When Aristotle coined the phrase “a whole is greater than the sum of its parts,” he clearly wasn’t talking about manufacturing logistics. Regardless of your industry, logistics experts know that every part matters, from large components to tiny nuts and bolts. And if you’re selling a product that contains multiple parts — something as complex as large-scale agricultural equipment or as simple as a craft kit for hobbyists — you know that even the smallest individual parts matter to the consumer. That’s where kitting comes into play.
But what is kitting, exactly? Read on to find out about the benefits and applications of kitting across various industries.
Kitting is a logistical strategy that streamlines the product assembly process by consolidating individual components into ready-to-use kits. In other words, instead of selling components separately, components are picked, packaged, and supplied together as one part number, or SKU.
For example, in ordering an engine overhaul kit online, a dealer or distributor may select pistons, rings, seals, and any miscellaneous spare parts from multiple vendors. But what if a vendor offered all of the necessary components in a single kit?
To offer a customized engine overhaul kit, the vendor could do the work of procuring parts, packaging the parts together into a kit, and shipping the parts in a single container. Then, the customer could rest easy knowing that all of the parts would arrive at the same time — for a single, uniform price — resulting in streamlined inventory, reduced shipping costs, and better efficiency overall.
Benefits of Kitting
As mentioned above, well-executed kitting services can have an extremely positive impact on your customer service. Other benefits of kitting for your business include the following:
- Improved inventory turns
- Reduced number of SKUs, improving inventory management
- Reduced inventory, leading to lower storage and handling costs
- Improved product throughput
- Guaranteed parts availability
Our Cost-Effective Kitting Solutions
Kitting is a great way to boost your business — but it can also be a burden on busy Original Equipment Manufacturers (OEMs), who may have to juggle part shortages, labor constraints, shipment delays, and long lead times to assemble complete kits. Instead, consider outsourcing your kitting and packaging needs to a 3rd-party logistics company (3PL). Outsourcing your kitting solutions will free up your OEMs to focus on customer satisfaction and sales growth.
At NewStream Enterprises, our 3PL kitting services can drastically simplify your manufacturing and logistics processes. Our kitting services include the following:
- Total supply chain management
- Just-in-time operation
- Operational flexibility
- Capacity to handle a wide range of kits — from 10 components to 10,000
- Barcoding and labeling to your exact specifications
- Total technology integration
- Packaging design expertise
- Freight management
- Full EDI capabilities
So, what is kitting? First and foremost, it’s a way to consolidate your packaging options and ensure that no part gets left behind. Big-picture, kitting is also a great way to streamline your business, improve customer satisfaction, and boost your bottom line. Regardless of your industry, kitting should be your next step to perfect your manufacturing and inventory management — and a 3PL like NewStream can help.
Ready to take your business logistics to the next level? As a 3PL with over 30 years in comprehensive supply chain management, NewStream understands the importance of kitting for your business. Our team of experts is equipped with the knowledge and technology to help set your business apart from the rest and focus on all your kitting needs, from supply chain management to packaging design and everything in between.
Want to hire experts to handle your logistics? Contact NewStream today!
Originally published January 4, 2017. Last updated February 29, 2024.