What is the difference between OEM and ODM?

In OEM the buyer provides the recipe and specification and the manufacturer produces to order; in ODM the manufacturer provides the product concept and the buyer applies their own brand. The allocation of production responsibility and intellectual property differs, and should be written into the contract.

Do I have to check the production licence?

Yes. And check that the licensed category covers the product you intend to make — a mismatched category means no qualification to produce it.

Whose name goes on the label when production is commissioned?

Under GB 7718, commissioned food must show the names and addresses of both the commissioning party and the manufacturer, along with the manufacturer’s (the actual producer’s) production licence number.

How can I tell whether a manufacturer’s quality is consistent?

Look at factory-release inspection records and batch data. Consistency ultimately rests on verifiable test data, not verbal assurances.

Can the association arrange a manufacturing partnership for me?

No. The association does not manufacture, process or trade, does not sign contracts on anyone’s behalf and does not act as guarantor. It can provide information matching and referrals within its membership; the terms are agreed between the parties.

MEAT PROCESSING & OEM

Meat processing line — From a single pot to a production line, the distance is measured in standards (photo provided by a member enterprise)

Meat Processing and OEM Partnerships

Choosing a contract manufacturer means entrusting your brand to someone else's line.
This page sets out what the arrangements are, and what to verify.

What this page is:This is general industry information. It isnot a commercial offer, investment advice, or an endorsement of any enterprise. The Shanxian Mutton Soup Industry Association does not engage in manufacturing or trade. It can provide information matching and referrals between buyers and member enterprises; the terms are negotiated directly between the parties, and the association does not guarantee the outcome.

I. OEM and ODM: Getting the Terms Straight

What is loosely called "contract manufacturing" covers several arrangements that are legally quite different.

Term	Who defines the product	Typical situation
OEM (commissioned production / private label)	The buyer supplies the recipe, process or specification; the manufacturer produces to it under the buyer's brand	A brand owner has a recipe but needs capacity and a compliant line
ODM (design manufacturing)	The manufacturer supplies the recipe and product concept; the buyer selects and applies their own brand	A brand owner has distribution but lacks product development
Toll processing	The buyer supplies raw materials; the manufacturer provides only processing and packing	The buyer controls sourcing and borrows processing capacity
Prepared-dish / semi-finished co-packing	Produced to agreed reconstitution methods and specifications, delivered chilled or ambient	Standardised supply for restaurant chains and retail channels

Why the distinction matters:Liability is allocated differently. If the recipe fails under OEM, responsibility generally sits with the buyer; under ODM it depends on how the contract is drafted. Settle this before signing.

II. Five Things to Verify in a Contract Manufacturer

Prices are easy to compare; capability is not. Put each of these in writing.

Check	What to look at	Why it matters
Food production licence (SC)	Whether the licensed category matches the product (meat products, canned goods and frozen foods fall under different categories)	The licence is the precondition for production; a mismatched category amounts to unlicensed production
Product standard applied	Whether the product follows a national, industry, local or group standard — and whether the standard number can be produced	It sets the compliance floor and makes the product testable
Traceability	Whether raw materials can be traced to batch, supplier, quarantine and inspection records	It determines whether a problem can be located and recalled — where food safety responsibility actually lands
Inspection capability	In-house laboratory or third-party testing arrangements; whether factory-release testing is complete	Inspection data is the only objective evidence of consistent quality
Capacity and delivery	Current loading, peak-season scheduling, minimum order quantity, lead times	A supply cut in peak season is often fatal for a small brand

Check the licence before discussing price

However good the price, a licence in the wrong category cannot be used. Making licence and standard the first filter saves most of the trouble later.

Traceability is not a gimmick

Its practical function is to draw the boundary of responsibility: knowing which batch and which stage is affected is what determines who acts, and how.

III. Labelling When Production Is Commissioned

This is the detail most often overlooked, and it goes straight onto the pack.

Item	Key requirement
Buyer and manufacturer	Under GB 7718 (General Standard for the Labelling of Prepackaged Foods), food produced on commission must show the name and address of both the commissioning party and the manufacturer
Production licence number	The licence number of the manufacturer (the actual producer) is shown
Standard applied	The standard actually applied to the product is shown
Other mandatory items	Ingredient list, net content, production date and shelf life, storage conditions, nutrition information and other items required by the Food Safety Law and the Standard

Compliance note:The above is general. The labelling of a specific product must be checked item by item against current regulations and the applicable standard. Ordinary food may not display or claim disease prevention or treatment functions. Label review should be completed before production begins.

IV. Industrial Coverage in This Area

The Shanxian mutton soup supply chain does not end at the pot in a restaurant.

Stage	What it covers
Breeding and slaughter	Breeding centred on the local Qingshan goat, together with slaughtering and cutting
Processing and production	Processing of soup products and meat products, including filling, sterilisation and inspection
Extending the chain	Downstream utilisation of by-products
Restaurants	Food service outlets specialising in mutton soup
Standards and traceability	Group standards covering selection, cooking, filling, sterilisation and inspection; the association provides technical services for traceability

Note:Association members span several of these stages (see the Members page). This page names and recommends no specific enterprise. Where there is a matching need, it may be raised through the association, which will assist with information exchange within its membership.

V. Frequently Asked Questions

What people new to contract manufacturing ask most.

Question	Answer
What is the difference between OEM and ODM?	In OEM the buyer provides the recipe and specification and the manufacturer produces to order; in ODM the manufacturer provides the product concept and the buyer applies their own brand. The allocation of production responsibility and intellectual property differs, and should be written into the contract.
Do I have to check the production licence?	Yes. And check that the licensed category covers the product you intend to make — a mismatched category means no qualification to produce it.
Whose name goes on the label when production is commissioned?	Under GB 7718, commissioned food must show the names and addresses of both the commissioning party and the manufacturer, along with the manufacturer's (the actual producer's) production licence number.
How can I tell whether a manufacturer's quality is consistent?	Look at factory-release inspection records and batch data. Consistency ultimately rests on verifiable test data, not verbal assurances.
Can the association arrange a manufacturing partnership for me?	No. The association does not manufacture, process or trade, does not sign contracts on anyone's behalf and does not act as guarantor. It can provide information matching and referrals within its membership; the terms are agreed between the parties.