DIFFERENCES BETWEEN OEM AND ODM

 

These two acronyms are buzzwords in manufacturing industry. While some people incorrectly assume that they can be used interchangeably, an OEM (Original Equipment Manufacturer) is very different from an ODM (Original Design Manufacturer). The buyers provide the designs to OEMs, while the ODMs are in charge of design and general specifications. It sounds simple, however the in-depth understanding of these two types of manufacturing company, not only for the definition, it will help you choose the right manufacturers for your business and the products you would like to make or design. Also must consider that both involve risks, and if are overlooked, they could endanger your business. Eco Clean Peru offers both services OEM and ODM.

 

WHAT IS OEM?

If you have a product of unique design and has invested heavily in Research and Development for this exceptional product, but need a third party company to see her become reality, then product, you have to work with OEMs in the manufacturing process. This means that the sale of finished products and licenses will be under your brand name. A good example of this approach is Apple, which spends on research and development and innovations with their own product lines and allows manufacture Foxconn everything from scratch.

Alternatively, if you want the manufacturer create the design and specifications of the product in general, you should look for ODM companies inside of you industry sphere. If you have limited resources to manufacturing and design, ODM companies can turn their concepts into concrete and tangible elements. In this approach, the ODM are responsible for the Investigation & Development, the product concepts, testing and manufacturing.

 

WHAT IS ODM?

 

The OEM and ODM are not limited to the technology and electronics; also they work in the fashion industries and others, depending on the business models and the product design of the foreign buyers. China is today one of the world's leading destinations for OEM and ODM supply.

In few words, with an OEM, you are the provider of ideas and features, while the concept of the ODM is the opposite of this.

For buyers of equipment, the biggest drawback is allow these suppliers or manufacturers have their secret formulas, because it could lead to a violation of their intellectual property rights and the production of imitations of a product in the Investigation & Development, the buyer has invested a lot of money. Therefore, you have to find a supplier or manufacturer that be reliable and honest, and send someone to the production site to monitor the progress and quality.

Meanwhile, with the ODM, the biggest risk is that the buyer has little or no control over product specifications and designs. As a buyer, you have to establish specifications and limits on these issues.

Finally, the choice between the services of OEM and ODM depends on the type of the product that you want to sell, the resources and budget with which account and its investment potential.