Why do we need to split the order? ——The survival rules for small and medium-sized buyers
Realistic data on MOQ dilemma
Industry Status:
80% of Yiwu factories require MOQ ≥ 3000 pieces
But 53% of global buyers actually require less than 1000 pieces (according to data from the United Nations Conference on Trade and Development in 2024)
Cost Comparison:
When you choose to accept a high MOQ, although the unit cost is low, the capital occupation cycle is usually 6-9 months, and the inventory risk is high.
On the other hand, choosing to accept splitting orders from three companies can indeed increase costs, but it has obvious benefits in terms of inventory risk and capital occupation cycle, with capital occupation generally only lasting 1-3 months.
Three steps of factory order consolidation
Principle of factory selection
Optimal combination model:
A factory (strong technology): B factory (low cost): C factory (fast speed)=40%: 40%: 20%
Screening criteria:
Factory A:
Equipped with precision molds (error ≤ 0.1mm)
Certified by ISO 9001
Factory B:
Advantages of centralized procurement of raw materials (12-18% lower price)
Semi automated production line (labor ratio ≤ 30%)
Factory C:
7-day fast shipping capability
Support small batch replenishment (MOQ 300 pieces)
Cost control formula
Total cost=(Factory A cost x 1.15)+(Factory B cost x 0.85)+(Factory C cost x 1.3)+Coordination fee $200
Split order advantage: Compared to purchasing from a single factory, inventory costs are reduced by 62%
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