What is an Original Equipment Manufacturer (OEM)?

OEM Panel

An original equipment manufacturer or OEM is a company that produces and sells products or parts of a product that the buyer, another company, sells to its customers by placing the products under its own brand. OEMs typically operate in the automotive and IT industries.

An OEM is typically the direct customer of a retail company that sells direct to consumers. For example, Dell does not make all the parts for a Dell laptop or Computer. Some parts, like the processor or memory module, are maybe an OEM product.

Essentially, Value Added Resellers or VARs sell products from an OEM but add certain additional features beforehand. The two share a collectively beneficial relationship as VARs help OEMs sell their products and OEMs entrust VARs with their products which allows them to sell them with more features that improve the products' performance.

OEM Panel

Original Equipment Manufacturer vs. Aftermarket

While an original equipment manufacturer makes original equipment, an aftermarket manufacturer, on the other hand, makes products that are interchangeable in appearance and function with those of the original equipment manufacturer.

In simpler terms, the parts are not genuine products as they are manufactured by domestic or foreign-based companies without the authorization of the OEMs to manufacture such products. Although the products are generally cheaper, they are not guaranteed to perform as well as the OEM product.

Example of an Original Equipment Manufacturer

To better illustrate how OEMs work, let's look at an example. Suppose Company A manufactures pen drives. They will produce not just one type of product, but multiple versions of it, which in turn will be sold to different computer manufacturers. retailers. These companies are value-added resellers who market directly to the public.

Characteristics of an
Original Equipment Manufacturer

1. OEMs Sell Licences

OEMs often licence products to the value-added resellers to whom they market to use their parts.

2. OEM Hardware

Hardware can be easily purchased online, either from a retail product manufacturer or through an OEM. However, OEM hardware usually comes with incomplete parts. such as cables and adapters required to install and operate the hardware.

3. OEM for Software

OEM software, like hardware, usually doesn't come with much besides the base software and your license key.

Benefits of Buying Original
Equipment Manufacturer Products

Here are some of the advantages of buying OEM:

1. Good quality

why not? After all, an OEM product is the same product made by the original manufacturer. Although cheaper versions exist, the price of the OEM product reflects its quality.

2. Durability

These products are usually not only of good quality but also durable. For example, when purchasing a replacement tire, an OEM tire is often better than an aftermarket tire because you can rely on the materials used in its manufacture.

3. Lifespan

OEM parts often last longer than aftermarket parts.

How can I verify myself as an OEM on GeM?

For OEM verification:

1. Log in to GeM, go to My Account → OEM Dashboard.

2. Under "Request Brand, OEM Authorization", select your category and brand.

3. Please upload relevant documents (Brand Ownership\Brand Documents) and click Create Application.

4. The GeM team will review the application and if validated, you will be granted the OEM rights to the brand in the selected Category granted.