An OEM factory refers to a manufacturing facility where an Original Equipment Manufacturer (OEM) produces products or components. The term “OEM” is commonly used in various industries, including automotive, electronics, and computing.
- Original Equipment Manufacturer (OEM): This is a company that manufactures products or components that are purchased by another company and retailed under the purchasing company’s brand name. The OEM factory is where these products or components are actually made.
- Function of an OEM Factory:
- Production: OEM factories produce goods or components according to the specifications provided by the company that will brand and sell them.
- Customization: Depending on the agreement, OEM factories may customize products to meet the specific requirements of the purchasing company.
- Quality Control: The OEM factory ensures that the products meet the quality standards required by the purchasing company.
For example, a car manufacturer might use an OEM factory to produce engines or electronic components that are then assembled into the final vehicle under the car manufacturer’s brand. Similarly, in electronics, companies like Apple might source components like screens or processors from OEM factories.
