Kitting is a standard value-added service offered by most third-party logistics companies. However, kitting is most commonly used in the e-commerce space; therefore, those outside the industry most likely are unfamiliar with kitting. Our team created this guide to help you better understand fulfillment kitting services, best practices, and how it applies to your supply chain.
What is kitting?
Defined, kitting is a service that combines various single items into one unit for sale, such as a subscription box containing multiple items. It is a beneficial eCommerce merchandising tool because it enables e-retailers to do more with the items in their inventory. Elaborate kits can include up to 20 different products, with the capabilities of a great warehouse management system it can accurately manage your inventory, as products morph from units to kits. Here are some different types of products that are typically kitted and assembled:
Subscription Box Programs
Benefits of Kitting?
Kitting services provide companies with many benefits such as a reduced number of purchase orders, decreased management costs, better utilization of space, and more rapid response to customer orders. The following items are additional benefits to kitting fulfillment services:
It can save you overhead costs
Allows you to focus on your core business
You don’t need to hire an in-house staff
Reduces shipping mistakes