With a demand in personalization and businesses looking to optimize their operations, customized kitting has emerged as a powerful solution to fill the gap between these two dynamics. Customized kitting is the process of assembling unique product packages or kits tailored to individual customer preferences or specific project requirements. This innovative approach offers several advantages for both consumers and businesses alike.
Streamline Assembly Processes
Kitting services are one of many ways that your business can enhance assembly efficiency. Entrusting this process to a specialized external provider, like NewStream Enterprises, can utilize their expertise and experience to optimize operations. Partnering with a reputable 3PL that has a deep understanding of kitting and packaging will keep your components organized and readily available for your assembly purposes. In addition to organization, outsourcing kitting minimizes the likelihood of errors and reworks, as the 3PL will diligently inspect and verify the contents of each kit, overall reducing cost. According to a Navigant Construction Forum study, the actual cost of rework is likely higher than the estimated 5% average cost. The total cost of rework, including all direct and indirect costs, was estimated by the study’s authors to be closer to 9% of the project’s overall cost. Outsourcing your kitting needs is a strategic move that can streamline your assembly processes while delivering increased efficiency to your business so that you can stay competitive in today’s markets.
Letting your 3PL partner handle kitting can be an effective cost-saving strategy for your business. Outsourcing kitting leads to a reduction in labor costs, as these 3PL providers have efficient and dedicated teams that can assemble kits quickly and accurately. Having a 3PL provider do your kitting can also help your business cut down on overhead costs, eliminating the need for your organization to invest in additional storage space, equipment, and inventory management systems (IMS). An existing customer of NewStream who is an on/off highway original equipment manufacturer (OEM) was expected to save $700,000 to $800,000 per year with a new single parts packaging program. Additionally, outsourcing kitting facilitates easy risk mitigation by transferring partial responsibility for inventory management and quality control to your experienced 3PL.
Capacity Related Advantages
With a 3PL handling your kitting needs, your business will begin to see significant capacity-related advantages. These advantages can extend from the flexibility and scalability your 3PL providers bring throughout your partnership. 3PLs have the ability to utilize their extensive library of resources and infrastructure that can quickly adapt to fluctuating demands. In 2013 NewStream’s existing customer requested a quote for single parts packaging after being dissatisfied with their current service provider. NewStream proudly showcased their flexibility and swiftly secured a leased for a fully operational 135,000 square foot facility within 30 days, outpacing the OEM’s 120-day expectation. Your 3PL partner also has the knowledge and expertise to scale up or down during periods of both high production and low production, avoiding unnecessary idle capacity and associated costs.
Streamline Product Improvement Plan (PIP)
When your company decides to enhance an existing product, this process often involves introducing new components or modifying existing ones. Entrusting kitting to your 3PL provider, your business can ensure a seamless transition during this process. 3PL professionals have the expertise to efficiently manage and organize your diverse components, which is crucial to improve product. Additionally, your 3PL will be able to quickly adapt to changes in the bill of materials (BOM), assemble customized kits, and facilitate the efficient distribution of updated components to the assembly line. This streamlines the implementation of product improvements, reduces the risk of errors, and accelerates the time-to-market.
Enhance Customer Experience
Entrusting kitting services to a reputable 3PL can enhance your customer experience by ensuring that your products are delivered to customers in a timely, organized, and error-free manner. Well-organized kits not only simplify the assembly process but also reduce the likelihood of missing or damaged components, which can lead to delays and customer dissatisfaction. 3PLs like NewStream Enterprises can also offer customization options, allowing your company to create kits specific to customer preferences. Customized kits enhance overall customer experience, demonstrating your commitment to meet individual needs.
Customized kitting is a dynamic and versatile solution that fulfills consumer’s needs for personalized experiences while also providing your business with a powerful tool to streamline operations and increase customer satisfaction. Whether in e-commerce, manufacturing, or various other industries, NewStream Enterprises offers customized kitting to fit your business needs, reduce waste, and help you foster strong customer relationships. Our team of experts are equipped with the knowledge and expertise to help set your business up for success in an ever-evolving marketplace where adaptability and personalization is the key to growth and longevity.
Ready to outsource a 3PL for your customized kitting need? Let’s talk, our experts are ready to help!