms.com\/wp-content\/uploads\/OEM-maintenance.jpg 1200w, https:\/\/limblecmms.com\/wp-content\/uploads\/OEM-maintenance-300x74.jpg 300w, https:\/\/limblecmms.com\/wp-content\/uploads\/OEM-maintenance-1024x253.jpg 1024w, https:\/\/limblecmms.com\/wp-content\/uploads\/OEM-maintenance-768x189.jpg 768w, https:\/\/limblecmms.com\/wp-content\/uploads\/OEM-maintenance-451x111.jpg 451w, https:\/\/limblecmms.com\/wp-content\/uploads\/OEM-maintenance-554x137.jpg 554w, https:\/\/limblecmms.com\/wp-content\/uploads\/OEM-maintenance-93x23.jpg 93w, https:\/\/limblecmms.com\/wp-content\/uploads\/OEM-maintenance-540x133.jpg 540w, https:\/\/limblecmms.com\/wp-content\/uploads\/OEM-maintenance-100x25.jpg 100w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">OEMs that supply machinery and equipment have a much larger bearing on <\/span><a href=\"https:\/\/limblecmms.com\/maintenance-definitions\/industrial-maintenance\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">industrial maintenance<\/span><\/a><span style=\"font-weight: 400;\"> than those that supply components for the final product. The reason is quite obvious \u2013 it is <\/span><a href=\"https:\/\/limblecmms.com\/blog\/how-to-organize-a-maintenance-department\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">the job of the maintenance department<\/span><\/a><span style=\"font-weight: 400;\"> to conduct regular servicing and repair of all company assets on the production floor.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">When the equipment is sourced from an original equipment manufacturer, its reliability and quality will have a huge bearing on the long-term productivity and the potential ROI of the procured asset.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The impact of an OEM partner does not end at the time of asset acquisition. It extends <\/span><a href=\"https:\/\/limblecmms.com\/blog\/useful-life-of-asset\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">throughout the service life of the asset<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0\u00a0<\/span><\/p>\n<h3><b>OEMs provide critical documentation\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Access to proper documentation is essential during the asset acquisition process \u2013 it allows firms to zero in on products that match their needs and specifications. Furthermore, user manuals and vendor guidelines help staff get familiar with the equipment. This is especially important for the maintenance team.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With modern <\/span><a href=\"https:\/\/limblecmms.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">CMMS like Limble<\/span><\/a><span style=\"font-weight: 400;\">, user manuals can be attached to respective assets.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-5440\" style=\"border: black; border-width: 3px; border-style: solid;\" src=\"https:\/\/limblecmms.com\/wp-content\/uploads\/Limble-asset-card.jpg\" alt=\"Limble asset card\" width=\"640\" height=\"380\" srcset=\"https:\/\/limblecmms.com\/wp-content\/uploads\/Limble-asset-card.jpg 1200w, https:\/\/limblecmms.com\/wp-content\/uploads\/Limble-asset-card-300x178.jpg 300w, https:\/\/limblecmms.com\/wp-content\/uploads\/Limble-asset-card-1024x608.jpg 1024w, https:\/\/limblecmms.com\/wp-content\/uploads\/Limble-asset-card-768x456.jpg 768w, https:\/\/limblecmms.com\/wp-content\/uploads\/Limble-asset-card-401x238.jpg 401w, https:\/\/limblecmms.com\/wp-content\/uploads\/Limble-asset-card-491x292.jpg 491w, https:\/\/limblecmms.com\/wp-content\/uploads\/Limble-asset-card-93x55.jpg 93w, https:\/\/limblecmms.com\/wp-content\/uploads\/Limble-asset-card-540x321.jpg 540w, https:\/\/limblecmms.com\/wp-content\/uploads\/Limble-asset-card-100x59.jpg 100w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p style=\"text-align: center;\"><i><span style=\"font-weight: 400;\">An example of an asset card inside Limble CMMS (which can include user manuals)<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">This way, maintenance techs and operators can access it from anywhere with just a few simple clicks. Combine that with quick access to maintenance history and checklists and you have created an environment where maintenance techs have everything they need to minimize downtime and spend the least amount of time <\/span><a href=\"https:\/\/limblecmms.com\/blog\/what-is-troubleshooting\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">troubleshooting<\/span><\/a><span style=\"font-weight: 400;\"> failed equipment.<\/span><\/p>\n<h3><b>OEMs can provide training programs<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">If the product is a highly technical or sensitive piece of equipment, OEM vendors often provide additional services in the form of <\/span><a href=\"https:\/\/limblecmms.com\/blog\/maintenance-training\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">maintenance training programs<\/span><\/a><span style=\"font-weight: 400;\">. These may include modules focused on operations as well as repairs, troubleshooting, and advanced <\/span><a href=\"https:\/\/limblecmms.com\/blog\/equipment-maintenance\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">equipment maintenance.<\/span><\/a><span style=\"font-weight: 400;\">\u00a0<\/span>[\/vc_column_text][\/vc_column][\/vc_row][vc_row content_placement=&#8221;middle&#8221; kd_background_image_position=&#8221;vc_row-bg-position-bottom&#8221; kd_top_separator_style=&#8221;arrow-down&#8221; kd_top_separator_height=&#8221;separator-height-small&#8221; kd_bottom_separator_style=&#8221;arrow-down&#8221; kd_bottom_separator_height=&#8221;separator-height-small&#8221; kd_top_separator=&#8221;true&#8221; kd_bottom_separator=&#8221;true&#8221; css=&#8221;.vc_custom_1699569949363{margin-bottom: 40px !important;padding-top: 60px !important;padding-bottom: 40px !important;background: #dde4e8 url(https:\/\/limblecmms.com\/wp-content\/uploads\/cta-laired-hex-4.webp?id=9077) !important;background-position: center !important;background-repeat: no-repeat !important;background-size: cover !important;border-radius: 0px !important;}&#8221; css_tablet_landscape=&#8221;.vc_custom_1699569949363{padding-bottom: 80px !important;}&#8221; css_tablet_portrait=&#8221;.vc_custom_1699569949364{padding-bottom: 80px !important;}&#8221; css_mobile=&#8221;.vc_custom_1699569949364{padding-bottom: 80px !important;}&#8221; el_class=&#8221;limble-page-blog-width&#8221;][vc_column][vc_row_inner content_placement=&#8221;middle&#8221; gap=&#8221;15&#8243; kd_background_image_position=&#8221;vc_row-bg-position-top&#8221;][vc_column_inner width=&#8221;2\/3&#8243;]<header class=\"kd-section-title col-lg-12 text-left  subtitle-below-title kd-animated fadeIn   vc_custom_1682969180220\" data-animation-delay=200><h2 class=\"separator_off\" style=\"font-size: 42px;font-weight: 500;margin-bottom:30px;\">Maintenance Inventory Tracking Template<\/h2><h6 class=\"subtitle\" style=\"color: #152232;\">Begin tracking your maintenance and parts inventory with this free and easy-to-use template.<\/h6><\/header>[\/vc_column_inner][vc_column_inner width=&#8221;1\/3&#8243;][vc_raw_html]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[\/vc_raw_html][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row][vc_row kd_background_image_position=&#8221;vc_row-bg-position-top&#8221;][vc_column][vc_column_text css=&#8221;&#8221;]<\/p>\n<h3><b>OEMs provide upgrades and custom add-ons<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In the IT and software fields, frequent software updates and security patches are common features provided by OEMs. OEM software improves end-user experience and helps neutralize potential security threats.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Similarly, when it comes to equipment, OEMs might offer optional upgrades, expansions, and customized add-ons, depending on the changing needs of your business.\u00a0<\/span><\/p>\n<h3><b>OEMs supply replacement parts and spares<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In all pieces of hardware, some parts are more prone to degradation than others. Companies often keep a constant stock of essential spares for their critical assets. These stocks have to be replenished regularly.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Naturally, OEMs are usually the best (if not the most economical) sources of equipment spares and replacement parts.\u00a0<\/span><\/p>\n<h3><b>OEMs offer after sales support and maintenance\/repairs<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Some OEM vendors may also offer ongoing maintenance services as part of an after-sales support program. When dealing with highly-specialized equipment, the on-site maintenance team may not have the necessary expertise or tools to perform the required maintenance actions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The cost of these services depend on the signed <\/span><a href=\"https:\/\/limblecmms.com\/blog\/maintenance-contract\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">maintenance contract<\/span><\/a><span style=\"font-weight: 400;\">. You can use the <\/span><span style=\"font-weight: 400;\">Limble CMMS vendor management module<\/span><span style=\"font-weight: 400;\"> to track costs associated with each vendor, as well as keep track of their work.<\/span><span id=\"alternatives-to-OEM-parts\"><\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-1646\" style=\"border: black; border-width: 3px; border-style: solid;\" src=\"https:\/\/limblecmms.com\/wp-content\/uploads\/2020\/04\/vendor-management-in-Limble.jpg\" alt=\"vendor management in Limble\" width=\"640\" height=\"528\" srcset=\"https:\/\/limblecmms.com\/wp-content\/uploads\/2020\/04\/vendor-management-in-Limble.jpg 1004w, https:\/\/limblecmms.com\/wp-content\/uploads\/2020\/04\/vendor-management-in-Limble-300x248.jpg 300w, https:\/\/limblecmms.com\/wp-content\/uploads\/2020\/04\/vendor-management-in-Limble-768x634.jpg 768w, https:\/\/limblecmms.com\/wp-content\/uploads\/2020\/04\/vendor-management-in-Limble-288x238.jpg 288w, https:\/\/limblecmms.com\/wp-content\/uploads\/2020\/04\/vendor-management-in-Limble-354x292.jpg 354w, https:\/\/limblecmms.com\/wp-content\/uploads\/2020\/04\/vendor-management-in-Limble-73x60.jpg 73w, https:\/\/limblecmms.com\/wp-content\/uploads\/2020\/04\/vendor-management-in-Limble-490x405.jpg 490w, https:\/\/limblecmms.com\/wp-content\/uploads\/2020\/04\/vendor-management-in-Limble-100x83.jpg 100w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p style=\"text-align: center;\"><i><span style=\"font-weight: 400;\">A vendor overview screen inside Limble CMMS\u00a0\u00a0<\/span><\/i><\/p>\n<p><span style=\"font-weight: 400;\">Keep in mind that there are many OEM vendors who don&#8217;t provide all of the aforementioned services. Picking vendors who don&#8217;t provide adequate documentation or a reliable supply of spares <\/span><a href=\"https:\/\/limblecmms.com\/blog\/maintenance-cost-explained\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">can increase your maintenance costs<\/span><\/a><span style=\"font-weight: 400;\"> and risk of unplanned downtime. Be sure to do your homework when picking your maintenance vendors.\u00a0<\/span><\/p>\n<h2><b>The alternatives to OEM parts \u2013 OE, ODM, aftermarket<\/b><\/h2>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-5438\" src=\"https:\/\/limblecmms.com\/wp-content\/uploads\/oem-vs-odm-vs-oe-vs-aftermarket.jpg\" alt=\"oem vs odm vs oe vs aftermarket\" width=\"640\" height=\"174\" srcset=\"https:\/\/limblecmms.com\/wp-content\/uploads\/oem-vs-odm-vs-oe-vs-aftermarket.jpg 1200w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-vs-odm-vs-oe-vs-aftermarket-300x82.jpg 300w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-vs-odm-vs-oe-vs-aftermarket-1024x278.jpg 1024w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-vs-odm-vs-oe-vs-aftermarket-768x209.jpg 768w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-vs-odm-vs-oe-vs-aftermarket-451x123.jpg 451w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-vs-odm-vs-oe-vs-aftermarket-554x151.jpg 554w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-vs-odm-vs-oe-vs-aftermarket-93x25.jpg 93w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-vs-odm-vs-oe-vs-aftermarket-540x147.jpg 540w, https:\/\/limblecmms.com\/wp-content\/uploads\/oem-vs-odm-vs-oe-vs-aftermarket-100x27.jpg 100w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The supply of affordable spares is an important concern for any industrial enterprise. <\/span><a href=\"https:\/\/limblecmms.com\/blog\/spare-parts-management\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Managing spare parts inventory<\/span><\/a><span style=\"font-weight: 400;\"> is a major unavoidable expense for any business using industrial equipment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Now, OEMs may seem like the natural choice as the source of all spares and parts. But other options do exist in the market, in the form of OE, ODM, and aftermarket spares. Let&#8217;s see how they stack up against OEM spares.\u00a0<\/span><\/p>\n<h3><b>OEM vs OE parts<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">OE stands for Original Equipment, the same as in \u201cOEM.\u201d Both OE and OEM parts are identical as they are made based on the same factory specifications. The only difference &#8211; a different company makes the OE parts.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, consider an OEM car component for a Mercedes manufactured in-house by the company. The OE variant of the same component may come from licensed auto parts subcontractors of Mercedes \u2013 companies like Hella Behr.\u00a0\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The OE component will come with the authentic Mercedes logo, and the same build quality and reliability as the original product. OE spares tend to be cheaper than their OEM counterparts.\u00a0<\/span><\/p>\n<h3><b>OEM vs ODM\u00a0<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">ODM is an acronym for Original Design Manufacturer. ODM and OEM are often used interchangeably and cause a fair bit of confusion. An Original Design Manufacturer is any company that manufactures a new product based on exact specifications and designs provided by a client that owns all the license and branding.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A great example of ODM \u2013 client relationship involves the new Nokia mobile phones. The phones are developed and designed by the Finnish firm HMD Global. They own the Nokia brand, but the production is handled by ODMs like <\/span><a href=\"https:\/\/www.forbes.com\/sites\/ralphjennings\/2019\/01\/31\/apple-contractor-foxconn-makes-gains-with-its-own-brand-of-phones-in-a-tough-market\/?sh=452ff8b2c48e\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Taiwanese electronics manufacturer Foxconn.<\/span><\/a><span style=\"font-weight: 400;\"> The name of the ODM does not appear on the retail products \u2013 the phone carries the Nokia brand name.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since ODMs rely on the design and specifications provided by the brand owner, you can expect the same quality and reliability as on the original company\u2019s product, probably with cheaper costs as well.\u00a0<\/span><\/p>\n<h3><b>OEM vs aftermarket parts<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Aftermarket parts are manufactured by companies that are generally not connected to the OEM in any way. There are numerous firms out there, especially in the automotive segment, involved in the production of aftermarket alternatives for OEM spares.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Aftermarket parts come with considerable appeal \u2013 they can be <\/span><a href=\"https:\/\/www.repairerdrivennews.com\/2015\/12\/03\/aftermarket-parts-act-saves-insurers-money-but-savings-to-consumers-dubious\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">60% less expensive than OEM or OE parts<\/span><\/a><span style=\"font-weight: 400;\">. But that affordability does come with major caveats in terms of quality and <\/span><a href=\"https:\/\/limblecmms.com\/blog\/reliability-engineering\/#what-is-reliability\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">reliability<\/span><\/a><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">OEM\/OE spares from different sources will offer a similar level of reliability. But with aftermarket parts, you do not have this guarantee. There are numerous options from obscure manufacturers, with wild variations in quality.\u00a0<\/span><span id=\"cheaper-is-never-better\"><\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some expensive aftermarket solutions do offer performance and durability comparable to (or better than) OEM parts. Unfortunately, that is more of an exception than a rule. The vast majority of low-priced spares come with a limited warranty and low quality.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you can find a consistently reliable brand, aftermarket spares can be a great way to cut down maintenance costs on your lower priority assets. For critical assets, it is better to stick with OEM\/OE parts.<\/span><\/p>\n<h2><b>Cheaper is (almost) never better<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">From a pure maintenance perspective, picking the right OEM for critical assets will depend on several factors. The level of support offered by the OEM through training, manuals, and after-sales service will have long-term implications on asset reliability and longevity.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The availability and pricing of OEM spares, and the price\/quality balance on aftermarket spares, can easily complicate vendor selection.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ultimately, the decision should be based on a long-term outlook. Cheaper parts and products will need to be replaced more often, forcing you to expend more maintenance resources in the long run. More work also means more downtime.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Keep that in mind while choosing your original equipment manufacturer and OEM parts provider.<\/span>[\/vc_column_text][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>[vc_row kd_background_image_position=&#8221;vc_row-bg-position-top&#8221;][vc_column][vc_column_text]Original equipment manufacturers (OEM) are an integral part of [&hellip;]<\/p>\n","protected":false},"author":24,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[739],"tags":[],"class_list":["post-5434","post","type-post","status-publish","format-standard","hentry","category-maintenance-operations"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Who Is An Original Equipment Manufacturer (OEM)?<\/title>\n<meta name=\"description\" content=\"A closer look at OEM, OEM parts, and the role of original equipment manufacturer in industrial and maintenance processes.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Who Is An Original Equipment Manufacturer (OEM)?\" \/>\n<meta property=\"og:description\" content=\"A closer look at OEM, OEM parts, and the role of original equipment manufacturer in industrial and maintenance processes.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/\" \/>\n<meta property=\"og:site_name\" content=\"Limble CMMS\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/limblecmms\/\" \/>\n<meta property=\"article:published_time\" content=\"2021-10-04T11:37:52+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2025-05-30T19:06:17+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1200\" \/>\n\t<meta property=\"og:image:height\" content=\"404\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Bryan Christiansen\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Who Is An Original Equipment Manufacturer (OEM)?\" \/>\n<meta name=\"twitter:description\" content=\"A closer look at OEM, OEM parts, and the role of original equipment manufacturer in industrial and maintenance processes.\" \/>\n<meta name=\"twitter:creator\" content=\"@LimbleCMMS\" \/>\n<meta name=\"twitter:site\" content=\"@LimbleCMMS\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Bryan Christiansen\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"10 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/limblecmms.com\/blog\/oem\/\",\"url\":\"https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/\",\"name\":\"Who Is An Original Equipment Manufacturer (OEM)?\",\"isPartOf\":{\"@id\":\"https:\/\/limblecmms.com\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning.jpg\",\"datePublished\":\"2021-10-04T11:37:52+00:00\",\"dateModified\":\"2025-05-30T19:06:17+00:00\",\"author\":{\"@id\":\"https:\/\/limblecmms.com\/#\/schema\/person\/a3ef98afa60af6b427b9f68b67eaadd5\"},\"description\":\"A closer look at OEM, OEM parts, and the role of original equipment manufacturer in industrial and maintenance processes.\",\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/#primaryimage\",\"url\":\"https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning.jpg\",\"contentUrl\":\"https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning.jpg\",\"width\":1200,\"height\":404,\"caption\":\"oem meaning\"},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/limblecmms.com\/#website\",\"url\":\"https:\/\/limblecmms.com\/\",\"name\":\"Limble CMMS\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/limblecmms.com\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/limblecmms.com\/#\/schema\/person\/a3ef98afa60af6b427b9f68b67eaadd5\",\"name\":\"Bryan Christiansen\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/limblecmms.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/65733e37ef7bfb693a1b05b726fec39617cbbf39a78f93d60e1a651197875355?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/65733e37ef7bfb693a1b05b726fec39617cbbf39a78f93d60e1a651197875355?s=96&d=mm&r=g\",\"caption\":\"Bryan Christiansen\"},\"sameAs\":[\"https:\/\/www.linkedin.com\/in\/bryan-christiansen-4a6a5914a\/\"],\"url\":\"https:\/\/limblecmms.com\/blog\/author\/marketinglimblecmms-com\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Who Is An Original Equipment Manufacturer (OEM)?","description":"A closer look at OEM, OEM parts, and the role of original equipment manufacturer in industrial and maintenance processes.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/","og_locale":"en_US","og_type":"article","og_title":"Who Is An Original Equipment Manufacturer (OEM)?","og_description":"A closer look at OEM, OEM parts, and the role of original equipment manufacturer in industrial and maintenance processes.","og_url":"https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/","og_site_name":"Limble CMMS","article_publisher":"https:\/\/www.facebook.com\/limblecmms\/","article_published_time":"2021-10-04T11:37:52+00:00","article_modified_time":"2025-05-30T19:06:17+00:00","og_image":[{"width":1200,"height":404,"url":"https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning.jpg","type":"image\/jpeg"}],"author":"Bryan Christiansen","twitter_card":"summary_large_image","twitter_title":"Who Is An Original Equipment Manufacturer (OEM)?","twitter_description":"A closer look at OEM, OEM parts, and the role of original equipment manufacturer in industrial and maintenance processes.","twitter_creator":"@LimbleCMMS","twitter_site":"@LimbleCMMS","twitter_misc":{"Written by":"Bryan Christiansen","Est. reading time":"10 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/limblecmms.com\/blog\/oem\/","url":"https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/","name":"Who Is An Original Equipment Manufacturer (OEM)?","isPartOf":{"@id":"https:\/\/limblecmms.com\/#website"},"primaryImageOfPage":{"@id":"https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/#primaryimage"},"image":{"@id":"https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/#primaryimage"},"thumbnailUrl":"https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning.jpg","datePublished":"2021-10-04T11:37:52+00:00","dateModified":"2025-05-30T19:06:17+00:00","author":{"@id":"https:\/\/limblecmms.com\/#\/schema\/person\/a3ef98afa60af6b427b9f68b67eaadd5"},"description":"A closer look at OEM, OEM parts, and the role of original equipment manufacturer in industrial and maintenance processes.","inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/limblecmms.com\/learn\/maintenance-operations\/oem\/#primaryimage","url":"https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning.jpg","contentUrl":"https:\/\/limblecmms.com\/wp-content\/uploads\/oem-meaning.jpg","width":1200,"height":404,"caption":"oem meaning"},{"@type":"WebSite","@id":"https:\/\/limblecmms.com\/#website","url":"https:\/\/limblecmms.com\/","name":"Limble CMMS","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/limblecmms.com\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/limblecmms.com\/#\/schema\/person\/a3ef98afa60af6b427b9f68b67eaadd5","name":"Bryan Christiansen","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/limblecmms.com\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/65733e37ef7bfb693a1b05b726fec39617cbbf39a78f93d60e1a651197875355?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/65733e37ef7bfb693a1b05b726fec39617cbbf39a78f93d60e1a651197875355?s=96&d=mm&r=g","caption":"Bryan Christiansen"},"sameAs":["https:\/\/www.linkedin.com\/in\/bryan-christiansen-4a6a5914a\/"],"url":"https:\/\/limblecmms.com\/blog\/author\/marketinglimblecmms-com\/"}]}},"_links":{"self":[{"href":"https:\/\/limblecmms.com\/wp-json\/wp\/v2\/posts\/5434","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/limblecmms.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/limblecmms.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/limblecmms.com\/wp-json\/wp\/v2\/users\/24"}],"replies":[{"embeddable":true,"href":"https:\/\/limblecmms.com\/wp-json\/wp\/v2\/comments?post=5434"}],"version-history":[{"count":0,"href":"https:\/\/limblecmms.com\/wp-json\/wp\/v2\/posts\/5434\/revisions"}],"wp:attachment":[{"href":"https:\/\/limblecmms.com\/wp-json\/wp\/v2\/media?parent=5434"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/limblecmms.com\/wp-json\/wp\/v2\/categories?post=5434"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/limblecmms.com\/wp-json\/wp\/v2\/tags?post=5434"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}