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ODM Vs OEM Definition

1. ODM stands for original design manufacturing and OEM refers to original equipment manufacturing. 2. OEM companies design and build products according to their own specifications and sell to other companies, while ODM companies design and build according to other companies' specifications. 3. An advantage of OEM is that purchasing companies can obtain products without setting up their own factory, helping to lower production costs.

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273 views1 page

ODM Vs OEM Definition

1. ODM stands for original design manufacturing and OEM refers to original equipment manufacturing. 2. OEM companies design and build products according to their own specifications and sell to other companies, while ODM companies design and build according to other companies' specifications. 3. An advantage of OEM is that purchasing companies can obtain products without setting up their own factory, helping to lower production costs.

Uploaded by

Ethan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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ODM vs OEM

Both the terms ODM and OEM are related to the manufacturing industry. ODM stands for
Original Design Manufacturing, and OEM refers to Original Equipment Manufacturing. It is
quite confusing to see the difference between the two, as they are very similar.

OEM refers to a company or a firm that is responsible for designing and building a product
according to its own specifications, and then selling the product to another company or firm,
which is responsible for its distribution. The one company produces products on behalf of
another company, after which the purchasing company markets the product under its own
brand name.

An ODM company or firm, on the other hand, is responsible for designing and building a
product as per another company’s specifications.
So then, OEM companies design products as per their own specifications, whereas ODM
companies design products as per other company’s specifications.
An advantage of OEM is that the purchasers can obtain products without setting up a factory.
In a sense, OEM helps the purchasing companies to lower their production costs.

Summary:
1. ODM stands for original Design Manufacturing, and OEM refers to Original Equipment
Manufacturing.
2. An OEM company is responsible for designing and building a product according to their
own specifications, and then selling the product to another company or firm, which is
responsible for its distribution. An ODM company or firm is responsible for designing and
building a product as per another company’s specifications.

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