An original design manufacturer (ODM) designs and builds a product that you sell under your own name. A contract manufacturer builds a product from your design. The choice decides who owns the design, how much control you keep and how fast you reach market.
| Question | ODM | Contract manufacturer or EMS |
|---|---|---|
| Who designs the product | The ODM | You |
| Who owns the design | Often the ODM. Check the contract. | You |
| Best for | A fast launch of a standard product under your brand | A product you designed or want to control |
| Main risk | Less control. Harder to change maker later. | You carry the design risk |
What an ODM is
An ODM designs and makes a product that another company markets under its own brand. If you have an idea but no design team or factory, an ODM can take it through research, design, prototype and full production.
Benefits of an ODM
- Faster to market: the ODM already has a design and build process.
- Lower upfront cost: you do not pay to create the technical design or the special tooling.
- Built-in expertise: many ODMs give technical advice and ideas for improving the product later.
Trade-offs to check
- Design ownership: who owns the design and the IP? Get the answer in writing.
- Switching: can you move the design to another maker later?
- Customization: how much can you change the product?
- Testing and approvals: who handles testing and certifications?
- Order size: what are the minimum order quantities?
When a contract manufacturer fits better
- You own the design and want to keep it.
- You expect changes between builds.
- Your volumes are small and your mix of parts is high.
- You want one partner from prototype to production.
Amtech is a contract manufacturer. We build your design in small volumes with a high mix. Amtech holds ISO 9001, ISO 13485 and IPC-A-610. If you need design help first, see our product development services.
Your role and your partner role
A great ODM customer
- Brings the product idea and the needs of your users.
- Finds the market for the brand once the product is made.
A great ODM partner
- Does the research and development.
- Tests and inspects the product before it ships.
- Manufactures the product and passes on the benefit of its scale.
Five questions to ask before you choose
- Who owns the design and the tooling?
- Can I take the design to another manufacturer?
- What testing and inspection do you do?
- What happens when a part reaches end of life?
- What are your minimum order sizes and lead times?
Common questions
What does ODM stand for? Original design manufacturer.
What is the difference between an ODM and an OEM? An OEM sells the finished product under its own brand. An ODM designs and makes a product that an OEM can sell under its own brand.
What is the difference between an ODM and an EMS company? An EMS (electronics manufacturing services) company builds to your design. An ODM designs the product as well.
Have a product in mind?
Tell us what you are building. We will help you choose the right process for it. See our electronics assembly and PCB assembly services, or start a quote.