If your company is planning to sell electronic equipment or motor vehicle components, you have surely encountered the terms OEM and ODM. The abbreviation OEM stands for Original Equipment Manufacturer, while ODM stands for Original Design Manufacturer – here are some features that distinguish the two types of manufacturers.
OE manufacturers are companies that produce equipment or equipment and OEM cable components that are sold to retailers and marketed under the brand name used by the purchasing company – when the term is used for the manufacturers of car parts, it refers to the companies that provide replacement parts for the parts used for making the car in the factory. What OE manufacturers do is basically to take the client’s product design and will manufacture the product based on those specifications.
OD manufacturers are companies that design and manufacture products that are branded by another company that will actually sell the product. The brand companies – the firms that will sell the product under its name – can turn to ODM companies for their products and benefit by not having to run their own factories. OD manufacturers collaborate with their client from the design phase through the manufacturing, allowing their client to put their name on the product label.