• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.33
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• pp.311-343
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• 2007

At present, more than 80% export made by Korean small-medium sized companies is OEM(Original Equipment Manufacturing). But OEM export of made-in korea products has been facing limitations from 1990s. Some leading companies among those small-medium sized companies which have been fulfilling OEM export are transferring their exporting strategies to Own Brand or ODM(Original Development/Design Manufacturing) and some of their strategies successful. However, most of small-medium sized OEM exporting companies are still groping for some ways to upgrading to Own Brand or ODM exporting strategies. Therefore, this article deals with how the leading ODM exporting companies have been transferred from OEM to ODM exporting strategies. It also discusses the primary factors of success and barrier and how to develop the ODM exporting strategies based on investigating literature and interviews with the leading ODM exporting companies.

• Journal of the Society of Cosmetic Scientists of Korea
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• v.46 no.2
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• pp.167-177
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• 2020

In this study, we analyzed the growth factors and industrial role of cosmetics OEM·ODM enterprises that have played an important role in Korea's growth as the fourth-largest cosmetics exporter in the world. Since the OEM industry was first introduced to Korea by Kolmar Korea in 1990, the industry has grown to account for 12.619 trillion won as of 2016 and 69.9% of sales of local products. Also, the industry not only supported brand enterprises to enter the global market but also directly supplied products to global enterprises, contributing to economic growth and rising national prestige. Growth factors in Korea's cosmetics OEM·ODM industry can be found in the development of differentiated business models, such as continuous technology development, active response to the industrial environment, and settling a system with technology and creative ideas. For sustained growth and development of Korean cosmetics industry, OEM·ODM needs to be settled as Korea's own industry and co-exist with brand enterprises in complementary relations.

• Korean Management Science Review
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• v.30 no.1
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• pp.25-41
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• 2013

This paper presents a supply chain framework with the ODM (Original Design Manufacturing)-OEM (Original Equipment Manufacturing) hybrid production of textile industry in FTA (Free Trade Agreements) environments between Korea and other countries. The proposed supply chain framework with ODM-OEM hybrid production is a unique supply chain that has both domestic production with non-tariff advantages in FTA environment and oversea production with low labor costs. To investigate the validity of the proposed supply chain, we first construct its strategic profit model and supply chain planning and then show that each member of supply chain network-yarn manufacturer, fabric manufacturer, and apparel manufacturer-can maximize their own profits without conflicts among the members. The efficiency of the ODM-OEM hybrid production system is analytically verified in comparison with the general OEM and ODM production model using profit models. Comprehensive numerical examples are provided to illustrate the advantages of the proposed system.

• THE INTERNATIONAL COMMERCE & LAW REVIEW
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• v.37
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• pp.361-389
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• 2008

The purpose of this study is to detect the factors which have an effect on transformation level and performance and to provide the ways of successful transformation and vitalization from OEM to ODM. This study was proceeded by an empirical analysis. A model and hypotheses were set up and they were verified through the empirical analysis. Those factors were divided into four, inner company factors, strategic factors, core competence factors and purchase determining factors. In the result of the model suitability analysis on the study model of relationship among 'influencing factors of ODM transformation - ODM transformation level-export performance', every factors, $X^2=912.067$, DF=261, p value=0.000, GFI=0.737, AGFI=0.620, NFI=0.786, IFI=0.837, CFI=0.834, Q value=3.495 were rather insufficient to be a good model, but they were good enough for the general analysis. Taking these accounts into consideration, this study suggests the following implications. First, making a plan and setting up strategies in advance are required. Second, financial plan has to be prepared. Third, trends in global markets have to be analyzed. Fourth, companies have to focus on developing new materials and products through R&D. Fifth, quality competitiveness and quality control systems are required.

• 한국정보디스플레이학회:학술대회논문집
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• 2005.07b
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• pp.858-862
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• 2005

The industry of LCD monitor and LCD/TV production is complicate, so there are several OEM/ODM companies concentrated on technical and professional skills. Brand name company establishes its own brand name, sells its own product, and reflects market request. Therefore, the main duty of brand name company is on sales and marketing. This article explains the operating flow on LCD monitor and LCD/TV industry, operating relationship between brand name company and OEM/ODM, and advantage and disadvantage on different points. Furthermore, future trend of LCD monitor and LCD/TV can be reviewed in the article.

• Proceedings of the Korean Society of Computer Information Conference
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• 2018.07a
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• pp.517-518
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• 2018

국내 제약 산업은 상위 30대 기업이 전체 생산 매출의 55.1%를 차지하는 불균형적인 구조를 가지고 있으며, 중소업체들은 공급자 과잉의 힘든 상황 속에 처해 있다. 이러한 가운데 중소제약업체를 중심으로 기존 설비를 활용하여 외국 제약회사의 Original 의약품을 복제한 Generic 의약품을 생산하여 납품하는 OEM/ODM 방식의 위탁생산이 증가하고 있다. 또한 글로벌 바이오의약품을 중심으로 CMO(Contract Manufacturing Organization) 생산에 대한 관심이 높아지고 있다. 본 연구에서는 의약품 위 수탁 사업에 있어서 영업사원의 핵심역량인 정보제공, 전문성, 판매기술, 태도 및 관계형성, 업무유연성이 고객 만족에 미치는 영향을 분석하여 CMO업체의 경쟁력 강화를 위한 방안을 제시하고자 한다.

• Journal of Fashion Business
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• v.19 no.4
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• pp.183-199
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• 2015

This study aimed to systematize the apparel vendor work processes and provide useful information to future employees of clothing export units by analyzing the processes of vendors' manufacturing tasks. A survey of 20 apparel vendors servicing mainly U.S. buyers was conducted on employees of overseas business departments working for more than five years. buyers. Based on the results, vendors mainly manufactured cut-and-sew knit products. Regarding the production method, OEM was used more frequently than ODM. Fourteen (70%) companies used the ODM method. This suggests that vendors are expanding their production method from OEM to ODM. In order to summarize the work of each business based on the clothing production process research results, buyers were in charge of planning products and the vendors were in charge of sampling. Production of materials and the approval of material tests were out sourced. Overseas factories of vendors were in charge of bulk (mass) production and garment finishing, as well as packaging and shipping the completed products. Even though the vendors' head offices do not directly produce clothes, they play a pivotal role in ensuring planning and management progress in clothing production. As buyers prefer direct contracts for cost reduction, the vendor additionally performs the role of an agent. Also, with the increase in ODM production ratio, the work area of the vendor is expanding. If Korean clothing exporters improve their global competitiveness by investing in the R&D of materials and design to enhance the ODM method, the development of Korea's clothing and export industry will benefit significantly.

• Journal of Technology Innovation
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• v.18 no.1
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• pp.177-197
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• 2010

Recent development of Taiwanese IT industry is one of the under-researched areas compared to their rapid development for last few decades. Especially Taiwanese IT industry has position themselves as leading technological power through cooperation with mainland China. For Korean IT industry, in order to compete against Taiwanese IT corporations, more researches need to be done how Taiwanese IT industry has evolved over the years. This research has analysed that Taiwanese IT industry has developed by specializing in OEM/ODM and nurturing small-medium sized corporations. Also the research describes the rold of government nurturing small/meduim sized IT companies and how effectively technologies are transferred to those companies.

• International Journal of Quality Innovation
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• v.5 no.2
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• pp.70-78
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• 2004

Client-supplier collaboration in new product development (NPD) has been a strategy in response to fierce global competition. Traditionally, Hong Kong suppliers collaborate with worldwide clients through original equipment manufacturing (OEM) arrangement in which suppliers manufacture products according to clients' design. In recent years, a growing number of Hong Kong suppliers have transformed to original design manufacturing (ODM) in which they are assigned a design responsibility other than manufacturing products. The ODM arrangement necessitates a close interaction between clients and suppliers, which brings about intense conflict. Conflict has been recognized as an important factor affecting NPD performance including product quality. This paper studies the conflict handling practices of Hong Kong ODM suppliers based on 87 survey data. The results show that the suppliers frequently adopt effective conflict handling practices by which they can develop products of good quality through better design decisions. The results also suggest that the use of ineffective conflict handling behaviors, particularly avoiding, should be reduced for better product quality.

• Journal of Korean Society of Industrial and Systems Engineering
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• v.43 no.4
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• pp.133-141
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• 2020

Up to date cosmetic OEM/ODM (original equipment manufacturing/original development manufacturing) industry receives attention as a future growth engine due to steady growth. However, because of limited research and development capability, many companies have employed commercial management platforms specialized for large-sized companies; thus, overall system effectiveness and efficiency is low. Especially, MRP (material requirement planning) system introduced originally in 1970s is employed to calculate the requirement of the parts. However, dynamic nature of production lead time usually results in incorrect requirements. In addition, its algorithm does not consider the capability of the production resources. Also, because the commercial MRP system calculates all subcomponent for fixed period, the more goods have subcomponent, the slower calculation is. Therefore, conventional MRP system cannot respond complicated situation in time. In this study, we will suggest a new method that can respond to complicated situations resulting from short lead time and urgent production order in Korean cosmetic market. In particular, a distributed MRP system is proposed, that consists of multi-functional and operational modules, based on the characteristic of the BOM (bill of material). The distributed MRP system divides components (i.e. products and parts) into several fields and decrease the problem size; thus, we can respond to dynamically changed data any time. Through this solution, we can order components quickly, adjust schedules and planned quantity, and manage stocks reasonably. In addition, a prototype of the distributed MRP system is presented in this paper, in which ERP (enterprise resource planning) sever data is associated with an excel spreadsheet via MSsql. System user interface is implemented by a VBA (visual basic for applications) tool. According to a case study, response rate for delivery and planning achievement rate were enhanced about 20%, and inventory turnover was also decreased. Consequently, the proposed system improves overall profit.