Author: Michael Gamper

Understanding the Term

Sourcing concept of small markets with buying volumes lower than the required Minimum Order Quantity (MOQ) that have to wait for bigger markets to place their buys in order to attach (to “piggy back”) their buying volumes and by doing so meet the MOQ.

As a consequence, the small markets cannot have their delivery date guaranteed and are dependent on schedule of the bigger markets.

Application

The purpose of this concept is to improve the production scheduling by consolidating buys.

The consolidation itself is usually done by a central sourcing entity that sets the piggy back windows on a quarterly base.

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