Kitting is an order fulfillment lingo for the assembly of individual items into ready-to-ship kits or packages. It can either mean to group raw materials together in order to create a finished product, or the assembly of two or more finished products into a larger group.
Kits are generally assigned a unique SKU in order to differentiate the assembled kit from the individual components, so that it can be stocked and tracked as a single unit.
What Items can Be Kitted?
There are a variety of items that can be kitted, and here are a few examples:
Demonstration and display materials
New product launches
The Benefits of Kitting
Although not all the items are suitable for kitting, pre-assembling kits in large batch quantities offers several advantages over waiting to pick and pack the components as individual orders arrive. Here are some of the benefits of kitting services:
1.Streamline your distribution process
Many online merchants will purchase from different suppliers and sell on their online store. How to group and assemble products from different suppliers and ship them to your customers worldwide? Some order fulfillment companies, ChinaDivision.com for example, can coordinate the receiving of your separate products from various suppliers and combine individual components into new product kits before delivery. Distribution is much more streamlined because the items had been kitted in advance.
2. Reduce pick & pack cost and shipping cost
If you outsource to a fulfillment company, kitting can help to save your pick and pack cost since each kit will be counted as one SKU, as oppose to paying for pick and pack fee for each individual item. In addition, kitting also helps sellers save money on shipping by bundling items that will go to the same address. If sellers pass on cost savings to customers for ordering kits, this can also work to increase customer satisfaction.
3. Reduce cycle time between order and delivery
In most cases, completed kits are placed into storage to be shipped in a later time. Cycle time can be reduced dramatically with the use of kitting, as your fulfillment partner can not only package but also weigh and label kits in advance.Thus the turnaround time between order and delivery is greatly cut down.
It doesn’t always make sense to kit items, but when it does, there are a variety of benefits. Depending on the products you sell and the number of manufacturers you cooperate with, kitting may not always available at the manufacturing stage. Most of the time, it has to be done after your suppliers send individual items to your fulfillment warehouse.