Difference between one-stop service contractor and non-contractor for PCBA

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The PCBA processing industry is highly valued by major enterprises as it is the most important core component of electronic products. With new electronic products and technologies being updated iteratively and quickly, the quality, delivery time, and cost of the PCBA processing industry directly affect the quality, delivery time, and cost of the entire product delivery.

Well-known PCBA agent companies such as Foxconn, Weifang, and BYD have been cooperating with many well-known international electronics product developers. Their success cases lead to two main processing methods of modern electronics manufacturing services: incoming materials processing and contracting materials. Nowadays, more and more enterprises in all major industries choose the PCBA package mode.

PCBA package is a processing method that includes all the processing processes of PCB circuit board production, raw material purchase, SMT processing, PCBA testing, product assembly, etc. The purchaser places the order with the supplier, and the supplier delivers the finished PCBA to the customer, and the intermediate process is all done by the supplier. On the other hand, the difference between the PCBA package and the PCBA package is that all the materials on BOM are supplied by the purchaser, and the supplier is responsible for production only, which is equivalent to processing incoming materials.

There are advantages and disadvantages to both modes. For PCBA contractors that do not include materials, the quality and brand of each material are relatively controllable, but procurement corruption is easy to occur, and more personnel are required. Once a large number of suppliers have a supplier supply problem, it will involve a complete set of supply problems. On the other hand, PCBA contractor materials offer integrated supply chain channels, better bargaining rights, reduce the number of suppliers, and avoid the passive situation that PCBA manufacturers are looking for everywhere. However, there may be problems with raw material quality and brand control of raw materials. Timely payment may lead to overall material supply problems.

The choice of two PCBA processing modes, PCBA contract processing, and incoming processing, is difficult for enterprises to make. Therefore, the more mainstream way is to use part of the package method, that is, the core chips are provided by the enterprise, while other PCB, blocking container parts are provided by the PCBA processing plant. At the same time, simple testing and burning are done by the PCBA processing plant, and responsible and core program burning and testing are done in the enterprise factory.