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?
It’s a struggle for some companies to toy with the idea of outsourcing their kitting program. Smaller companies may worry about diluting their brand or losing flexibility. While larger companies only see outsourcing as a cause of inefficiencies within the supply chain. These are just a couple of the myths surrounding outsourcing kitting programs. Ready to debunk these myths? Let’s get started.
Customers get more value in the long run when the companies adopt a process that successfully groups products together. Product kitting and bundling are essentially the assembling and packaging of several complementary product units sold together for ease of customer ordering and at a lower price than they would pay for buying the same items individually.
