Original Equipment Manufacturer

An Original Equipment Manufacturer (or OEM) is a compay that produces components or equipments that may be marketed and re-sold to the end-consumer by another company. This second company is often referred to as the Value-Added Reseller (VAR). OEMs rely on their ability to drive down the cost of production through economies of scale. Also, using an OEM allows the purchasing company to obtain needed components or products without owning and operating a factory.