What is meant by the terms OEM, EMS, CEM, ODM and why should you know?

The roles of original equipment manufacturers (OEMs), electronics manufacturing service (EMS) providers, contract electronics manufacturers (CEMs) and original design manufacturers (ODMs) are often confused. This situation is, in part, due to a significant amount of overlap of activities and, as a result, there is frequent misuse of the terms. In an attempt to provide some clarity, this blog provides the generally accepted definitions for each term. In addition, the post looks at some of the more practical differences between original equipment manufacturers and the electronics manufacturing service providers they may choose to outsource the assembly to. What is an OEM? OEM is a term used rather confusingly in several different ways. They may either market complete "‘turnkey" products or just certain sub-systems or components. In the latter example, an OEM offers components or sub-systems that are re-sold by another company as part of their end product. OEM company business models typically focus on product innovation and development. They design most of the products themselves and own the "rights" to them - i.e. the intellectual property (IP). Increasingly, OEMs outsource all or part of their manufacturing so it could be argued that the "M" in "OEM" is now somewhat outmoded.

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