An original design manufacturer (ODM) is a company that designs and manufactures a product that is specified and eventually branded by another firm for sale. Such companies allow the brand firm to produce (either as a supplement or solely) without having to engage in the organization or running of a factory. ODMs have grown in size in recent years, and many are now sufficient in size to handle production for multiple clients, often providing a large portion of overall production. A primary attribute of this business model is that the ODM owns and/or designs in-house the products that are branded by the buying firm. This is in contrast to a contract manufacturer (CM).
This model is especially used in international trade, where a local ODM is used to produce goods for a foreign company that sees some advantage in the transaction, such as low labour inputs, transport links or proximity to markets. This is also used where local ownership laws possibly prohibit direct ownership of assets by foreigners, allowing a local firm to produce for a brand company for either the domestic market or export.
An original equipment manufacturer, or OEM, manufactures products or components that are purchased by another company and retailed under that purchasing company’s brand name. OEM refers to the company that originally manufactured the product. When referring to automotive parts, OEM designates a replacement part made by the manufacturer of the original part.
Warner Electronics (I) Pvt. Ltd. spent 10 years sourcing and creating direct relationships with manufacturers overseas. Since its inception, we have established a network of manufacturers that can fulfil the requirements of our industry. Our dedicated OEM team coordinate with customers and provide quotes, constant updates, and track all data needed to communicate with and expedite orders ensuring a smooth transition from placement of orders to delivery, while avoiding the inconvenience and complexities for our customers of dealing directly with factories overseas.