How Can MSMEs Collaborate with OEMs Efficiently?

It's important to get visibility and traction from your potential customers to build the best products. For MSMEs, the crux is to gain the attention of their preferred Original Equipment Manufacturers (OEM), who would be happy to shake hands with you and lend their products and services to your organization. There are hundreds of similar businesses, and you may want to create an edge over your competitor. You do so by going a step ahead and ensuring that you’re the best in business and your product deserves to scale up.

Let’s read through this information to find a few smart ways that can benefit MSMEs in India and attract OEMs to innovate and deliver high-quality products.

Effective online presence

In this digital era, your online business presence means a lot. It helps you attract the right investors, lenders, and OEMs. A rich website with easy and relevant information about your businesses can help you get discovered by OEMs. When you’ve important information on your website that makes it easy for your clients and prospects to reach further, you consider it as a half job done. Diversifying your reach is of utmost importance, and you can register your business in platforms like Google Business to take advantage. The OEM may be looking to crack a business deal after analyzing your rapport in the market.

Efficient supply chain management

MSMEs and OEMs are similar in their approach. OEMs lookout for smaller businesses for collaborating and discuss innovation opportunities to develop new products and services at lower costs. For any MSME, they are considered as growth partners. It further means that small to medium enterprises can share risk and reward as they anticipate risk or sustain a minimum level of growth to comply with shareholders.

OEMs enjoy access to different customers and markets, while MSME caters to more of a niche product or service segment. What matters is the efficient supply chain in defining the relationship between OEMs and MSMEs. For a small business, its strength lies in a disruptive supply chain and the ability to provide a specialized product or service timely.

The managed flow of goods from the raw material stage to making the product ready for the final sale affects the supply chain. Supply chain integration that undertakes factors, such as product design, manufacturing, and delivery changes with time and given business dynamics. When the workflow is smooth between MSMEs and OEMs, it adds value to the production and eases out suppliers and customers, ensuring added value and delight.

Attending BNI meetings

Small businesses stroll through different markets for networking purposes. It’s important for an MSME or any small businessman to make contacts and build a network that helps the business in times of need. In pursuit of that, you can attend Business Network International (BNI) meetings where you’re able to generate leads and find prospects. From lenders, suppliers, and vendors to investors and OEMs, you can discuss business growth opportunities with like-minded people that can contribute to your business directly or indirectly.

With all that said, MSMEs must look for innovative and smart ways to attract reliable OEMs and clients. It’s equally important to follow ethical business practices so that your business runs smoothly and is not obliged to its vendors and suppliers amidst the chaos. As a startup that looks to scale up fast, you may ignore setting rules and standards for your own business and get trapped in payment-related frauds. To make this tight, you should start by ensuring efficient cash flow and settlement of payments with your business credit defaulters so that you have sufficient working capital to fund your next venture.

CreditQ works with businessmen in settling payments with their payment defaulter. The team follows a strict and standard payment settlement process to help MSMEs save their business from suspected fraud.