Kitting is the term used in warehouses when items are put together into a kit. It can help businesses save time and money when multiple items are typically bought at the same time. The items are combined into a new item that can be sold as one larger piece for a higher cost. Instead of being shipped separately, they are bundled together. Here are some of the benefits you can see when you add kitting to your warehouse processes.
Third-party logistics companies, or 3PLs, offer kitting services to big businesses. Because they need inventory to create kits, you can create space in your own warehouse for other items. This can be useful for hardware distributors, subscription box services and other e-commerce companies.
3PLs have the ability to create packaging that fits the bundles of products you want to create. This allows your business to save money on boxes and packing materials. Instead of using oversized packages which require excess tissue or bubble wrap for protection, your items are securely packed in an appropriately sized box.
Because 3PLs only have to focus on the packing and shipping portion of the business, they are extremely good at it. They are less likely to make mistakes when they aren’t worried about other business operations.
Your operations team can stay on top of their quotas when the materials are prepared by a kitting service. This prevents them from having to hunt for each individual part before they begin packing.
Lower Delivery Costs
When you use 3PLs for shipping, they can pass on the savings they acquire to you. They typically have discounted contracts with various shipping companies, which means they know the best ways to ship items and can avoid excessive fees.
Using a kitting service can provide many benefits to the bottom line of your business.