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Setting MOQs and Lead Times

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Setting MOQs and Lead Times

# Setting MOQs and Lead Times

MOQs (Minimum Order Quantities) and lead times are critical for B2B success.

## Understanding MOQs

### What is MOQ?
Minimum Order Quantity is the smallest number of units you will produce in a single order.

### Factors Affecting MOQ:
- Raw material minimums from suppliers
- Production efficiency (setup costs)
- Packaging minimums
- Shipping efficiency
- Profit margin requirements
- Equipment utilization

### Setting MOQs by Product:

**Low MOQ Products:**
- Simple items with low setup costs
- Items using standard materials
- Products with quick changeover
- Example: Basic t-shirts - MOQ 100 units

**High MOQ Products:**
- Complex items requiring molds or tooling
- Custom color/material requirements
- Items with high setup costs
- Example: Custom injection molded parts - MOQ 1,000 units

### Tiered Pricing Structure:

Offer better prices for higher quantities:

| Quantity | Price per Unit |
|----------|----------------|
| 100-499 | $10.00 |
| 500-999 | $9.00 |
| 1,000+ | $8.00 |

## Setting Lead Times

### Components of Lead Time:

| Stage | Typical Duration |
|-------|------------------|
| Order Confirmation | 1-2 days |
| Material Procurement | 3-14 days (varies by material) |
| Production | Depends on order size/complexity |
| Quality Control | 1-3 days |
| Packaging | 1-2 days |
| Shipping | Varies by destination |

### Standard Lead Time Categories:

| Category | Timeline | Use Case |
|----------|----------|----------|
| Express | 7-14 days | Urgent orders (premium pricing) |
| Standard | 15-30 days | Normal production |
| Extended | 30-60 days | Large/complex orders |

### Managing Expectations:
- Always include buffer time
- Communicate potential delays early
- Offer expedited production for urgent orders
- Be realistic rather than optimistic
- Document reasons for delays

## Updating Settings

1. Go to **Production Settings**
2. Set default MOQs by product category
3. Configure standard lead times
4. Add expedited options
5. Save changes

## Communication Best Practices

Clearly display MOQs and lead times on:
- Your manufacturer profile
- Product catalogs
- RFQ responses
- Order confirmations
- Quotes and proposals

## Negotiating MOQs

### When to Negotiate:
- Strategic long-term buyer
- Large growth potential
- Off-peak production periods
- Sample/trial orders

### Strategies:
- Offer lower MOQ with higher price
- Combine with other orders
- Use standard materials instead of custom
- Extend lead time for lower MOQ

## Lead Time Reduction

Ways to reduce lead times:
- Maintain raw material inventory
- Streamline production processes
- Pre-approve common designs
- Use express shipping options
- Add production shifts
- Improve supplier relationships