Overrun
In print and promotional merchandise production, an overrun is the quantity produced above the customer's ordered amount. Suppliers invoice for actual delivered quantity, which may be up to 10% more than the original order.
An overrun is the quantity of printed or decorated product produced above the customer's ordered amount. It arises from the nature of high-volume production: presses require calibration runs that consume material, some units fail quality inspection, and producing a small percentage above the order quantity insures against finishing waste. The opposite - a delivered quantity below the ordered amount - is an underrun. Both are normal occurrences in commercial print and promotional merchandise production.
Most suppliers state their overrun and underrun tolerance in their trade terms. Across the commercial print industry, a standard allowance of up to 10% is common. For apparel decoration - screen printing, embroidery, direct-to-garment - typical spoilage allowances run closer to 3% of order quantity on standard products.
How Overruns Affect Invoicing
Suppliers invoice for the actual quantity delivered, not the original order quantity. A distributor ordering 1,000 tote bags who receives 1,060 is invoiced for 1,060. If that distributor quoted their client a fixed-price, exact-quantity job without passing the overrun clause through, they may need to re-invoice or absorb the cost difference.
The practical approach is to build the allowance into client quotes from the start. Many promotional merchandise distributors note in their terms that invoiced quantity reflects actual delivery within the standard trade tolerance, and state the per-unit price accordingly. This removes the need for a supplementary invoice and avoids a surprise for the client when the delivery note shows more units than ordered.
Confirm the Supplier's Allowance Before Quoting
Overrun percentages are not universal. Some suppliers cap at 5%, others at 10%, and some vary by product type or decoration method. Check the supplier's trade terms before quoting a client on a fixed-price or exact-quantity basis, so the allowance can be included or explicitly excluded.
Overruns vs Spoilage Allowance
Overrun and spoilage allowance are related but different. A spoilage allowance is the number of extra blank units you supply to the decorator - above the client's order quantity - to cover units that may be lost or damaged during decoration. The overrun is what the decorator or printer produces above the base order, which may be delivered and billed to you.
A distributor ordering 500 embroidered polos for a client might supply 515 blank garments to the embroiderer as a spoilage allowance, ensuring 500 usable units are delivered. The embroiderer may still return with 510 completed pieces - that excess of 10 units above the 500 ordered is the overrun.
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