Glossary comparison
ODM vs OEM: what is the difference?
The difference
In electronics, the OEM is usually the brand owner that sells the finished product and decides which components to use. Usage varies, and in some industries OEM means a manufacturer that builds to a customer's design.
An original design manufacturer designs and builds products that another company sells under its own brand. The brand owner is the OEM in that relationship.
The two terms
ODM
A manufacturer that designs as well as builds a product which another company sells under its own brand. Unlike an EMS it controls the schematic and therefore the component selection, making it a decision maker for chip vendors.
OEM
In automotive usage, the vehicle manufacturer that designs, brands, assembles and warrants the finished car, such as Toyota, Volkswagen or BYD. It sits at the top of the supply chain and defines requirements for everything below.
Side by side
| Field | ODM | OEM |
|---|---|---|
| Stands for | Original Design Manufacturer | Original Equipment Manufacturer |
| Type | Acronym | Acronym |
| Domain | Business & Market | Automotive |
| Group | Business models | Automotive business |