Very often, OEMs buys parts of other manufacturers or supplier and it uses them to make finished products. OEMs also make parts and parts resold to other companies that collect them into their own finished products. OEM also mean Original Equipment Manufacturer.
It is not uncommon for OEMs to perform all of these functions: production of parts, subassembly and final production.
There are also types of manufacturers that are described as ODMs which is also called original design manufacturers. ODM assembles or shapes and assembles component parts into complete products. These finished products are then labeled with the names of other companies that distribute the finished products.
In some industries, there are parts that are described as original parts. The right parts are usually parts from the production facilities. OEMs are packaged and resold as replacement parts.
After two companies complete the production process, interested companies buy ODM products, then distribute and resell them under their own brand. Meanwhile, OEM products are being purchased by a company that has been ordered, after which the company sells them under their own brand.
Knowing difference between OEM and ODM are crucial for the development, design, production of industrial and commercial products and parts used for their performance. The quality of OEM parts and industry standards ensure the correct performance.