ODM OEM One Stop: OEM vs ODM Manufacturing
Estone Technology offers custom design and manufacturing services from board level to complete computing systems, including industrial PCs, panel PCs, and rugged tablets for any vertical industry. We provide one-stop OEM/ODM solutions; product planning, industrial design, board development, mechanical engineering certifications, and mass production. Our dedicated project management team provides a comprehensive control throughout all phases of OEM/ODM projects.
Estone Technology is headquartered in the US, with European sales offices. Our manufacturing facility is located in China. Our R&D center, product testing lab, and manufacturing facilities are ISO9001/13485 certified.
What’s the difference: OEM vs ODM?
To understand the differences between OEM vs ODM, we need to learn about OEM and ODM practices. These terms can mean different things across industries. Each type of manufacturer has different business models. This article will focus on the electronics manufacturing service industry.
Original Equipment Manufacturer (OEM)
An OEM is a manufacturer of parts for a product or the final product itself. These companies can also be referred to as a contract manufacturer. Contract manufacturers can create OEM parts used for replacement. The parts could be used in assembly with parts from other manufacturers for a final product.
OEM companies that manufacture the final product make the products that are designed by another company. The contracting company sells the final product under its own brand or value added reseller. The company that designs the final product or parts needed for assembly owns the product development.
Original Design Manufacturer (ODM)
An ODM is a manufacturer that creates the original design of a product. The product that other companies can use as a platform for their own private label. The manufacturer may have custom options for the platform, such as operating systems, to create a unique version of the product.
If no platform exists, the contracting company can request a new design. The manufacturer designs a product for the contracting company’s solutions to become a label product.
OEM vs ODM
The key difference between OEM vs ODM is where the design for the product comes from in the product life cycle. The original design manufacturer creates the design for a product platform or a customer solution. The original equipment manufacturer receives the design specifications from the contracting company and manufactures the product to specification.
In order to evaluate OEM vs ODM, you will need to examine the benefits of each solution. Not all companies have the financial or engineering capabilities required to design a product. Not all companies have the brand awareness to market a platform based product from its competitors.
A company that wants to sell the product can select a product platform from an ODM. Changes can be requested to the existing platform to create a custom solution and apply branding. These changes may come with costs associated with them. The cost of change will be much less than designing the product from scratch.
The costs associated with the platform design are absorbed by the ODM. Estone Technology is an ODM that has created platforms with selectable options to make a product unique. Some options may require a minimum order quantity which absorbs the cost of change. A company that has already invested the capital to have a product designed is looking for an original equipment manufacturer. Once the OEM and contracting company reach an agreement on the work, the product is manufactured. The commissioning company is likely responsible for the product life cycle management.
ODM OEM One Stop
Estone Technology offers both original equipment manufacturing and original design manufacturing creating an ODM OEM one stop solution. This creates a large benefit for customers in terms of reduced cost in design and manufacturing. Benefits include smaller timelines in design and manufacturing changes and better quality products.
When working with an ODM OEM one stop solutions provider, you will no longer have to worry about OEM vs ODM. Simply bring your design or idea to us and we will collaborate on the best solution for your needs.
Not all ODM OEM one stop provides are created equal. Estone Technology has teams working around the world to provide the most responsive experience to the customer. This worldwide team structure allows us to work at all hours of the day, with customers from any country.
It takes experience to be able to create the best products in multiple industries. As a one stop OEM ODM provider, Estone Technology continues to design industry leading products. We Incorporate cutting edge technologies in the manufacturing process.
For Rugged Tablets, Medical Tablets, Panel PCs, Industrial Computers, Embedded Boards, and Controllers, contact us to start your manufacturing partnership.