Kitting is very important as it provides many benefits to manufacturing companies looking for a way to streamline their warehouse system and increase revenue of sales.
When a business outsources to a supply chain company, also known as 3rd party logistic partner (3PL), kitting services run by the SPL are able to reduce administration costs and improve consumers’ experiences simultaneously. They also work hand in hand with all aspects of the manufacturing and distributing process of the supply chain. The aspects of the process are production, storage, packaging and delivery.
Kitting means combining two or more product parts into a single package which is then sold and delivered as a single product, regardless of the amount of individual parts in the kit. Some examples are media kits, promotional kits, toy sets, and product sampler sets.
This is usually done by supply chain companies instead of manufacturers as they are able to cope with these tedious workloads without any errors or mistakes and time wasted on their side. The company does not have to spend time to put product parts together and package them as the supply chain company will be able to do that for them, and even better. It also helps the manufacturing company to save space and human resource, where the supply chain company will store the manufacturer’s parts and even manage them where they will transfer the parts from inventory and puts them into kits, and even helps with the packaging, customized or not, and delivers them to specific destinations, to the doors of consumers.
As a result, kitting services in supply chain companies reduce the number of purchase orders, lower administrative costs, increase efficiency usage of space, speed up production cycle, and respond to consumer’s orders quicker.
Additional benefits of kitting include:
Fast Processing: Kitting means that items are processed in bulk and not one by one when the order comes. This helps to speed up the processing process and cut costs.
Fewer Errors in Shipping: Items that are shipped in kits are least expected to have errors, as it allows companies to re-print labels of the package, instead of weighing and printing labels individually. This also means shipping in bulk, and in return, minimizing shipping costs and customers can get their products faster.
Customized Packaging: Kitting means you can design your own package for the kits during holiday seasons or promotional periods that represents your company instead of a standard-size box. This increases sales revenue as it will be more attractive to consumers
Hence, if you have a supply chain company, it will be very useful if you have kitting services to leverage upon as it gives you an organized solution and helps you to be more attractive to manufacturing companies. If you have a manufacturing business, it will be very useful to partner a supply chain company that offers kitting services.