Why small manufacturing orders increase costs - Explained by a Foshan Sourcing Agent
Are you a business owner or entrepreneur considering outsourcing your manufacturing process? If so, understanding the concept of MOQ, or Minimum Order Quantity, is crucial. MOQ refers to the lowest quantity of products a manufacturer is willing to produce for a single order. In this article, we will delve into the meaning of MOQ and explain why small manufacturing orders can increase costs. As a Foshan Sourcing Agent with years of experience in the industry, I have witnessed firsthand how MOQ can impact businesses and their bottom line. Many manufacturers set a high MOQ to maximize production efficiency, lower costs, and ensure profitability. However, this approach often disadvantages small businesses and startups, as it can result in excess inventory and financial strain. In this article, I will explore the factors that contribute to increased costs when dealing with small manufacturing orders and offer practical solutions to mitigate these challenges. By understanding the MOQ c...