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Original Equipment Manufacturer (OEM)

What is an Original Equipment Manufacturer (OEM)?

An OEM is a business or company that produces parts, software, or equipment which other organisations incorporate into their products. OEMs are essential in various industries, including automotive and IT.

For example, an OEM might produce advanced braking systems designed to improve the safety and efficiency of specific vehicle models. In the IT industry, an OEM could supply processors and operating systems vital to the functioning of fleet management hardware and software.

In the transportation industry, original equipment manufacturers (OEMs) play an integral role in maintaining high quality standards and addressing the needs of fleet managers in areas like vehicle maintenance and cost control.

Why use OEM?

  • Cost reduction: Partnering with an OEM significantly reduces costs for fleet managers because it eliminates the need to establish facilities for producing every part and component required for fleet vehicles.

  • Higher quality: OEMs specialise in the production of specific components. This specialisation allows them to focus on achieving superior quality in production, often surpassing what can be achieved by aftermarket parts manufacturers. For fleet managers, this means more reliable and durable parts which, in turn, extends vehicle life cycles and reduces maintenance downtime.

  • Existing infrastructure: Collaborating with an OEM means leveraging their established technology, experience, and infrastructure. This existing framework ensures high-quality components that enhance vehicle performance and add value to fleets, without the need for fleet managers to develop these capabilities from scratch.

  • Operational focus: Such partnerships allow both parties to concentrate on their core competencies. OEMs can dedicate their efforts to producing high-quality parts efficiently, while fleet managers can focus on optimising fleet operations, without worrying about the intricacies of each component’s production.

OEM Fleet Management Solutions

At MICHELIN Connected Fleet, we offer OEM fleet management solutions that integrate purpose-built hardware and software, allowing organisations to unlock the full potential of their fleets and reap all the benefits we’ve discussed. Moreover, our customised offerings are designed to meet your specific industry needs, ensuring you have the tools to succeed in a competitive market.

If you’re interested in gaining a competitive edge through OEM fleet solutions, then be sure to contact us today to learn how we can support your business or company.