As global trade dynamics continue to shift, businesses face increasing challenges when importing goods into their domestic markets. Countries like Indonesia and India have imposed limitations on importing finished products, particularly from China. Meanwhile, due to trade tensions between the U.S. and China, Mexico has emerged as a key manufacturing hub, particularly for parts assembly, to facilitate exports to the U.S.
Interactive displays, as high-tech products in the global supply chain, are not immune to these challenges. Finished product solutions are becoming less popular, while SKD (Semi-Knocked Down) and CKD (Completely Knocked Down) solutions are gaining momentum. In this article, we will explore SKD/CKD solutions for interactive smart boards, explaining the process, advantages, and cost benefits, to help you better understand how these solutions are reshaping the market.
What Is SKD and CKD Solutions In Smart Board Industry?
SKD (Semi-Knocked Down) and CKD (Completely Knocked Down) are two popular methods used in the assembly of interactive displays and smart boards. Both methods involve the disassembly of finished products into parts for easier transportation, local assembly, and customization. However, there are key differences in the level of disassembly and complexity involved in each process.
In the SKD (Semi-Knocked Down) approach, most of the smart board components are pre-assembled. Only the mainboard or motherboard remains separate and requires installation by the customer. This method is less technically demanding, as the customer only needs to perform basic assembly, such as mounting the motherboard onto the back of the display. SKD solutions are ideal for businesses with limited technical expertise and require less assembly space.
On the other hand, CKD (Completely Knocked Down) involves a more extensive disassembly of the smart board into individual parts. In this process, components like the display panel, light strips, reflectors, diffusers, and other auxiliary materials are exported separately. CKD solutions require a more professional assembly setup, often in a production line environment, and are suited for larger-scale assembly operations.
While SKD is more straightforward and cost-effective for businesses with smaller operations, CKD offers greater flexibility for local customization and adaptation. CKD is often preferred by manufacturers or distributors who wish to assemble products locally and modify them according to regional specifications, offering more control over quality and features.
The Process of SKD/CKD for Interactive Displays
The SKD (Semi-Knocked Down) and CKD (Completely Knocked Down) processes for assembling interactive displays begin with the disassembly of components into manageable parts. For SKD, the bulk of the display’s components are pre-assembled, with only the motherboard or main board shipped separately. The SKD assembly process focuses on adding the motherboard to the pre-assembled components such as the display panel, power supply, and touch sensors. On the other hand, CKD involves disassembling every component, from the screen panel to the internal wiring, and shipping them separately. In both cases, the components are carefully packed and sent to local assembly factories.
The assembly process typically takes place in a factory sized between 600 and 3,000 square meters, with production rates varying based on the workforce. A factory with 10 workers can produce approximately 16 units per day, while 20 workers can assemble 32 units, and a team of 30 can handle 100 units daily. The local factory is tasked with integrating all components into a fully functional interactive display. This process includes several key stages such as attaching the frame, assembling the backlight, and connecting internal wiring, including ports for speakers and power.
Critical steps include the assembly of the mid-frame, testing of the power board, and integration of the motherboard. Special attention is given to quality control during the process to ensure the display meets performance standards. Once the assembly is completed, the final step involves packaging the display for shipping or direct delivery to customers.
A standard Production SOP (Standard Operating Procedure) ensures that each step is followed accurately. It includes detailed instructions on assembly, wiring, testing, and inspection to guarantee that each interactive display is fully functional before it reaches the market.
Advantages of SKD/CKD for Interactive Displays
One of the main advantages of SKD (Semi-Knocked Down) and CKD (Completely Knocked Down) solutions for interactive displays is cost savings, particularly in countries with high import tariffs or stringent certification requirements. For instance, in markets like India, where the Bureau of Indian Standards (BIS) certification is required for imported electronic products, or in Indonesia, where tariffs on finished products are high, SKD and CKD solutions can significantly reduce overall costs. By importing only the disassembled parts, companies can avoid these costly import duties, making the final product more affordable for local consumers.
Another key benefit is the flexibility in local manufacturing and assembly. Many governments offer incentives, such as tax breaks or subsidies, to companies that establish local manufacturing plants. For businesses dealing with SKD or CKD solutions, this can result in cost-effective manufacturing options and increased local production capabilities. Local assembly also allows businesses to adapt products to meet regional market demands more efficiently, improving the speed to market and reducing reliance on external suppliers.
SKD and CKD also help reduce logistics and shipping costs. Shipping large, bulky products like fully assembled interactive displays is expensive. However, by shipping disassembled components, businesses can reduce the size and weight of shipments, ultimately lowering transportation costs. This not only cuts expenses but also reduces the carbon footprint of logistics operations, supporting more sustainable business practices.
In summary, SKD and CKD solutions provide cost savings, flexibility, and logistical advantages, making them an attractive option for businesses operating in regions with high tariffs, government incentives for local manufacturing, or a desire to reduce overall operational costs.
Shipping In SKD/CKD Solutions for Interactive Displays
When shipping SKD (Semi-Knocked Down) or CKD (Completely Knocked Down) interactive displays, the efficient use of container space is crucial for cost-effective logistics. A 40HQ container (122.352.65m) can accommodate up to 300 units of smaller-sized displays, such as 65-inch models, ensuring a high volume of products can be shipped in a single load. This significantly reduces transportation costs compared to shipping fully assembled displays.
For larger displays, such as 75-inch or 86-inch models, the container capacity adjusts. A 75-inch interactive display, for instance, can fit 300 units per 40HQ container, while the 86-inch models can load up to 220 units. The reduction in the number of units per container as the display size increases highlights the need for careful packaging and optimization of space during shipment.
By disassembling the displays into SKD or CKD configurations, shipping becomes more efficient and cost-effective. This approach maximizes container utilization and reduces the overall shipping costs, benefiting both manufacturers and customers.
Challenges and Considerations When Using SKD/CKD Solutions
While SKD/CKD solutions offer numerous advantages, there are several challenges that businesses must consider. One major hurdle is the need for local assembly expertise. Unlike fully assembled products, SKD/CKD units require skilled labor and assembly infrastructure, which can be a challenge for companies with limited experience in product assembly.
Quality control is another critical consideration. Ensuring that all components are correctly assembled and function properly can be more difficult with SKD/CKD solutions, requiring strict oversight throughout the assembly process to maintain product standards. This often demands additional time, resources, and training for local teams.
Finally, supply chain management becomes more complex, as businesses must coordinate the delivery of various parts and components from multiple suppliers. To mitigate these challenges, it is essential to work with a reliable SKD/CKD solution supplier who can provide high-quality components and streamline the assembly process.
Cost Comparison: SKD/CKD vs. Fully Assembled Interactive Displays
When comparing the cost of SKD/CKD solutions to fully assembled interactive displays, significant savings can be realized. SKD and CKD units are shipped as partially disassembled components, which allows manufacturers to avoid high import tariffs, especially in countries like India and Indonesia. These savings in tariffs and taxes can account for up to 30%-40% in total cost reduction compared to fully assembled products.
Additionally, the logistics costs for SKD/CKD solutions are lower. Since the products are disassembled, they take up less space in shipping containers, reducing the overall transportation cost. Fully assembled displays require more packaging and more space, leading to higher shipping expenses.
In terms of final pricing, customers opting for SKD/CKD solutions can expect to save on both the initial purchase price and long-term import-related costs. These savings are particularly beneficial for companies focused on cost efficiency and scalability.
Final Thoughts: Should You Choose SKD/CKD Solutions?
As a first-line sales director in the market, we’ve noticed a growing trend across regions like India, Southeast Asia, and the CIS countries, where more and more of our partners are shifting towards SKD/CKD solutions for their future development. These partners share a key commonality: they have extensive experience in the interactive display market, with some having been in the business for over 10 years.
This deep market knowledge and long-standing presence allow them to build the necessary capital and expertise to effectively manage the complexities of SKD/CKD solutions. They understand the local assembly processes, supply chain management, and quality control requirements, which significantly reduces the risks and challenges typically associated with such solutions.
If you’re considering SKD/CKD for your business or have any questions about how it can benefit your operations, we encourage you to reach out to us for more information. Our team is ready to assist and provide tailored advice. Contact Ikinor
Estimated reading time: 8 minutes
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