In this offering we’re going to answer three “What Is” questions. Our answers will explain some of the terms that we use in the Fulfillment business: 1) What is the supply chain? 2) What is a 3PL? and 3) What is kitting?
What is the ‘Supply Chain’?
When we ask the Internet “what is the supply chain”, the answer that comes back is not very precise, but it is true: “A supply chain is the entire network of organizations, people, activities, information, and resources involved in creating and delivering a product or service. It spans from the initial sourcing of raw materials to the final delivery to the end consumer.”
We could speculate on the question of how the carrots in the farmer’s field end up in a jar of baby food on the table. That must be something of a complex supply chain. Chances are there will be a fulfillment service in that chain.
Fulfillment services play a vital role in the supply chain. They serve clients that have a product or products to sell. When the fulfillment service receives the products into their warehouse they scan every item. After the product is recorded into the system by the SKU (stock-keeping unit) which is specific to that one item, they warehouse the item. When orders come in, they pick, pack and ship the item to the buyer.
Our answer to “What Is” the supply chain: The supply chain connects all parties between the creator of a product to the buyer. It can be a long chain or a short few links.
What is a ‘3PL?
What the acronym stands for is “Third-Party Logistics”. That means there are three parties in the movement (logistics) of the goods. Those parties would be the 1) seller, the 2) fulfillment service and the 3) the buyer. AMS Fulfillment is a full-service 3PL, offering logistics plus a number of VAS (Value Added) services to the client including product assembly and ‘kitting’.
We promised to answer ‘what is’ kitting. We will answer the kitting question but prior to that, let’s see how AI answers the question of ‘what is a 3PL’.
Okay, it looks like the answer is pretty simple: “3PL stands for third-party logistics. It refers to the practice of outsourcing a business’s supply chain and logistics operations—such as warehousing, inventory management, order fulfillment (picking and packing), and shipping—to an external provider.” Outsourcing a business’s supply chain – in other words partnering with a fulfillment service. The message goes on and it sounds fairly accurate:
“Inbound: You ship your inventory in bulk to the 3PL’s warehouse. Storage: The 3PL stores your products on their racks or shelves. Fulfillment: When a customer buys an item online, the order details are sent to the 3PL’s software. Outbound: 3PL staff pick the item, pack it in a box or mailer, and ship it directly to the customer.”
Yes, that is what your ordinary 3PL will offer. What we don’t see is the ‘full service’ offerings that AMS provides, which includes Kitting among other VAS (Value Added Services).
What is ‘Kitting’?
This is an easy question as the answer is in the name. The 3PL will package several related items into a kit. Let’s say the client is selling shampoo and also selling crème rinse and other hair-care products. AMS will kit the products for the buyer as the client wishes. It looks like AI has a pretty good explanation of kitting:
“In business and logistics, kitting is the process of grouping multiple distinct items into a single, ready-to-ship package under one SKU. Instead of picking and packing items individually, they are pre-assembled into a bundle. This speeds up fulfillment and reduces shipping costs.”
What is Fulfillment?
We’ll conclude with the key player in the supply chain… the fulfillment service. When a fulfillment company is full-service, the seller has a true partner watching over every detail of their product and delivering it to the buyer on time and packaged as the brand requires. AMS will also keep an eye out for expiration of products by utilizing FIFO (first in first out) storage.
We’re more than a little proud of AMS Fulfillment in its expert servicing of client partners, its dedication to protecting the environment and its respect for the Associates whose labor makes it one of the best among fulfillment services.
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Please feel free to visit amsfulfillment.com and learn more about us. We’ve been doing eCommerce fulfillment for more than twenty years and we are a highly respected third-party fulfillment service (3PL) with many satisfied and successful clients.
