What is Kitting in Warehousing?
Kitting is one of the hot warehousing terms right now. If you don’t know what kitting is or how it can make things easier for your business, you could be at a disadvantage. Kitting can save eCommerce businesses time and money, and it makes the fulfillment process much easier for certain items. Here’s what you should know about kitting in warehousing.
What is Kitting in Warehousing?
Assembly is another way to describe the process of kitting within a warehouse. Assembly means putting products together that are meant to be shipped jointly before they are shipped. Instead of physically putting together a chair from Ikea to be shipped, kitting refers to assembling the kit by picking and packing individual products together during the order fulfillment process.
When items are meant to be shipped as a single unit, product kitting puts all of these items together. Not only does this save time and money, but it also ensures items will make it to their destination easier and faster.
Without kitting, what could have been one simple order often turns into shipping multiple products to the same end destination, something most companies cannot afford, and a hassle for customers.
Why is Kitting Great for Warehousing?
The first benefit that kitting has for the warehouse business is the benefit that kitting is faster. Where a multiple-item order might take several days or shipments to get to its final destination, an order that has been put together (kitted) will be able to get there much faster.
Speed isn’t the only benefit.
Kitting something is cheaper than taking the brunt of the shipping costs on the company. When items can be shipped together in a single package, shipping costs are drastically reduced.
Why is Kitting Better for Consumers?
There are several ways in which kitting can be better for consumers, too. The consumer will experience a reduction in cost for items that have been sent out as kitted once, versus packaging individual items in multiple boxes.
Shipping costs
Frankly, shipping is going to cost more for items that have not been kitted. When items are not kitted, companies then have to charge the consumer more for multiple shipments. If consumers are charged more because items are not kitted, they might suddenly choose to go with a rival company.
Kitting is better for the consumer, which means it’s a good idea for warehousing companies to offer kitting services.
Why is Kitting Superior for Companies?
Kitting isn’t just better for the warehouse and consumer. Kitting is also beneficial for the middlemen. Companies want to see their products get to customers as fast as possible, though this cannot always be done. For companies, a third-party logistics company that lets them down is one of the worst things for their business and customer satisfaction.
Kitting cuts out a lot of the hassle that comes with shipping. Companies and consumers can all expect to pay less for an order to be fulfilled.
Can Third-Party Fulfillment Services Companies Do Kitting Too?
For anyone in the shipping and logistics industry, this can be one of the best questions to answer yet.
A warehouse company that wants to introduce kitting services might sometimes be scared away by the prospect of what it’s going to cost to change its business model. Other worries may include the time that it might take to train new employees how to do this.
If you are in the warehousing industry, then you should know that there are ways to take the pressure off your own business while still embracing kitting in all its forms.
How can this be, you might ask?
Third-party companies that specialize in kitting can be asked to take over the process on behalf of a company.
While the third-party kitting service provider takes their cut, it’s often still cheaper than trying to pick, package, and ship everything yourself.
MAI Fulfillment | Kitting and Assembly Services Chicago, Illinois
Warehouse | Cross Docking | Fulfillment | Kitting | Inbound/Outbound Voice | Freight Broker
Established in 1981, MAI is a privately-held 3PL company in Chicago specializing in warehousing, fulfillment, and omnichannel contact services. As an experienced outsourced provider, we provide value-added solutions designed to help companies build and maintain relationships with their customers.
The MAI business model offers clients the efficiency and convenience of dealing with a single accountable resource for a wide range of services. MAI areas of specialization include:
- Custom B2B and B2C warehouse/fulfillment solutions
- Omni-channel contact center services
- Technology support
A wide range of service offerings, strategic problem-solving skills, and experience make MAI a valued partner to a broad range of Fortune 500 companies. “Quality” is more than just a word here – it’s the foundation of how we conduct business and an integral part of the processes and metrics we use to deliver value to our clients every day.
Contact MAI today to learn more!