MOQ & Packaging: A Correlation Explained

MOQ & Packaging: A Correlation Explained

May 29, 2023Rassik Fareed

MOQ (Minimum Order Quantity) and packaging are interconnected in the business world. MOQ refers to the minimum quantity of products or units that a supplier or manufacturer requires a buyer to purchase in a single order. Packaging, on the other hand, involves the design, materials, and overall presentation of products for storage, transportation, and consumer appeal.

At Schmancy Pack, we bring in the element of MOQ when certain parameters are involved such as customisation, cost consideration, design and such like.

Read on to know more on this correlation between MOQ and packaging: 

  1. Cost Considerations: MOQ often impacts packaging decisions due to cost considerations. At Schmancy Pack, we offer lower prices per unit for larger order quantities. Consequently, to take advantage of cost savings, businesses may opt for larger MOQs, which require appropriate packaging to accommodate the increased quantity of products.
  2. Customisation and Design: Packaging is crucial for brand identity, product differentiation, and consumer appeal. However, customisation and design options may vary depending on MOQ requirements. We may limit customisation options for lower MOQs, whereas larger MOQs may provide more flexibility for unique packaging designs.
  3. Economies of Scale: Higher MOQs are often associated with economies of scale. When ordering larger quantities, we can achieve cost savings through bulk purchasing, streamlined production, and optimised logistics. At Schmancy Pack, we ensure that the packaging aligns with these economies of scale, ensuring efficient storage, transportation, and handling of larger product volumes.
  4. Supply Chain Considerations: MOQ affects the efficiency of the supply chain. Larger MOQs can lead to more stable and predictable supply, as well as longer intervals between reordering. This can impact packaging decisions by influencing factors such as storage space requirements, inventory management, and planning for packaging materials.
  5. Product Shelf Life and Variability: Certain products have a limited shelf life or are subject to frequent updates or modifications. In such cases, we opt for smaller MOQs to avoid excessive inventory and waste. Packaging needs to accommodate these varying quantities while ensuring product protection, freshness, and relevant labelling.

For us at Schmancy Pack, the importance of MOQ depends on various factors, including the nature of the business, product demand, production capabilities, and cost considerations.

For businesses with limited storage space, capital, or demand, smaller MOQs may be more practical.

Alternatively, larger businesses or those with high demand may benefit from larger MOQs, which can drive down costs and improve efficiency throughout the supply chain. It is crucial to strike a balance between MOQ and packaging requirements based on the specific needs and goals of each business.

To know more on our packaging goals, solutions and capabilities contact us at 9113849088 or mail us at today. 

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