Original equipment manufacturer (OEM): A company that buys things (components, subassemblies, raw materials, and processed materials) to use in the creation of its own products. OEM buyers purchase items (components, subassemblies, raw and processed materials) to be used in the production of their products. Sales representatives for OEM items must show how their goods enable clients to create goods of greater quality. The majority of OEM products are purchased on an annual basis in bulk. Manufacturers are end-users when they purchase products and services to support their own operations and production.
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