Turnkey vs Consignment vs Partial Turnkey: Choosing Your PCBA Sourcing Model
When you contract a PCBA manufacturer, one of the first decisions is who sources the components. This choice determines who manages procurement risk. It also determines who controls inventory. And it defines who is responsible when a critical part is unavailable.
Turnkey: The Manufacturer Sources Everything
Under turnkey, the manufacturer handles all component procurement. You provide the BOM. The manufacturer sources every part. Then they deliver completed assemblies.
Advantages โ Single point of accountability. Procurement expertise and bulk pricing. Full component traceability. Counterfeit protection through authorized distributors. Inventory risk absorbed by manufacturer.
Disadvantages โ Higher material cost due to procurement margin. Reduced pricing transparency. Substitution risk during shortages.
Best For โ New product introductions. Complex BOMs. Teams without procurement resources. Projects requiring formal traceability.
Consignment: You Supply the Components
Under consignment, you purchase all components. You ship them to the manufacturer. The manufacturer provides labor, equipment, and quality assurance.
Advantages โ Lower material cost at distributor net pricing. Full pricing transparency. Leverage existing inventory. Direct control over alternates.
Disadvantages โ Procurement burden on your team. Risk of incorrect parts. Counterfeit responsibility. Inventory ownership. Scheduling risk from component delays.
Best For โ You have existing inventory. Simple BOMs with common parts. Dedicated procurement staff. Defense programs requiring absolute control.
Partial Turnkey: The Hybrid Approach
Partial turnkey splits the BOM between manufacturer-sourced and customer-supplied components.
Common Split โ You supply proprietary ICs and high-value semiconductors. The manufacturer sources passives, connectors, and standard logic.
Advantages โ Cost optimization. Risk distribution. Schedule protection for long-lead items.
Disadvantages โ Coordination complexity. Accountability ambiguity.
Best For โ You have direct vendor relationships. BOM contains both commodity and strategic components.
Cost Comparison
| Cost Element | Turnkey | Consignment | Partial |
| Component cost | BOM + 10โ25% | Your negotiated rates | Mixed |
| Procurement labor | Included | Your internal cost | Split |
| Inventory risk | Manufacturer | You | Split |
| Obsolescence risk | Manufacturer manages | You monitor | Shared |
Frequently Asked Questions
Q: What is component attrition?
The small percentage of parts lost during setup and handling. Turnkey includes this in quotes. Consignment requires you to supply extra quantity.
Q: Can I switch from consignment to turnkey mid-project?
Yes, but requires careful reconciliation of unmatched inventory. Best decided at RFQ.
Q: How does Keep best prevent counterfeit components? We source exclusively from authorized distributors. Every incoming reel is inspected for labeling and packaging integrity.
Q: What happens if a component goes obsolete?
In turnkey, Keep best monitors lifecycle. They notify customers 12โ18 months before last-time buy. In consignment, you are responsible for monitoring.
Q: Does partial turnkey cost more?
Not necessarily. It often delivers the lowest total cost. This is done by combining your direct sourcing with our commodity procurement.
Need help choosing the right sourcing model? Send your BOM to the Keep best supply chain team. We will analyze availability, pricing, and lead times. Then weโll recommend the approach that minimizes your total cost and schedule risk.
