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ODM: All You Need to Know (OEM vs OBM vs JDM more) In a hurry to know what ODM is in a nutshell, including advantages and disadvantages of the model? Jump to it here. To appreciate the difference between ODM and OEM, you need to look closely at each of the three pillars of modern manufacturing—OEM, ODM, OBM. Each term describes a phase in a continuum; each phase points to a different relationship with the marketplace: a different set of skills and higher level of creative input. Most factories once only manufactured products on an OEM basis. Many still do. But in the last two decades, as manufacturing has become increasingly high tech, companies have increasingly branched into value-added ODM operations. In recent years, many companies are, furthermore, expanding into OBM and developing their own brands, as adoption of the Direct to Consumer (D2C) mode of production and distribution gathers pace. Factories increasingly engage in various combinations of each.

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