What is OEM and ODM?

OEM and ODM are acronyms seen quite frequently in the manufacturing world. OEM stands for Original Equipment Manufacturer and ODM stands for Original Design Manufacturer.

OEM method: You develop the product recipe, determine the ingredients, and design the packaging. Then you ask the manufacturer (OEM) to produce the products exactly according to your recipe and package them in the packaging you designed. Then you sell them under your own brand.

ODM method: You tell a supplier (ODM) that you want to sell a new type of product. Then the supplier designs the cookie recipe (selects the ingredients and flavors), determines the production process, and even proposes the packaging. Then you choose the design, agree on the price, and the supplier produces the cookies. You print your own brand name on the packaging and sell the product.