Sourcing
OEM / ODM explained
Original Equipment / Original Design Manufacturer
OEM builds to your design and your tooling; ODM sells you an existing design the factory already owns.
Full definition
OEM means you supply drawings and own the tooling and IP — the right model for a differentiated brand. ODM means the factory supplies the design and mold and puts your logo on it: faster and cheaper, but the same product may ship to your competitor. Many US brands validate demand with ODM, then move to OEM tooling once volume justifies exclusivity.
Worked examples
OEM: buyer supplies 3D files and Pantone references; factory cuts toolingODM: factory model #A123 with buyer logo and retail packaging
Related terms
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