Most of us are familiar with the disclaimer, “Some assembly required.” Chances are, you’ve come across it when your child opens a large-scale holiday gift or after you’ve purchased an inexpensive piece of Swedish furniture.
However, the phrase applies even in the world of fulfillment, before the product arrives at your door. In fact, if your company sells any type of consumer good, there’s a chance some assembly will be required at the warehouse. This is what’s known as kitting, and it’s a crucial step in the shipping process.
So, what is kitting in a warehouse, and why is it so important? Read on for the answer.
What Is Kitting?
In the simplest terms, kitting refers to the process of picking individual items and packaging them together before shipping as a single SKU. Like the task itself, however, the process is comprised of several individual jobs that all come together to accomplish that goal. The first of these jobs is the creation of an order, which may consist of several unrelated items chosen by the consumer or a single package of related items offered by the retailer.
Once an order is placed, the next step is the picking of all the singular SKUs that make up the order. Within the warehouse, this means employees locate each item and take it from the shelf or bin to be collected at the packaging station. From there, workers assemble the separate SKUs together in a single package that can be labeled and shipped.
Kitting’s Place in Fulfillment and Its Benefits
E-commerce fulfillment is where kitting came to prominence, but this is far from the only place where it plays a crucial role. Brick-and-mortar retailers utilize this process to create value bundles of products for sale in-store and online. Subscription box services use it to offer monthly collections of curated items for specific niche audiences. Kitting can even be found in the food & beverage sector, where ready-to-cook meal kits give shoppers a quick and easy way to prepare a fresh dinner without worrying about finding all the ingredients.
The reasons kitting has become so common are simple enough to understand. For instance, it boosts sales by grouping items that are less popular with those that are in higher demand. It also improves efficiency by combining products into single SKUs that can be picked and shipped much faster than fulfilling each one on its own.
Bundle With the Right 3PL Partner
Kitting serves an important purpose in the modern supply chain, giving manufacturers and retailers the ability to sell more products with greater efficiency. Of course, it can be difficult to realize the advantages without the right 3PL partner providing these services.
As a recognized leader in fulfillment, AMS Fulfillment is proud to offer comprehensive kitting capabilities as part of our value-added services. With our expertise by your side, you can experience smoother processes and potentially increase your profits.
To learn more, get in touch with our representatives today.