What is the difference between OEM and ODM supplement factories?

What is the difference between OEM and ODM supplement factories?
Criteria for classifying supplement factories
Between OEM and ODM, what confuses many people!

Many entrepreneurs may be confused and have questions about which supplement factory they should start with if they want to start a supplement business or brand their own products. Of course, understanding the type of production source is an important thing that must be studied and found as the first step in making a decision before ordering products.

There are usually 2 types of supplement manufacturing factories:

1. OEM (Original Equipment Manufacturer) supplement manufacturing factory is a type of supplement manufacturing factory that produces products according to the specifications specified by the customer. Generally, customers will receive supplements with their own brand.
   2. ODM (Original Design Manufacturer) supplement manufacturing factory is a supplement manufacturing factory that has a formula design process specific to the factory. It is a standard ingredient formula and customers can use their own brand on products produced by the factory according to the specifications specified by the factory.

Criteria for classifying dietary supplement manufacturing plants between OEM and ODM

The classification criteria of supplement factories are often divided into categories based on the role of the customer and the production process.The classification criteria of supplement factories are often divided into categories based on the role of the customer and the production process.

- For OEM supplements (Original Equipment Manufacturer), customers can specify the specifications and production details of supplements in detail according to their needs. The supplement factory will play a role in producing supplements according to the customer's specifications in detail, and the product will have the customer's brand on the product.

- For ODM companies (Original Design Manufacturer), the supplement factory itself will play a role in designing finished products for customers to choose from. Customers can use their own brand on products designed by these supplement factories or invent standard formulas. Sometimes, customers can participate in the design process or propose additional ingredients together with the supplement factory. This classification helps businesses and consumers better understand the role and responsibilities of the supplement factory in the supplement production process. 

The purpose of choosing the type of supplement factory to best meet the needs of entrepreneurs' products

For choosing to use OEM or ODM supplement factory services, there will be differences according to the roles and responsibilities of each type, which will depend on the needs and business objectives of the entrepreneur. The types of supplement factories can be classified as desired as follows:

1. OEM Supplement Factory (Original Equipment Manufacturer) Choosing to use this type of supplement factory requires a certain level of clarity in the product specifications in order to determine the most detailed requirements for supplement production. This way, customers can fully control the ingredients, production methods, and production steps of supplements. OEM supplement factories tend to be quite flexible in adjusting formulas or product characteristics according to customer needs.
2. ODM Supplement Factory (Original Design Manufacturer) Some entrepreneurs often choose to use the services of this type of supplement factory when they need innovative products or need to create new product markets that are unique and likely to be well-received. This supplement factory will help you have a specific market in terms of product innovation by linking it to the design process, playing a role in determining design details, and creative supplement products.

Therefore, choosing to use the services of an OEM or ODM supplement factory will depend on the nature of the business and marketing strategy, whether the entrepreneur wants flexibility in changing products or wants to present unique and innovative supplement products in the market. An OEM supplement factory focuses on producing supplements according to customer specifications. This flexibility allows the product to be produced to meet the entrepreneur’s needs without any shortcomings. Meanwhile, an ODM supplement factory focuses on creating new supplement products and presenting innovations in the design process and product manufacturing to customers instead.

Therefore, choosing to use the services of an OEM or ODM supplement factory will depend on the nature of the business and marketing strategy, whether the entrepreneur wants flexibility in changing products or wants to present unique and innovative supplement products in the market. An OEM supplement factory focuses on producing supplements according to customer specifications. This flexibility allows the product to be produced to meet the entrepreneur’s needs without any shortcomings. Meanwhile, an ODM supplement factory focuses on creating new supplement products and presenting innovations in the design process and product manufacturing to customers instead.

AK Healty Pro is happy to provide advice on how much to invest in creating a cream brand or request more information on how much to invest in creating a supplement brand. Our team of experts is ready to be with you.

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