Kitting is a process by which separate but related items are picked, packaged, and supplied together under one part number, providing the manufacturer with a list of benefits, both internal and external. The process is usually provided by a third party logistics (3PL) provider due to their knowledge and expertise with inventory accuracy and other integral portions of the supply chain.
Top 5 Benefits of Kitting
- Lower Labor Costs – Manufacturing facilities utilizing highly specialized labor for production needs can see a reduction in labor costs by outsourcing kitting to 3PL. From kitting to shipping, the 3PL already has the labor in place to meet and exceed your key performance indicators (KPIs) at a lower cost point.
- Space Saver – No need to use your current space for your kitting program. A 3PL has the warehouse space needed for a full kitting program and fulfillment capabilities to service your customer base. This frees up the space you need within your manufacturing facility for your production needs.
- Scalability – A kitting provider has the flexibility to provide kitting and warehousing capacity based on your demand and seasonality. From spikes in demand to an increase in services needed, the 3PL has the infrastructure to adjust accordingly - all without sacrificing quality and on-time delivery metrics.
- Increased customer service – Your customers want the right product on time, every time. By outsourcing your kitting needs to a 3PL focused on the KPIs specific for your industry, you can do just that. Your customers will see an increase in customer service as a quality product arrives on time and in one consolidated shipment, raising their customer loyalty and increasing their rate of purchase.
- Focus on your core competencies – By choosing a provider with vast experience in inventory planning, kitting, warehousing and fulfillment, you can ensure high quality and accuracy throughout the supply chain. This means you have the peace of mind to focus on growing your core business while the 3PL assumes the roles of kitter and distributor.
Partnering with a provider like NewStream Enterprises, LLC allows you to leverage our extensive operational expertise while you stay focused on meeting your key performance indicators (KPIs) and achieving year-over-year growth. Whether kitting for critical orders, fulfilling your rework needs, shipping direct to customers or supplying your distribution channel, NewStream leverages shared resources to provide cost-effective kitting solutions.
We understand that quality, fill rates and on-time delivery are crucial in today’s economy and we deliver with exceptional performance.