What Are The Differences Between OEM And ODM

• Posted by wei long 28 October 2020 - Filed in Other - #OEM Aluminum Die Castings 、OEM Aluminum Enclosure  - 49 views

  OEM (Original Equipment Manufacturer) such as: OEM Aluminum Die Castings

  OEM production, also known as fixed-point production, commonly known as OEM (production), basically means that brand producers do not directly produce products, but instead use their key core technologies to design and develop new products, control sales channels, and specifically The processing tasks are entrusted to other manufacturers of similar products through contract orders.

  The difference between OEM and ODM is that OEM is the client who proposes the product design plan, no matter who completes the overall design, and the client must not provide third parties with products that adopt the design; while ODM is produced from design to production The party will complete it by itself and buy it after the product is OEM.

  Basic conditions:

  (1)The client

  {1} Excellent technical output ability.

  {2} Excellent brand image.

  {3} Extensive market network.

  {4} Product development capabilities.

  {5} Technical control ability.

  (2) Manufacturer

  {1} Excess and excellent manufacturing capacity.

  {2} Sincere willingness to cooperate.

  {3} Strong control over the market direction.

  ODM (Original Design Manufacturer)

  ODM is the abbreviation of Original Design Manufacturer in English, and the literal translation is "Original Design Manufacturer". ODM means that after a manufacturer designs a product, in some cases it may be taken by other companies, requiring the latter's brand name to be used for production, or to slightly modify the design to produce. Among them, manufacturers that undertake design and manufacturing business are called ODM manufacturers, and the products they produce are ODM products.

  Product solutions designed by ODM manufacturers can be provided to the brand owner in a buyout or non-buyout manner:

  Buyout method: The brand owner buys out the design of a certain model product that the ODM manufacturer has already made, or the brand owner requests the ODM manufacturer to design a product plan for itself.

  Non-buy-out method: The brand owner does not buy out the design of a certain model product of the ODM manufacturer, and the ODM manufacturer can sell the design of the same model product to other brands at the same time. When two or more brands share a design, the difference between the products of the two brands is mainly in appearance.

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