What should I consider when using OEM or ODM?

What should I consider when using OEM or ODM?

When you choose a supplier type, you already know the difference between OEM/ODM and its risks. When choosing a manufacturer in China, know the geographic area, find your product niche, and focus only on that specific location.

Choosing the right type of supplier

 

Reliability and Capability

If you want to build a good long-term relationship with a manufacturer, you will want it to be reliable and able to provide consistently good service. When hiring a supplier, check to see if they can produce the required quantities in large quantities.

Most likely, if you hire a small manufacturing company, they may not have enough capacity to produce large quantities if they only outsource part of the process of producing the product to someone else. For example, if the supplier's factory is not fully equipped, they will hire a third party to do this for them.

What to consider when using OEM or ODM

Communication between buyer and seller

Not all Chinese manufacturers speak English or other languages. The language barrier can be a hurdle, so set your expectations. Therefore, most foreign companies hire an agent to mediate communication on their behalf to ensure understanding.

Put everything in writing that both parties can agree on. Communication channels, such as email, WhatsApp or company contact numbers, should be kept open for updates and inquiries. When your manufacturer keeps responding, you will be able to get in touch with them.

 

Resolve conflicts and issues

During this process, some issues and conflicts may arise. Before entering into an agreement with a manufacturer, list some situations and ask how they will resolve them.

Find a supplier who is willing to be proactive in resolving issues and willing to adjust, especially if the problem is due to their diligence.

 

Satisfaction, qualifications and schedule commitments

Your satisfaction is important when deciding to continue working together and choosing a manufacturer.

You are satisfied with the products shown, whether OEM or ODM; the next step is to evaluate their safety standards and other qualifications.

Regarding schedule commitments, if your supplier agrees to produce at the specified time, they must provide you with appropriate updates at each stage. Make sure the delivery process is well organized, as shipping delays can also be frustrating and unpredictable.