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Benefits of Electronic Component Kitting

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Electronic component kitting is a manufacturing process that refers to the physical act of assembling a production-ready kit of parts and components for delivery to a point of assembly in order to manufacture an electronic device. The use of electronic component kitting allows the assembly line to operate faster and more efficiently. Having kits on hand is a low-cost solution that will reduce the production of the many complexities of production. It can assist you in saving time, organizing your workspace, and freeing up production space.

What is Kitting in the Context of Manufacturing Electronic Components?

In manufacturing, kitting is the process of assembling parts and components into a single kit that has its own SKU number. Parts, materials, or components are given to a point-of-use company, which collects and reuses them. On an assembly line, this usually entails putting together the components of a consumer product. 

In electronic component manufacturing, "production-ready" kits of electronic components are required to produce a predetermined quantity of an electronic circuit board. Electronic component kitting necessitates the use of complicated electronic devices with shorter product life cycles. This is a solution that addresses the growing desire for more customization in the product marketplace, allowing companies to adapt to changes in consumer demand.

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Benefits of Electronic Component Kitting

For manufacturers, kitting has become increasingly popular as a strategy since it gives them quick access to more parts and components while saving them money in the process. By implementing supply chain logistics, manufacturers may be able to keep inventory at a lower level and locate it quickly when you need it. Kitting's efficiency comes from the consolidation of manufacturing, storage, and administrative expenditures.

Inventory Control

Parts sourcing, delivery coordination, order tracking, quality inspecting parts on delivery, inventory storage, and invoicing from various vendors are all part of keeping a filled warehouse. Because product kits can be stored as a single component ready to assemble, electronic component kitting helps save warehousing overhead by reducing inventory. Time spent on seeking specific parts for assembly can then be transferred to other areas of the business.

What is Kitting in Manufacturing? - NewStream

Cost Control

Electronic component kitting saves time, effort, and money by eliminating the need to monitor and collect many parts and components from a warehouse to the assembly line piece by piece. In addition, kitting service providers can handle all time-consuming administrative tasks. Kitting reduces overhead and labor expenses related to purchasing, logistics, material installation, labor on non-installation activities, transaction costs, as well as SKUs, shrinkage, and returns in electronic component manufacturing.

Improving Organization

Electronic component kitting frees up workspace and warehouse space by allowing assemblers and operators to access only the parts needed to manufacture the electronic device from kits at their workstations.

Improved Production

Electronic component kitting provides a reliable supply chain that can be easily sourced by companies, improves customer service and satisfaction, and allows for more space at the point of assembly because electronic components are delivered to the point of assembly only when needed to fulfill production schedules, resulting in an increase and improvement in overall production.

What is kitting and Assembly? NewStream Enterprises

Outsourcing electronic component kitting through a third-party logistics provider can help you save money, increase capacity utilization, add flexibility to your supply chain, and enhance the customer experience. Furthermore, entrusting your kitting program to a 3PL would free up time and money for you to focus on your key strengths, which is why your consumers came to you in the first place, and allow you to concentrate your efforts on year-over-year sales growth while the 3PL establishes customer loyalty, quality, and reliability in your supply chain.

From pick to pack to ship, NewStream Enterprises, LLC provides your firm with the kitting expertise to simplify your complex kitting process into a straightforward process flow. Unlike other companies, where poor wages and a harsh work environment nearly guarantee high turnover, our employees have the opportunity to own the business and have direct input into how to improve our performance and service to increase customer satisfaction. When you work with a business like NewStream, you can take advantage of our extensive operational knowledge while staying focused on meeting your key performance indicators (KPIs) and achieving continuous improvement. 

Our kitting services have been optimized for efficiency and will help you achieve your business objectives. As a thought leader, we also give you practical tools for outsourcing kitting and assembly services, such as "The 10 Steps to a Successful Kitting and Packaging Request for Proposal Process." Get a free quote for kitting services from NewStream today and learn more about how we help OEMs love their supply chain!

The 10 Steps to a Successful Kitting and Packaging RFP Process

Tagged: Supply Chain Management, Kitting, Quality, Flexibility

Sep 30, 2021 9:49:17 AM

Written by Ha Beavers

Ha Beavers is currently the Marketing Coordinator at NewStream Enterprises, LLC. She graduated from Missouri State University with a Bachelor of Science degree in Digital Film and Television Production. Ha has obtained industry experience in content writing, website creation, search engine optimization (SEO), videography, and photography. In her role, Ha is responsible for the overall inbound and outbound marketing strategy in support of NewStream’s sales growth goals.