The MOQGroup concept is based on the sharing of Minimum Order Quantities by businesses who wouldn't otherwise be able to meet the MOQ on their own.
Every SME and small business owner involved in the supply chain of manufactured goods and industrial inputs is undoubtedly aware of the MOQ (Minimum Order Quantity) problem when it comes to trying to buy direct from manufacturers.
Small business owners are, by and large, resourceful and enterprising people. They generally have an instinct for procuring quality supplies at a low cost. They know that it gives them a competitive edge. Going to wholesalers is not a preferable option, as better, ‘factory direct’ prices are a far more attractive option.
With China being the world’s foremost manufacturing base, SMEs are naturally looking to import direct from China. However, there are many problems that must be overcome before the SME can get to claim the prize of low-cost supplies. For most people, these problems are all too much, leaving them exasperated, disillusioned and disenchanted.
The foremost problem in trying to buy good-quality products directly from factories in China is a combination of the factories’ MOQ requirement and product quality control. The order quantity is simply too large for the average SME to handle, and typical SME importers do not have the resources and skills to check China factory orders before shipment.
The MOQ problem is not confined to just China. SMEs find the same MOQ problem with factories throughout both the developed and developing world. The manufacturing system itself cannot change to accept small orders direct from SMEs because Minimum Order Quantity lies at the very heart of manufacturing economy of scale, where factories do production runs against large single orders.