OEM (Original Equipment Manufacturing)
OEM purchase parts from other manufacturers or suppliers and use them to assemble their finished products. OEM also make parts and sub-assemblies that are resold to other companies who assemble them into their own finished products. With OEM, a company basically outsources only the manufacturing of the product to a third party.
ODM (Original Design Manufacturing)
ODM Manufacturing is commonly categorized into White Label & Private Label Production. Which a manufacturer provides pre-production services, as product concept development, design, and engineering and manufactures the final products using the buyer’s label.
An Original Design Manufacturer lets you take part in their expertise & returns to scale saving you cost & time. In this case, the buyer focuses on the marketing and sales activities only and outsources the other supply chain, design, and engineering activities to a specialized third-party provider.
OBM (Original Brand Manufacturing)
OBM, the manufacturer owns the brand and is fully responsible to design, engineer, manufacture, and market the product. In this case, there is limited to no outsourcing of production and engineering activities. OBM fully owns the brand and products. OBM is the option for the manufacturer who wants to produce sophisticated products. Compared with ODM and OEM, OBM usually involves higher costs (included money and time) to produce the products.
