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Why Aluminium Extrusion Suppliers Require A Minimum Order Quantity

For small volume buyers or those buying lightweight profiles, minimum order quantities (MOQ) can represent a significant and unexpected expense or wastage. So why do aluminium extrusion suppliers set MOQ’s and what is the best way for buyers to deal with them?

This practice is driven by several factors relating to the economics and efficiency of the manufacturing process… It’s not a way for extruders to get more out of each order!

 

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In this blog we’ll explore the key reasons why aluminium extrusion suppliers implement MOQ’s, and strategies to help you mitigate them.

Overhead Costs

The aluminium process involves significant set up costs, such as die creation and preparation, workforce / additional manpower allocation (time taken away from production lines geared towards high production) and machine calibration. Overheads then soar for aluminium extrusion suppliers when small quantities are required as the set-up costs are distributed over fewer units (making the per-unit cost disproportionally high).

 

The Die & The Profile

Dies are costly. A die required to create a specific shape or profile can cost thousands of pounds, which means that producing just a small number of extrusions from that particular die could result in extremely high costs per piece. Larger orders allow for the cost of the die to be absorbed across many units – making the price more reasonable to both supplier and customer.

There is also the issue of die maintenance, and wear and tear during the extrusion process; especially for extrusion dies that shape molten into specific profiles. Producing small batches means higher costs for maintaining or replacing the die, whereas producing larger quantities helps justify the cost of maintaining dies and ensures their lifespan is maximised.

With regards to MOQ’s not being met, the cost of maintaining or replacing the die can outweigh sale profits, making it financially unsustainable for suppliers to accept smaller orders.

 

First-Off Quality Checks

With the first run of a new die, there are always additional checks to ensure that the running conditions for that particular die are producing the quality required.  At BWC Profiles, we understand the importance of having any critical areas of the profile detailed on the technical drawing as these go through additional quality checks to ensure that the extruded shape meets the tolerances. 

 

Further Quality Checks

It is not always possible to achieve the tolerances on a first run and in cases such as these, the die will need to go back to the die shop for cleaning, and sometimes for minor adjustments. The running conditions may also need to be modified to achieve the required results, and this requires expertise, time and patience.

 

Helping Our Customers

At BWC Profiles, we understand that MOQ’s can be a costly investment, which is why we offer the following services:

  • Complimentary 3D printed samples to test your design instead of an extruded sample order

  • Our in-house stockholding and distribution facility to guarantee price and the ability to call off smaller amounts as and when you need them

  • Our inventory management service means we can manage your stock levels for you, ensuring you always have continuity of supply and that all of your consignments can be easily located and picked when you need them

 

In summary, aluminium extrusion suppliers require MOQ’s for a range of practical and economic reasons such as operational efficiency, to reduce per-unit costs, and to maintain the quality and longevity of the extrusion dies. As a customer, understanding the reasoning behind MOQ’s allows you to plan your purchases strategically, so you can get the best value from your aluminium extrusion supplier while maintaining the quality and consistency you need for your aluminium extrusion projects.