What does an original equipment manufacturer (OEM) do?

An original equipment manufacturer (OEM) is characterized by its role in designing and building products according to its own specifications. This involves taking control over the design, engineering, and production processes to meet specific market needs or customer requirements. OEMs typically create products that are then sold under another company's brand or used in conjunction with other products.

This definition emphasizes the OEM's responsibility in both the creative and manufacturing aspects, which distinguishes it from other types of businesses that simply distribute or sell products made by others. While OEMs may produce parts or entire products that are utilized by different brands, their unique contribution lies in the design and development process that starts from their specifications. This is a critical function in various industries, as it allows brands to offer customized solutions based on the technologies and processes developed by the OEMs.