OEM and ODM are two important terms widely used in the manufacturing sector. OEM stands for Original Equipment Manufacturer and ODM stands for Original Design Manufacturer. While many people confuse between the two terms and use them interchangeably, they are not quite the same. There is an article in our blog section dedicated to tell the difference between OEM and ODM. In short, OEMs manufacture product based on design specification provided to them, while ODMs also design the product themselves before manufacturing them.
OEMs are companies which manufacture an OEM-product-the designs, functions, colors and materials which can be customized according to the requirements of the buyer. The services that the companies provide are also refer to as OEM services.
ODMs designs and manufactures products on their own. These companies are in charge of R&D, concepts and manufacture of the products required by their client. The main distinctive part from OEM to ODM are the designs. Most of companies with design and prototype will choose OEM only for mass production while ODMs are the options for those who wish the manufacturer also providing a design solution or a prototype. This type of services is called ODM services.