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What is minimum order quantity (MOQ)?
Minimum order quantities or MOQ’s are the minimum order size that the supplier is willing to accept. This is often expressed as the minimum number of units. However, suppliers may also set the minimum order quantity in terms of order value.
As a major constraint, it’s important that the minimum order quantities for each product is up to date and correct in the master data. If it is not, this could lead to costly mistakes or avoidable delays when placing the purchase order.
All MOQs vary, depending on the product.
Why Minimum Order Quantities are important?
MOQs are extremely important for suppliers because it determines which costumers they’re willing and able to do business with. By setting MOQs, suppliers can easily communicate with companies how many units it takes for them to be able to work together.
Some businesses operate on a small level and need a very low amount of units produced. These businesses need to find a supplier that can comfortably match their low MOQ requirements.
Other businesses operate on a large scale and need hundreds of thousands of units produced.
These businesses need to make sure they find a supplier that can meet their demand and have the materials, machinery and personnel available to product the amount of units they need.
Why Suppliers have minimum order quantity?
While MOQs may price some potential customers out, suppliers still need to ensure that they make a profit. After all, the supplier still has transportation, holding, handling and administration costs to cover.
Often these overheads account for a small percentage of the overall value of the order. However, the smaller the order quantity, the more these costs eat into the profit margin.
From the supplier’s perspective, selling the products in such small quantities makes no financial sense at all. As a result, suppliers set minimum order quantities to protect their own margins.
Advantages of Minimum Order Quantity
The biggest advantage of MOQs is that they give you the best possible price per unit available. Oftentimes, the more in bulk you buy from a supplier, the more it drives down the cost of each unit.
This means you’ll be paying less per unit that gets produced so you can maximize the profit you earn when you actually sell that product.
CFB- Create Fashion Brand is the clothing manufacturer Portugal small quantity you are looking for!
Create Fashion Brand (CFB) – is a High-quality textile Clothing Manufacturer based in Portugal with a completely vertical process of creation.
CFB(Create fashion brand) relies on its family of more than 110 skilled staff that are continuously educated and trained to deliver high quality products, dedicated to have an ethical work environment as well as providing equality of opportunities for smaller brands.
Their textile group based in Portugal produces: shirts, t-shirts, sweatshirts, pants, chino, denim, bottoms, jackets and other styles.
They work with 100% Cotton and Mixtures, light-weight and heavy fabrics. CFB also work with jersey, jersey/lycra; piquet; fleece, mixtures with lurex as well as woven fabrics, such as coats, chinos, jeans, shirts etc.
At CFB, the Minimum Order Quantity for Bespoke Models is 150 per style/color depending on the fabrics applied in each model since each fabric may require minimum to order. Some specific fabrics are custom-made and can range from 300 pieces per color to 1000 or higher.
For Private Label Productions, the MOQ is 100 units per style/color.
Also in Private Label, they have theirBlank Fitting Sample Shop where the costumer can purchase the models available without minimum quantities.
Create Fashion Brand (CFB) believes in striving hard for making a change in this society. Their globally recognized quality has been winning hearts for the last decades. With the developing of this new fabric, CFB eco-friendly business is growing quite rapidly and will reduce carbon footprints in the current decade.