A Guide to Setting Minimum Order Quantities (MOQs)
Aaron Ethridge
Last Update 14 hours ago
Properly setting Minimum Order Quantities (MOQs) is essential for creating practical, cost-effective purchase recommendations that align with your suppliers' requirements. This guide will walk you through the steps to effectively set MOQs within Planster.
MOQ, or Minimum Order Quantity, is the smallest number of units a supplier will allow you to purchase in a single order. Accurately setting your MOQs is crucial for:
Ensuring compliance with your supplier’s terms and conditions
Optimizing order costs and logistics efficiency
Avoiding impractically small or inefficient orders
Directly contact your suppliers to confirm their current MOQs for each product.
Regularly verify MOQ levels, as suppliers may adjust them based on changing market conditions or operational factors.
When setting your MOQs, it's important to consider the economic implications of your orders. Assess the following factors:
Available bulk discounts at different quantity thresholds
Shipping costs and logistics efficiency
Storage costs and inventory turnover rates
Product shelf-life or expiration concerns
Once you have determined the optimal MOQ, follow these steps to update your product MOQ settings in Planster. You have the option to update a single SKU or multiple SKUs at once.
To update a single SKU:
Navigate to the Products tab.
Select the specific SKU you need to update.
Enter the confirmed MOQ value directly on the row of the SKU.
To update multiple SKUs at once (bulk edit):
Navigate to the Products tab.
Select all the specific SKUs you need to update.
Enter the confirmed MOQ value directly on the row of each SKU.
Important Note on MOQs and Purchase Recommendations: Planster's system will not automatically recommend a purchase order quantity that falls below the MOQ you have set. However, you can manually create an order for a smaller quantity if you and your supplier have agreed to it. This provides flexibility for one-off situations while ensuring your automated recommendations remain compliant with your standard supplier terms.
Schedule periodic reviews of your MOQs, particularly if your suppliers’ terms frequently change.
Adjust MOQ settings based on changes in your business operations or strategic objectives.
Maintain clear communication with your suppliers to understand their flexibility and potential negotiation options for MOQs.
Align MOQ settings with your overall inventory strategy to effectively balance inventory holding costs and cash flow.
For further guidance or support in setting and managing your MOQs, please contact Planster Support.