Introduction

An Original Equipment Manufacturer or OEM supplier in India is a company that manufactures intricate systems, and components that are used for various purposes of manufacture of the final component or the end product. For example, a computer manufacturer will integrate and make a bundled product using OEM components. These could be processors, software, or minor solutions that are used in the final product.

In definition, it is a company whose goods in making other products of another company that sells the finished and final product. Gayath Heavy Engineering Private Limited is one such company.

How does OEM work?

OEM is a term that you often come across in the automotive and IT industries. However, their function is not limited to these industries alone several more use them like airlines and shipping, and so on. The term and the functionality have changed over the period of time and today it is a new ball game altogether. For example, the term OEM is also used to describe a company that manufactures the original components and sometimes the final product itself. OEM is widely used in the software industry and personal computer manufacturing.  OEM supplier in India is in high demand because they can manufacture several finished products and are marketed under different names.

How is the OEM product built?

A specific product is built, partnered with, and resold by various OEM suppliers in India.  Before a certain solution is delivered to the end users, many companies mull how to best meet the customers’ requirements. Several aspects are taken into consideration like the manufacturing process of the product, the build, and partnering with a company that designs the solution.

When a company partners with an OEM supplier in India they minimize the overall investment of manufacturing and also reduce production and raw material costs. These companies are left to concentrate on their core competency by using the best breed of products. Most of the products required by these companies are already available in the market and there is no point in re-inventing the wheel.

What is the cost of OEM products?

Ask any retailer or OEM supplier in India and they will vouch for the fact that OEM is definitely cheaper and it is because of the economies of scale. When a company partners with OEM suppliers to manufacture goods in huge quantities they significantly reduce the price and production time as well.

However, a challenge is to verify the quality of the product that is purchased from an OEM. For example, anybody would buy a computer from DELL or APPLE because of the brand name. However, if an OEM company has to sell it it may not have the same credibility. This is one of the top reasons for the low cost of OEM products.

Conclusion

From a bird’s eye view using the services of OEM suppliers in India is extremely beneficial because of the savings and the viability along with the ease of the manufacturing process. There is a high dependency for almost all manufacturing sectors on OEM products and the future is bright!