Businesses engaged in product distribution and order fulfillment needs are increasingly turning to kitting. Kitting is the process of combining multiple items into a single marketable product to reduce shipping expenses, SKUs, customer response times, and more.
At MGA Innovation, our team will work with you to develop a strategy for your products that leverages the efficiency of kitting.
What is Kitting?
Kitting is a service that combines single items into one complete unit for individual sale.
Warehouse kitting specifically involves fulfilling customer orders by pre-assembling items into kits that are immediately ready to ship. Subscription boxes are a popular example. Instead of retrieving, packing, and transporting each item individually, businesses that use kitting would create a new SKU for the subscription box as a whole. You can also find this valuable strategy in counter/club/pallet displays.
Kitting often saves you time and money by reducing the need for individual selection and shipping.
Benefits of Kitting
- Expanded merchandise options. Kitting allows you to offer more products without requiring additional storage space. Businesses can offer special deals on kits, bundle items to create sets, and cross-sell promotions. This provides the customer with more spending opportunities without requiring your business to store additional stock.
- Increased shipping speed. Selling items in kits lowers the number of purchase orders. Instead of buying four different, related items, customers can order a pre-assembled kit with the four items already bundled together. Assembling fewer total packages results in a faster and more seamless shipping process.
- Reduced costs. Cut down on transportation expenses by kitting your goods into a custom box. Most individual items are packaged in standard boxes, resulting in products being shipped in containers much bigger – and therefore more expensive – than necessary. Kitting allows retailers to send the same amount of merchandise for less.
- Optimized warehouse space. Fewer SKUs mean that the warehouse inventory system is smaller and more efficient. Kitted items can be stored closely together, which decreases space requirements and boosts worker productivity. Warehouse workers have less distance to travel, making it possible to fill more orders in a shorter period.
- Promoted inventory turnover. Kitting allows retailers unique opportunities to bundle, discount, and promote items that may have been taking up storage space. Make room for new merchandise by kitting stock you’ve been looking to sell and offering an overall discount.
- Shortened response time Fewer SKUs increase warehouse efficiency and reduce shipping times. These factors are admirable on their own but detract from the real attraction of kitting: quicker customer response times. Pre-assembled kits leave the warehouse faster and arrive together faster than individual packages. Kitting doesn’t just help with time and expenses: it can increase customer satisfaction.
Discover how kitting can improve your supply chain and demand processes with the assistance of the professional team at MGA.
Our Kitting Services
MGA offers a diverse range of kitting and fulfillment processes, from small to large opportunities, including manual functions to automation. At MGA, we are trained to identify end-to-end solutions, and we keep efficiency in mind from start to finish within a single production phase.
The evolution to a full-fledged service model is never complete, and we are constantly adapting. Contact us today to discuss your project and get started!