1. What Does OEM Mean and How Does It Work?

OEM (Original Equipment Manufacturer) is used by the entrusted Manufacturer to produce products according to the requirements and authorization of the Original Equipment Manufacturer. All design drawings are manufactured according to the Manufacturer's design.

2. How is an OEM Product Built, Partnered and Resold?

Before delivering a solution to end-users, companies figure out the best way to serve customers’ needs. They evaluate several options such as whether to buy, manufacture, build or partner with someone to design the solution.

By partnering with OEMs, an organization can minimize the investment in manufacturing and reduce production and material costs while gaining expertise in product design as well as a shorter product life cycle. While concentrating on their core competency, organizations can still build products using best-of-breed components.

3. The Differences Between OEM and ODM

ODM (ORIGINAL DESIGN MANUFACTURER) stands for "ORIGINAL DESIGN MANUFACTURER." It is when one company designs and manufactures a product according to another company's specifications.

OEM products are customized for the brand manufacturer, and can only use the brand name after production, never with the manufacturer's own name for production.

ODM should see brand enterprise to have bought the copyright of this product. If not, the manufacturer has the right to organize their own production, as long as there is no corporate design identification.

4. What Are The Advantages of OEM?

OEMs can reduce production costs and avoid unnecessary capital investment. The obvious cost advantage of an OEM is the supplier's existing production capacity, cheap labor, extensive knowledge structure to improve production efficiency, and other details of processing expertise. By reducing production costs in this way, enterprises can not only maintain competitive price advantage in the fierce competition, but also increase their economic profits.

5. EGL CASE

6. Contact Us

Are you looking for a manufacturer to do OEM? If you have this need, might as well contact us.

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