The 'Kitting' Premium: Why Box Assembly Doubles Your MOQ Requirement

One of the most confusing aspects of corporate gift procurement is the "Sum of Parts" paradox. A buyer will ask:

• "The MOQ for the pen is 50."
• "The MOQ for the notebook is 50."
• "So why is the MOQ for the Gift Set (Pen + Notebook) 200?"

From a fulfillment center perspective, a Gift Set is not just two products. It is a Manufacturing Assembly Project.

This article breaks down the hidden labor costs of "Kitting" that drive up Minimum Order Quantities for gift sets.

[Image blocked: Manual Kitting Efficiency: Setup vs. Assembly Time]

The "Assembly Line" Setup

When you order loose pens, we just pick a box off the shelf and ship it. When you order a Gift Set, we have to build a temporary assembly line.

The Process for 50 Gift Sets:

1. Unpack: Remove 50 pens from their individual sleeves (Labor).
2. Unpack: Remove 50 notebooks from their shrink wrap (Labor).
3. Fold: Erect 50 flat-packed gift boxes (Labor).
4. Insert: Place the foam inlay (Labor).
5. Arrange: Position the pen and notebook precisely (Labor).
6. Close & Sleeve: Seal the box and apply a belly band (Labor).
7. Repack: Place the 50 gift sets into a master carton (Labor).

The Efficiency Problem: Setting up this workflow—clearing tables, training staff on the specific arrangement, and printing labels—takes about 2 hours.

• If we do this for 50 sets, the setup cost per unit is RM 5.00.
• If we do this for 200 sets, the setup cost per unit drops to RM 1.25.

The "Human Error" Buffer

In manual assembly, mistakes happen. A worker might scratch a pen while inserting it into the foam. A box might tear during folding.

For a run of 1,000 sets, a 1% defect rate is manageable. For a run of 50 sets, if 2 boxes are damaged, we might not have spares, and the order is short. Therefore, for small kitting orders, we must charge a "Risk Premium" or enforce a higher MOQ to ensure we have enough buffer stock to deliver a perfect order.

Strategic Advice for Buyers

If you need a small volume (e.g., 50 VIP sets) but want to avoid the high "Kitting MOQ":

1. DIY Assembly: Order the pens, notebooks, and empty boxes separately. Have your interns or admin team assemble them in the office. You save the factory labor cost and the high MOQ requirement.

2. Standard "Pre-Kitted" Sets: Choose a supplier's existing "Ready-to-Go" gift set. These are often pre-assembled during the off-season, so the MOQ is lower (often just 10–20 sets) because the labor cost has already been sunk.

Summary

Kitting is not just "putting things in a box." It is a labor-intensive service. Understanding the Setup vs. Assembly curve helps you decide when to pay for the service and when to do it yourself.