The product is yours. The factory may not be.
OEM manufacturing often combines internal product ownership, engineering, sales, and market knowledge with production capabilities provided by specialized outside manufacturers.
Original equipment manufacturers do not necessarily manufacture every component internally.
An OEM may design and sell a finished product while sourcing machined parts, molded components, castings, electronics, fabricated structures, assemblies, or finished systems from specialized suppliers.
This allows the OEM to focus internal resources where they provide the greatest value while using external production partners for equipment, processes, labor, capacity, or manufacturing knowledge.
Outside manufacturing can support several levels of the product.
Component Production
Individual machined, molded, cast, stamped, fabricated, or purchased components are produced externally.
Subassemblies
Multiple parts are combined by the supplier before delivery to the OEM's final production operation.
Complete Manufacturing
A contract manufacturing partner may assemble, test, package, and prepare completed products for delivery.
The OEM defines the product and business requirement.
The manufacturing partner controls the assigned production process.
Production performance depends on more than piece price.
The supplier must have processes and equipment appropriate for the actual product requirements.
Current equipment and labor availability must support expected volume and growth.
Inspection, process control, corrective action, and documentation must support the program.
Material availability, tooling, subcontractors, logistics, and contingency planning affect delivery.
Engineering changes, schedule issues, nonconformances, and capacity constraints need clear escalation paths.
OEM sourcing begins with the manufacturing partner.
Compare process capability, quality systems, capacity, inspection, communication, and supply risk before production launch.
Manufacturing Partner Selection →