Difference Between ODM and OEM
Acronyms that are fairly similar with the exception of one letter, ODM and OEM, refer to two types of companies in the manufacturing industry, and despite the fact that they both work to manufacture goods, their roles and responsibilities are fairly different.
The difference can be gauged from their names, to begin with. OEM stands for Original Equipment Manufacturer, while ODM is short for Original Design Manufacturer. An ODM is responsible for both designing and manufacturing products, while the OEM is generally hired by third party companies, to build products or parts according to certain instructions and specifications.
In this sense, the ODM has the added responsibility of designing the products which they then go on to manufacture – in this regard, ODMs are very proactive when it comes to obtaining patents in order to guard their intellectual property (most of these patents are filed in the US, China, and Taiwan). OEMs, however, act more like contracted manufacturers – they are hired by companies to manufacture products for which designs already exist. This is the key difference between the two – ODMs act as research and design companies, while OEMs simply manufacture replicas of products for which blueprints already exist.
Once both companies have completed the manufacturing process, the ODM’s products are purchased by interested companies, who then go on to distribute and resell them under their own brand. Meanwhile, the OEM’s products are purchased from them by the company that placed the order, after which the company retails them under their own brand.
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ODM
An acronym for Original Design Manufacturer, an ODM is a crucial part of the manufacturing industry, and functions as a company which takes on the dual responsibility of designing products, and then turning these ideas into reality by manufacturing them. ODMs feature prominently in international trade, as a local ODM can benefit foreign companies a great deal by lowering costs. Compal and Quanta are prime examples of ODMs. -
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OEM
Short for Original Equipment Manufacturer, an OEM works as a manufacturer for hire. Interested companies provide them the specifications for products they require, and the OEMs proceed to manufacture replicas of these in bulk. They are not part of the design process at all, although they might make small alterations in colour or size. In this sense, OEMs are highly beneficial, as they allow companies to obtain the parts or products they need, without owning or operating. Hewlett-Packard and Dell are prime examples of OEMs.
. OEMs, however, act more like contracted manufacturers – they are hired by companies to manufacture products for which designs already exist. This is the key difference between the two – ODMs act as research and design companies, while OEMs simply manufacture replicas of products for which blueprints already exist.
Once both companies have completed the manufacturing process, the ODM’s products are purchased by interested companies, who then go on to distribute and resell them under their own brand. Meanwhile, the OEM’s products are purchased from them by the company that placed the order, after which the company retails them under their own brand.Next%20stop%3A%20Pinterest "Pin It")
