Why Facilities Pay 3x to 10x Markups on Basic Components

The OEM Tax

Facilities across upstream, midstream, and downstream operations purchase replacement components such as bearings, seals, filters, valves, and electrical spares, bearing 3x to 10x vendor markups. This happens because the manufacturer field in your system says whoever sold it to you, not whoever built it.

Quantifying the Cost of Unmanaged MRO Inflations

How Hidden Markups Erode Operating Margins

Inflated Procurement Spend

Excessive capital drain paying unverified vendor markups on high-volume MRO replacement parts.

Excess Carrying Costs

Carrying bloated budgets due to unmasked pricing inflation and redundant distributor tiers.

Sourcing Inefficiencies

Supply chain teams are unable to evaluate true open-market or direct-manufacturer pricing.

Margin Erosion

Carrying bloated budgets due to unmasked pricing inflation and redundant distributor tiers.

Intelligent Inventory enrichment

Unmasking True Manufacturers with Advanced AI

ARIVA acts as an inventory intelligence platform that finds out what is actually on your shelves, who actually made it, and what it is actually costing you.

By leveraging field-verified counts, AI-driven enrichment, and a proprietary knowledge graph, ARIVA transforms field-verified data into enriched, procurement-ready records.

It provides real-time market pricing intelligence and eliminates blind distributor markups across all operational sectors.

Catalyst

Extracts exact part parameters from physical tags, labels, and spec sheets to identify true manufacturers behind OEM labels.

Market Pricing Intelligence

Evaluates current market pricing across new, open-box, and rebuild options to guide cost-effective sourcing.

Cortex

Validates every enrichment against a proprietary graph of manufacturers, product families, corporate lineage, and replacement paths.

Human-in-the-Loop Workbench

Ensures your team reviews every AI finding in the workbench before anything changes in your ERP.

Frequently Asked Questions

What is the "OEM repackaging tax"?

It's the markup you pay when a part is sold to you under the OEM's label instead of the actual manufacturer's. The part is identical, the label is what costs you 40% or more.

How does ARIVA find the true manufacturer?

ARIVA reads what's actually stamped or printed on the part, cross-references it against a knowledge graph of manufacturers and product families, and surfaces the true source and part number.

How much could this actually save us?

It depends on your catalog size and MRO spend, but sites in this range have modeled 11x-60x year-one ROI at the conservative floor. Run your own numbers with the ROI calculator.

Does this mean re-negotiating every supplier contract?

No. It means you go into your next RFQ knowing the true manufacturer, so you can source competitively instead of buying blind through one label.

Is this just AI guessing at part matches?

No. Every match is checked against a proprietary knowledge graph of manufacturers and product families, and flagged matches go through a human-in-the-loop review before anything is approved.

Stop Overpaying OEMs

Stop paying 3x to 10x markups on basic industrial components. Uncover direct-manufacturer pricing and optimize your MRO procurement.