MOQ (Minimum Order Quantity) has been a significant challenge for us over the past few years. As manufacturers of baby sling carriers and baby sleeping bags, we have been exploring various solutions to address this issue.
One of the most effective solutions we’ve implemented is Collaborative Forecasting. Our products require approximately 50-60 different components, sourced both locally from different parts of India and internationally from China.
Here’s how we approached the problem:
Collaborative Planning: We engaged in discussions with our buyers and agreed that they would provide quarterly projections. Based on these projections, we plan our material procurement.
Batch Ordering: This approach allows us to consolidate materials and place bulk orders each quarter. For instance, we produce fabric in bulk and keep greige fabric ready for dyeing in any color as needed.
Benefits We’ve Experienced:
Reduced Production Lead Time: Streamlined processes have significantly cut down our production time.
Lower Shipping Costs: Bulk ordering has drastically reduced our shipping expenses.
Optimized Manpower Utilization: We have been able to utilize our workforce more efficiently, identifying skill gaps and providing advanced training.
Reduced Line Inventory: Better inventory management has led to reduced line inventory.
Improved Delivery: One-time delivery has seen substantial improvement.
Lower Labor Attrition: We’ve noticed a positive impact on labor retention.
We wanted to share this experience in the hope that it might help other buyers and manufacturers facing similar challenges. Feel free to reach out if you have any questions or would like to discuss further!
#Manufacturing #BabyProducts #MOQ #SupplyChain #CollaborativeForecasting #Efficiency #IndustryInsights
Comments