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OEM vs ODM

Updated: Oct 15, 2019

If you’re an importer, you’ve probably came across the acronyms OEM and ODM. What exactly are the differences between the two? Are there any advantages to the different manufacturers? Let’s dive into these into more detail.

What is OEM?

To put it simply, OEM (Original Equipment Manufacturing) means that a factory is capable of making your product according to your unique design and requirements.


In most cases, before companies consult an OEM manufacturer, companies conduct their own R&D (Research and Development), this typically includes marketing research, design and product engineering.


The picture below is a simple analogy of a relationship between a product company and a contractor manufacturer (OEM).


OEM Advantages:

-Complete control over product

-With detailed requirements and specifications, you’ll find it easier to get quotes from different manufacturers.

What is ODM?

ODM (Original Design Manufacturing) also provides product development but unlike OEM, ODM will help you create and develop your product even if you don’t have R&D or specifications.


With ODM manufacturing, it will be common to customize one of their own product lines with your own branding.


Above is another simple analogy of a relationship between a product company and a ODM manufacturer.


ODM Advantages:

- You won’t need to hire an R&D team for specifications or research

- Significantly quicker in product development time


When deciding which manufacturer method work best for you, somethings that should be taken into consideration would be: product, time, money and goals.

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