When planning your self-service program, you’ll work with your kiosk manufacturer, or custom product manufacturer (CPM), to determine what electronics will be necessary to ensure your kiosk operates as intended.

It’s common practice for the CPM to provide all the internal electronic components for a kiosk build for many reasons. However, in some special cases, a kiosk program requires the use of proprietary, specialized, and in some instances, secured electronic components that can’t be procured through typical supply channels. For these examples, exceptions are made.

Using the CPM to source components

Having your CPM source electronics for a kiosk program has many advantages. A major benefit of working with a kiosk manufacturer is they offer a one-stop-shop for design, development, and production manufacturing for your kiosk solution. Because of that, CPMs are accustomed to working with high-level specifications and can source even the most intricate of mechanical devices for a kiosk enclosure.

It's in sourcing these devices where CPMs separate themselves as standouts in the industry, not only for their capabilities as a manufacturer, but also for their resources. In short, the CPM’s expertise in knowing where to find the right components as well as the convenience they provide in handling the procurement are major advantages.

Supplying electronic components to a manufacturer is typically referred to as “consigning” a device. Consigning devices may have some initial short-term benefits in regard to cost and supply, but it’s not standard practice due to issues like fragmentation in the warranty and service support it creates.

Scenarios where consigning devices is beneficial

While it’s not routine, there are specific circumstances where a company might consign their own devices for integration. These include the following:

The customer already uses the device in some other form or fashion and has a surplus in inventory that is already paid for.
The device is a custom build or from an original design manufacturer (ODM), and the customer has a build or special-order pricing in place.
The device has some type of security process or protocol that must follow a specific chain of custody while being installed.
The customer is very familiar with the device and wants to ensure all the accessories and options are included when procuring it.
The CPM is reverse engineering an existing solution and the customer is providing all the components for a prototype.

Risk factors when consigning devices

While special conditions exist that make sense for consigning these components, there are common risks that go along with doing so. Below, we share issues that can come up.

Some kiosk components have manufacturer defects or damage out of the box. When devices must be returned and replaced, the process takes longer if the CPM did not source the product.
CPMs typically have a tight production schedule. Subsequently, the program could be subject to delays if supply chain or communication on component availability isn’t immediately known.
Component warranty is typically supported by the CPM who purchases the device and installs it into the kiosk as a finished product. If devices are consigned and need service and repair at some point, the responsibility falls on the customer who provided the device.

CPMs are generally reasonable when it comes to markup on devices. In most cases, CPMs are looking to cover shipping and handling along with any ancillary cost down the road. Consigning product at discounted pricing may not provide any cost benefit if you consider the additional cost in the risk factors above.

Conclusion

There are certain scenarios where consigning devices for your kiosk build are appropriate, but in general, kiosk manufacturers have the expertise and longstanding vendor relationships that enable a smooth procurement of the proper electronic kiosk components.

Who Supplies the Internal Electronics for Kiosks?