What is OEM?

What is OEM?

OEM is a method of outsourcing the manufacturing of a product to another company and selling it as a private label.

When the company that owns the brand focuses on product design and sales strategy and leaves the manufacturing to a specialist manufacturer, it is possible to grow the business effectively.

This method is particularly effective and attractive to companies and small business owners who do not have the manufacturing equipment or technology to do so because it reduces the cost of manufacturing.

This type of OEM manufacturing is used in a variety of industries, including household appliances, clothing and cosmetics, so you'll see it frequently in your everyday life.

If you think the item is internally similar, even if it has a different brand name, it is most likely an OEM produced product.

What are the benefits of OEM implementation?

The advantages of OEM implementation include the following three points.

-Significantly reduced manufacturing costs

-Reduced inventory risk

-Focus on planning and sales

OEMs do not need to have their own manufacturing facilities, which allows them to significantly reduce costs and sell original products for a small amount of money.

In addition, because there are many OEM companies that can handle small production runs, the risk of holding large inventories is reduced even if product planning fails.

In addition, you will be able to focus on planning and marketing your own products and thus be able to respond quickly to market demands.

In this way, OEM is a powerful tool for companies to gain a competitive advantage.

Points to remember when requesting an OEM

When requesting production from an OEM company, it is important to keep the following technical and quality points in mind.

1. Detailed documentation of product specifications

Since the specifications of an OEM product are the blueprint for the product, they should be prepared in detail so that the OEM company can understand them and clearly describe the drawings, manufacturing process, material selection, etc.

If there are changes in the specifications, communicate the details clearly to ensure the quality and perfection of the product and to prevent misunderstanding and trouble.

2. Sample verification

We make prototypes at the early stage of production to check the performance and durability of the product under actual use conditions, and if there are any problems, we will make improvements as needed.

It is also important to have real users test the samples and collect feedback to find improvements before the samples are released to the market.

3. Establish a quality control system

Define quality control standards for the manufacturing process and ensure that contractors adhere to these standards, including material inspection, manufacturing process monitoring and final product inspection.

If necessary, use a third-party inspection agency to conduct objective quality assessments to ensure the quality of your goods.