What is OEM, ODM, OBM, and what is the difference?? | Thincen

February 21, 2022

The basic meaning of OEM (Origin Entrusted Manufacture) is OEM production cooperation, commonly known as "OEM". That is, the brand manufacturer does not directly produce the product,

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The basic meaning of OEM (Origin Entrusted Manufacture) is OEM production cooperation, commonly known as “OEM”. That is, brand producers do not directly produce products, but use their own "key core technologies” to plan and develop new products, and control sales and sales "channels", but the production capacity is limited, and even there is no production line or workshop. In order to increase production and sales, in order to reduce the risk of launching new production lines, and even in order to win market time, we entrust other manufacturers of similar products to produce through contract orders, buy out the ordered products at low prices, and directly affix their own brand trademarks. This cooperative method of entrusting others to produce is called OEM, and the manufacturer who undertakes this processing task is called OEM manufacturer, and the products it produces are OEM products.

Similar to the ODM (Original Design Manufacturer) original planning manufacturer. The characteristics of OEM are: technology outside, cost outside, market outside, only production inside. ODM (ie ORIGINAL DESIGN MANUFACTURER) means "original design manufacturer", which means that a company designs and produces a product according to another company's specifications. For example, a computer company such as Hewlett Packard Enterprise might make a detailed specification for a notebook computer it wants to market to the market. They will list in detail the appearance requirements of the product, such as the specifications and technical requirements of the screen, input/output ports, the forward tilt of the keyboard, the shape and color of the computer bag, the orientation of the speakers, etc. They also usually detail the specification requirements for the primary internal details of the product, such as the CPU or video controller. However, they do not plan drawings, specify the type of communication transistors used in the power supply, and do not select the frequency of the backlight converter. These are all ODM jobs. ODM designs and manufactures notebook computers according to the specification requirements put forward by computer companies. Sometimes, ODM can also be produced based on existing samples. ODM methods tend to focus more on collaboration, while in the case of OEMs, buyers simply do not participate in the detailed specifications of the product.

OBM (Original Brand Manufacturer), the original brand manufacturer, is a term that has only become popular in recent years. It refers to the manufacturer's own creation of product brands, production, and sales of products with their own brands. There is a concept that buying existing brands and acquiring brands through franchising can also be regarded as a part of OBM.


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