ODM (Original Design Manufacturer)

The factory's existing design, branded for you.

What it changes for you

Faster to market, but the design is not exclusive to you.

In practice

ODM means the factory already owns the design and you brand it. It is the fastest route to a sellable product because there is no development cycle and no tooling to pay for, but the same design can be sold to your competitor under a different brand. That trade-off is the whole decision: speed and cost against exclusivity.

Questions about ODM

Can I stop my competitor buying the same ODM product?

Not by default. The design belongs to the factory, so it can be sold to anyone. Exclusivity has to be negotiated in writing, usually against a volume commitment or a tooling contribution.

Is ODM lower quality than OEM?

Not inherently. The difference is who owns the design, not how it is made. Quality follows the specification and the inspection, whichever route you take.

Other terms

• FOB (Free On Board) - Seller delivers the goods on board the vessel at the named port; cost and risk transfer there.
• EXW (Ex Works) - Buyer collects at the factory gate.
• MOQ (Minimum Order Quantity) - The smallest quantity a factory will run for one specification.
• Tooling cost - The one-off cost of the injection mould, die or print plate.
• Colourway tolerance - The measured range a factory will hold between sample and repeat production.
• AQL (Acceptable Quality Limit) - The sampling standard (ISO 2859-1) defining allowed defects per inspected lot.

Send a specificationAll 14 terms