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Electronics Production | April 24, 2006

The Marriage of EMS and ODM Services

In the last couple of years, many traditional EMS providers have decided that if they can't beat the Original Design Manufacturers (ODM), they should join them.
The ODM business model has proven successful for two main reasons. First, many OEMs have continued to divest themselves of not only their manufacturing infrastructure, but their design competencies as well. ODMs have proven that they can design with the same level of speed and innovation as their customers. Second, by collaborating with the customer as early as possible in the product's life cycle, ODMs make themselves practically indispensable later on in the volume manufacturing and assembly phase of that product.

Probably most important to public companies, "ODM" is a term financial analysts seem to prefer over EMS. The three companies we visited aren't the only ones trying to carve a more profitable niche in the electronics supply chain, but they're committed to a business plan others are starting to copy.

Click here to read the full article on Circuitree.com.
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January 11 2019 8:28 pm V11.10.27-1