What is OEM and what is the difference from ODM

In the field of commissioned production of food, clothing, electronic products and cosmetics, OEM is a way to realize OEM or OEM. It is an OEM relationship established between the demand side and the service provider. There are differences between the two modes in the core technology of the product, specific cooperation mode and copyright holding, which is also the main difference from ODM.

Is OEM OEM or OEM? The key is to see the holder of the core technology of the product!

1. The investor owns the core technology of the product: the customer may or may not have a brand, through detailed drawings, process requirements or formula composition, and make clear process requirements for the processing and production process. Processing plants, also known as OEM manufacturers, provide OEM services and complete product production. The manufacturer does not have the right to sell the product, and cannot use the product production technology for its own use, or provide it to other cooperative customers. At this time, OEM is foundry.

2. The processing plant has the core technology of the product: the production enterprise has a product with a certain independent technology, formula or process through research and development. Customers who are looking for factory cooperation have their own brands and choose this product for OEM production. If the customer does not buy out the core technology, the OEM manufacturer has the right to produce it for another customer with its own brand in the same way. In this case, OEM is OEM.

OEM factory

The difference between OEM and ODM

1. Different cooperation modes:

OEM: Commonly known as foundry, the entrusting party can provide part or all of the production materials, and has the initiative in product design and manufacturing. The entrusted party, that is, the processing factory, simply builds products according to customer needs, and can realize the product design requirements through the factory's unique technology, but after the product design is formed and confirmed, it becomes exclusive for investors.

ODM, commonly known as OEM, in the production process, the production enterprise or factory provides a full set of labor and material services for the processing and manufacturing of food, beverages, electronic equipment or clothing, etc. After the production is completed, it will paste the customer's brand for sale.

Electronic product OEM

2. The copyright of the product is different: OEM, the factory is not allowed to produce without the permission or authorization of the entrusting party. ODM, if the customer does not buy out the copyright, the production company can produce for other partners.

Investors and factories establish entrusted and entrusted production relations. The former owns the core technology and process of the product, OEM is foundry, and vice versa, it is OEM. The main difference between ODM and ODM lies in the cooperation models established by the two, such as self-contained raw materials and formulas, and the holding of copyrights.