The cooperation mode of entrusting others to produce is called OEM for short, and the manufacturer who undertakes the processing task is called OEM.
Extended data
Advantages of oem production:
1. Enter the international market and participate in international competition.
In order to explore the market, domestic manufacturing enterprises do OEM work for foreign brands, which has enhanced their global popularity.
2. Learn from experience and improve management level.
In the process of cooperation, OEM suppliers can organize production according to the buyer's requirements in product quality control, cost control, operating efficiency control and other management aspects, and improve the management level of enterprises with advanced organizational control.
3, product innovation, enhance the ability
For buyers and sellers, OEM mode not only enjoys the overall competitive advantage of products, but also has the most distinctive advantage, that is, the flexibility of buyers and sellers inside and outside the market. Either party can terminate the contract at any time as long as it finds a more profitable way. From this perspective, the OEM market is efficient.
4, large-scale production, reducing costs.
Economies of scale generally exist in modern production, that is, with the expansion of output scale, the unit cost tends to decrease. Participating in OEM supply means the expansion of output scale, which not only increases product sales, but also reduces costs.