Original Equipment Manufacturer - Economies of Scale

Economies of Scale

OEMs rely on their ability to drive down the cost of production through economies of scale. Also, using an OEM allows the purchasing company to obtain needed components or products without owning and operating a factory.

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Famous quotes containing the word scale:

    “... the meanest life, the poorest existence, is attributed to God’s will, but as human beings become more affluent, as their living standard and style begin to ascend the material scale, God descends the scale of responsibility at a commensurate speed.”
    —Maya Angelou (b. 1928)