Back to Glossary

What is OEM Procurement?

An original equipment manufacturer (OEM) is a company that supplies components that are used in the production of goods by other manufacturers. OEM procurement for manufacturers comes with a range of benefits such as cost savings as well as freeing up resources to look into areas that require deep involvement.

For example, an automaker when manufacturing a car requires a long list of components. One such important part is the electronic control unit (ECU), for which the manufacturer can just set the specifications — which the OEM can build and supply per specifications, freeing up valuable time for the automaker to look into the program parameters for the ECU. For example, Foxconn manufactures iPhones for Apple Inc, which creates a win-win situation for both the companies.

OEM partnerships, however, go deeper than manufacturing of components to areas such as design development, management services and many other unique solutions and services that can boost revenue.

World's Leading, Unified Source-to-Pay Platform for Direct and Indirect Spend Management

GEP SMART is an AI-powered, cloud-native source-to-pay platform for direct and indirect procurement. GEP SMART offers comprehensive source-to-pay functionality in one user-friendly platform, inclusive of spend analysis, sourcing, contract management, supplier management, procure-to-pay, savings project management and savings tracking, invoicing and other related functionalities.

Learn More ‌ 

Next-Gen, End-to-End Supply Chain Management Platform for the Connected Enterprise 

GEP NEXXE is a unified and comprehensive supply chain platform that provides end-to-end planning, visibility, execution and collaboration capabilities for today’s complex, global supply chains. Built on a foundation of data, artificial intelligence and cognitive technologies, GEP NEXXE helps enterprises digitally transform their supply chains and turn them into a competitive advantage.

Learn More ‌