There are different types of business models that manufacturing companies use for goods production. Most people would have heard the terms “OEM battery” and “ODM battery” but majority don’t know their meaning, differences and the major things that set them apart. Understanding the intricacies of batteries is crucial in today’s world where electronic devices are an integral part of people’s daily life. In this guide we will comprehensively see the differences between these two major terms.
What are OEM Batteries?
The term OEM stands for “Original Equipment Manufacturer”. OEM batteries are those manufactured by the same company that makes the device. OEM batteries means that battery manufacturer produces the battery according to designer requirement.
Now a days, all major hardware manufacturers have OEM manufacturers. Their products are not produced by original brand manufacturers but through cooperation with processing factory. These products are then branded with their own products.
The OEM battery manufacturing company is responsible for design, production and quality control of product while the company which commissioned the order is responsible for marketing, sales and distribution.
What are ODM Batteries?
The term ODM refers to “Original Design Manufacturer”. ODM batteries are those designed and manufactured by specialized battery companies and then sold to other brands which rebrand them and then market them as their own products.
ODM battery manufacturer design batteries than meets the parameters requirements and framework set by the customer.
ODM battery manufacturer is responsible for manufacturing but design and branding are done by the company who commissioned the order.
Key differences between OEM and ODM batteries
For OEM batteries, customer provides the solution and manufacturer’s responsibility is to produce Lithium batteries according to above solution. For ODM batteries, customers only put forward their request while manufacturer design batteries according to these requirements. Some of the key differences are given as:
Cost:
- OEM batteries are usually more expensive owing to customization and brand reliability.
- ODM batteries are usually more cost effective making them more reasonable for a budget customer.
Manufacturing Process:
- OEM batteries are constructed by same company that manufactures the device.
- ODM batteries are manufactured by specialized battery manufacturing companies and then sold to other brands.
Branding and Labeling
- OEM batteries are branded with manufacturer’s name and logo.
- ODM batteries can be branded by other companies which can then sell them under their own name.
Quality Control:
- OEM batteries have manufacturer maintain strict quality control to ensure safety and compatibility.
- ODM batteries quality may vary depending upon the company which rebrands them.
Customization:
- OEM batteries are highly customizable to meet specific device requirement,
- ODM batteries are less customizable due to them being designed for broader compatibility.
Choosing between OEM or ODM
Advantages of OEM batteries:
- Lower production costs due to economies of scale.
- Ability to focus on core competencies and outsource non-core tasks.
- Opportunity to work with multiple brands and industries.
- Reduced risk and responsibility for branding and marketing.
Disadvantages of OEM batteries:
- Dependence on the brand owner for business and revenue.
- Limited control over the product and its branding.
- Lack of differentiation from competitors who may be using the same OEM.
Advantages of ODM batteries:
- Cost-effective production due to specialization and efficiency.
- Ability to customize and adapt to different client needs.
- Opportunity to work with a variety of clients and industries.
- Increased control over the manufacturing process.
Disadvantages of ODM batteries:
- Dependence on the client for business and revenue.
- Limited control over the final product, which may not fully align with the ODM vision.
- Risk of product imitation and commoditization
Conclusion
The choice between OEM and ODM batteries depends on your budget and specific needs. OEM batteries offer better compatibility and customization but costs more. ODM batteries on the other hand are budget-friendly but offer limited quality and customization. Understanding the differences between these battery types is essential to make an informed decision for your devices.
Redway Battery as Battery Manufacturer
Redway Battery is one of world’s leading battery manufacturer for customer who needs batteries for their devices. We provide high quality products, ensure great safety, good product quality, reliable technical support and great customer service. If you have any project that required OEM/ODM support then you are welcome to contact our team for technical support.
