Turnkey, Consigned or Hybrid: Choosing a Component Sourcing Model

Two suppliers can quote the same assembly and mean different things by "we'll build it". Who buys the components shapes cost, lead time and supply-chain risk as much as the assembly process does.

This EMS Directory guide explains the three models. With turnkey, the manufacturer sources everything. With consigned, you supply the parts. Hybrid splits the work, usually with you supplying critical or long-lead parts and the manufacturer buying the rest. It also covers how the right model can change over a product's life, from prototype to volume production.

Why it matters: the sourcing model is often decided by default, in whatever form the first quote arrives. Deciding it deliberately, before the RFQ goes out, makes quotes comparable and puts supply risk with whoever is best placed to manage it. Grindstone Consultancy helps OEMs and contract manufacturers set this up as part of RFQ and supplier selection work.