What Is the Difference of OEM and ODM

Differences between OEM & ODM

The words OEM and ODM are often heard and always the first key word used in internet search engine for skin care manufacturers. People always question on the difference between them. Now the following is the explanation:

What is OEM?

OEM stands for Original Equipment Manufacturer which means manufacturer produce the final product based on customer’s requirements and specifications. The customer have ready sample or formula for the manufacturer to comply and produce in volume. In short, the manufacturer is not involve in the product designing process but only responsible in duplication and manufacturing. Customer will be responsible in developing their product marketing concept and packaging design.

OEM is suitable for entrepreneur who requires only a manufacturer to mass produce their end product.

OEM Process

What is ODM?

ODM stands for Original Design Manufacturer which means manufacturer is responsible in producing the product/s from beginning to end which is the whole product development process. They will be doing research and development on the formulation, creating marketing proposal as well as proposing unique packaging design for their customer after analyzing customer’s target market.

ODM is suitable for customer who has ascertained their target market and looking to create a unique range of products for the specific group of people. Customer enables full authority & freedom of creativity for the manufacturer to create the product.

tct-ODM-chart

ODM Process

Still confused after reading all this? Fret not, we are only a call away 012-688 6256.

Leave a Reply

Your email address will not be published. Required fields are marked *