When OCP speaks to the OEM business community about OEM business, there are words, terms, and phrases used (some more common than others). Here’s our growing list of those:
Original Equipment Manufacturer (OEM) – An OEM (original equipment manufacturer) is a company that uses product components from one or more companies (including sometimes the company itself) to produce a product that it sells under its own company name and brand. The term is sometimes mistakenly used to refer to the company that supplies the components. However, the manufacturer of equipment is the OEM. Ford, Navistar, Generac, Thermo-King, and Utility Trailer are all OEM’s.
OEM Dealer/Distributor – A business authorized to use the OEM’s brand, products in servicing OEM equipment both during the warranty period and after warranty.
After Sales – A term used to describe the ongoing relationship between the OEM and end customer where services are rendered throughout the product lifecycle to the end of life. This type of support typically includes warranty, upgrade and repair services.
OEM Parts – Parts or components produced by a supplier to the OEM for use in building equipment. These parts are sold by OEM dealers or OEM authorized distributors of OEM Parts.
Aftermarket Parts – Parts which are copies of the OEM parts. These parts are designed very similarly to OEM parts and can be a more economical replacement than the OEM part. Aftermarket parts are usually sold by retail parts suppliers (NAPA, O’Reilly’s, AutoZone, etc.) and are sold to independent repair shops or to the “do it yourself” market, which is often more concerned with price than quality or longevity.
Aftermarket – The market for replacement parts, accessories, and components, especially for motor vehicles. Divided into two groups | Replacement Parts and Accessories. The replacement parts are parts built or remanufactured to replace OE parts as they become worn or damaged.
Under Warranty – Equipment owners utilize the OEM dealer to perform any repair or service work (with OE parts) during the warranty period because it usually costs the owner nothing.
After Warranty – Parts sales, maintenance, and repair service, once the OEM warranty has expired, is “after warranty.” During this time many equipment owners consider using aftermarket parts and/or independent repair facilities. Or, they choose to continue using the OEM dealer for service and OE parts require the independent repair facility to use OE parts from the OEM dealer.
Original Equipment Supplier (OES) – A parts manufacturer that produces parts and components for use by an OEM equipment manufacturer.
Genuine Part – Manufactured for a specific brand and supplied in like branded packaging or the part is physically marked with the brand logo.
Remanufactured – Parts that are out of warranty or obsolete and are no longer manufactured in volume by OEM’s, OES’s or the replacement manufacturers. Usually manufactured in small batches. Can also cover components or assemblies that are overhauled or reconditioned.