The Three Sourcing Models

Most articles present this as a binary choice. In practice there are three, and the third is the one experienced buyers use most often.

For a project-specific sourcing decision, compare component sourcing with turnkey PCBA before requesting a quote.

  1. 01
    Full turnkey

    You send Gerber files, BOM and Pick & Place. The manufacturer sources every component, fabricates the board, assembles, tests and ships. One purchase order, one point of accountability.

  2. 02
    Consigned

    You buy all components and ship them to the manufacturer, who assembles only. You keep full control of sourcing — and full responsibility for what arrives.

  3. 03
    Partial turnkey

    You supply the parts where you have an advantage — long-lead ICs already on order, allocated parts, or something with a contract price — and the manufacturer sources the rest.

Why partial turnkey is underrated

It lets you keep control where control actually matters — usually a handful of expensive or allocated parts — while handing off the hundred passive components that are not worth your procurement time.

Comparison Across What Actually Matters

Full TurnkeyConsignedPartial Turnkey
You provideGerber, BOM, Pick & PlaceFiles + all componentsFiles + selected components
Sourcing effortNoneEntirely yoursSplit
Unit costSlightly higher (sourcing margin)Lower if your pricing is goodIn between
Lead timeIncludes sourcing timeFast once parts arriveGated by your parts
Shortage riskAlternate sourcing and approval terms are agreed in advanceYoursShared
Counterfeit riskSubject to the agreed sourcing and verification processYours to verifySplit
Attrition (spare parts)Handled by manufacturerYou must ship extraFor your parts
Who is accountable for a bad joint on a bad partManufacturerDisputed — needs agreement upfrontDepends on part origin
Best whenYou want working boards deliveredYou hold stock or have contract pricingA few parts are critical or allocated
Turnkey vs consigned vs partial turnkey

The Attrition Trap in Consigned Assembly

This is the single most common way a consigned order stalls, and it is rarely explained clearly before it happens.

Automated placement consumes more components than your BOM quantity. Parts are lost in feeder setup, at reel splices, in first-article checks, and to the occasional misplacement. If you ship exactly the BOM quantity, the line will run short — and the whole job stops until you can air-freight more of a part that may now be out of stock.

Ship extra, especially on passives

Plan spare quantities with the assembler after reviewing feeder setup, package mix, expected attrition and the cost of a line stoppage. Small passives and expensive ICs may need different overage rules.

  • Ship components in original manufacturer packaging where possible — reels and trays feed automatically, loose parts may need hand placement.
  • Include a packing list that matches your BOM line for line, using the same reference designators.
  • Confirm moisture-sensitive devices (MSD) are correctly bagged with desiccant — improperly stored parts can delaminate during reflow.
  • Factor in shipping time and customs clearance — this is often the hidden lead-time cost of consigned.
PCB assembly process from component placement through inspection
Incoming inspection and lot traceability apply whether parts are sourced or consigned

Who Carries the Risk — The Question to Settle First

Cost differences between the models are usually modest. Risk ownership is where the real money is, and it only becomes visible when something goes wrong.

  • A part is obsolete or unavailable mid-run. Under turnkey, the sourcing plan defines how an alternate is proposed and approved. Under consigned, production waits for you.
  • A component turns out to be counterfeit or out of spec. Turnkey sourcing follows the agreed source, verification and traceability requirements. With consigned parts from an open-market source, verification responsibility sits with you.
  • Yield loss traced to a marginal component. Under turnkey this is clearly the manufacturer's to resolve. Under consigned it needs to be agreed in advance, or it becomes a dispute.
  • The BOM has an error. Turnkey providers usually catch this during BOM review before purchasing; under consigned the wrong parts may already be bought and shipped.
Settle this in writing

Whichever model you pick, agree upfront on who pays when a consigned part is faulty, and what happens if quantities run short. A short email on this is worth more than a long contract on everything else.

Lead Time: Turnkey Is Not Automatically Slower

The usual claim is that consigned is faster because sourcing is already done. That is true only if your parts are genuinely in hand.

Service typeStandardExpedited
Prototype assemblyAfter file/BOM reviewExpedited, if confirmed
Small batch / low volumeAfter file/BOM reviewExpedited, if confirmed
Mass productionAfter production planningSubject to BOM availability
Standard PCBA lead times (subject to file review and BOM availability)

Under consigned, the clock starts when your parts physically arrive — so international shipping and customs are part of your lead time even though they are invisible on the quote. Under turnkey, sourcing runs in parallel with board fabrication, which often closes most of the gap.

How to Choose: A Short Checklist

Work down this list. The first clear answer usually decides it.

  1. 1Do you already hold the inventory? If yes, consigned or partial makes sense — you have already paid.
  2. 2Do you have contract pricing materially better than a manufacturer can get? If yes, consign those specific parts.
  3. 3Is any part allocated, long-lead, or on order under your account? Consign that part; let the manufacturer source the rest — this is partial turnkey.
  4. 4Do you have a procurement function with time to manage a BOM? If not, turnkey removes work you are not staffed for.
  5. 5Is this your first production run with a new manufacturer? Turnkey concentrates accountability in one place, which is worth a lot when you are still building trust.
  6. 6Is the schedule tight and the BOM long? Turnkey lets sourcing run in parallel with fabrication instead of in series.
A reasonable default

For most first-time and small-to-mid volume buyers, full turnkey is the lower-total-cost choice once you count your own procurement hours and the cost of a stalled line. Move to partial turnkey when you have specific parts worth controlling.