OEM and ODM in electronics: models of working with a manufacturer

Electronics design and manufacture can be split between different companies. The terms OEM and ODM help describe these working models, but before a project begins, agreeing each party’s responsibilities matters more than the label itself.

OEM and ODM: who designs and who manufactures?

Discussions about OEM usually focus on manufacturing a device or its parts to agreed requirements, often under the customer's brand. The ODM model also includes the manufacturer's contribution to developing the design. The terms can be used with varying scope, so the contract and documentation should specify the exact tasks.

Stages in preparing electronics

In its archived description, ELETOR listed design, component sourcing and assembly, prototype testing, design revisions, documentation preparation and production-line start-up. Some tasks could be carried out in-house, while others could be assigned to specialist contractors.

Benefits and limitations of dividing the work

Working with a partner allows you to draw on their expertise and facilities. At the same time, you need to agree the schedule, how data will be transferred, acceptance of deliverables and how changes will be handled. A delay at one stage can affect subsequent parts of the project.

ELETOR's experience

The company described design and software development as the core of its business. It produced devices under the ELETOR brand and also carried out work for other clients. This article retains the perspective from the time of publication; current capabilities are presented in the electronics design and manufacturing offer.

What should you prepare for the first discussion?

It is useful to have a description of the device's purpose, any available documentation, the expected production run, the deadline and the scope of work expected from the manufacturer. This provides a basis for deciding whether the project involves manufacturing to a completed design, modifying an existing design or developing a new solution.