Kitting is an installation logistics method that involves collecting the component parts of a product and combining them to form a kit. The completed item is then delivered to other operators in the installation who will assemble it into the finished product. Because the product lives have gotten shorter, both manufacturers and customers are demanding more spare parts, replacements, and new components, necessitating a greater requirement for storage space. Kitting can assist with this problem.
What is Kitting?
Kitting is a value-added service that refers to the practice of collecting all of the parts that make up a product and putting them together into a kit. After that, it is sent to the assembly lines to be put together. This technique for combining two or more parts is designed to lower costs and increase efficiency.
We may produce kits more quickly and at lower cost due to our automated line, which lowers the time to complete and eliminates the disruptions caused by personal production. There are many manufacturers of these kits, and they generally have their own SKU from those of the individual components. We also maintain and track them as a single unit.
Assembly-line workers might go to the shop and purchase the components that make up the product. However, using a kitting method, in which employees are trained in kit preparation, improves production speed and lowers mistakes. A variety of hurdles must be overcome for this approach to be effective.
A pen manufacturer, for example, is a very basic one. In the warehouse, pickers select five SKUs:
- SKU01: barrel
- SKU02: cap
- SKU03: tip
- SKU04: ink
- SKU05: plug
None of these components can be sold separately. Instead, they must be sent to the factory lines for the new SKU to be created (SKU06, the pen). Separating these SKUs out helps businesses keep a closer eye on their inventory.
Pack-to-order sets save time and money for the distribution center. Many online retailers utilize this kitting procedure as a marketing tool. If you buy a single wine glass, for example, it is frequently more expensive than purchasing a set of four. This is due to the fact that pre-made sets take less time to package and the firm is able to distribute more of its stated product.
Subscription boxes have grown in popularity as we’ve entered the digital age. Subscription services are often made up of a variety of items, and the boxes are not pre-packaged. Instead, it’s put together through product kitting. Pick and pack is another form of kit and assembly that may be encountered. Warehouse employees use the picking process to select from a list of approximately ten items in order to make unique boxes with about 5 products each.
Kitting: Neither Value-Added Nor Production Supply
To avoid any confusion, it’s important to distinguish kitting from the practice of supplying production lines or value-added services (VAS). Kitting is a method of putting together the finished item. Production supply, on the other hand, is concerned with only raw materials in manufacturing processes. In contrast to VAS, customizing an item for a particular customer is known as bespoke. Although these three ideas may occasionally overlap, it’s important to understand the distinctions between them since they are executed and created in various ways.
- Production Supply. Warehouses frequently provide the production lines with the raw materials needed to produce the items.
- VAS or Value-Added Services. In the field of supply chain management, VAS is a term that refers to changing a product in order to satisfy specific client demands (for example, screen-printing a T-shirt with a personalized message).
When firms use 3PL firms to provide this kind of value-added service, they gain a number of advantages:
- Employees will have more breathing room because they will not be surrounded by parts and materials, as they are in current business offices.
- Lost time is reduced because employees no longer have to look for parts and components, so process time is reduced.
- Reduces the number of items at the workplace, making it safer for employees.
- Because kitting becomes a filter, it reduces shipping errors and ensures continuous improvement.
- It helps with stock management and invoicing since it provides information on what kinds of pieces are required and which should be ordered.
- The manufacturing process begins outside the facility, which reduces labor costs and increases productivity.
- Improves box flow, customization, and packaging efficiency.
- Lowers the number of suppliers and improves cost effectiveness.
Logistics at the Service of the Assembly Lines
The basic objective of kitting is to reduce time and effort spent on assembly lines. Warehouse workers prepare and group the required goods ahead of time, sending them to production at the right moment to minimize delays and disruptions in service.
To enable the assembly lines to operate more quickly and effectively, installation must include storage systems that aid in the identification and preparation of the kits’ SKUs. Kitting fulfills the product-to-person principle by using stacker cranes and conveyors that bring products directly to operators.
The Launch Fulfillment Logistics Team is Here to Help!
Our staff recognizes the significance of getting your items to market. That is why we work hard to get to know your company and develop long-term friendships with you and your team. Launch Fulfillment has the solutions to meet your supply chain requirements, whether you want to add a new warehouse to your existing operations, expand and improve your distribution efforts, or start a new company.
Contact us now to discuss your current and future storage and distribution demands. We’ll collaborate with you to correctly understand your needs and create a solution that will help you achieve future success.