What is an EMS, but more importantly, what do they do?
EMS stands for electronics manufacturing services, and it’s the term people use the most when looking for a contract manufacturer in the electronics industry.
If you’re looking for a manufacturing partner that will help you build a custom electronic, a new to the world device; think of product development in terms of
- Industrial and mechanical design
- Components and parts sourcing
- Firmware/Software development
- Prototyping and certifications
- Getting custom molds and setting up a production line
Then an EMS is the right manufacturing partner to approach.
An ODM will not help you with the activities in the list above.
That brings us to the next question.
Table of Contents
WHAT IS AN ODM, WHAT DO THEY DO?
An ODM is also a manufacturing entity; they have the knowledge and tools to build electronics, but here’s the big difference, unlike an EMS, they do NOT do custom electronics.
An ODM has a selection, a catalog of electronic devices they manufacture and you can choose from -they have set minimum order quantities.
Yes, you can change the color of the casings and stamp your logo, perhaps a sticker or molded on the casing, but that’s as far as any possible customization will go.
EMS VS ODM COMPARISON TABLE
General overview of both types of manufacturing partners, although, exceptions exist.
| EMS can be huge companies such as Foxconn, Jabil, Flex; they’re employed by the biggest tech brands – Apple, Samsung, Microsoft. | ODMs are smaller size companies that don’t have brand recognition. |
| EMS tend to work with large budgets | ODMs make it easy to order a batch of electronics with a couple of thousand US$. |
| EMS are difficult to access unless you’re a big player in the electronics industry. | ODMs will do business with anyone that can afford to meet their minimum order quantities. |
| EMS do not hold the IP of the device, the brand does. For example, Apple is the sole holder of Apple products’ IP, not Foxconn, the company that manufactures its products. | ODMs are the sole owners of their products IP, you have no claims over their product. |
| EMS deals are lengthy in negotiation as many product details and costs have to be discussed and agreed on. | ODMs deals are fast, you can go to Alibaba and place an order right now. |
WHAT WORKS BEST FOR YOU? EMS OR ODM
By now it should be clear; if you’re looking to sell an electronic device locally, say gaming headsets or security systems that you will provide and install as part of your business services.
Then you have to look for an ODM partner and place an order.
If your product truly is a new to the world device, something that doesn’t exist and requires research and development, then you need the services of an EMS, but beware, working with an EMS is expensive, because of all the product development stages.
If you want to learn more about the starting costs of a new to the world electronic device please read
NRE Meaning
NRE Costs Breakdown
If you’d like to go in-depth on the different services an EMS can provide for you please read
Electronics Manufacturing Services – A selection Guide
If you’re looking for an ODM company to place an order, we’ve gathered a list of ODM companies that might come in handy
If you need a guide on how to go about selecting the right manufacturing partner, this will make your research way easier
3 Ways to find the right partner and outsource manufacturing
