Inventory Ownership
Electronic parts supplied directly by the customer to a contract manufacturer bypass the assembly provider’s purchasing pipeline. Utilizing consigned components allows the contracting organization to retain control over parts procurement and pricing. This arrangement suits specialized, high-cost, or hard-to-source integrated circuits.
The contract manufacturer assumes responsibility only for the placement and soldering of the parts, rather than their initial procurement.
Material Handling
Receiving and verifying customer-supplied parts requires diligent incoming inspection to ensure that the quantities match the build requirements and that the packaging is compatible with automated feeder systems. Parts must arrive on continuous tape-and-reel, in trays, or in tubes to prevent manual placement delays on the surface mount assembly line. Any damage to the packaging during transport can compromise the components through electrostatic discharge or moisture contamination.
Consequently, the assembly house must store the parts in moisture-controlled cabinets until production begins.
Shortage Risk
Responsibility for assembly scrap and component shortages remains with the sourcing organization. Assembly lines inevitably incur a small rate of component loss during high-speed pick-and-place setup and run cycles. Therefore, customers must supply a specific overage percentage for each part number to prevent line stoppages.
If a line stops due to insufficient parts, the customer bears the cost of the delay.