MOQ vs minimum order value
An MOQ is a quantity of one product: at least ten cases of this line. A minimum order value (MOV) is a spend across the whole order: at least £150 before we deliver. Producers often set MOQs on their distributors. Distributors more often set MOVs on their trade customers, because a delivery costs the same whatever lines are on it.
A worked example
Illustrative figures. A producer sells a sauce with an MOQ of 20 cases. A distributor sells it on to cafés by the single case, so it buys 20 cases and holds the stock. On the sell side, the distributor sets a minimum order value for delivery so each drop covers its cost.
Why MOQs matter for stock
An MOQ above what you sell in a cycle means holding more stock than you need. For short-life lines that turns into waste. The answer is often to negotiate the MOQ, buy less often but more, or carry the line only if demand supports it.
