Foreword: Many friends do not understand the difference between OEM/JDM/ODM, the supplier does not understand the needs of the entrusting party, and the entrusting party also wrongly assesses the strength of the manufacturer. This will lay hidden dangers for cooperation and reduce work efficiency.
So, let’s first figure out what is OEM/JDM/ODM.
OEM (Original Equipment Manufacturer) for short: Consigned manufacturing means that the purchaser provides equipment and technology, the manufacturer is responsible for production, and provides manpower and space.
The contract manufacturer usually has abundant and cheap labor. At present, many PTZ cameras on the market are OEM produced in China, and then affixed with other brand trademarks and packed into customized boxes. There are many such companies in China, and most of them are located in the eastern part of China, such as the Yangtze River Delta and the Pearl River Delta. These areas have a significant advantage because the local supply chain and transportation system are well developed. They can quickly provide customers with sampling services to quickly determine whether the product style, function, and quality meet our requirements.
And because the local market competition is more adequate, the price will also be more advantageous. The most famous OEM manufacturer in China is Foxconn, a company that specializes in OEM products for Apple. The size of the company is huge, with 1.2 million employees and a large number of production lines, and its annual report for the third quarter of 2022 shows revenues of 109,327,410.
JDM (Joint Design Manufacturer) is the meaning of joint development, and is built based on OEM, but the factory’s design capabilities can not necessarily be as strong as ODM, that is, the customer in the design phase, there may be part of the function or stage to the OEM design, and then in review OEM design is reasonable Then, we will review whether the OEM design is reasonable and discuss and merge with the rest of the customer’s design. The advantage of doing this is that the customer and the production plant complement each other’s technology, each side plays its strengths, and the product design is perfect. Lay the foundation for long-term cooperation above.
ODM (Original Design Manufacturer) that is, the original design manufacturer, also known as OEM, refers to the manufacturer commissioned by the purchaser, from the design to manufacturing. If a manufacturer has Design capabilities, it can provide additional services to the purchaser.
For example, Integrate equipment functions according to the requirements of the entrusting party, redesign the appearance and produce. This mode of cooperation allows the client to focus more on the aspects of the business they are proficient in, such as building sales channels. At the same time, they do not have to worry about the production of raw materials, factory buildings, and production lines, It greatly reduces the business burden of the client.
However, such a cooperation model requires the commissioner to have a professional business team that can better control the product’s selling features and is good at communicating with the ODM manufacturer, telling them their design intentions clearly to avoid unnecessary mistakes. There are many such ODM manufacturers in China, and most of them have accumulated experience from OEM manufacturers. Eyqoo Corporation pays more attention to their R & D capabilities, we hire domestic or foreign experts to participate in product design and R & D, to innovate the existing technology. At the same time, by establishing a good feedback mechanism with partners, we continue to develop more PTZ cameras for the market to meet market demand.
Now more and more multinational companies choose the OEM model for development, which allows companies to reallocate limited resources. Invest the cost originally used for production management into product development and market development. Not only improve the operating efficiency of enterprises. Also earn huge profits.