Tuesday 25 December 2018

OEM and ODM difference

oem and odm difference

In a company engage in the field of Manufacturing, we often hear of the existence of the term Enterprise OEM and ODM companies. ODM stands for Original Design Manufacturer while OEM stands for Original Equipment Manufacturer. Both deals in terms of manufacturing. Manufacturing is a group activity or industrial processing of raw materials into finish goods that can be sold and beneficial for its use.

These include activities such as the collection of design (design), planning (planning), documentation (documentation), the selection and purchase of raw materials/auxiliary material (purchasing), production (production), quality control (Quality Control) and quality assurance (product Quality Assurance)

Understanding The Company's OEM
(Original Equipment Manufacturer)

Is the company's OEM (Original Equipment Manufacturer) is a company or organization. That designs and manufactures the product (component or finish goods) in accordance with their specifications and sold to corporate buyers?. The buyer then does the companies distributing over the product or component. The specification is here (OEM) product specification is define by the OEM companies. In other words, the company doing the production of OEM products on behalf of other companies, after which the firm to market the product under their own brand. OEM in the language of Indonesia is call with the original equipment manufacturer.

Understanding Company ODM
(Original Design Manufacturer)

Is the company ODM (Original Design Manufacturer) is a company or organization that designs and manufactures production (component or finish goods) in accordance with the specifications determine by the buyer's company. It manufactures products that are then sold to corporate buyers. The firm market the product under their own brand.

One of the world's largest ODM companies is the Foxconn Technology Group, namely the multinational corporations of origin Taiwan that produce famous products like the Blackberry, Iphone and Ipad belongs to Apple, Sony PlayStation, Xbox one own by Microsoft, Wii U belong to Nintendo and many more.

The difference of OEM and ODM

One important thing that distinguishes the company's OEM and ODM are product specifications. Where the OEM company to design and manufacture products base on specifications of his own company. While the ODM company designing and producing products base on specification of the specify company purchasers.

Now, many large companies use the services of the brand owner of OEM and ODM. To manufacture their products so that they don't need to do a large investment in providing building, production facilities, production machinery and equipment. As well as personnel the work complete to do production. Thus, the average cost of production become lower and can increase profitability and improve the competitiveness of the company.

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