What are the rewards?  ,
An instant plus point is users getting their products sooner, said Asst Prof Choudhary, whose knowledge is in supply chain management.
Because some products are off the shelves, it shortens the lead time, allowing a new product to be released more quickly.
He added that the business also benefits from being able to determine the OEM’s dependability from previous client evaluations.  ,
” It is a trade-off between making products available faster or cheaper, than unique”, he said.  ,  ,
Such an agreement furthermore lets a company focus on various factors like branding, advertising, design, sub-assembly or selling, authorities said.
” It is all about emphasis and specialisation”, said Prof De Meyer. Because of the economies of scale, this may result in better products being produced at higher quantities and so at lower costs.
How about the hazards?  ,
The specialists noted that using an OEM may indicate a lack of control over the manufacturing process.  ,
Prof. De Meyer cited a problem engine report from the aviation company Pratt &, Whitney from last year. This affected some carriers using Airbus A320 planes.  ,
He added that because of their business models, Airbus and Boeing no lengthy appear to have complete control over the quality standards of their aircraft engines.
Asst. Prof. Choudhary noted on the company front that companies purchasing and marketing the same product may experience more market competition.
A company may even find it challenging to get an OEM merchandise at a desired period if the OEM places a larger order on another company’s list, he added.  ,