E White Goods Oem Business Strategy And Practices

Accompanying with the globalization and expanding market globally from 80's in last century, the company has been facing with increasing challenge not from a single country or region but from the whole world. Adapting to this globalization trend, company is driven to innovate the management and business model to better satisfy the expectation from customer on the competitiveness of the product. Many companies believe that manufacturing is not core competitiveness and outsource it to OEM or ODM suppliers. By utilization of their own competitiveness edge like strong brand, exclusive sale channel and design etc, those companies realized the sales of OEM products and achieve the expected profit while satisfying the consumer need. Although OEM/ODM business has been there for long time, there is always confusion how to position the OEM business. Should OEM business be distinguished from OBM business? Should the organization be restructured and working flow be optimized according to the nature of OEM business?The author introduced the company brief, OEM business development, the management and working flow of OEM business with the experience working in OEM business sector of the biggest company in white products which also runs biggest OEM business in white goods 'industry. By exploring the OEM business feature and observing the problems in that company, the author pointed out the importance of position strategy for OEM business as well as the organization restructure and process re-engineering. Furthermore, the author highlighted the importance of right purchasing strategy and position of cooperation-competing relationship with OEM suppliers for the success of OEM business.Finally, with this article the author wishes the methodology or the proposed solution could be a good reference for reader in OEM business by link the theory with the working experience itself. Meanwhile, the author also hopes that this article could be a helpful for other companies in same industry whichever plans to be an excellent OEM supplier or build up own brand for global sales.