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Small Quantity Orders Vs Big Quantity Orders

Small Quantity Orders Vs Big Quantity Orders

There are many suppliers for big quantity orders but unfortunately there are very few for small quantity runs, but among those few only a little few like Zega Apparel Manufacturing and Stylus apparel providing quality garments to small brand owners.

 

When ordering products to a manufacturer, generally there will be a minimum order quantity (MOQ) which relates to the minimum quantity a brand or designer will need in order to place an order with the manufacturer.

 

Minimum order quantity is a corporate term for the lowest number of items that the manufacturer would take an order for. The Minimum order quantity varies, depending on the product. The more expensive items will usually have a lower Minimum order quantity. Less expensive items will typically have a higher Minimum order quantity. The minimum order quantity (MOQ) is mostly set by the manufacturing company or factory. The MOQ is based on batches of production, or MOQ’s for raw materials of different kinds, etc.

 

Generally, there are two types of manufacturers based on quantity of production:

  1. Large quantity manufacturers whose minimum quantity orders are more likely to be over ten thousand pieces.
  2. Small quantity manufacturers whose minimum quantity orders are under thousand pieces.

 

The reason for the minimum for many manufacturers for MOQ is the cost of setting up equipment. For some other big companies it is because they are so busy that they only want to work with clients who provide them with the most profit. Manufacturers ask for minimum order quantity for a number of reasons to ensure their own profitability.

 

The fixed cost of the big apparel manufacturer does not justify smaller orders. Each time a new order is taken, the manufacturer would go through the developing process of a product, a massive amount of money and time goes into the design, sourcing apparel suppliers, and purchasing tools and equipment for manufacture. The manufacturer also has to work through the process of making individual samples, patterns, prototypes etc. This is an intense and lengthy process. The apparel supplier of raw material has usually imposed a similar minimum order quantity requirement. In apparel industry, it may be because different types of fabric need to be custom dyed separately or the high efforts and expenses just do not work out for some companies for a small batch.

 

The minimum order quantity is an internal manufacturing company issue. Because some factory wants a longer assurance or commitment than them one offered in small quantity orders. Often big orders that can be processed in large batches drive the company’s unit costs down by up to 30%. So apparel manufacturers like Lucky Textile prefers to process larger orders.
For example, a manufacturing company’s rate is $100 per 1,000 bags for a quantity of 5,000. For a quantity of 100,000 it is $40 per 1,000 bags and for a million bags $20 per 1,000.

 

Often it is a good idea to give small orders to smaller manufacturers who would take the small orders seriously. A smaller manufacturer would be more interested to smaller batch sizes than a large one. Most factories in China do not carry any stock. They manufacture according to the order. When they receive an order, they set up the machines and start manufacturing.

 

For instance, if someone has a plastic bag factory in China and he wants 5,000 with three color print shopping bag. First, the machines are set to manufacture the desired size. This means, stop, start, stop, start the machinery, until the desired size is produced. Then, they go over to the printing shop after they are made. The printing press is set up which usually takes about half to one hour and then printing starts. Once again, it is a stop start process, until the plates are lined up to print the required logo in three colors. Once achieved, the presses keep running. At the end, it takes about one to two hours to clean the machines of the ink color used, as the next print job may be a different color. So, it could take about half a day to print just one job. For a quantity of 100,000 bags, this may be fine. But for 5,000 pieces not economically profitable.

 
There are static fees and charges for any manufacturing process, and the less quantity the company wants, the more it will cost to manufacture. Charges like machine time, wastage, clearance fees, trucking fees, port charges, freight etc.

 

Minimum order quantity requirements can be an ambiguous block for many new companies. It’s not uncommon for an apparel manufacturer to require an order of 1, 00,000 pieces, When new companies have limited funds allocated for manufacture and production, or they simply want to play it safe by starting with a small quantity order to test run before investing a larger sum in a manufacturing company because they are working together for the first time, it is sometimes necessary for companies to find ways around minimum order quantities.

 

 

This is the reason why companies like Zega Apparel and Stylus Apparel are one of the greatest in providing apparel companies or brands small quantities till 10,000 pieces per month according to the requirement of the brand/client and following the exact quality and quantity guidelines to deliver quality products.

 

 

Manufacturers world-wide, work with large quantities.If a company wants to order small quantities, they should go to companies like Stylus apparel and Zega Apparel; one of the greatest manufacturers in providing Small Quantities till 10,000 pieces per month and for large quantities companies like Lucky Textile.Therefore, choosing manufactures with less or high minimum order quantity depends on the number of pieces the company wants for the batch.




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