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OEM / ODM
What is OEM?
The abbreviation OEM stands for Original Equipment Manufacturer. A company that designs and builds a product to its own specifications is undertaking OEM. The company usually sells the product to another company for distributing to the market. The selling company may use their brand on the product for sale under a private label arrangement.

Benefits of OEM:
As the buyer, you own the intellectual property of the product
You can customise the product
It may be more difficult to copy your product
Less risk in manufacturing because a working prototype is available

What is ODM?
The abbreviation ODM stands for Original Design Manufacturer. A company that designs and builds a product to another company’s specifications is undertaking ODM. They usually take on the cost of the equipment and building to make the product.

Benefits of ODM include:
If any special tools or moulds are required, the supplier pays for them.
Usually faster to market than OEM
Your company isn’t responsible for paying for new tools or equipment required to manufacture.
Save time and money on R&D because it has already been done for you
The risks of the product being copied can be greatly reduced by only dealing with proven, reliable manufacturers.