EMS stands for “electronic manufacturing services,” while OEM stands for “original equipment manufacturer.” Both terms are closely related to the manufacturing industry, specifically the production of electronics, but they represent different roles and functions within the manufacturing process and there are many differences in their business module.
- Electronic Manufacturing Services (EMS): EMS companies provide a range of manufacturing services to other companies, typically OEMs. These services may include the design, engineering, assembly, testing, and distribution of electronic components and products. EMS companies often work with customers on a contract basis, providing flexible manufacturing solutions to meet specific needs and requirements.
They may specialize in certain areas of electronics manufacturing, such as PCB assembly, box build assembly, or complete product assembly.
EMS providers play a key role in helping OEMs bring their products to market efficiently and cost-effectively so basically there is huge difference in there business module but there are having multiple similarity in terms of design, process and R&D etc. - Original Equipment Manufacturer (OEM): OEM refers to a company that designs and manufactures products or components that are then sold under another company’s brand name. OEMs typically focus on product design, development, and marketing, while outsourcing manufacturing and production to third-party suppliers such as EMS providers. OEMs may have their own proprietary designs and specifications for products, which are then passed on to EMS companies for manufacturing.
The OEM retains ownership of the intellectual property and branding associated with the products, while the EMS provider handles the actual manufacturing process since EMS business module more into the Manufacture process.
In essence, EMS companies provide manufacturing services to OEMs, helping them bring their products to market by handling various aspects of the production process.
OEMs, on the other hand, focus on product design and marketing, relying on EMS providers to manufacture products according to their specifications but apart from this there is international Organization called IPC which hold the global standard of manufacture & quality control use play a strong role in EMS & OEM business partner to agree with common point for product design, development & fixing the manufacturing process. .
