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With the advancement of China's environmental protection cause, many lubricant companies are facing the problem of closing down or re-locating to build factories, and the ensuing "foundry" has become the first choice for many lubricant companies. The word "foundry" I believe that everyone is not unfamiliar, due to manufacturing costs, transportation convenience, saving development time and other considerations, some well-known brand enterprises are willing to find other manufacturers "foundry", choose a reliable lubricant OEM manufacturer has become a hot topic at this stage.
"Foundry" has two modes, OEM and ODM
1, OEM production, also known as fixed-point production, commonly known as foundry (production). The basic meaning of OEM is that brand producers do not directly produce products, but use the key core technology they master to design and develop new products, control sales channels, and entrust specific processing tasks to other manufacturers of similar products through contract ordering.
2. ODM is a manufacturer that designs and produces products according to the specifications and requirements of another manufacturer, and the entrusted party has the design capability and technical level to produce products based on the authorized contract. Nowadays, it is difficult to grasp the initiative of competition by relying on the ability of a single enterprise in the lubricant industry. It has been a common means for organizations to form short-term or long-term cooperative relations through strategic alliances to achieve strategic goals. OEM production is one of the common forms of strategic alliance. If one party has a well-known brand and the other party has the corresponding productivity, the combination of the two can give play to their respective values and enhance their respective competitive advantages. Strategic alliance can be formed between organizations in different ways, such as equity alliance, such as joint venture or mutual shareholding. In production, research and other links to reach a contractual alliance.