Business model

Customer value

A wide range of quality products from leading suppliers is an important foundation of the business model. In many cases, products are customised according to customers' wishes. The customisation is done either in one of the operations’ processing departments or, if the volumes are higher, directly at OEM's manufacturer. Examples of customisation can be a range of components that are delivered assembled or a product that has a customised cable length with a mounted connector. Close co-operation with both customers and suppliers is a prerequisite for effective dialogue and a high level of creativity, which ultimately provides customers with unique product solutions. It is now common for OEM to progressively become a supplier through whom customers coordinate an increasing proportion of their purchases. Knowledge, service, efficiency and quality are some of OEM's values that characterise the co-operation with customers. The employees' high level of knowledge of both the operations’ product ranges and applications supports customers in choosing components, which creates both technical and financial value for customers.

Suppliers' best sales channel

Strong sales organisations, modern marketing and local warehouses with efficient logistics flows are the foundation of OEM's business and the reason for the confidence to represent strong suppliers. The ambition is to be the suppliers' best sales channel in each market and to make them leading players in their respective niches. Close relationships with suppliers mean that they are characterised by loyalty and long-term commitment and OEM avoids marketing competing products. OEM's position in the market allows it to reach customers that the suppliers themselves would find difficult to reach. The organisation has built up a great deal of expertise regarding suppliers' products and how they are used. OEM has regular discussions with suppliers about product development, which helps suppliers to develop products that meet market requirements and wishes, which in turn increases competitiveness.

Website as a competitive advantage

The operations’ websites are the basis for all customer information, where the product range is presented with all possible information. Customers should be able to easily navigate between well-adapted product information, inspiration and knowledge, which makes the companies' websites natural tools in their customers' everyday lives. The e-commerce function streamlines flows and becomes a natural tool in their customers' purchasing work.

Efficient logistics flows

The coordination between OEM's smaller warehouses and the larger logistics centres streamlines and automates the flow of goods, resulting in both high cost efficiency and quality as well as improving service levels. Logistics for larger customers are tailored to their requirements, including mode of delivery, packaging and frequency of delivery, creating clear benefits for the customers. There is ongoing work to streamline and create well-functioning goods flows that gradually increase availability, quality and service levels.