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'{{one source|date=June 2012}} An '''original design manufacturer''' ('''ODM''') is a company that designs and manufactures a product as specified and eventually [[white label product|rebranded]] by another firm for sale. Such companies allow the firm that owns or licenses the [[brand]] to produce products (either as a supplement or solely) without having to engage in the organization or running of a [[factory]]. ODMs have grown in size in recent years and {{as of | 2015 | lc = on}} many have the scale to handle production for in-house the products that are branded by the buying firm. This is in contrast to a [[contract manufacturer]] (CM). This model is especially used in international trade, where a local ODM is used to produce goods for a foreign company that sees some advantage in the transaction, such as low labor-inputs, transport links or proximity to markets. Innovative and/or patented technologies developed/owned by the ODM are another cause for this product distribution model. ODM models are also used where local ownership-laws possibly prohibit direct ownership of assets by foreigners, allowing a local firm to produce for a brand company - either for the domestic market or for export. This type of [[business]] is part of "[[outsourcing]]". For example: [[Compal Electronics]] makes [[notebook computer]]s and [[computer display|monitors]], and operates as a mass producer for numerous brand companies, assisted by low labor-costs, low-cost transport, and the near-commodity nature of the physical inputs (in Compal's case, computer components). {{As of | 2011}}, Taiwanese ODMs made ninety-four percent of all notebook computers.<ref>{{cite web |url= http://www.prnewswire.com/news-releases/global-and-china-laptop-and-tablet-pc-industry-report-2011-2012-152524185.html |title= Global and China Laptop and Tablet PC Industry Report, 2011-2012 |accessdate= 2012-09-10 }} </ref> ODM capabilities can be extensive in terms of depth and scope and can include tools, staffing experience, equipment and processes utilized with respect to, but not limited to, the following product design and development categories: hardware / electrical development, PCB design and layout, industrial / mechanical design, system level design, software / firmware development, component engineering, change notice process, design validation and testing, review technique process (DFx), quality and reliability assurance, software tools, compliance, safety and regulatory adherence. <ref>{{cite web|url=https://www.ventureoutsource.com/contract-manufacturing/benchmarks-best-practices/product-design-development/product-design-and-development-supplier-evaluation|title=Checklist: Questions to qualify electronics original design manufacturers (ODM)|Publisher=VentureOutsource.com|access-date=2017-07-14}}</ref> ==Intellectual property== ODMs create their own [[intellectual property]] and are very proactive in [[patent]]ing it. Most of their patents are filed in the US, Taiwan and China. == See also == * [[White label product]] * [[Rebranding#Product rebranding|Product rebranding]] * [[Electronics manufacturing services]] (EMS) * [[Original equipment manufacturer]] (OEM) * [[Contract manufacturer]] ==References== {{reflist}} [[Category:Production and manufacturing]]'