Kitting Warehouse: Streamlining Operations for Greater Efficiency
Kitting has become a very popular inventory management technique where a bunch of different - but somehow related - products are being packaged together in a single kit. If it’s still unclear what is kitting, it’s best to think of it in terms of subscription boxes. All of those boxes, or kits, focus on grouping numerous products from various manufacturers together to assemble a cohesive whole.
This inventory management technique has led to some significant improvements in warehouse efficiency. So, let’s explore the true kitting meaning and see how this technique can help streamline your warehouse operations.
What is Kitting
As mentioned earlier, kitting is the process of grouping all of the necessary materials/products together in a single kit that aims to help the end user complete a certain task.
In logistics, kitting helps businesses fulfil orders more quickly and optimise shipment processes, thus lowering the costs of shipments. A great example of this is ordering from Amazon, where the shipping team tries to group ordered items into as few parcels as possible before shipping them to customers.
In warehousing, kitting focuses on finding various items that are ordered by a single customer using the stock keeping unit (SKU) number, grouping them all together and then assigning a new SKU number for that particular parcel.
There’s also the option to hire a third-party fulfilment company to take care of knitting for you, and many businesses opt for this route to keep the costs of fulfilment low.
What is full kitting?
Full kitting refers to the process of creating a kit containing all of the items necessary to complete a task. For instance, when you order a piece of furniture from Ikea, you will receive a parcel that contains all the necessary components to build that furniture piece.
In fulfilment, full kitting refers to the process of grouping all the products that will be sold and shipped together into a single (full) kit. These kits are then ready for pick-and-pack fulfilment without requiring any further assembly.
Full kitting is also present in manufacturing, where using full material kits allows workers to complete various manufacturing tasks far more efficiently.
Benefits of Kitting
As such, kitting can offer numerous benefits to businesses, particularly when it comes to improving eCommerce logistics.
- Increased warehouse efficiency and better warehouse distribution allow businesses to streamline the picking and packing process. By grouping and storing all of the items that are about to be sold together near each other, your warehouse staff will be able to find them more quickly. Not only does this save time but, in turn money as well, as it makes room for more orders to be fulfilled on the daily.
- Kitting also improves accuracy and minimises the chances of errors that can occur when picking individual items. With everything pre-packaged, the likelihood of missing or incorrect items decreases significantly.
- A warehouse that’s streamlined will also help businesses lower their labour costs by saving time with each order. What this leads to is needing to have fewer employees working on order fulfilment.
- With kitting, businesses can also expect greater product sales. Since numerous products are being grouped together, this allows businesses to also include those products that are less in demand and are threatening to become dead stock in their kits. For customers, kitting incentivizes them to make bigger purchases because each kit offers added value. A good example of this is subscription boxes, as mentioned earlier.
- Picking, packing, and shipping a bunch of products will take time, but by kitting them, businesses can easily offer faster shipment. Needless to say, the faster the consumers receive their parcels the better, as the happier the customer, the more likely they will be to purchase something from you again.
What Does the Kitting Process Look Like in a Warehouse
In a warehouse, the kitting process usually looks something like this:
- First, the kit requirements are being assessed, following the client’s guidelines.
- Then, the number of kit orders is determined based on the demand.
- The products are then gathered and combined into kits.
- Kits then go through a quality control check which ensures that all items are present and in good condition, minimising errors that could lead to customer dissatisfaction.
- After that, the kitted items are packaged together, ready to be shipped.
- If needed, the kits are assigned new SKUs.
- Finally, the kits are shelved, waiting to be picked up and shipped.
The distribution centre workers will then pick up a full kit as a single unit when it comes time for the products to be shipped, which significantly saves time and makes the entire fulfilment process far more efficient.
How Can Kitting Help Improve Supply Chain Optimization
As mentioned, kitting plays a big role in optimising the supply chain. Streamlining warehouse operations allows businesses to respond more effectively to market demands, thus being able to meet customer expectations more easily.
So, it’s safe to say that kitting will make supply chain operations:
- More flexible - by allowing businesses to adapt to changes in consumer preferences more quickly. This is especially valuable during seasonal promotions or with trending products.
- Easier to scale - since kitting is very adaptable and, thus, easy to grow alongside businesses. This is great as it means that kitting allows businesses to increase their order volumes without significant - if any - additional investment.
- More collaboration-friendly - by enabling businesses to foster better relationships with both suppliers and customers.
Rely on Bezos to Streamline Your Operations
Streamlining operations and shipping logistics involves a lot of moving parts that all need to function like a well-oiled machine in order to produce the best results. That’s why many businesses look for solutions that will enable them to take care of this in the most seamless manner possible.
Here at Bezos, we offer excellent pick and pack services that include personalised packaging, smart storage and a tech-forward approach to ensure that all of your orders are picked and packed quickly and beautifully.
Moreover, our fulfilment centres that specialise in comprehensive fulfilment services will enable you to connect your products to some of the biggest markets in the EU and beyond. With our tried-and-tested methods and AI capabilities, you’ll be able to grow your business and seamlessly connect to the global market.
So, request your quote today and see how we can help you streamline your operations and grow your business using the best modern technology solutions in the industry.
Conclusion
In the end, since kitting can help businesses increase revenue and reduce costs, implementing it in your warehouse operations is a smart move. By grouping various items that go well together, businesses can offer orders that are higher in value to both retailers and customers.
Pre-assembling kits also allows businesses to downscale the number of items that need to be picked and packaged in order to fulfil customer orders, enabling them to make the fulfilment faster and more efficient. This helps businesses increase their revenue, cut costs and improve overall customer satisfaction.
Frequently Asked Questions
What do you mean by kitting?
Kitting is the process of grouping components, parts or finished products into a single bundle (kit). It is an inventory management technique that allows businesses to optimise their inventory management and streamline their operations including warehousing, shipping and logistics.
What is a kitting process?
A kitting process refers to all the steps that are involved in assembling a kit, such as deciding on the items that comprise a kit, locating them, grouping them, and packaging them together into a single unit.
What is kitting in a warehouse?
In warehouse management, kitting refers to pre-assembling a group of products that are somehow related and usually ordered together into a single bundle (kit). If necessary, this kit receives a new, unique SKU number, and is treated as a single bundle when it comes to inventory, picking, and shipping.
What is an example of kitting?
A great example of kitting is subscription boxes, where numerous products of various manufacturers are bundled together (usually following a certain theme) to create a unified kit.
