Differences Between OEM And ODM: OEM Vs ODM

2022.12.15

Do you always hear about OEM and ODM from people around you, but you don’t know what they are? Today, we will introduce the difference between the two:


OEM? ODM?

OEM is the abbreviation of Original Entered Manufacture. Generally speaking, the brand owners have the core technology of the product but do not have their own production capacity. In order to better save costs and reduce the risks on the production line, they hand over the core technology of the product to the third-party manufacturers with productivity through contract ordering and directly paste their own brand trademarks for sales after commissioned production. This way of entrusting others to produce is called OEM. The manufacturers undertaking such processing tasks are called OEM manufacturers, and the products they produce are OEM products.


ODM is the abbreviation of Original Design Manufacturer. Generally speaking, it means that after a certain manufacturer develops and designs a certain product, it will be favored by other enterprises or individuals in some cases and requires the latter’s brand name for production. Among them, manufacturers undertaking design and manufacturing business are called ODM manufacturers, and the products they produce are ODM products.


So far, do you understand? To sum up, OEM products are intellectual property rights owned by the brand, and the manufacturer is only responsible for production, which is often referred to as “OEM”; ODM products are the intellectual property rights of the products owned by the manufacturer, which is often referred to as “OEM”.


Why OEM/ODM?

To maximize the value of products at the lowest cost is the pursuit of major brands. The OEM/ODM manufacturers meet the demand of good quality and low price. There is an increasing demand for OEM/ODM OEM in the market. As the tide rises, there are more and more OEM manufacturers. Before choosing OEM/ODM, you must understand the advantages of OEM/ODM:


Solve production problems. The emergence of OEM just meets the needs of many unproductive businesses, entrusts them to third-party manufacturers, reduces the risk of production lines, and can effectively save human, material and financial resources.


Focus on brand promotion. Looking at most businesses, they are only good at sales, but lack of production and processing technology. OEM/ODM OEM can solve multiple problems such as production, design and logistics for businesses, so that businesses can focus on brand promotion and expand better sales channels.


Production flexibility. Factories can produce products with their own brands and circulation advantages according to the needs of brand manufacturers. There is no need to invest huge capital, technology, talents, equipment, etc. Relatively speaking, it reduces a lot of costs for businesses and improves production efficiency.


Precautions for selecting a foundry

Now the big health industry has entered a hot stage. For companies and individuals who want to own their own brands, choosing the right factory is undoubtedly one of the keys to the success of a brand. But choosing an ideal factory is like looking for a needle in a haystack. We have sorted out some things that must be paid attention to when choosing a factory:

1.Visit the manufacturer on the spot.

2. Confirm whether it has its own R&D room and R&D team.

3. Whether there are advanced laboratory equipment and production equipment.

4. Inspect the production workshop, production line and inventory workshop.

5. The larger the production scale, the absolute square center of capacity and output. 6. Partners, with well-known partners, are the dual guarantee of OEM/ODM manufacturers’ hardware and software.


Junying Metal Manufacturing Company has a professional technical team, marketing planning team and customer service team. We will provide safe, practical and reassuring OEM die casting parts to consumers in strict accordance with customer requirements and national safety standards!