ICORP GROUP · INSIGHTS
MOQ and Lead Times: Why the Same Gift Idea Has Different Production Requirements
The time of premium product purchase. The purchase fee may find the same look, but each supplier sets MOQ and Lead Time very different. The reason is not from the price alone but involves the production process, material, custom and packaging with.
What is MOQ?
MOQ or Minimum Order Quantity is the minimum amount that the manufacturer or supplier accepts to produce or customize the product. Some MOQ tasks are low because they use finished products and then add Branding. While new tasks are formed or used specific materials, it may require a higher amount to ensure the cost of machine setting and production is appropriate.
What makes MOQ higher?
- New forming or custom mold production
- Order of color or specific material
- Packaging made by size and new type
- Processes that need to set the machine or do Tooling
- The raw materials that the Supplier needs to order as a lock
Lead Time should be counted from when.
It should not be counted from the date of the start of the conversation, but it should be separated into the range Brief, Quotation, Mock-up, Sample Approval, Production, QC, Packing and Delivery. Because each step has different opportunities to take time. Specifically the range of Sample and Artwork that are often overlooked.
How products with Custom differ from new developers?
Custom products, such as glass, bag or gadgets with the original structure, are often made faster than OEM/ODM, which need to adjust size, material or function. New developers should therefore have more buffer and need to close Specification quickly.
Packaging can become a Critical Path.
Some product projects are finished but the box is not ready because packaging needs to wait for Die-cut, Artwork Approval or special materials. If Gift Experience is important, it should be placed in Packaging as a Workstream separate from the beginning.
Set Timeline from the date of operation.
The safe way is to start from the event day or real delivery day. Then go back to Delivery, QC, Packing, Production, Sample and Approval. If there are any points that need to be approved by several parties, you should put time in the Plan with.
If the Timeline is short, what should be adjusted?
It can reduce the level of Custom, use standard color, select an existing stock item or change packaging to produce faster. Instead of attempting to compress all steps, QC or Sample is cut off.
ICORP helps to set Product Direction, Sample, Production Timeline and Delivery Plan to relate to the number and deadline of the project. So that the selected ideas are real-life produced as time-by-time.