Kitting, as performed by a 3PL, is the act of taking the individual parts of a product, compiling them together in a “kit,” and then delivering that kit to the production operation for assembly.
It doesn’t always make sense to kit items, but when it does, there are a variety of benefits, and the cost savings can come from many areas.
Benefits of kitting and assembly facilities
When kitting is done in bulk, as opposed to each time an order comes in, it becomes more of a linear operation, meaning that items can be kitted more quickly. If you handle your own order fulfillment, this will save you time. If you outsource fulfillment, this will save you money because your pick/pack costs will be less, as each kit will be counted as one SKU, as opposed to paying for the pick/pack of each individual item.
Fewer Shipping Mistakes
When items are shipped in kit form, it reduces the chance for error with order fulfillment. It also allows you or your fulfillment house to pre-print shipping labels, eliminating the need for weighing and labeling individual items.
Kitting can also lead to postal savings with more efficient and cost-effective packaging. For example, rather than packing individual items into a standard-sized box, developing a custom box for popular kits can reduce the size and/or weight of your packages.