Definition, how it works, and how it differs from private label — explained simply.
Swiss Formula is a private label dietary supplement manufacturing company, providing formulation development, production, packaging, and regulatory support through certified GMP facilities across Europe and Switzerland.
Last updated: June 2026 · Content curated by Giannis Moutafidis, Founder & CEO, Swiss Formula
OEM (Original Equipment Manufacturing) in dietary supplements means that a manufacturer produces the product based on specific technical specifications provided by a client (brand owner), who then markets it under their own brand.
The term originates from the electronics and automotive industries, where it is used to describe components manufactured by one supplier and integrated into another company's product. In dietary supplements, the logic is similar: the OEM manufacturer provides the know-how, equipment, and production certifications, while the brand owner provides the brand, marketing, and distribution.
The client (brand owner) gives the OEM manufacturer the specifications they want: which ingredients, at what dosage, in what form (capsule, tablet, powder). The manufacturer handles production according to these specifications, in certified facilities, following quality standards such as GMP.
The finished product is delivered ready for market, carrying the client's brand on the packaging — not the manufacturer's.
The two terms are often used interchangeably, but there is a subtle difference in emphasis:
In practice, in dietary supplements, OEM manufacturing and private label describe almost the same collaboration model — the choice of term is often a matter of industry or country-specific terminology.
What Swiss Formula Is