OEM
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What is OEM?
OEM (Original Equipment Manufacturing / Manufacturer) refers to a system in which one company's products sold under its own brand are manufactured on its behalf by another company, or to a company that carries out such contract manufacturing.
In the food industry, it is common for brands and businesses without their own factories to outsource manufacturing to an OEM manufacturer, requesting everything from product development and manufacturing to packaging in an integrated way.
Features and background of OEM
Definition: A system of having another company manufacture your own brand's products
Benefits: No equipment investment, use of specialized technology, speedy product rollout
Drawbacks: Manufacturing cost depends on the contract fee; differentiation requires planning ability
Background: To answer diversifying consumer needs, small and midsize companies and D2C brands use OEM
Trend: OEM making use of small-lot production, functional foods, and sustainable materials is expanding
Examples of OEM use at Agriture
OEM manufacturing of health foods and functional foods using dried vegetables and vegetable powder
Proposals for "sustainable OEM products" using off-spec vegetables
Support for small-lot prototyping and new-product development
Original food OEM planning for novelties and gifts
Related keywords
PB products
ODM(Original Design Manufacturing)
Health food OEM
Sustainable OEM
Related articles
How to Make Dried Fruit Products via OEM: A Complete Guide from Planning to Manufacturing
FAQ
Q1. What is the difference between OEM and ODM?
A. OEM refers to a form that outsources only manufacturing, while ODM refers to a form that outsources everything from planning to design and manufacturing.
Q2. Is OEM in small lots possible?
A. Yes. For sole proprietors and D2C brands, OEM manufacturers that support small lots are increasing.
Q3. What kind of OEM does Agriture handle?
A. We handle OEM products using dried vegetables, vegetable powder, and dried fruits, and can propose them in diverse forms such as health foods, gifts, and novelties.
