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mfrykman | 9 years ago

Picking a manufacturer is a several month-long process by itself, and would require building out an operations/production engineering team for ongoing production.

Imagine producing 50,000pc/mo and having to do in-depth quality inspection on an sample size of, say 500pcs. Who is going to do the inspection? That's a lot of Pis.

How do you distribute? Do you ship a box of 50,000 to your warehouse and then mail them out 1 at a time to customers? Do you form retail partnerships?

How do you front the money for a 50,000pc order? Say they cost $3 per board, that's $150,000 up front in capital tied up for, say, 1 month of lead time, 2 weeks of transit time, and 1 month until you get paid by the customer - that's $425,000 at any time tied up in inventory (150k*2.5months). Do you negotiate payment terms with the supplier? It's difficult to negotiate terms without a history. Who does the negotiation?

What do you do when your box of 50k has an defect?

None of these issues are insurmountable, but there is a lot of necessary overhead that comes with mass production of anything. Deciding to MP Pis is an organizational decision that requires significant changes to company structure and resource allocation.

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