OEM production side benefits
Relative to the buyer, the supply side is in a relatively passive position, however, the use of OEM is still profitable.
1 enter the international market and participate in international competition
Domestic home appliances and other industries increasingly fierce competition, the market tends to saturation, some domestic manufacturers in order to develop the market, and to do OEM for foreign brands. Enhance the global awareness of the enterprise.
2 scale production and reduce costs
There is a general economic effect in modern production, that is, the trend of the unit cost decline with the expansion of the scale of output.. This may come from the deepening of the specialization of the division of labor, fixed costs of apportionment. If the enterprise itself exists in the situation of overcapacity, the effect of the cost will be more obvious.. Participation in OEM supply, means the expansion of the output scale, not only increases the product's market, but also reduces the cost.
3 learning experience, perfect management
Provide OEM enterprises often in the OEM to buy the product supply chain plays an important role, the OEM buyers can be in production management, marketing, product development with strong strength, in the process of cooperation, OEM supplier can in product quality control, cost control, the operational efficiency control management in accordance with the purchase of the requirements of organizing production, to control the advanced organization, from "dry middle school experience accumulation, improve the management level of enterprises.
4 product innovation, enhance the ability
If OEM products are innovative products, supply enterprises in addition to meet the needs of the buyers, but also to their own brands in the domestic and foreign markets on sale. Or increase the length of the product line, launch a new product; or deepen the depth of the product line, increase the variety of existing products, no matter from which one aspect, the competitiveness of enterprises increased.
OEM way for both buyers and sellers, in addition to the overall competitive advantage of the product, but also has a unique advantage, and that is the flexibility of buyers and sellers both in and out of the market. As long as the seller and any party found a more profitable way, you can terminate the contract at any time. From this perspective, the OEM market is highly effective.
5 save sales Investment
When the enterprise faces the foreign market, because of the wide region, different countries' commercial habits, it is difficult to establish complete independent distribution network. But if you borrow the power of the Foreign Company, it will facilitate more. Such as Fuji, Ricoh and so on are the producers and brokers in Europe and the United States has taken the form of OEM, thus reducing the friction between the enterprise operation, reduce the enterprises should invest large amounts of money from the sale, to enable enterprises to adapt in overseas business.