It’s not Magic! It’s making sure you have the right process in place!
When Brand executives choose to take an ODM-designed product (to, essentially, customize it under the OEM’s own brand) the ODM development and manufacturing partner can make or break this strategic move. Making sure of the following process with your ODM partner can guarantee success and growth in sales, revenues and market share.
The 5 Major issues to review;
The Scoping Process
ODMs are essentially unique service agreements – they do require that executives from the ODM and the Brand meet, finalize arrangements, set expectations and common goals and trust needs to be built.
The ODM service provider expands your Brand’s core disciplines and capabilities because the final product will take on a substantial amount of original design by the ODM.
To succeed, the ODM needs to have a process to evaluate the project scope – this process will include the time cost and technology evaluation required. In addition, a detailed MRD (Marketing requirements document) needs to be in place – reviewed, approved and signed. The MRD is a real point of reference that proves that the ODM understands your Brand’s target market, evaluates the competition, is aware of the time constraints, and knows the ecosystem. Finally, the ODM needs to have excellent project management capabilities to make things happen and bring the products to your end customer – as planned and on time.
Testing, Prototyping and Development
Since products will be based on the ODM’s design you should pay extra attention to the testing and development process the ODM practices. Partnering with an ODM will expedite the Brand supply chain and can help drive costs down but, not all ODMs have the best testing equipment to check the technology specifically when dealing with innovative ProAV technologies for products that are not yet available in the market. (i.e. testing the display quality of a ProAV 8K device before 8K content is widely available in the market) This can be challenging for a development organization that does not have the best testing equipment with the latest most innovative prototypes to explore. A quick look at the testing lab will show the ODM’s ability to test products created for the future! Further, real life testing of extreme situations is also a rare capability. The testing labs must be able to test the products at extreme weather conditions such as heat and thunder storms, and EMC interference.
Development processes are critical for ODM’s to be able to make due on their deadline promises so only an experienced ODM with solid development processes can be trusted to make it to production in a timely manner. Here meeting with the CTO or the head of R&D will provide you the insights you need.
ODM partners need to have the most up to date certifications. Being certified means having processes in place and having passed the required tests to get them. As an example, a firm and dynamic Quality Management System that complies with the requirements of global ISO addresses various aspects of quality management and contains some of ISO’s best known standards. This ensures the ODM is highly qualified. In addition, the ODM should be able to obtain certifications for the products created as well. (i.e. IEC60601, safety, EMC, VCCI, RTICK, CTICK, FCC, CE, TUV, Common Criteria, NIAP Etc.)
The ODM needs to have flexibility in material planning and cost reductions. When evaluating your future ODM partner, make sure to enquire about:
Quality Control and Delivery
The ODM’s process for quality control and delivery logistics will determine the success of the complete process. It may sound elementary; however, the quality control process will ensure that your customers get the final product without delays or malfunctions. This part of the project has so much importance because now your customers are going to receive this new innovative product and it should work flawlessly.
To Sum it up
Having a trusted ODM partner is key to your success in developing and launching a high quality, valuable, new product on time. Working with an innovative ODM will also allow you to bring products early on into the market and gain market presence, sales and revenues.
Figure 1: SILORA R&D ODM Process Diagram