OEM and ODM are two acronyms you will hit when you start manufacturing, and they cause more confusion than they need to. Here is what they mean, with accessories examples, so you can brief a manufacturer with confidence.
OEM, defined
OEM stands for original equipment manufacturer. In practice it means the manufacturer makes a product to your design and specification. You bring the design, they build it. An OEM example: you design a specific cap with your own construction and materials, and the manufacturer produces it exactly to your spec. The design is yours.
ODM, defined
ODM stands for original design manufacturer. Here the manufacturer already has a design, and you adapt and brand it. An ODM example: the manufacturer has a proven beanie design, and you choose the colour, add your patch and put it out under your brand. The base design is theirs, customised for you.
How OEM and ODM relate to private and white label
The overlap is simple. ODM is close to white label, taking an existing design and branding it. OEM is close to private label, making a product to your own design. The terms describe who owns the design, which is the same question that separates private from white label.
Which model suits which brand
ODM suits brands who want speed, lower cost and lower minimums, and who do not need a unique base design. OEM suits brands whose product is part of their differentiation and who have the volume to support development. Most brands use both across their range. Engelite works either way and will advise which suits each product.