MOQ is short for Minimum Order Quantity. It is the important and invisible hand that effect the entire supply chain. It balance the production cost, efficiency and the business risks of the denim supplier chain. Whether is fabric mill, sewing factory or purchaser, understanding the MOQ help you make the right decision in purchasing and scale your brand effectively.
MOQ means the smallest number of units that factory willing to produce in one run. Denim production is much more complex than other apparel due to its characteristic. (How are jeans manufactured), so the MOQ of denim manufacturer usually higher than other garment.
Producing in large quantities will reduce the cost per unit. The fixed costs and the process setup costs can be allocated to each item, lowering the overall cost meanwhile and minimizing the setup time. On the other hand, small units will increase the cost per units.
For a brand, customized logo are essential. However, adding logo requirement technical tooling support, which also need MOQ to amortize production cost and achieve economies of scale.
Nowadays, garment manufacturer relied on the industrial machine, Every time machine setup and calibration incurs time related cost . MOQ requirement is designed to amortize these setup costs across each item. Furthermore, consistent batch production prevents frequent changing tool, so the can the maintaining high labor productivity.
Normally the waste of the fabric and the accessories is 3%-8% in denim production. And small batch wastage will be over 10% or even more. Meanwhile, small order raise up the cost of the stock management, quality control etc. MOQ setting is also for filtering the high-cost and low-profit order, improving the overall efficiency.
MOQ is significance in the denim production especially in custom denim jeans manufacturing, not only fabric mill and garment factory, but also in accessories supplier, such as zipper, button, label, hang-tag etc. It is all related in the whole supply chain system.
For brands, specially small and new starting, always ask for low MOQ to cut the risks of the inventory and improve capital turnover. Buyer need to research the market demand and make decision on whether increase units or change to small scale supplier. Normally the large/medium size garment factories with standardized processes has higher MOQ while small workshops offer low MOQ but not guarantees and after service.
When you heard initial MOQ figure from supplier, do not be shocked. Lower MOQ isn’t just about the small volumes, Below is some tips to help getting lower MOQ.
-Simplify products design and reduce the customized processes,
-Use the core material to cover the style as much as possible to realized the sharing,
-Optimizing the size range allow for higher units per SKU
-Same style/fit to different washing color
-Use modem technologies like digital print instead of screen print
-Use available stock instead of customized make
-Keeping using same custom trims and bear the risk of the material inventory
-Pre-sell to see the market reflection
A deep understanding factory production cost can help you effectively optimize cost-sharing and enhance production efficiency. Reego can help you in flexible MOQ and offer full purchase solution. Though optimization to reduce the small-batch cost or cooperation to share , split the MOQ pressure. Finally achieve flexible production while ensuring quality and cost.
Reego Denim focus in jean move than over 20 years. Start from a small workshop, now deeply working with many fashion brand with creative design and high quality production, annul capacity reach 2million pieces. Reego has three subsidiary factories, all of them have BSCI/QIMA certification, not only producing denim jeans, casual pant, denim jacket but also expanded the products to sportswear recently.
Moreover, Reego has strong design team and will launches new series every season to keep up the fashion trends. And the R&D department and collaborate with denim fabric supplier like Advance denim, AI denim, Hotline Textile etc to develop new cost-effective denim fabric.
In Reego practice, it is not only sewing. We need to select the most suitable fabric and test the shrinkage, try the washing color to ensure the sample meet the requirement. We also do final inspection of sample details before sending, to sure the sample you get is perfect.
Moreover,we always strive to lower the waste through the whole production process , as part of of our commitment to sustainable production. To support the new brand, we offer flexible trial order solution to meet their small batch needs.
In Reego practice, communication is essential. Before staring, our design and pattern master will review all the technical details and discuss any difficult point, that will help minus the potential errors and ensure the fit, color, styling is wanted and this jean is manufacturable.
02Feb
07Feb
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