Electronic manufacturing supplier terms OEM, EMS, CEM, ODM

As a reputable electronic manufacturing supplier we know that the manufacturing industry comprises many specialised companies that provide a wide range of services. Manufacturing jargon often identifies these companies with acronyms. This can be really perplexing to outsiders or newcomers. Most commonly used are the terms:

• OEM: original equipment manufacturer
• EMS: electronics manufacturing service providers
• CEM: contract electronics manufacturers
• ODM: original design manufacturers

All of these specialty manufacturers produce, contract or provide components or services to end-users. However, the terms used to identify them are often misused.

Understanding the specific services that these companies provide should help clear the confusion and at some point you can choose your electronic manufacturing supplier like Conro.

Here is a look at the definitions of these terms.

OEM ‒ Original Equipment Manufacturer

OEMs design and produce electronic items based on the buyer’s specifications. The buyer sells the final product under their company name and logo. OEMs retain intellectual property rights on their products.

OEMs can outsource all or some of their manufacturing process to other companies. OEM business models emphasise product innovation and development.

Example: Microsoft issues OEM software for Windows operating systems.

EMS ‒ Electronics Manufacturing Service

An EMS is a contract manufacturer. EMS providers design, manufacture, test and ship electronic products for OEMs. They are also responsible for repairing the products they developed.

EMS providers also offer support services. These include support with design, shipping management and customer service. EMS companies can be huge. In fact, they manufacture some of the world best-known products.

Example: Microsoft’s Xbox and Apple’s iPhones are built by EMS companies.

CEM ‒ Contract Electronics Manufacturers

CEMs are similar to EMS providers. They manufacture electronics under contract for other companies. They often work for major OEMs. Their products are branded with the buyer’s logo. CEMs offer support with design, supply chain management and testing. They generally don’t provide software support.

CEMs tend to be highly certified companies. They provide customers with expertise in regulations and employ advanced technologies and working closely with their electronic manufacturing supplier.

Example: CEM typically focus on the production of PCBs and cable assemblies.

ODM ‒ Original Design Manufacturers

ODMs are companies that design and manufacture products. The products are then rebranded and sold by other businesses. ODMs are similar to CEMs. However, CEMs often produce a large range of different products. ODMs tend to specialise in a small amount of specific product types.

ODMs sell the product on their own or to other buyers. The product can also be sold as a White Label. This term describes an item which is sold under several names. ODMs retain the intellectual property on their products.

Example: Typical ODM-created products are phone cases and chargers.