In this article, you will learn the best kitting techniques to boost your marketing strategy, improve the warehouse and manufacturing efficiency using some Process Excellence gudelines. definitions
Kitting Process Meaning
Kitting is the process in which individually separate but related items are identified, grouped, counted, labeled, packaged, and supplied together as one unit to the manufacturing area for assembly and final packaging.
What is Kitting Packaging?
Kitting is the process of taking different but related components or standard products and combining them together to create a new standard product package.
The term standard product means an item that is sold as-is to most of your clients and not requires major customization, in particular, to comply with any individual requirements. For example, a toolset box with one (1) hammer and three (3) screwdrivers or a toolset for dentists.
Basically, kitting involves making the client’s orders by pre-assembling individual items into kits that are ready to ship out right away, rather than picking and packing them individually.
This method offers a high rate of savings in operational costs.
It is important to notice that kitting is useful only if your product and items are standard, sometimes called “make to stock”.
Kitting is not suitable for customized products, like items “make to order” or with unique specifications.
Specifically, kitting involves a process where separate but related items are grouped, packaged, and supplied together as one unit.
For example, if a customer orders a coffee maker online, it may also include certain samples of coffee, tea chai, chocolate, filters, and other components. The supplier would then assemble all of these items into a single kit to be shipped to the client.
Also, the kitting technique is well recognized in the perfumes industry, in which some companies provide a kitting package for Christmas, San Valentin, etc. with different items as fragrances, aftershaves, soaps, etc. packaged in one box.
Kitting as a Sales Strategy of Marketing
Some companies take advantage of warehouse kitting to leverage their sales and marketing strategy.
It is especially useful when you have low runners’ products (low demand items) waiting in your warehouse and inventory. You can create a bundle of low demand products with high runner (high demand) products to sell off your current stock of slow products. Then you can bundle them with “hot sold” products and offer them as a discount package for sale!
In this manner, you can boost sales, and optimize your inventory turnover.
How to implement Kitting in a Warehouse?
The kitting process initiates before an order is placed. Typically, when creating a standard order for individual products, the item is located through the unique identifying code in the warehouse management system. Then, a staff member retrieves the item before updating the inventory and completing the order fulfillment.
This process is repeated for every product that’s ordered, as individual part numbers or SKUs are assigned to individual items, they are all picked, packed, and shipped separately.
Kitting brings the advantage you can bundle items that are usually ordered separately to create one single unit in the inventory system.
In this manner, when a new order is received, it is faster and easier to locate the items as a bundle and ship it off immediately.
What are the 8 Main Benefits of Warehouse Kitting?
Kitting brings a great number of benefits:
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