The world of manufacturing has been in flux recently as the improved manufacturing model gives way to more flexible forms of design and development. When you choose the right OEM or ODM manufacturer, you can take advantage of lower costs and a streamlined experience for your end users, while also reducing overall manufacturing costs by up to 25%.
Many companies prefer to use an OEM manufacturer to produce their products for them. This gives them access to the tools, technology, and resources needed to quickly bring new products to market. On the flip side, a custom manufacturer (ODM) can be great for smaller orders and less volume, but not so much for larger projects.
Let’s break this down to see how it works.
What is OEM in manufacturing?
OEM stands for Original Equipment Manufacturing, the process of making an end product based on existing design specifications provided by the product owner. OEM manufacturing actually refers to manufacturing products for someone else. Products that are sold under the OEM moniker aren’t really made for anyone other than the original buyer or real design owner.
Is Apple an OEM or ODM?
Let’s start off with a fun fact: Apple is the world’s most valuable company. That is, they’re the world’s most valuable smartphone brand. Apple is actually an OEM (original equipment manufacturer), meaning that they’re design owners but contracted Foxconn for mass production of iPhone and apple devices while preserving all rights of design hardware and IOS.
What is meant by ODM?
Original Design Manufacturing (ODM) is the process of creating customized products for users by an individual company or business with little or complete modification (design, color, labeling, and packaging) of an existing design of a product. ODM consists of designing, manufacturing, assembling, testing, and certifying a product to its exact specifications for a particular market.
The reason ODM is worthwhile in the product manufacturing business is that it gives us the opportunity to customize our products to our customers’ specifications which ultimately leads to a more personalized experience for end users.
What is an example of an ODM?
Our EV charger is one of the most successful examples of original design manufacturing. If you survey the market and look at a bunch of EV chargers models, they’re almost identical in design and shape and differ in branding and labeling as per the brand.
Differences between OEM vs ODM manufacturing
- ODM companies often have a greater variety of component parts than OEMs do. For example, an OEM might only sell tires, while an ODM could also sell wheels, bumpers, and roof racks.
- ODM is basically referred to as a customized product while OEM is just a sort of manufacturing service.
- ODM is the best suitable option for rebranding using existing design while OEM just refers to manufacturing. Buyers could get huge benefits by selling private-label products.
- In ODM, A manufacturer alters a pre-designed template up to some extent to fit the specific needs of customers.
- ODM saves investors millions of dollars in research and development (R&D) while in OEM, we need to put hefty investments in design and development.
Can I get rebranding or OEM/ODM services for my Brand?
Of course! AOHAI has been the OEM/ODM provider in the power adapter space for many leading electronics brands for 18 years. Our power adapters have been certified by the CE and FCC. So we are 100% capable to provide OEM and ODM services for the whole product line of any brand. Just sign an NDA with us and lift up your business by better designing and bulk manufacturing without a lag in quality.
Contact us now to discuss the OEM/ODM requirements for your BRAND! mailto: email@example.com