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What are the OEM and ODM?

2016-05-18

OEM (pronounced as separate letters) is short for original equipment manufacturer, which is a misleading term used to describe a company that has a special relationship with computer and IT producers. OEMs are manufacturers who resell another company's product under their own name and branding.

ODM (An original design manufacturer)  is a company that designs and manufactures a product as specified and eventually rebranded by another firm for sale. Such companies allow the brand firm to produce products (either as a supplement or solely) without having to engage in the organization or running of a factory. ODMs have grown in size in recent years and as of 2015 many have the scale to handle production for in-house the products that are branded by the buying firm. This is in contrast to a contract manufacturer (CM).

What is the difference between OEM and ODM?
ODM stands for Original Design Manufacturing, and OEM refers to Original Equipment Manufacturing. 
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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