OEM

A company that manufactures products or components that are purchased by a company and retailed under the purchasing company's brand name. OEM sometimes designates a replacement part made by the manufacturer of the original part as often the case with automotive parts.

OEMs rely on their ability to drive down the cost of production through economies of scale. Also, using an OEM allows the purchasing company to obtain the needed components or products without owning and operating a factory.

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