OEM stands for Original Equipment Manufacturer. But what does it mean to be an OEM? Original equipment manufacturers are companies who manufacture components that are used by other companies in their productions, which then sell their finished products to customers. So the firm who purchases components from an OEM add value to the original product. The OEM, often customizes designs to meet the specific requirements and specifications of the company who purchases these components from it. So for example a company like Honda or Harley Davidson does not manufacture all of the components for their motorcycles themselves. Rather, they give orders to another company for them to manufacture OEM motorcycle parts based on their specific needs and specifications. And these motorcycle parts and components are customized and produced specifically to work with their motorcycles.
The relationship between motorcycle manufacturers and OEMs
Traditionally OEMs only focus on business-to-business sales. Although in … Read the rest