The kitting process in manufacturing is the taking of two or more related parts and putting them together in a single kit, typically under one SKU. Purchasing several individual parts is time consuming, kits simplify this process as parts are pre-packaged and occasionally pre-assembled. On the production floor, workers can utilize kits by implementing them into their product build, taking less time to locate individual products.
Who Needs Kitting Services
Kitting services can be utilized by any industry that assembles products for customers or retail sale. Implementing these services can be beneficial for many reasons. Using a third-party logistics (3PL) can reduce cost, improve warehouse productivity, increase floor space, and control inventory. A few common applications where kitting would be a necessary process would be packaged sets, subscription boxes, pre-assembled products, and marketing materials.
Benefits of Kitting Services
Space Saving
Removing components from inventory and partnering with a 3PL for outside product storage can help you save a lot of space in your warehouse. Moving components off site is beneficial since the area can be utilized to its fullest potential, allowing larger projects to be completed.
Improved Productivity
Outsourcing kitting services is essentially the start of the manufacturing process. 3PLs start by picking and packing individual components into a single kit, then delivering order fulfillment to the appropriate warehouse. Product kitting components are readily available for use on the assembly line, saving time and eliminating the labor for product picking.
Inventory Control
By controlling materials and shipping kits as needed, partnering with a 3PL can help control inventory. Kitting product helps reduce inventory as there are not several individual items, but rather kits that contain items together. Knowing what each kit contains and how many kits you have in stock might help you figure out what products you’ll need.
Lower Costs
Utilizing kitting operations from a 3PL can lower costs by eliminating the need for extra warehouse space, specialized equipment and technology, as well as additional manpower. Businesses can be costly at the start up; purchasing equipment and new technology, as well as training employees on how to utilize it, can result in additional costs.
Knowing what manufacturing kitting solutions are beneficial to your business is important if you own a business in the manufacturing industry. Although hiring a 3PL is an expense for the company, outsourcing kitting cuts costs in the long run by avoiding certain manufacturing processes altogether. Discovering early on if kitting benefits your company is the first step into maximizing your company’s potential.
3PLs like NewStream Enterprises, LLC can help maximize efficiency and minimize costs. Outsourcing kitting may appear to be a time-consuming operation but finding a supply chain that you love can make a world of difference. Here at NewStream, our kitting services are cost-effective and are handled by experts; some of our kitting and assembly services include custom engine components and spare parts kitting, consignment and procurement kitting and entire supply chain management. From critical orders to fulfilling rework needs, NewStream experts do it all and help you love your supply chain while they’re at it!
Do we have the kitting services for you? Contact our experts today!