Maximizing OEM Relationships with Maintenance Management Software: A Guide for Industries

Imagine a large automotive plant in which a sole faulty part brings an entire production line to halt, causing revenue losses to the tune of thousands of dollars per hour.

According to a study, unplanned downtime has the potential to cost manufacturers as much as $260,000 per hour.

In such a high-risk environment, Original Equipment Manufacturers (OEMs) play a crucial role in keeping the machinery running smoothly.

Let’s explore the concept of OEM (Original Equipment Manufacturer) and its significance in today’s industrial world, along with the role of maintenance management software in optimizing OEM relationships and processes.

There is the growing appreciation of investing in a FSM software as a way of building customer intimacy.

Every day managers and executives of organizations are waking up to the fact that field service is not only a problem-solving model, but it has potential to be a rich source of customer satisfaction and growth.

Building on this, companies willing to proactively invest in product servitization can use a field service management solution to build a ‘win-win’ opportunity furthering the client relationship.

Manufactures who incorporate services into their products have a chance of developing better customer relations and customer satisfaction.

Understanding OEM

In the industrial and manufacturing sectors, the term Original Equipment Manufacturer (OEM) reverberates in discussions about machinery, equipment, and spare parts procurement.

OEMs play a critical role in the lifecycle of products across various industries, from automotive to electronics to heavy machinery.

But what exactly does OEM mean, and how does it relate to equipment or product manufacture?

What is an Original Equipment Manufacturer (OEM)?

The term Original Equipment Manufacturer (OEM) conventionally refers to a company that produces parts or equipment that form an intrinsic component of the final product(s) of another company.

Nowadays, OEMs are recognized for providing complete machinery and essential elements to various industries.

For example, in the automotive industry, companies like Toyota or Ford use parts from OEMs such as hinges, door lock systems, etc., to assemble their vehicles.

The same principles hold good in electronics and IT, where companies like Apple may use processors from Intel or Qualcomm, which are considered OEMs, instead of developing their processors.

The Importance of OEMs in Different Industries

OEMs are crucial to the supply chain and manufacturing process. Their role is indispensable with the increasing complexity of modern machinery and equipment.

1. Automotive Industry: Car manufacturers depend on OEMs for the constituent elements of the vehicle, from engines to electrical systems. It entails all individual components meet strict quality standards.
2. Electronics and IT: OEMs supply key components like microchips, batteries, and motherboards to tech giants to manufacture smartphones, laptops, and other gadgets.
3. Heavy Machinery: Industries like construction and mining count on OEMs for setting up durable and efficient equipment like bulldozers, cranes, and earthmovers that need to endure harsh weather and operating conditions.
4. Healthcare: OEMs provide parts that imaging machines, surgical equipment, etc, are comprised of. It implies that the contributions of OEMs are critical to the safety and reliability of medical technologies.

In each of these industries, the quality and performance of OEM components are proportional to the efficiency, durability, and credibility of assembled product.

Businesses rely on OEMs not just for their components but also for arriving at their warranties and deciding on long-term support they can provide.

Difference between OEM and Aftermarket Parts

How do OEMs differ from aftermarket parts?

OEM parts are made by the authorized or designated manufacturer of the equipment or machinery.

They are often sold under the brand name of the company that consumes them in their final product.

These parts are designed and tested for compatibility with the original equipment, resonating high performance and a perfect fit.

Unlike OEM, aftermarket parts are manufactured and sold by third-party companies and are often cheaper alternatives to their corresponding OEM parts.

They are a compromise in compatibility, quality, and warranty.

Many businesses opt for OEM parts to avoid potential issues related to performance, reliability, and safety linked with aftermarket parts.

The Role of a CMMS in Managing OEM Relationships

Businesses confront challenges when dealing with OEM parts, which are not just limited to procuring components.

The OEM equipment must be well maintained, tracked, and replenished in the inventory until and upon consumption.

It is critical for minimizing downtime and optimizing the performance of assembled products.

It is where a Computerized Maintenance Management Software (CMMS) solution like Innomaint comes into the scene.

1. Tracking OEM Parts and Equipment Lifecycles

One of the major advantages of using a CMMS is its ability to track the lifecycle of OEM parts and equipment from procurement to recycling.

Innomaint allows businesses to monitor usage patterns and keep track of warranty periods for OEM parts.

For details on tracking warranties and making the most of warranty claims, kindly click here.

2. Preventive and Predictive Maintenance

Proper maintenance is essential for preserving the functionality and efficiency of OEM equipment.

With a CMMS, businesses can automate preventive maintenance schedules for OEM as per the manufacturer guidelines to optimize maintenance.

Automation ensures OEM parts are serviced or replaced before they fail, reducing the risk of unexpected breakdowns and costly repairs.

Besides this, predictive maintenance features can use real-time data to anticipate equipment malfunction, enabling preemptive action.

By staying ahead of equipment wear and tear, businesses can significantly reduce downtime and improve the overall reliability of their operations.

3. OEM Documentation and Compliance Management

OEMs provide detailed manuals, schematics, booklets, and compliance information during product delivery.

Innomaint helps businesses organize this documentation, making it easily accessible to technicians during repairs or maintenance tasks.

It is possible by storing the information in cloud servers and enabling secure and remote access. It is especially important in heavily regulated industries.

4. Optimizing Spare Parts Management

Innomaint provides an inventory spare parts management module that enables businesses to manage their inventory effectively by tracking the availability of OEM parts, closing stock upon each transaction or spare consumption, setting up automated reorder points, etc.

In this way, you can avoid stockouts or overstocking.

Apart from this, you can store and access the best before dates, anticipate the spare requirement for upcoming periods based on previous year consumption patterns, etc.

Such a provision ensures that the necessary OEM parts are always available when needed, minimizing the risk of prolonged downtime due to unavailable components.

In the fast-paced industrial landscape, maintaining strong relationships with OEMs and ensuring efficient management of OEM equipment and parts shall be the key to the overall reputation, performance, and safety of the assembled or aggregate product.

With the right tools, businesses can streamline these processes, reduce downtime, and optimize performance to get the most out of their OEM investments.