MOQ stands for Minimum Order Quantity, which refers to the smallest quantity of goods or products that a supplier or manufacturer is willing to sell to a buyer in a single order. The MOQ is typically set by the supplier or manufacturer and can vary depending on the product, the production process, and other factors.
The purpose of an MOQ is to ensure that suppliers and manufacturers can maintain production efficiency and profitability by minimizing the costs associated with producing and delivering small orders. MOQs can also help to ensure that suppliers and manufacturers can meet their production schedules and minimize the risk of inventory shortages.
MOQs are often negotiated between buyers and suppliers or manufacturers as part of the purchasing process, with the buyer seeking to secure the lowest possible MOQ while the supplier seeks to maximize profitability. The MOQ can vary widely depending on the product and the supplier, ranging from a few units to thousands of units or more.
A 3PL, or third-party logistics provider, is a company that offers outsourced logistics services to businesses that need to manage their supply chain operations more efficiently.
Stock Keeping Units, or SKUs, are alphanumeric codes that retailers assign to track products. The information helps them identify specific inventory items, measure sales, and promote more efficient shopping experiences.
DTC, or direct-to-consumer, refers to a business model where a company sells its products or services directly to consumers, bypassing traditional retail channels.
