When ordering PCB assembly, you'll encounter two primary procurement models: turnkey and consignment. Understanding the difference — and knowing when to use each — is fundamental to managing your PCBA supply chain effectively.
In a turnkey arrangement, the PCBA manufacturer handles everything: PCB fabrication, component procurement, assembly, and testing. You provide the design files (Gerber, BOM, CPL), and the manufacturer delivers finished, tested assemblies.
Turnkey is the most convenient model and is appropriate for most situations. It eliminates the need to manage component procurement yourself, reduces the risk of component mismatch, and gives the manufacturer accountability for the complete assembly.
The main consideration with turnkey is component sourcing. A reputable turnkey manufacturer sources from authorized distributors and provides documentation of component provenance. This is critical for avoiding counterfeit components, which are a persistent problem in the electronics supply chain.
In a consignment arrangement, you procure all components yourself and ship them to the manufacturer along with your PCB files. The manufacturer assembles the boards using your supplied components.
Consignment makes sense in specific situations: when you have existing component inventory, when you need to use specific component lots for regulatory compliance, when certain components are only available through your existing supplier relationships, or when you're working with custom or proprietary components that the manufacturer cannot source.
The main challenge with consignment is logistics. You're responsible for procuring the right quantities (including overage for attrition), packaging components correctly, and shipping them to the manufacturer. Any component shortage or quality issue delays production.
For most hardware startups and small engineering teams, turnkey is the right choice. It's simpler, faster, and places accountability for the complete assembly with one supplier.
Consider consignment when you have specific component requirements that the manufacturer cannot meet, when you have existing inventory to use, or when regulatory requirements mandate specific component traceability that requires you to control procurement.
A hybrid approach is also possible: turnkey for most components, with consignment for specific critical or proprietary components. Discuss this option with your manufacturer before ordering.
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