Is your warehouse bursting at the seams? Are you struggling to keep up with orders and ship them out on time? If so, kitting might be the game-changer you need.
Kitting, the process of bundling related products into a single package, transforms how businesses manage their inventory and fulfil orders. In the fast-paced world of eCommerce, where efficiency is key, kitting offers a simple yet powerful way to streamline operations and boost your bottom line.
It allows you to spend less time picking and packing individual items, reducing shipping costs, and even seeing a boost in sales – all thanks to this clever inventory strategy. Intrigued? Read on to understand what kitting is all about and how it can revolutionise your warehouse operations.
What is Kitting in a Warehouse?
Instead of having a jumble of individual products scattered across your shelves, kitting neatly packages related items together into one convenient bundle. These pre-assembled sets are sold as a single unit, making your warehouse operations smoother and your customers happier.
Now, let’s clear up any confusion between kitting and bundling. While they might seem similar initially, kitting combines complementary items into a single product. You know, those items make sense together, like a smartphone, case, and screen protector. Bundling, on the other hand, is a bit more flexible, grouping any items, whether they’re related or not.
In logistics, kitting takes on a slightly different meaning. Delivery services gather products from different sellers and combine them into one package for the customer, saving everyone time and hassle. You’ve probably seen this in action on Amazon – order a book, a pair of socks, and a coffee mug, and they all arrive in a single box. That’s kitting for you.
The Benefits of Kitting in a Warehouse
Save warehouse space
Warehouse space isn’t cheap. In fact, it can run you up to a whopping $8 per square foot in the U.S. Kitting swoops in to save the day by combining multiple products into one neat package. This frees up valuable shelf space, making your warehouse less cluttered and more efficient.
Reduce travel time for warehouse workers
Warehouse crew often seems dashing around, hunting down individual items for each order. It’s exhausting, right? Kitting saves them a ton of steps (and maybe a few blisters). With pre-assembled kits, they can grab everything they need in one fell swoop, speeding up the whole process.
Cut shipping and packing costs
Kitting isn’t just about saving space and steps; it’s also about saving cold, hard cash. Kitting lets you send multiple items in one box, slashing shipping costs like a ninja warrior. Plus, you’ll use less packaging material, so it’s a win-win for your wallet and the environment.
Improve sales revenue
Kitting lets you create enticing bundles or special offers, tempting even the most frugal shoppers. Research from the University of London found that just the word “free” in a “buy one, get one” deal can send customers into a shopping frenzy.
The Warehouse Kitting Process
1. Define Your Kit’s Purpose
Before diving into the details, it’s crucial to define the strategic objective of your kit. Are you aiming to enhance the appeal of a specific product, liquidate slow-moving inventory, or create a captivating introduction for a new product line? Your primary goal will determine the selection of items included in your kit.
2. Choose Your Kit Components
Carefully select complementary products that naturally enhance each other’s value. Consider the cost of each item and the desired final price point for the kit, ensuring a balance between profitability and customer appeal. It’s also important to factor in packaging costs, as these can significantly impact your bottom line.
3. Assemble In-House or Outsource
Deciding whether to assemble kits in-house or outsource to a third-party logistics (3PL) provider is crucial. In-house assembly suits businesses with ample space, staff, and resources. However, outsourcing to a 3PL can be strategic for companies lacking resources or wishing to concentrate on core competencies. This approach offers advantages such as specialised expertise, scalability, and cost-efficiency.
4. Create a Unique SKU for Your Kit
Each kit should be assigned a unique Stock Keeping Unit (SKU) to facilitate accurate inventory tracking and sales monitoring. Ensure your inventory management system is updated to reflect this new SKU, guaranteeing seamless tracking of your kitted products.
5. Streamline the Picking and Assembly Process
Optimise efficiency by designating a specific area within your warehouse for kit assembly. Clearly, label bins and shelves for each kit component to minimise confusion and expedite the process. Consider investing in barcode scanners and other picking tools to enhance accuracy and speed. If you choose to outsource, maintain clear communication with your 3PL provider, providing detailed instructions for kit assembly.
6. Package and Ship with Care
The final step involves selecting appropriate packaging materials to safeguard your kit during transit. Explore options for branded packaging to create a memorable unboxing experience for your customers. Partnering with a reliable shipping carrier is essential to ensure timely and secure delivery of your kits.
Kitting Services
Custom kitting
This is perfect if you want to offer unique product combinations tailored to your customers’ needs. For example, you could create a “new homeowner” kit with cleaning supplies and home decor items or a “travel essentials” kit with a neck pillow, eye mask, and noise-canceling headphones. The possibilities are endless!
Ready-to-ship kits
These are pre-assembled kits waiting for an order to come in. As soon as a customer clicks “buy,” your kitting service provider swoops in, slaps on a shipping label and sends the kit on its way. It’s like having your personal shipping elves!
Labeling, packaging, and even inventory management
Kitting services go beyond assembly. They also handle labeling, packaging, and even inventory management. They’ll ensure your kits look their best, with custom branding and packaging that wows your customers. Plus, they’ll keep track of your inventory, so you always know what’s in stock and what needs replenishment.
Kitting in Manufacturing
Kitting in manufacturing organises all the nuts, bolts, and bits needed to build a product before the assembly line even starts rolling. It’s about gathering all the raw materials, parts, and components required for a specific product and prepping them into a handy bundle. This means no more scrambling for missing screws or searching for the right size gasket – everything is right there, ready to be assembled.
Let’s say you’re making cars. Instead of having workers run around the factory floor collecting each part for a door panel, you’d have a kit with all the necessary pieces neatly organised. This would save time, reduce errors, and keep the assembly line moving at a steady pace.
An electronics manufacturer uses it to bundle circuit boards, wires, and other components. Furniture makers might kit up the legs, screws, and tools needed to assemble a chair. Even food manufacturers get in on the action, combining the ingredients for their signature recipes.
The beauty of kitting is its versatility. It can be used at various stages of the manufacturing process, from the moment raw materials arrive to the final assembly stages. You can even kit together sub-assemblies – pre-built components that are then combined to create a larger product.
When everything is pre-kitted, there’s less room for error. Workers are less likely to grab the wrong part or forget a crucial component, leading to fewer defects and higher-quality products.
And let’s not forget about inventory control. Kitting makes tracking what parts are being used easier and gives you better visibility into your stock levels. This can help prevent overstocking or running out of essential components, keeping your production running smoothly.
Conclusion
Kitting is a seemingly simple process that can revolutionise your warehouse operations. It’s a strategic move that saves space, time, and money and even helps you move stubborn, slow-selling items.
Are you ready to streamline your operations and give customers a delightful unboxing experience? Why not give NimbusPost a try? With a wide range of logistics services and automated warehouse fulfilment centres, we can help you take your warehouse efficiency to the next level.
