• An original equipment manufacturer (OEM) supplies components for finished products to another company, known as a value-added reseller (VAR).

  • In the computer industry, OEM can refer to a company that buys products and then incorporates or rebrands them into a new product under their own name.
  • Traditionally, OEMs focus on business-to-business sales, while VARs sell products to the public or other end users.
  • In the manufacturing industry, OEMs differ from aftermarket products that offer original and cheaper spare parts than OEM parts.
  • OEM is also different from original design manufacturer (ODM), a company that customizes its own products for customer to resell.