For UK businesses developing hardware, one of the big decisions at the product development stage is determining how you would like the assembly of your PCB done. Would you like to send everything to the assembly partner, or would you like to source the components and send them along with the PCBs? This is what is known as the Turnkey PCB Assembly vs Consignment model. If you choose the model that is not appropriate to your business, the cost of assembly and lead times can dramatically increase and be significant for a startup.

The model that is most appropriate to the situation of almost all UK startups is the turnkey model of PCB assembly. When turnkey is used, the startup does not have to worry about sourcing the components, the suppliers of the components, as well as the supply chain of the components. This model is the most appropriate for a startup because it allows the startup to concentrate on the design and marketing of the PCB. The consignment model would only be appropriate for a startup that has a stock of components and suppliers of components, or that has strong control of the components.

Let’s examine that further, as well as where the exceptions are.

What Is Turnkey PCB Assembly?

PCB Turnkey assembly is where the partner that you have for manufacturing does everything in-house. This includes fabricating the bare boards, obtaining every component on your bill of materials (BOM), and doing the assembly and testing of the finished units. You supply the design files and get assembled and tested PCBs back.

This model is the most simple and most appropriate model for the majority of startups. The reason is that with the turnkey model, you have only one purchase order to deal with, one contact point, and one invoice.

What Is Consignment PCB Assembly?

With consignment (sometimes known as “free issue”), the client takes over responsibility. You source and supply all components and the PCB if you had them made elsewhere. The only responsibility for your assembly partner is the labour of placement, soldering, and inspection.

You get to maintain all the flexibility and control for what goes into your product, but you take on your share of the challenges and headaches, including sourcing, risks of counterfeit components, MOQs, MSL handling, storage, and distribution.

There is an interesting middle option: partial turnkey (or “kitted” assembly). This is where you supply some of the important components (like a programmed microcontroller) and your assembly partner takes care of everything else.

Turnkey PCB Assembly vs Consignment: A Comparison

Turnkey for Startups

1. Speed to Market:

The fast iteration capability of early-stage hardware gives a competitive edge. Turnkey offers a significant advantage with pre-established supplier relationships compared to going direct to stockists. Flexible sourcing is an invaluable service given the semiconductor supply constraints in recent years.

2. One Point of Accountability:

The biggest limitation of consignment is the finger-pointing opportunities when a batch fails. With turnkey assembly, your partner assumes the liability for the quality of each component. For a startup without a dedicated quality engineer, that’s a genuine safety net.

3. Concealed Expenses Eliminate:

On paper, consignment looks less expensive because you only pay for labour. However, most startups have trouble estimating:

• Minimum order quantities — you are forced to buy 2,500 resistors to get 200.
• Attrition stock — assemblers ask for a 5–10% buffer for small passive components for machines and loss.
• Shipping and import fees — buying from multiple suppliers means multiple shipments and customs delays if purchasing from the EU post-Brexit.
• Storage and handling — components that absorb moisture need baking and dry storage.
• Your own time — consignment is essentially a part-time job.

A turnkey quote simplifies and combines all of those costs, making forecasting cash flow—something all startup founders love—easier.

4. Design for Manufacture (DFM) Feedback:

Your turnkey partner is the first to look at your entire BOM and place an order. They are the first line of defense against obsolete components, footprints, and many other DFM issues.

Are you ready to begin production and scale from prototyping? Get a free turnkey assembly quote from Rush PCB UK and let us handle sourcing, assembly, and testing in our facility by uploading your Gerbers and BOM.

When Does Consignment Make Sense?

Turnkey is not the better option in all situations. Consignment (also partial turnkey) is a good option if:

• You have stock on hand. This could be if you overestimated component purchases during a dry spell or if you have leftover stock from a production run.
• You enjoy privileged supplier pricing. Some startups emerge from larger companies and bring with them supplier contracts that are superior to offers from an assembler.
• Your product has proprietary design or custom parts. Some of the specialized items you may need to keep are pre-programmed ICs, custom transformers, security components, or components that are under NDA.
• Traceability is a contractual obligation. In some medical, defense, or aerospace supply chains, you may be required to manage the source of the components personally.

Sometimes, however, partial turnkey offers the best of both worlds. Supply the two or three components that are critical and let your assembler cover the remaining ninety-seven components.

Turnkey PCB Assembly vs Consignment Cost Comparison: A Typical Startup Run

Imagine you are buying 100 assembled boards with an 80-line BOM. If you opt for consignment, you may have to place a large number of orders to different distributors, cover the shipping costs for all of them, accept some loss from the minimum order quantity on passive components, and spend two or three days of your engineers’ time on procurement and kitting. If you go for a turnkey solution, you pay a small markup for sourcing, but the assembler covers all of the volume purchasing, shipping, and kitting.

In our experience, for runs under a few thousand units, turnkey solutions are cheaper when factoring in the cost of the engineers’ time. True cost savings with consignment only happen at scale or with great supplier agreements.

Frequently Asked Questions

Does turnkey PCB assembly cost more than consignment?

The costs are essentially the same. Turnkey margins are typically lower than consignment costs for small to medium runs for startups because of minimum order quantity waste, self-sourcing costs, and the time spent on sourcing components.

Is it possible to combine both methods?

Yes, this is referred to as kitted assembly, where you can supply certain components, such as modified parts or programmed components, while the assembly house provides the balance. This method is practiced by most UK assembly houses.

What is the assembly time for turnkey PCB assembly in the UK?

Depending on components, the lead time for a prototype can be as short as five to ten working days. The lead time for consignment is totally dependent on how fast you can source and deliver your kit.

Does turnkey mean losing control of component quality?

Using a good assembly partner who can provide evidence of sourcing quality components from franchised distributors is an assurance of quality, and safety is often better than self-sourcing components with no supplier agreements. You should always ask your partner about their sourcing and quality assurance.

The Verdict

Turnkey PCB assembly makes sense for most UK startups. It brings together many benefits of PCB assembly, like reduced lead time, simplified procurement, and one accountable partner with, most of the time, a lower cost. Consignment is better when you have stock, have the components, or need to meet traceability standards. The same is true for mixed models (partial turnkey).

Read More: Lead-Free Soldering: Challenges, Best Practices & Why You Should Care

Rush PCB UK – Turnkey PCB Assembly vs Consignment: PCB Assembly Without the Stress!

Rush PCB UK has worked with many British startups to get them fully assembled and tested PCBs quicker than many of our competitors. Our turnkey solution encompasses fabrication, components sourced through franchised distributors, both SMT and TH assembly, and functional testing, all with UK support.

For a free quote, send your Gerbers and BOM to us, and we will reply within one working day with our pricing and lead times. We will also happily quote for consignment and partial turnkey.