what is oem and odm

11 months ago 31
Nature

OEM stands for Original Equipment Manufacturer, while ODM stands for Original Design Manufacturer. The main difference between the two is that OEMs sell highly customized products designed to suit a client’s specifications, while ODMs produce their own products and lease them out to clients on a private label or white label basis so they don’t have to invest in building their own consumer brand. OEMs build products based on designs provided to them from customers, while ODMs handle the entire product development process in-house, including research and development, design, engineering, and manufacturing.

Some other key differences between OEM and ODM include:

  • Product Design: OEMs build products based on designs provided to them from customers, while ODMs handle the entire product development process in-house, including research and development, design, engineering, and manufacturing.

  • Intellectual Property: OEMs give the customer total creative control over the design, while ODMs own the product design, as well as tooling and other intellectual property.

  • Flexibility: OEMs can build products to any specification while ODM products are restricted to a predetermined design.

When deciding between OEM and ODM, its important to consider factors such as creative control, intellectual property, and product design.