OEM involves manufacturers designing products to a customer's specifications, allowing limited customization and rebranding. ODM involves customers designing their own products and working with design houses for development. Neither OEM nor ODM is strictly better - they each have advantages depending on business needs and strategy. OEM is faster with shorter timelines and lifecycles but weaker brands, while ODM enables stronger brands and innovation with longer timelines. Companies should analyze their market approach, resources, and goals to determine the most suitable production model between pure OEM, pure ODM, or a hybrid approach.

1. OEM/ODM
What is The Most Suitable for Your Business?

2. What is ODM/OEM?

3. OEM (Original Equipment Manufacture)
From The Customer Perspective
OEM is a process where the manufacture design and develop product based on their
specification. OEM usually allowed rebranding of the product with limited
customization.

4. ODM (Original Design Manufacture)
From The Customer Perspective
ODM is a process where the customer design and develop their own product
concept. The development process can be helped by 3rd party called IDH
(Independence Design House).

5. Which ONE is The Best?

6. No One is The Best!
Each model have positive outcome depend on business strategy

7. OEM - FAST
1. Smaller MOQ (Minimum Order Quantity) 6. Not lasting brand image
2. Shorter development and delivery time 7. Small margin
3. Shorter product lifecycle 8. Bigger human resource
4. Common product feature and design
5. Less or average product quality

8. ODM - STRONGER
1. Bigger MOQ (Minimum Order Quantity) 6. Stronger brand image
2. Longer development and delivery time 7. Bigger Margin
3. Longer product lifecycle 8. Less human resource
4. Unique and Innovative product
5. Better product quality

9. ODM
WORLD WIDE BRAND
OWN
MANUFACTURE
OEM
LOCAL BRAND
ODM enable company to create their own product concept and Innovation without
need to spend lot of investment in factory. This type is many use by big company world
wide. OEM enable small company to compete in market with various product and
affordable price.

10. Determine Your
Company Approach

11. FAST MOVING
MARKET
OEM
This kind of company is targeting final value by expand the quantity and
reducing margin to compete in lower price. This kind of business need
shorter production time and variety models.

12. ODM
A company who planning his future by doing an Innovation products and
keeps the constancy of quality of the product and service. This company
focused on bigger margin with longer product cycle.
INNOVATION
AND BRAND IMAGE

13. COVER ALL MARKET
ODM&OEM
A company who planning who focused on the brand image but would like to
cover all market segment. Usually this kind company making innovation to
drive the brand image and doing affordable price to win the market share.

14. SUMARRY
1. Learn about your production model
2. Determine your company market approach
3. Analyst the risk and advantage each market approach
4. Suit your human resource needs based on production model
5. Noted that OEM usually open and not exclusive depend on the MOQ
6. Choose the suit production model to your company approach

15. Thank You
Presentated by:
Rubi Sutanto