What does "MOQ" commonly heard in health food contract manufacturing refer to?
In health food contract manufacturing, "MOQ" stands for "Minimum Order Quantity." MOQ refers to the minimum quantity of products that a manufacturer requires the client to order in a single production run.
MOQ is determined by the manufacturer based on various factors such as production efficiency, cost considerations, and supply chain management. It represents the minimum quantity that ensures the manufacturing process is economically viable for the manufacturer.
Clients or brand owners must meet the MOQ requirement to proceed with production. The specific MOQ can vary depending on the product, packaging, and manufacturing capabilities of the contract manufacturer.
Meeting the MOQ allows clients to benefit from economies of scale, as larger production quantities often result in lower unit costs. It also helps manufacturers optimize their production processes and maintain efficient operations.
MOQ is determined by the manufacturer based on various factors such as production efficiency, cost considerations, and supply chain management. It represents the minimum quantity that ensures the manufacturing process is economically viable for the manufacturer.
Clients or brand owners must meet the MOQ requirement to proceed with production. The specific MOQ can vary depending on the product, packaging, and manufacturing capabilities of the contract manufacturer.
Meeting the MOQ allows clients to benefit from economies of scale, as larger production quantities often result in lower unit costs. It also helps manufacturers optimize their production processes and maintain efficient operations.