OEM/ODM: What are the differences of these business models?

OEM products are sold by the manufacturer based on the buyer's specifications. ODM products are finalized or are pre-designed products that are ... Skiptocontent PARTTEAM&OEMKIOSKSisaworld-renownedcompany,manufacturerofindoorandoutdoormultimediakiosks,self-serviceequipment,digitalbillboards,interactivetablesandotherdigitalsolutions,foralltypesofsectorsandindustries. Overtheyears,theOEMandODMbusinessmodelshaveevolved.Thesesolutionsfocusonprovidingaservicethatmeetstheneedsofeachcustomer,withseveraltechnicalandvisualcustomizationoptions. TheODM(OriginalDesignManufacturing)andOEM(OriginalEquipmentManufacturer)modelsareassociatedwiththemanufacturingindustry,anditisessentialtounderstandtheirdifferencestounderstandthemostappropriatemodeltoadopt.PARTTEAM&OEMKIOSKSspecializesinthedesignandmanufactureofcustomizedmetalframemultimediakiosks,accordingtotheneedsofeachproject. IntheODMmodel,theproductioncompanyfullydesignsandbuildstheproductandisthenmarketedbythirdparties.IntheOEMmodel,theclientcompanyprojectsthekioskandtheproductioncompanymaterializesit. PARTTEAM&OEMKIOSKShastheskillsandprocessesnecessarytoensurethequalityofthemanufacturingofanycustommultimediakiosk,suchasaself-servicekioskorapaymentkiosk.Fromdesigntofabrication,themetalframemultimediakiosksarefullystudied,whichrequiresathoroughunderstandingofthemetalformingprocesstoensurethatthedesigncreatedmatchesthecustomer’sexpectations. Efficiencyandproductionofhighqualitycomponentsbymetalmoldinganddrilling,areprocessestestedandcertifiedbytheorganization’smechanicalengineers.Havingyearsofexperienceworkingwithdifferentmetalsandtheirmetallurgicalprocesses,inordertoguaranteethequalityandexcellenceofeachkiosk. Therefore,thecompaniesthatproducetheODMmodel,designproductsaccordingtothetypeofcollection,whilecompaniesproducingOEMmodels,designproductsaccordingtothespecificationsoftheclientcompany. OneoftheadvantagesoftheODMmodelisthatbuyerscangetproductswithoutdevelopingtheminawaythattheODMhelpsbuyerstoreducetheirproductioncosts. InrecentyearsPARTTEAM&OEMKIOSKShasdevelopedtheODMandOEMmodels,nowhavingtheabilitytohandlethedistinctproductionofvariousprojectsandcustomers.Thecompanyispreparedtosolvealleventualitiesandspecificationsofeachproject,fromafullycustomizedinteractivetabletoadigitalbillboard. PARTTEAM&OEMKIOSKSguaranteeshightechnicalandaestheticquality,aswellasprovidingsupportinmoredetailedelectronicprojects,orsoftwaredevelopmentinallmultimediakiosks.   Inthecompany,theODMmodelpredominates,whichleadstheproductionsectorofmultimediakiosks.Thisisjustifiedbytheinvolvementoftheengineeringdepartment,whichmakesuseofDFM(designformanufacturing)principles,whichallowtheoptimizationofeachprojectformanufacturingandconsequentlytotalreductionofproductioncosts.Theinternalteamofengineersanddesignersisextremelyqualifiedandhasthemissionofunderstandingtherequirementsofeachclient,providingyouwiththebestsolutions. Thecompany’sODM/OEMmodelsprovideallthesupport,fromthedesigntotheproduction,inordertoguaranteethedesiredresults. Recommendedreading:6advantagesofusingadigitalmupithatyoudidnotknow! WHATISTHEPRODUCTIONDIFFERENCEOFTHEOEMANDODMMODEL? InmostOEMproductions,clientcompaniesrequiretheproductionofspecificcomponents.Thesepartsareassembledandsoldbythebuyerwithyourtrademark.MostoftheproductsareavailableatcompetitivepricesbecausethecostsoftheOEMmanufacturingprocessarelower. Theclientcompaniesthatopt​​fortheODMmodel,producetheproductwithallthespecificationsanddetailsrequested.Thistypeofproductionisbeneficialtosmallercompaniesbecausetheydonothavetowastetheirtimeonresearchanddevelopment.TheproductsproducedwiththeODMmodelcanbedividedintotwotypesofcategories:PrivatelabelandWhitelabel.Privatelabelarefinishedproductssoldtoanendcustomercompany.Ontheotherhand,whitelabelproductsaregenericproductsthatcanbesoldbycompaniesundertheirownbrands.   COMPONENTSANDCOMPLETEPRODUCTS:OEMORODM? OEMproductsaresoldbythemanufacturerbasedonthebuyer’sspecifications.ODMproductsarefinalizedorarepre-designedproductsthataresoldunderthebrandnameofthepurchasingcompany.ODMproductsarecompleteandfinishedproducts,unlikeOEMproducts. WHATARETHEADVANTAGESOFOPTINGBYTHEOEMMODEL? OEMcompaniesareincreasinglythesolutionsoughtbymultinationalsaswellasstartups.OEMproducingcompaniesthatmanufacturecomponentsprovideservicesatalowerratecomparedtoothercompanies. AnotheradvantageofOEMmanufacturingisthatitispossibletopurchasequalityproductsinlargequantitiesatlowerrates. WHATARETHEADVANTAGESOFOPTINGBYTHEODMMODEL? OneofthebiggestadvantagesofmanufacturingODMisthatyoudonothavetowastetimewithprojectdevelopment. IfyoucomparetheOEM/ODMmanufacturingmodel,ODMisusuallythemostbeneficialsystemforcompanies. ODMhelpssavetime,becauseitispossibletogetthefinalproductwithouteverhavingthoughtaboutitsdesign,itdoesnothappenifyouchoosetheOEMmodel,becauseitisalreadynecessarytodesigntheproductsandfindamanufacturerthatdevelopstheproject. ByoptingfortheservicesofanODMmanufacturer,itispossibletogetafullrangeofproductsinlargerquantitiesandlowerpricerates,makingiteasiertomarket.   BychoosingPARTTEAM&OEMKIOSKSforanyofthesemodels,youcanbesurethatthemostsuitableprocesswillbechosenthatwillmeetthesolutionsyouarelookingfor.Theentiredesignprocessdevelopedwiththerighttechnologyandproductionwillmakeyourmultimediakioskasuccess. STARTDEVELOPMENTYOURBUSINESSNOW,ASKFORAFREEPROPOSAL :CLICKHERE  Related SylwiaSwierczek Ilikethewayyoushowthedifferencesbetweenthesetwobusinessmodels. Postnavigation PreviousPostPreviousDOOH:Whatarethemainadvantagesofthistypeofcommunication?NextPostNextMetalProductionTechnology