What Is an Original Design Manufacturer (ODM)?

An original design manufacturer, or ODM, designs and produces a product that another company sells, often under the buyer’s brand.

An original design manufacturer, or ODM, designs and produces a product that another company sells, often under the buyer’s brand. The supplier generally contributes more of the underlying design than an build-to-print manufacturer.

How Original Design Manufacturer (ODM) works in a sourcing process

Determine which parts of the design are standard, customized or owned by another party. The buyer needs clear rights to use, modify, register and continue supplying the product.

Original Design Manufacturer (ODM): what the sourcing record should show
AreaWhat to record
DecisionDetermine which parts of the design are standard, customized or owned by another party. The buyer needs clear rights to use, modify, register and continue supplying the product.
EvidenceCheck design ownership, tooling, exclusivity, component lifecycle, certifications, change control, warranty and access to technical files.
Watch pointODM sourcing can shorten development time, but dependence on the supplier’s platform can make switching difficult.

What buyers should verify

Check design ownership, tooling, exclusivity, component lifecycle, certifications, change control, warranty and access to technical files.

ODM sourcing can shorten development time, but dependence on the supplier’s platform can make switching difficult.

Related sourcing records

strategic sourcing, supplier prequalification, landed cost.