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OEM Sourcing: OEM Defined & Its Importance in Sourcing Quality Products


Finding dependable original equipment manufacturers (OEMs) can often be a challenge for buyers. Due to concerns over factors such as quality, reliability, sustainability, and ethics, the assessment process is often lengthy, resource-intensive, and expensive. But OEM sourcing doesn’t have to be this way. 

Alibaba.com has made it easier for B2B buyers to reach suppliers that complement their manufacturing processes. The platform simplifies the process by providing access to OEMs that have worked with leading brands, helping professional buyers cut down on research and onboarding costs. 

Here’s all you need to know about OEMs on Alibaba.com and how to find them. 

Table of Contents
What are industry-leading brands?
What is OEM sourcing?
Why are quality OEMs so important to professional buyers?
How to find OEMs with top brand experience on Alibaba.com
Conclusion on Original Equipment Manufacturers (OEMs)

What are industry-leading brands?

Leading brands are often the biggest and most profitable companies in the world. They are regarded as leaders in their respective industries and include famous global brands such as Apple, Nike, and Samsung.

There are various measures by which these companies achieve their industry leadership. For brands such as Apple, the measure is revenue and profitability. For others such as Bytedance, the standard is how they are disrupting industries and creating immense value. 

Another way that leading brands are recognized is their ranking by reputable organizations. For example, the Fortune 500 has been a gauge of business success since 1954. Companies that made the list had combined revenue of over $13 trillion in 2021, roughly two-thirds of US GDP for the year. 

What is OEM sourcing?

Define OEM

An original equipment manufacturer (OEM) is a creator of authentic components for other manufacturing companies. They contribute quality parts to the production process of professional buyers.

Example of OEM in automotive industry

A car manufacturer may source various components such as engines, transmissions, and electrical systems from different OEM manufacturers. The car manufacturer will then assemble these components into a final product, completing the vehicle.

Why are quality OEMs so important to professional buyers?

An OEM is more than just an equipment supply partner. Reliable OEMs are the key to creating world-class products that fly off the shelves.

The time investment required to identify suitable suppliers is immense as every factor must be critically assessed. Some of the key aspects that must be considered are product management, quality controls, corporate reputation, and pre-sales and after-sales services. Identifying OEMs that meet these requirements ensures a stable and dependable supply chain. 

The old adage “garbage in, garbage out” applies to OEMs as well. Poorly-made parts or components compromise the final product, leaving problems that cost considerable time and money to fix.

For instance, the cost of poor quality to companies can take between 5% to a crushing 30% of gross profit. Likewise, unexpected delays in production or delivery of original components will stall production and result in losses. 

Leading brands are less tolerant of gaps in quality or consistency as they have a global name to live up to. That’s why OEM for industry well-known brands provide an assurance of better quality and dependable services. 

Benefits of OEM

With the right OEM supply partners, there are several benefits your business can take advantage of and capitalize on. Here are a few key benefits: 

Cut down on production time 

By assembling components instead of manufacturing them yourself, production can move faster. 

Reduce manufacturing outlay 

With dependable OEMs, professional buyers don’t need to maintain vast manufacturing operations. You can work leaner and be more agile as a result. 

Leverage niche expertise 

Some OEMs are the best at what they do. Your brand can leverage this expertise to add world-class components to your final product. 

Support brand heritage 

Top brands do not compromise on quality. They have a solid track record and only work with OEMs that help further that reputation. By working with these OEMs, your business can also benefit from a strong supply partner.

How to find OEMs with top brand experience on Alibaba.com

Easing the process of finding OEM for industry well-known brands is a core value proposition of Alibaba.com. In addition to its status as the world’s largest B2B marketplace, the platform also serves as a solution for identifying quality OEMs. 

We know that a key point of buyer concern is the quality and reliability of their OEM supply partners. As such, we’ve made it incredibly easy to find and assess OEM candidates on Alibaba.com.

  1. Step One: Head to the Alibaba.com homepage and locate the category of products (automotive, consumer electronics, machinery, apparel, etc.) you are interested in. You can also access product categories through the dropdown menu on any page.
  2. Step Two: Click on your preferred category. Once you’re on the category page, you will see sections showing OEM suppliers for various products. Click on any of these to enter their respective page.
  3. Step Three: You will see a variety of OEM suppliers, including information such as their name and expertise. When you click on any of these, you will enter the company’s storefront, which has detailed information about their processes, quality, and ratings.

Alibaba.com has added these pages to provide detailed upfront insight into potential OEM supplier candidates. You can quickly see if the supplier is verified and if their facilities have received a physical inspection from an independent third party. 

The page also provides a video introduction to the factory. You can easily access additional details from the company name dropdown menu at the top of the page, just below the Alibaba.com menu bar. From here, you can quickly learn where the company is located, how long they’ve been in business, their major supply markets, their supplier index (a supplier quality rating), and more.

Conclusion on Original Equipment Manufacturers (OEMs)

A top OEM with proven manufacturing capabilities and excellent quality products is worth its weight in gold. Though finding quality OEM is often tricky, Alibaba.com has redefined its process to make locating them easier.

Success for professional buyers starts with taking care of your products and developing a reputation for quality. At Alibaba.com, we’ll take care of your OEM supplier pipeline so you have a ready resource for OEMs that complement and improve your processes.

You may also be interested in learning more about sourcing affordable apparel, how Alibaba.com verifies its suppliers, or how Trade Assurance can protect your purchases on Alibaba.com. These articles offer valuable insights and information to help you make the most of your sourcing efforts.

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