Kitting is a value-added service that is often used to make the fulfillment of products more efficient and cost-effective. It can be used for products that have multiple parts or to combine similar products to increase sales and order values. If you sell products online, you can benefit greatly by utilizing kitting services so it’s important to understand how it works.
What is Kitting?
Kitting is the process of combining separate SKUs into one package. This process is commonly used in subscription boxes, non-assembled products, and when adding promotional material to the package. Kitting can be classified as either material kitting or product kitting depending on where in the operation it’s performed.
Material Kitting is done when components of the product are combined. This is typically done at the manufacturing stage to gather all the parts needed to assemble the product. It’s also used on products that come unassembled to make them easier to ship. A good example of this would be IKEA furniture. All the parts and tools needed for assembly are combined in the box and ready to ship.
Product Kitting is when you combine finished products into one package. This can be done at the manufacturing stage but is typically done at the fulfillment stage. Common examples would be subscription boxes or products that are commonly sold together.
Whatever stage you choose to implement the kitting process, will benefit your fulfillment operation.
- Reduce Warehousing Cost: By kitting multiple SKUs together before an order is placed you can reduce the overall warehouse space and cost needed to store your product.
- Faster Shipping Process: With pre-assembled kits, the amount of time needed to fulfill an order is reduced. Fast order processing reduces your overall cost, and shipment accuracy and improves customer satisfaction.
- Increases Inventory Accuracy: You’ll need to ensure that you have enough materials on-hand to make the finished product. This forces fulfillment providers to maintain inventory accuracy.
- Enhances Customization: Sellers can completely customize branding in a package via branded dunnage, labeling, or including thank-you notes.
- Decrease Dimensional Weight and Additional Packaging: Would you rather send three small packages or one? Organizing multiple items into one package is more economical. Sellers decrease dimensional weight by having custom packaging for the kitted product, also known as box optimization.
It’s Never Too Late to Start
A 3PL provider like Evans Distribution Systems creates leaner operations by optimizing space and improving the speed and efficiency of online shipments. Kitting is just one of many value-added services that Evans provides. We guide our fulfillment customers to adopt the best solution to match their goals. It’s never too late to speak to an expert about enhancing your brand, sales, and bottom line.