There’s no question that when you are selling online, you need to keep looking for new ways that allow you to reduce costs and increase speed. So, you probably already heard about retailers using a 3PL which allows them to put items together in kits. And this process is known by kitting and assembly services. One of the things that you may not know is that this is carried out by the same facilities and staff that handle the order’s fulfillment.
One of the things that it is important to keep n mind is that even though most people tend to use kitting and assembly together, the reality is that each one has its own purpose. And the reality is that it is important to understand their differences.
Using kitting and assembly in a lean manufacturing environment.
Simply put, kitting refers to the process in which 2 or more related goods are grouped and then packaged together. This creates a new SKU that is ready to be shipped.
One of the things about kitting is that it usually takes place before customers order it and the goods lave the inventory ahead of time as well.
Some examples of kitting include gifts with purchases, subscriptions boxes or even rainbow packs.
Looking to add kitting and assembly?
The assembly takes place when all the individual items or goods of a kit are arranged and prepared for shipping. Just think of shaving products that include a pack of razors, wipes, and shaving gel. These products are grouped, packaged, and then shipped as just one item. As you can easily understand, this will allow you to save a lot of time and improve your bottom line at the same time.
Some retailers tend to use assembly to bundle together products that complement each other such as stationery items wit notebooks or video games with video game controllers, for example. When you do this, you will be selling more items and, at the same time, you will be saving on packaging costs.
Some of the different types of products that can be usually kitted and assembled include electronics, product samples, instructional packets, subscription box programs, cosmetics, media kits, nutritional supplements, and promotional items and literature.
Discover how both kitting and assembly can help in a lean environment.
While some companies prefer to handle the kitting and assembly services on their own, others prefer to outsource. And some of the reasons why they do this are:
There’s no question that speeding the process is always important to consider. And when you outsource these, the company will only be doing it for you. There’s no need to wait for an employee to b free to start the assembly. Instead, he can remain to do more important tasks.
One of the things that you may not know about kitting is that there are many different direct expenses related to it. Just think of picking, grouping, packaging, and selling. Besides, the costs don’t stop her. It is also important to remember about the IT management systems that you need to buy and have in place, renting additional storage space, hiring staff, and buying specialized equipment. And these costs can all be avoided with outsourcing.
Check out this lan kitting case study.
One of the things that you probably already noticed is that you have fluctuations in product demand throughout the year. So, you need to ensure that you can optimize the storage space, equipment, and warehouse staff. However, you can’t simply hire staff for a couple of weeks or months. And outsourcing kitting and assembly is a great option.
