What Is an Original Equipment Manufacturer?
Accomplishing big goals in life takes big plans. You may not be the largest beverage dispensing company, the biggest medical equipment company, the most well known plumbing contractor, or the HVAC company that services the most customers in town. In spite of your size though, your business can have big dreams, big goals, and big profits if you have the right plan original equipment manufacturer (OEM) provider.
OEM is the term used when for a company makes a part or subsystem that is used in another company’s end product. Having an OEM that has an extensive inventory ready for immediate shipment is the key to the success of many small businesses. You can fill the order for every beverage supplier or plumbing contractor on your list if you have a virtual inventory that can be available to you in less than 24 hours notice.
Brass pipe fitting supplies are a perfect example of a product that is so varied and extensive that a single HVAC company or medical equipment company could not possibly have an entire inventory on stock. You can, however, have a supporting OEM manufacturer who can provide you with every possible brass pipe fitting that you need within a day’s notice.
Basic modern brass, which is used in many hose barb fittings, is 67% copper and 33% zinc. These materials are expensive to keep on hand if they are not needed. If, however, you can custom order any brass garden hose fitting that you need from your supplier, you do not have to worry about the cost of keeping large amounts of the starting materials on hand. Instead, you just order what you need when you need it. No individual service company can afford to keep valves and fittings in every size in their own shop, but they must strive to work with the best suppliers to fill their orders.
If you are a plumbing company that wants to provide service to the average home which loses 14% of its water to leaks, you must have access to an inventory of parts to fix the problem. You can tell a family of four that has a serious leak that they will paying for far more than the average winter water use which exceeds 12,000 gallons per month. What that customer wants to know though is if you have the brass pipe fitting to fix their problem.