NewStream Blog

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.

We sat down with David Schultz, NewStream's business development manager, recently to discuss the process for onboarding new customers, their concerns, NewStream's value adds, and how we help original equipment manufacturers (OEMs) love their supply chain. 

In the manufacturing and product distribution industries, parts and components of particular items are in high demand. Due to quick turn-around and short product life cycles, consumers, businesses, and OEMs all require spares, replacements, and new parts. The industrial sector adopted the kitting method to keep up with this expansion. What is kitting in manufacturing, and how can kitting process benefit manufacturing?

As a result of all the unpredictable market shifts and the fluctuating demand and supply, many businesses, especially retail businesses and original equipment manufacturers (OEM) have sought new ways to optimize their operations, increase production efficiency, lower costs, and eliminate material waste. Outsourcing order fulfillment services through a 3PL is one of the most popular and efficient solutions. Companies can focus more on their business operations and sales growth by employing a 3PL provider to prepare and ship products to customers. Most retailers and OEMs outsource kitting and/or assembly. They are two distinct services that, in most cases, work together in the order fulfillment process.

Kitting is today’s most popular and efficient way to distribute a company’s product. The kitting process is a strategy used to maximize a business’s shipping and handling, while also being extremely cost effective. Many medium to small sized businesses, whether physical plants for ecommerce fulfillment, outsource their kitting process via a 3PL company to take their product directly to the hands of the customers. What products typically require kitting services, and what are the benefits of kitting for your products?