IoT Device ODM OEM and engineering manufacturing company with cutting edge solutions in supply chain

When you are sourcing products, you are likely to come across the terms OEM and ODM. These are two essential terms widely used in the manufacturing sector. Often you will see people trying to compare these two types like using OEM vs. ODM. Both these terms are correlated, and it can be confusing at times. Some of the startup companies seldom have the resources to design and manufacture products. In such a scenario, IoT device manufacturing companies outsource specific components to contract manufacturers, also known as the OEM and ODM manufacturing firms.

OEM (Original Equipment Manufacturer)

OEM manufacturing usually is best suited for people and businesses with new and innovative products.

OEM is essentially when a company designs a product from the ground up and then contracts another company to manufacture it for them. For instance, when you create a brand new widget, launch it on a crowdfunding site and need to get it produced. For example, Apple uses OEM for producing the iPhone. They come up with the design, then contract several third-party manufacturers to handle the mass production.

The minimum order quantity will be higher than with ODM, because of the higher level of capital expenditure and technical understanding of the product required.

Advantages of OEM

The most significant advantage of OEM is that you have complete control over your Intellectual Property (IP). Because you have done all the R&D yourself, all IP rights belong to you. This gives you a better bargaining position and makes it easier to switch to other suppliers if needed. However, always protect your IP well. The last thing you want is that someone steals your unique designs and specifications.

Because you have a complete package of designs & specifications, it is easy to get quotes from manufacturers.

For smaller businesses, the main disadvantage of working with an OEM is that you need to provide the manufacturer with complete and accurate designs and specifications.

Not all companies have in-house resources to produce these. And they might not be in the financial position to hire third-parties. For them, an ODM could be a good alternative.

ODM (Original Design Manufacturer)

An original design manufacturer (ODM) is a company that designs and manufactures a product that is specified and eventually branded by another firm for sale. These companies are in charge of R&D, concepts, and manufacture of the products. Many companies approach an ODM when there is a dearth of resources to build product designs. When you approach an ODM company for services, the product designs and specifications are chosen by the company, and there is hardly any specification that can be mainly altered. ODMs have grown in size in recent years, and many are now sufficient in size to handle production for multiple clients, often providing a large portion of the overall output.

Advantages of ODM

You don’t need to make significant, upfront investments as product development is taken care of by the ODM, and you don’t need to pay for all the tooling.

You don’t need to have technical resources that can provide detailed designs & specifications. The ODM will take care of this.

Because of these advantages, ODM is popular among many e-commerce sellers.

Our Development Process

Eelinktech is certified to design and manufacture GPS trackers and IoT devices. Our professionals are experienced and trained to customize GPS and IoT devices based on the client’s requirements. Our development process includes the following steps:

• PCBA Designing and Manufacturing
• Design and Prototype Development
• Mature firmware
• API interface & Mobile App
• Assembly
• Packaging, branding, and global distribution.

Final words

Being in the industry for over 16 years, the team at Eelinktech has specialized in the design and manufacture of GPS and IoT devices and delivers OEM and ODM services. Our professionals are the experts in converting our client’s ideas into high-quality products that are commercially successful. Our experienced R&D team members and engineers offer a vast range of OEM and ODM services.

Our OEM and ODM services are backed with excellent teamwork, latest technologies, and honest service support to bestow you the full value of your money. Our extensive experience and world-class designs allow us to deliver you the required products to exceed all your performance expectations.

To get the most from our services.

Get in touch with us at Eelinktech, and feel free to ask us questions about your queries, and we will be happy to assist.

We have an extremely responsive team that collaborates with clients and responds to their unique needs promptly.