If you’ve been keeping up with industrial computers long enough, chances are you’ve heard the terms OEM and ODM at least once. However, understanding how these services differ and what they are used for is usually broader and more complicated than it seems.
So what are the difference between OEM and ODM and the services they provide? Let’s take a look:
What is OEM?
OEM (Original equipment manufacturer) refers to a company which purchases components manufactured by other companies and integrates them into a larger completed product for their own customers. Original in this case means “new and different” or “not a copy”. Thus OEMs combine several different computer parts and sub-assemblies (and often their own custom software) to create an original product of their own.
OEM computer products are products made to be sold to OEMs, as described above. This contrasts with retail products as it is sold for the benefit of B2B businesses at large quantities, rather than the end users themselves. Because of this difference, OEM product is sold in bulk packaging rather than retail packaging, typically doesn’t have identifiable brand information of the supplier, and can even be ordered with custom branding of the purchasing party.
OEM has become a big business for companies that produce original computer equipment as well as the companies that buy them. This happens because of the fact that OEM services can benefit both groups by creating computer systems and supplies specific to the need and demands of companies in ways that can’t be provided through standard retail channels.
What is ODM?
ODM (Original Design Manufacturer) is a service offered by computer supply manufacturers where the design of the products is determined by the customer or reseller rather than the manufacturer. In most cases, ODM projects are handled by an account manager who assists the customer/resellers through the process from the initial design concept to shipping, logistics, and maintenance.
Why choose OEM/ODM services?
OEM and ODM services offer highly customized computer supply benefits as well as other benefits that go far beyond the initial purchase such as logistics oversight, vendor interaction, and highly-valuable customer support.
By ordering these services, customers are able to receive custom computer systems built to their specific needs at both the board level (customization of motherboard layout and functionality) and system level (overall design and specifications).
In OEM/ODM projects that require fully customized computer systems, reputable manufacturing companies can offer a wide range of services to meet these demands such as:
• Branding and labelling
• Custom packaging
• Custom OS development
• Hardware engineering
• Environmental and regulatory testing
Here at New Era Electronics, we operate a lot more quickly than our competitors, and we have a very knowledgeable and experienced staff to assist you through every step of the process. Contact us today to get started!