What is OEM, ODM, OES, AM?

What is ODM?

ODM refers to the original design manufacturer (Original Design Manufacturer), usually refers to a company that specializes in the design and production of electronic products. ODM will design and produce according to customer needs, and then hand over the products to customers for branding, sales and marketing [1]. ODM companies occupy an important position in the entire electronic product supply chain and provide customers with a full range of services from design to production.

For example, Xiaomi will cooperate with an ODM company[2], and the ODM company will be responsible for the design and production of the entire product. ODM companies will design and manufacture products according to Xiaomi’s needs, including appearance design, hardware configuration, etc., and then deliver the products to Xiaomi for promotion and sales.

Through ODM, Xiaomi can save a lot of time and development costs in product design and production, while improving product quality. ODM companies can also increase their revenue and market share by providing products.

What is OEM?

OEM refers to the original equipment manufacturer (Original Equipment Manufacturer), usually refers to a pure foundry company, does not include the design part. An OEM manufactures products for other companies and manufactures them to customers’ specifications in order to brand, sell and market them.

OEM companies are responsible for the manufacturing and production, and then sell it to brand owners, who in turn sell it to end users. Since the OEM is responsible for manufacturing the initial product, it affects the quality and cost of the product.

Like the iPhone is a good example. Foxconn is responsible for the production of Apple’s products, such as iPhone, iPad and so on. Apple submits product design and technical specifications to Foxconn, and then Foxconn is responsible for designing and producing products, including production parts, product assembly, and finally delivery to Apple.

Through OEM, Apple can focus on other aspects without having to bear the cost and risk of product production. And Foxconn can also generate income by producing Apple products.

What is OES?

OES (Original Equipment Suppliers) – When the car needs maintenance, the after-sales maintenance parts designated by the original factory are called OES. Automobile manufacturers still master the core technology of parts, and then hand them over to other OES parts factories for production, or it may be directly produced by the original factory. The parts of OES are all branded by the original factory, but the price is still more expensive than that of the sub-factory, and most of the sales channels are the stores designated by the original factory.

What is AM?

AM (Aftermarket) – In addition to the above-mentioned original parts manufacturers, there is another auto parts manufacturer called AM, which is the non-original parts for after-sales maintenance, which is what we call the auxiliary factory. AM parts are different from ordinary parts. Manufacturers do not flow finished products to automobile brand factories through the supply chain, but provide them to repair shops or retailers to provide driving options for car repairs. The characteristics of AM are that they are relatively cheap and require There are not many ideas, and many AM products only need to be copied according to existing products.

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