Custom Power Supplies and OEMs

When an OEM asks you to manufacture a power supply, you must pay attention to the OEMs particular application requirement. These applications can be of various types. They can be standard, modified, or custom designs. In this, custom power supplies are usually sold directly to OEMs, necessitating a close relationship between the power supply vendor and the OEM.

Sometimes, OEMs have no choice but to invest in custom power supplies because customization gives the embedded designer maximum flexibility in reaching the exact requirements for the specific application.

It is no surprise that custom power supplies have low-mid production numbers with higher margins compared to standard/modified standard power supplies.

Contrary to popular opinion, a modified standard power supply is a standard product with minimal modification. They have smaller lead times (compared to custom power supplies), low engineering costs, faster development costs and large production values.

Standard power supplies are made for a range of customers and can be used in a number of applications. These can be either sold directly to OEM manufacturers or to a third party distributor for further sale.

Standard power supplies are also useful for OEMs because they have a small engineering requirement, can be brought from a variety of sources, while facilitating a quicker time to market for a new product. Such products are also more price competitive because the input costs are lower.