Many businesses employ kitting in warehousing as a method to meet consumer demand. It’s vital to understand the sorts of items that are kitted and the advantages that can be obtained. This knowledge helps companies determine whether they should use warehouse services.
Many firms employ kitting in their warehousing to meet customer demand. It’s crucial to understand the kinds of items that are kitted and the advantages that may be had. It is important for organizations to know what their customers expect from them in terms of packaging.
The process of combining a number of product SKUs into a single unit and selling it to customers is known as kitting. Gift baskets, subscription boxes, and bespoke-ordered items are just a few examples of the goods that result from kitting. When deciding whether to hire warehouse services, there are a few things to think about.
What Is Kitting In A Warehouse?
To determine whether kitting is the best option for your company, you must first be familiar with what it entails. Kitting is directly linked to customer fulfillment. The act of combining several components to form a new unit is known as kitting. These are pre-assembled kits rather than individual items that must be selected and packed. This service is provided in a variety of sectors, including consumer electronics, e-commerce, retail, and even fresh food.
Some examples of units that are created through kitting include:
- A monthly subscription box for children with a variety of books
- A 20-piece kitchen utensil set that includes items that might also be purchased separately
- A holiday gift basket including 5 items that a consumer selects
- A 5-movie box set
The phrase “unit” refers to SKU’s, or Stock Keeping Units, when discussing kitting. Each SKU is tracked individually for inventory and revenue tracking purposes. The idea is that the kits will be built using products that are combined into one package rather than several. They might then be offered as a whole lot to consumers.
Why Accuracy Is Important
You’d anticipate that the main concern when it comes to warehousing kitting is delivering the fastest solution possible. This is one of them. However, it’s important to keep in mind that it isn’t the only thing you should think about. It’s also critical that a high degree of precision be achieved. It’s quite easy to see why accuracy is such an essential consideration.
The greatest indicator of a manufacturer distributor’s success isn’t always cost savings. Customer happiness and whether consumers stay loyal are instead key factors. Of course, ensuring order accuracy is one of the most important methods to keep clients happy.
This has prompted organizations to need to distribute products more quickly while maintaining accuracy. I This will be an important factor when evaluating overhead expenses. Make certain you’re using the right kit for your items and that it’s fitted correctly before placing your seal on them to assure a smooth process. Incorrect kits might result in expensive returns and decreased customer loyalty. This adds time and money to the fulfillment process.
There are a number of problems that become apparent as a consequence of poor accuracy. This includes difficulties including:
- Incorrect components
- Kits that are incomplete
- Excessive quantities and inaccurate inventory reporting
In some situations, a customer may only receive half of one kit. As a result, they might need to reorder and, in some circumstances, seek a reduction or a full refund. In the end, this will result in machine downtime, increased manpower requirements and longer lead times. These are only a few of the reasons why kitting in warehouse must be precise.
If you can’t handle the kitting process on your own, it’s advisable to hire a professional warehouse and 3PL firm to assist. Launch Fulfillment has the appropriate skills and knowledge to execute the work for you.