Tuesday 11 December 2018

The difference between OEM and ODM?

ODM stands for Original Design Manufacturing, and OEM refers to Original Equipment Manufacturing. An OEM company is responsible for designing and building a product according to their own specifications. Then selling the product to another company or firm, which is responsible for its distribution.



The company is engage in the field of manufacturing, we often have an OEM and ODM company. ODM stands for Original Design Manufacturer while OEM stands for Original Equipment Manufacturer. Both are deals in terms of manufacturing. Manufacturing is a processing group for the use and beneficial for its use.

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

The OEM Company (Original Equipment Manufacturer)

Is the company's OEM (Original Equipment Manufacturer) is a company or organization that designs and manufactures the product (finish components).  In accordance with their specifications and sold to corporate buyers. The buyers then do the companies distributing over the product or component. The specification is (OEM) product specifications are define by the OEM companies. In other words, the company is doing the production of OEM products on other companies. After which the product is under their own brand. The OEM in the language is call the original equipment manufacturer.

ODM Understanding Company (Original Design Manufacturer)

Is the ODM company (Original Design Manufacturer) is a company or organization that designs and manufactures production (component or finished goods). It manufactures products that are then sold to corporate buyers. The firm marketed the product under their own brand.

ODM company is the Foxconn Technology Group, which is the multinational corporations of origin Taiwan that produces famous products like Blackberry, IPhone and iPad belongs to Apple, Sony PlayStation, The Xbox one owned by Microsoft, Wii U belongs to Nintendo and many more.

The difference of OEM and ODM

One important thing that distinguishes the company's OEM and ODM products is where the OEM company designs and manufactures products based on the company's design and production.

Now, many large companies use the brand of OEM and ODM to manufacture their products so that they don't need a large investment in providing production facilities, buildings, production and manpower machinery and equipment committed to undertake production. Thus, the average cost of production becomes lower and can increase profitability and improve the competitiveness of the company.

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