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

PARTTEAM & OEMKIOSKS is a world-renowned company, manufacturer of indoor and outdoor multimedia kiosks, self-service equipment, digital billboards, interactive tables and other digital solutions, for all types of sectors and industries.

Over the years, the OEM and ODM business models have evolved. These solutions focus on providing a service that meets the needs of each customer, with several technical and visual customization options.

The ODM (Original Design Manufacturing) and OEM (Original Equipment Manufacturer) models are associated with the manufacturing industry, and it is essential to understand their differences to understand the most appropriate model to adopt. PARTTEAM & OEMKIOSKS specializes in the design and manufacture of customized metal frame multimedia kiosks, according to the needs of each project.

In the ODM model, the production company fully designs and builds the product and is then marketed by third parties. In the OEM model, the client company projects the kiosk and the production company materializes it.

PARTTEAM & OEMKIOSKS has the skills and processes necessary to ensure the quality of the manufacturing of any custom multimedia kiosk, such as a self-service kiosk or a payment kiosk. From design to fabrication, the metal frame multimedia kiosks are fully studied, which requires a thorough understanding of the metal forming process to ensure that the design created matches the customer’s expectations.

Efficiency and production of high quality components by metal molding and drilling, are processes tested and certified by the organization’s mechanical engineers. Having years of experience working with different metals and their metallurgical processes, in order to guarantee the quality and excellence of each kiosk.

Therefore, the companies that produce the ODM model, design products according to the type of collection, while companies producing OEM models, design products according to the specifications of the client company.

One of the advantages of the ODM model is that buyers can get products without developing them in a way that the ODM helps buyers to reduce their production costs.

In recent years PARTTEAM & OEMKIOSKS has developed the ODM and OEM models, now having the ability to handle the distinct production of various projects and customers. The company is prepared to solve all eventualities and specifications of each project, from a fully customized interactive table to a digital billboard.  PARTTEAM & OEMKIOSKS guarantees high technical and aesthetic quality, as well as providing support in more detailed electronic projects, or software development in all multimedia kiosks.

 

In the company, the ODM model predominates, which leads the production sector of multimedia kiosks. This is justified by the involvement of the engineering department, which makes use of DFM (design for manufacturing) principles, which allow the optimization of each project for manufacturing and consequently total reduction of production costs. The internal team of engineers and designers is extremely qualified and has the mission of understanding the requirements of each client, providing you with the best solutions.

The company’s ODM / OEM models provide all the support, from the design to the production, in order to guarantee the desired results.

Recommended reading: 6 advantages of using a digital mupi that you did not know!

WHAT IS THE PRODUCTION DIFFERENCE OF THE OEM AND ODM MODEL?

In most OEM productions, client companies require the production of specific components. These parts are assembled and sold by the buyer with your trademark. Most of the products are available at competitive prices because the costs of the OEM manufacturing process are lower.

The client companies that opt ​​for the ODM model, produce the product with all the specifications and details requested. This type of production is beneficial to smaller companies because they do not have to waste their time on research and development. The products produced with the ODM model can be divided into two types of categories: Private label and White label. Private label are finished products sold to an end customer company. On the other hand, white label products are generic products that can be sold by companies under their own brands.

 

COMPONENTS AND COMPLETE PRODUCTS: OEM OR ODM?

OEM products are sold by the manufacturer based on the buyer’s specifications. ODM products are finalized or are pre-designed products that are sold under the brand name of the purchasing company. ODM products are complete and finished products, unlike OEM products.

WHAT ARE THE ADVANTAGES OF OPTING BY THE OEM MODEL?

OEM companies are increasingly the solution sought by multinationals as well as startups. OEM producing companies that manufacture components provide services at a lower rate compared to other companies. Another advantage of OEM manufacturing is that it is possible to purchase quality products in large quantities at lower rates.

WHAT ARE THE ADVANTAGES OF OPTING BY THE ODM MODEL?

One of the biggest advantages of manufacturing ODM is that you do not have to waste time with project development. If you compare the OEM / ODM manufacturing model, ODM is usually the most beneficial system for companies. ODM helps save time, because it is possible to get the final product without ever having thought about its design, it does not happen if you choose the OEM model, because it is already necessary to design the products and find a manufacturer that develops the project. By opting for the services of an ODM manufacturer, it is possible to get a full range of products in larger quantities and lower price rates, making it easier to market.

 

By choosing PARTTEAM & OEMKIOSKS for any of these models, you can be sure that the most suitable process will be chosen that will meet the solutions you are looking for. The entire design process developed with the right technology and production will make your multimedia kiosk a success.

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  • I like the way you show the differences between these two business models.