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ODM |Original Design Manufacturer| Functioning Of ODMs

ODM |Original Design Manufacturer| Functioning Of ODMs

Submitted by • March 16, 2020 www.lripl.com

An ODM (Original Design Manufacturer) designs and produces a product that is sold and marketed under the name of OEM (Original Equipment Manufacturer). In other words,ODM provides “ready-to-go” products for the OEM. These are also known as Contract Manufacturer as they are capable of designing and manufacturing products for OEMs.

Why ODMs?

OEM stands for Original Equipment Manufacturers they essentially design a product from the ground up and then contracts another company to manufacture it for them. OEM come up with the design, then contract several third-party manufacturers to handle the mass production. These third-party manufacturers are ODM. OEMs prefer to assign ODMs as they get benefitted with low labour inputs, proximity to markets and reduced transport cost.OEMs als use them in areas where direct ownership by foreign organizations is prohibited or can’t be easily obtained. Meanwhile, OEMs can focus more on sales and marketing of its products while ODM is focussing on the

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