OEM is to authorize products processed by other factories. The quality is the same, they will pass the inspection before acceptance, and the brand is their own.

The details are as follows:

1. Introduction

OEM production, also known as fixed-point production, commonly known as OEM (production), basically means that brand producers are not directly producing products, but are responsible for designing and developing new products and controlling sales channels by using key core technologies they have mastered, and the specific processing tasks are entrusted to other manufacturers of similar products for production through contract ordering. After that, the ordered products will be bought out at a low price and directly labeled with their own brand trademarks. This cooperative way of entrusting others to produce is called OEM for short. The manufacturer who undertakes the processing task is called OEM, and the products it produces are called OEM products. It can be seen that fixed-point production belongs to the mode of "OEM production" in processing trade, and it is the export of labor services with commodities as the carrier in international trade.

2. development history

OEM (original equipment manufacturer) is the only way under the trend of socialized mass production and cooperation, and it is also one of the effective ways to rationalize resources and the result of socialized mass production. In Europe, as early as the 196s, trade associations with OEM nature were established. In 1998, OEM production and trade reached 35 billion euros, accounting for more than 14% of the total industrial output value in Europe. OEM production has become an important part of modern industrial production. With the further acceleration of economic globalization, OEM demanders may select OEM suppliers in a wider range, especially to countries and regions with low processing and manufacturing costs.

3. development advantages

OEM (original equipment manufacturer) is widely used in the manufacturing industry, especially in the rapidly developing information industry. For example, according to the statistics of IDG(International Data Group), an authoritative statistical organization in the world, more than 95% of the hard disks used by global PC manufacturers are provided by three major hard disk suppliers, Seagate,Quantum and Western Digital, in the form of OEM. The reason why it can be widely used is that it has adapted to the needs of the new competitive situation brought about by the rapid development of global science and technology since the 199s. With its flexible and effective operation, OEM has adapted to the development of this new situation, thus being widely used.