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Most far-infrared sauna factories provide entrusted processing modes such as OEM and ODM.
What are the similarities between OEM and ODM in sauna production and processing?
- Cooperation subjects: both parties are customers with business licenses and processing enterprises with certain product production qualifications.
- Cooperation mode: adopt the order production mode, investors place orders, and the OEM factory receives orders to provide OEM services.
- Product standard: The specific production standard of customized goods has been proposed by investors and will be produced after the factory is determined.
- Cost settlement: OEM enterprises charge customers according to orders, products, services and agency projects.
Differences between OEM and ODM
- Material supply method: OEM allows customers to provide some or all of the raw materials and packaging required for production. ODM is the agent of the processing plant to provide production materials.
- Product copyright ownership: OEM cooperation means that investors design products and factories produce products, and the copyright belongs to the former. ODM is the manufacturer that provides finished products for customers with brands to use, and the copyright belongs to the factory.
OEM or ODM, which has the advantage of looking for a factory to process?
- From the perspective of the processing factory, the factory has the full power to act as the agent for the packaging and raw materials needed for production, which can not only control the quality of the goods throughout the process, but also have obvious advantages in the production cycle control. The manufacturer can effectively shorten the building time of formal brand products by reasonably arranging each agenda. Therefore, in the view of processing enterprises, ODM cooperation is superior to OEM
- From the perspective of investors: looking for OEM of self owned brand products will more or less have certain resource advantages, such as the provision of one or several raw materials, a certain link of packaging materials, etc. OEM allows customers to provide these materials. Therefore, relatively speaking, the cost of re purchasing these materials can be saved. By providing materials without purchasing them on behalf of the manufacturer, we can save some of the price difference. From the perspective of cost control, it seems that we have saved some financial resources. Therefore, the customer thinks that the benefits of OEM cooperation are greater than ODM labor and materials contracting.
How to choose OEM and ODM to cooperate with the factory?
- Investors make complementary choices between the services of OEM enterprises and their own resources.
- For materials that the customer does not have or other formalities that need to be handled, try to choose the manufacturer’s agent.
For the projects that need to be purchased, processed or handled again during the OEM production, the principle of giving priority to the agent service of the production enterprise shall be followed. Most customers may not understand that if a small item cannot be completed in the real production stage, which affects the production progress of the whole project, they will know the stakes.
The advantages of OEM OEM and ODM OEM will change according to the investors’ own resources. The same cooperation mode may not be applicable to all customers. Establishing a cooperative relationship with the factory that is suitable for its own products and projects is a reasonable choice to find a factory to process high-quality goods such as traditional sauna rooms, far infrared sauna rooms, mobile sauna rooms and sauna room accessories.
