- Contract Manufacturing Organization, CMO: The most common abbreviation for contract manufacturers, especially in the pharmaceutical and life science industries.
- Contract Development and Manufacturing Organization, CDMO: A CMO that also offers development, process optimization, and scale up. Common in biotechnology and pharmaceuticals.
- Original Equipment Manufacturer, OEM: The manufacturer produces according to the customer's design and specifications. Common in the industrial, electronics and automotive sectors.
- Original Design Manufacturer, ODM: The manufacturer is responsible for the design and the customer purchases a finished product. Faster time to market but less customization.
- Manufacturing of toll products, without abbreviation: The manufacturer only carries out the production, while the customer owns the raw materials.
Legotillverkning encompasses several forms of collaboration where responsibility for development, design, raw materials, and production is distributed in various ways between the customer and the manufacturer. The terms are used in fields such as industry, electronics, biotechnology, and pharmaceuticals, but do not always describe the same type of offering. Some actors focus solely on manufacturing according to the customer’s specifications, while others also contribute with product development, process optimization, or finished product solutions. To understand the differences, it is therefore necessary to look beyond the abbreviations and clarify what the collaboration actually encompasses. Below is an overview of six common designations and their meaning, focusing on the role of the manufacturer, the customer’s responsibility, and how the different arrangements differ in practice.
