When it comes to printed circuit board assembly (PCBA), businesses have two primary options: turnkey PCBA services and consignment assembly. Both approaches have their unique advantages and challenges, and the choice between them depends on your project’s requirements, budget, and level of involvement.
In this article, we’ll compare turnkey PCBA services and consignment assembly across key factors such as cost, control, lead times, and convenience to help you decide which option is best for your project.
1. What is Turnkey PCBA?
Turnkey PCBA is a full-service solution where the assembly provider handles every aspect of the PCBA process, from sourcing components to final assembly and testing. The customer provides the design files, and the provider takes care of the rest.
Key Characteristics:
- End-to-End Service: Includes component sourcing, PCB fabrication, assembly, and testing.
- Single Point of Contact: The provider manages all suppliers and processes.
- Minimal Customer Involvement: The customer only needs to provide design files and specifications.
Advantages of Turnkey PCBA:
- Convenience: Saves time and effort by outsourcing the entire process.
- Reduced Risk: The provider ensures component quality and availability.
- Faster Lead Times: Streamlined processes and established supplier relationships speed up production.
- Scalability: Suitable for both prototyping and large-scale production.
Disadvantages:
- Higher Costs: The provider’s markup on components and services increases overall expenses.
- Less Control: Limited involvement in component selection and sourcing.
2. What is Consignment Assembly?
Consignment assembly is a model where the customer provides all the components and materials, and the assembly provider handles only the assembly and testing processes.
Key Characteristics:
- Customer-Supplied Components: The customer is responsible for sourcing and delivering components.
- Limited Service Scope: The provider focuses solely on assembly and testing.
- Greater Customer Involvement: The customer manages component procurement and logistics.
Advantages of Consignment Assembly:
- Cost Savings: Eliminates the provider’s markup on components.
- Greater Control: The customer selects and sources components, ensuring quality and compatibility.
- Flexibility: Ideal for projects with specialized or hard-to-find components.
Disadvantages:
- Increased Responsibility: The customer must manage component sourcing, inventory, and delivery.
- Longer Lead Times: Delays in component delivery can slow down production.
- Higher Risk: Component quality and availability issues fall on the customer.
3. Key Differences Between Turnkey PCBA and Consignment Assembly
| Aspect | Turnkey PCBA | Consignment Assembly |
| Component Sourcing | Handled by the provider | Handled by the customer |
| Service Scope | End-to-end (sourcing, assembly, testing) | Assembly and testing only |
| Customer Involvement | Minimal | High |
| Cost | Higher (due to provider markup) | Lower (no markup on components) |
| Lead Times | Faster (streamlined processes) | Slower (dependent on customer logistics) |
| Control | Less control over component selection | Full control over component selection |
| Risk | Lower (provider manages risks) | Higher (customer manages risks) |
4. When to Choose Turnkey PCBA
Turnkey PCBA is the better choice when:
- You want a hands-off approach and prefer to outsource the entire process.
- Time-to-market is critical, and you need faster lead times.
- You lack the resources or expertise to manage component sourcing.
- Your project involves standard components that are easily sourced by the provider.
- You need a scalable solution for both prototyping and mass production.
5. When to Choose Consignment Assembly
Consignment assembly is the better choice when:
- You want to reduce costs by eliminating the provider’s markup on components.
- You require full control over component selection and sourcing.
- Your project involves specialized or custom components that are hard to source.
- You have the resources and expertise to manage component procurement and logistics.
- You are working on a low-volume or prototype project where cost savings are a priority.
6. How to Decide Between Turnkey PCBA and Consignment Assembly
To determine which option is best for your project, consider the following questions:
- What is your budget? Are you prioritizing cost savings or convenience?
- How much control do you need? Do you want to manage component sourcing or outsource it?
- What are your lead time requirements? Do you need faster production or are you willing to manage delays?
- What is your production volume? Are you ordering prototypes, small batches, or large-scale production?
- Do you have the resources to manage component sourcing? Can you handle the logistics and risks associated with procurement?
7. Conclusion
Both turnkey PCBA services and consignment assembly have their unique advantages and challenges. Turnkey PCBA offers convenience, faster lead times, and reduced risk, making it ideal for businesses that want a hands-off approach. Consignment assembly provides cost savings, greater control, and flexibility, making it suitable for projects with specialized components or tight budgets. By evaluating your project’s requirements and priorities, you can choose the right approach to ensure the success of your PCBA project.
Need Help Deciding?
Contact us today to discuss your PCBA needs and explore the best options for your project. Whether you choose turnkey PCBA or consignment assembly, we’ll help you find the perfect solution!