OEM (Original Equipment Manufacturer) / ODM (Original Design Manufacturer) are two important terms commonly used in manufacturing. While many people confuse the two terms and use them intermittently, they are not exactly the same. OEMs manufacture a product according to the design specifications provided to them, while ODM manufacturers also design the product themselves before manufacturing it.

Using OEM services the designs, functions, colors and materials can be customized according to customer requirements. Sometimes an OEM manufactures parts and equipment that may be marketed by another manufacturer. The original manufacturer parts offer better design and quality. Original equipment manufacturers use state-of-the-art technology to produce a luxury product, but companies can lower costs and focus on their core activities by outsourcing certain parts, components, or units to other companies.