Specialize in industrial tools and machine tool accessories since 1993

How to you define the MOQ on OEM Private Label Branding?
2019-12-02
The Minimum Order Quantity (MOQ) requirement specifies in OEM Private Label Branding is the lowest quantity of a certain product that is required by the manufacturer. If the factory cannot reach the MOQ requirement, then it is not willing to enter into production. Most manufacturers tend to have fairly high quantity requirements as they are operating on a razor edge thin profit margin due to the competitiveness among the factories. Low profit margin require the manufacturer to produce a large amount of products in order to remain viable. Another reason is that majority of the manufacturer tends to keep a minimum stock level of raw materials and components due to the huge size inventory in their manufacturing programme. They will only enter into production on confirmation of the order over a certain limitation of excess quantity for (QC) quality control. At the same time to meet the different types of packing formats there is also a MOQ from the packing box suppliers. All in all, we will try to keep a lower MOQ to assist the customers in their initial stage of their own in-house brand promotion.

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