What does OEM mean - what are the cooperation modes and advantages

OEM, as the name suggests, is to process its own products by cooperating with professional manufacturers. According to the specific cooperation mode, it can be divided into OEM, ODM, etc., which is different from pure OEM customization.

How many cooperation modes does OEM include?

Firstly, it is classified according to the way of customizing OEM products:

1. Drawing processing: In the mechanical equipment industry, the production standards and style descriptions of related equipment are usually completed in the form of drawings.

2. On-site processing: the food, beverage, cosmetics industry, especially the health care product industry completes product customization by providing product formulas.

3. Sample customization: Customers who are looking for factory OEMs explain the specific needs of products to OEM and ODM manufacturers by providing samples.

4. Brand OEM: If you have your own brand, you need to choose the molded products of the foundry to place an order, and after the production is completed, paste your own trademark and sell it as your own product.

Cosmetics processing

OEM projects can also be divided into the following types according to the supply of materials required for production:

1. Processing with supplied materials: Find a factory to manufacture your own products, and provide some or all of the raw materials and packaging required for production.

2. Labor and material contracting: that is, the ODM we mentioned earlier, the production raw materials, product inner and outer packaging materials, and all required materials are all completed by the processing company as an agent. Investors only need to specify requirements and do a good job of confirmation.

3. Simple processing: also known as clear processing, which is just the opposite of contracting labor and materials. The material is provided by the customer himself, while the foundry simply provides workshops, equipment, and personnel to process products for customers through established processes.

Food and beverage processing

What is the significance of the OEM model?

A finished product that can be directly oriented to consumers has gone through multiple stages of product development, proofing, and production from scratch. During the period, companies or individuals are also required to apply for business licenses, register brands, and qualified production enterprises to produce according to relevant standards (national standards, industry standards, and enterprise standards). The OEM mode plays a good role in connecting the past and the future in the whole process.

Brand holders have been traveling in the terminal market for a long time, understand the needs of end users, and can specify products that meet the market. Processing and production enterprises provide these sales companies or individuals with superior brand processing services through perfect equipment and technology. The entrusting and entrusted parties who establish the OEM relationship divide the work and take responsibility for each other, which has opened up channels for the processing and production of products.

Health care products processing

What are the advantages of OEM?

1. Production enterprises: focus more on improving production technology and introducing new equipment.

2. Investors: save a lot of plant and equipment investment, and concentrate on the market.

3. Industrial chain: division of labor and maintenance, reducing repetitive investment for the creation of the entire industrial chain.

OEM can also be understood as letting others produce their own products and selling them by themselves. The cooperation process must be legal and compliant, and the product production must comply with relevant standards. The healthy development of the OEM OEM industry can meet the product customization needs of investors from all walks of life, such as food and beverage, beverages, cosmetics, machinery and equipment, who have their own product creation wishes.