PCBA Tech - Analysis of the reasons for the prevalence of PCBA labor and materials

Analysis of the reasons for the prevalence of PCBA labor and materials
Speaking of electronic contract labor and materials business, the first thing everyone thinks of is some giant companies! For example, Apple, HP, Lenovo; they like to outsource the entire manufacturing business. For a long time, electronic PCBA contract labor and materials business has mainly focused on large-scale production outsourcing business, which is definitely the choice of large-scale electronic companies; because large-scale contract labor and materials have relatively large requirements for product batches, this has made many small and medium-sized enterprises even want to adopt this A model to solve the production and supply problems faced by itself, but in fact it is difficult to achieve.

With the rapid development in recent years and the wider application of its products to many fields, the business of contracting labor and materials has become more and more popular. Many labor and materials for small-batch production operations have gradually appeared on the market. Unlike the traditional high-volume EMS contract labor and materials, these new contract labor and materials services have obvious advantages that are suitable for small and medium-sized enterprises.

1. The threshold for starting contract labor and materials is low

If you have to contract labor and materials in the past, you will usually have to batch requirements, and when the batch is not large enough, it is accompanied by additional management costs, or it will cost 10,000 yuan at every turn. In recent years, the labor and materials industry has gradually shown signs of abandoning this practice. Basically, they will add reasonable fees according to the customer's BOM list, or make a tiered quotation. Instead of using additional management costs that make customers feel uncomfortable.

2. Low requirements for batch processing

Everyone knows that a certain amount is required for product production and processing. However, the minimum quantity of previous products is often thousands, and it is best to be several hundred. Therefore, many hardware products that are still in the early stages of the product cannot adopt this form. In recent years, with the emergence of the PCB labor and materials market, 10 sets can also be used as a business form of labor and materials. This greatly reduces the batch threshold, so that many electronic products can directly enter the ready-to-work state after the design is completed, and the production cycle is more effectively shortened.

3. The content of contract labor and materials service is more comprehensive

In the early contract labor and materials business, many foundries did not have the sourcing function of upstream manufacturers. The materials given by customers often need to find suppliers on their own and import them to OEM manufacturers after negotiation. With the continuous improvement of labor and materials services, many PCBA labor and materials services can assist in the management of all suppliers, making it more convenient and faster.

From the above points, it can be seen that small and medium-sized enterprises need such labor and materials business. This can more effectively reduce its own operating costs and procurement costs. At the same time, it will greatly shorten and reduce the risks and cycles of the supply chain, and create more powerful conditions for quickly meeting market demand and winning market development opportunities.
Therefore, contracting labor and materials in the electronic PCBA processing industry has become a new trend, and it is also an inevitable result.