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Enterprise original equipment manufacturer (OEM) software is when one software company (the licensor) licenses its software to another software company (the licensee). The OEM is gaining scale, more customers – and giving up higher profitmargins that could be obtained by going direct to customers.
For example, it affects production schedules in manufacturing firms and inventory management strategies in retail businesses. Teamwork makes the dream work. By adjusting their sales budget based on these trends, they can better manage resources and predict profitmargins. No secrets here.
So it’s important when negotiating price with your manufacturer to define all parameters beforehand so you can be sure what they mean before deciding on any assumptions. With this approach, manufacturers will not receive as many volume discounts because they only make smaller commitments. Does my channel hurt or help me?
Operations planning process: Ensure resources, such as raw materials and manufacturing capacity, are available to meet projected customer demand. A manufacturer might streamline its assembly line to meet increased demand and ensure on-time delivery every holiday season. It factors historical data, market trends, and predictive models.
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