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When partnering with an OEM/ODM vendor, brands do not need to invest significant resources in design and research and development. Professional OEM/ODM manufacturers usually already have mature design schemes and production technology, and the brand only needs to choose the style that suits its own needs for fine tuning. This greatly reduces the investment of the brand in the research and development stage, while ensuring the combination of product functionality and fashion sense.
2. Mass production reduces unit cost
OEM/ODM manufacturers usually have large scale production capabilities and are able to reduce the cost of each product through mass production. The advantage of OEM/ODM is its strong supply chain management and efficient production process, which ultimately gives brands a significant advantage in product unit cost, compared to manufacturing in-house or choosing small scale factories.
Professional OEM/ODM manufacturers have a mature supply chain system that optimizes every link from raw material procurement to finished product delivery. Instead of having to spend time and money managing complex supply chains themselves, brands can rely on the experience and resources of OEM/ODM vendors to ensure that products are delivered on time and in good quality, reducing unnecessary waste and loss.
4. Reduce equipment investment and operating costs
Brands choose to work with OEM/ODM manufacturers to avoid investing a lot of production equipment and site costs. OEM/ODM manufacturers already have advanced production equipment and experienced teams, which allows brands to avoid high upfront equipment investment and operating costs.
With OEM/ODM vendors, brands have more flexibility to adjust their orders to market demand, reducing the risk of overstocking. Such a partnership model helps brands reduce the cost of capital occupation and inventory management, making the flow of funds more flexible.