Ultrasonic cleaners OEM Summary

    The manufacturing center

    OEM: the most important way to expand for multinationals in modern society

    OEM can be translated directly into English as "Original Equipment Manufacturing". The method of typical OEM is like this: the OEM manufacturer who owns the original equipments (that is the consignee) produces products with its own equipments according to consigner's requirements and delivers goods with consigner's logo. In the whole process, the producer only obtains the fees of process without the right to distribute the goods. The consigner controls the marketing system, brand or tangible assets. The former gets the fees of process only and the later is rewarded from product design to marketing.

    OEM belongs to the business model of outsourcing, which is popular in today's international market. Outsourcings are actually a process of searching for outside resources and reallocate them. In this process, enterprises can reduce cost by reallocating important but not core elements. With the acceleration of world economy globalization, OEM/ODM has developed rapidly, expanding from developed countries to developing countries, from traditional manufacturing industry to heavy industry and from low-tech industry to hi-tech industry.

    Up till now, OEM has become the important carrier of international work division. Nearly all the famous multinationals make use of this form to advance their strategies of globalization. In the sports costume industry, products run by business giant such as Nike and Adidas are all the outcome of OEM. In the retail industry, products sold by the biggest retailer Wall-mart are mostly produced by OEM manufacturers; in the computer industry, IT giants such as IBM in American, and Toshiba in Japan , more than half of their products belong to OEM/ODM. Even in the toy industry, OEM/ODM is found as well. The most well-known is Barbie. As the most popular toy in western world, most of