If you have any familiarity with the world of industrial packaging, you may have heard the acronym “OEM”. OEM stands for “original equipment manufacturer” and their packaging is
used for other people’s businesses. For example, if FCA manufactures wooden crates and a furniture company decides to sell their furniture in those crates, FCA is the OEM. This saves the furniture company time and money in not having to manufacture their own original packaging, and it allows for a better overall product.
One huge reason why OEM packaging is so useful is that you’re leaving packaging to the experts. Because packaging is their specialty, OEM packagers have a diverse range of products to ensure that you find the right packaging for your business. FCA makes boxes, crates, skids, pallets, and more, in addition to using a wide range of materials, such as wood, steel, and a hybrid of the two. In original equipment manufacture packaging, it may seem as though you may be stuck purchasing whatever is on the market. In fact, the only real appeal of a business creating their own packaging is so that they can customize it for their specific needs. This appeal is wiped away in the face of FCA’s customizable packaging. Because OEM manufacturers are focused so heavily on the packaging itself, they will ensure it fits your needs better than if you crafted it with your own two hands.
Above all, outsourcing your packaging is going to save a huge amount of money. OEM packaging works due to economies of scale. Economies of scale basically refers to the idea that the bigger a business is, the more they will see cost advantages due to their size, output, and scale of operation. In other words, because OEM packaging companies have all of the necessary infrastructure in place to make packaging and run their business, the cost for them to produce a wooden crate will be much lower than if an individual business attempted to do the same. They would have needed to spend the money to hire knowledgable workers, pay for the necessary equipment, and take the valuable time to perform a task that they could simply hire another firm to complete for them.
OEM packaging saves time, money, and resources. With the right company, it is perfectly customizable to your needs and easily affordable, making it a great packaging option for any business.
