OEM co-operation

Danh mục:

Every company wants greater, better and more business coming their way – and partnerships are often a necessary and fundamental way to getting there. OEM partnerships are a way for companies of all sizes to team up and focus on one particular product. Many of today’s most successful products would not be what they are or nearly as successful without the invention of OEM partnerships.

Benefits

OEM Partnerships benefit and open many doors for the involved parties.

  • OEM partnerships mean increased access to new markets.
  • OEM partnerships reduce the time and cost of development.
  • Companies that sell to an OEM have more and often better customers.
  • High quality is expected from all involved in an OEM partnership. OEMs have strict quality requirements and high standards for consistent order volumes, which ensures the production of high quality components and greater product expertise. If one side of the partnership is unable to meet the requirements and standards, then the partnership is quickly reconsidered. OEM partnerships are comprised of extremely professional parties.
  • OEM partnerships normally take into consideration the worldwide industry standards and often provide OEMs with the option of world-wide sourcing.

Drawbacks

As in any business partnership, there are drawbacks to OEM partnerships.

  • Partnerships need to be extremely well thought-out, or they could fade away very quickly. With all the benefits of selling to an OEM, negotiations can sometimes lean towards the needs of an OEM. It is important that the interests of both parties are protected so that expectations are met and both parties know what they are getting into.
  • Extra support or product improvements may be demanded by OEMs even if they only come from a lack of understanding of the product or market requirement.
  • As in any partnership, the relationship may just not work out due to, for example, personal reasons or changes in business goals…

For further information, please contact us,

Thank you!

 

 

 

 

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