Under the background of increasing demand for customization of touch panels, Minimum Order Quantity (MOQ) has become a core issue in the negotiation between supply and demand, which is not only related to the production cost and supply chain efficiency, but also has a direct impact on the market responsiveness and competitiveness of the enterprise's products.
1. The impact of touch screen size on MOQ:
Small size touch screen (≤ 7 inches)
Production characteristics: small-sized screen cutting process is relatively simple, but because of the small area of a single piece, the yield loss on the total cost of a significant impact. For example, if the cutting loss rate of 5-inch screen is increased by 2%, the cost of a single piece may increase by 15%-20%.
MOQ: Suppliers usually set the MOQ threshold of 1000-2000 pieces. If the order quantity is lower than this range, the supplier may refuse to take orders due to unprofitability.
Medium and large size touch screen (7-27 inches)
Production characteristics: Medium and large-sized screens require high-precision cutting equipment and special production environments such as anti-static, constant temperature and humidity, leading to significant increases in equipment depreciation and operating costs.
MOQ logic: MOQ is usually set at 500 pieces to balance equipment utilization and order profit. For example, if the MOQ of 15.6-inch screen is lower than 500 pieces, the supplier may lose money due to high equipment idle cost.
Oversized touch screen (≥ 27 inches)
Production characteristics: oversized screen requires customized production lines, and yield control is extremely difficult (e.g., the yield of 42-inch screen is usually less than 80%), resulting in extremely high cost per piece.
MOQ logic: MOQ is set at more than 300 pieces, and customers need to bear all the mold costs.
2. The impact of project complexity on MOQ:
Standard project
Characteristics: using mature technology programs (such as capacitive touch screen + standard interface), without additional R & D investment, suppliers can respond quickly.
MOQ logic: MOQ is usually low (e.g. 500-2000 pieces), suppliers can reduce costs through standardized production processes.
Customized Project
Characteristics: Functions need to be customized with specific application scenarios (e.g. waterproof, impact resistance, multi-touch identification), involving hardware design, software algorithms and material selection and other areas of synergy.
MOQ logic: MOQ is significantly increased (e.g. 1000-3000 pieces) to cover R&D investment and supply chain adjustment costs. For example, some projects may require matching control cards, and the MOQ of control cards generally ranges from 1,000-3,000, or, if the customer is willing to pay for the on-boarding fee, the MOQ is negotiable.
3. WIWO's optimization strategy about MOQ:
Purchase in stages
Split large orders into multiple deliveries.
Pre-development Support
We understand that during the development phase of a project, customers need small batches to validate the market, and we can support 1-2 small batch trial production after sample testing.