Kitting: A Service FAQ

Should your business operations use kitting services? If your process involves a significant amount of inventory made up of different components, the answer may be yes. Discover what you need to know about this time- and space-saving inventory method.

What Is Kitting? 

You likely already have some familiarity with kitting as a consumer, even though you may not realize it. Modern shoppers buy things in kits all the time. If you buy a laptop, for instance, the computer likely comes with a number of ancillary components (such as power cords or mice) that may be in the same box. These products likely all have their own inventory numbers but are often shipped as a package. 

Kitting is the process of putting together such bundles of materials in advance of them being needed. When you do this, all the components are together and ready for use. Getting them out the door is faster, easier, and more accurate.

How Can You Use Kitting?

So, how can kitting help you? Some companies use kitting to assemble components prior to their use in manufacturing. If you assemble 10 individual components (from different vendors) to form one widget for sale to customers, kitting gathers those 10 parts together before assembly begins. In doing so, you ensure that manufacturing has all the parts needed and they are available in the most efficient manner for assembly. 

The other primary use for kitting is on the other end of manufacturing — when assembling finished goods for sale. If most customers tend to purchase two or more items together — like a linen set consisting of pillows, sheets, blankets, and a comforter — you might bundle these individual inventory items into a larger package that can be pulled immediately and shipped to customers fast. 

Why Should You Outsource Kitting?

Kitting works best when it is part of a strategy that outsources part of your operations. Outsourcing this part of your manufacturing system benefits your business in several ways, both physical and financial. 

First, it frees up physical space that would normally have been taken up by all these inventory items. Rather than receiving and storing the 10 individual components of your widgets, a kitting service bundles them together and only sends you what you need. You may be able to reduce warehouse space or make better use of space to do things like launch new products. 

In addition to less physical space, outsourced kitting means less labor by your company. You don't have to receive the individual parts, store and manage them as inventory, pick from different parts of the warehouse, and get products where they need to go. Redirect this labor to projects that improve the profit margin on processes that can't be easily done outside your own operation. 

Finally, kitting services generally have the advantage of scale and experience at managing inventory. Independent logistics companies use the best inventory management systems and the latest technology and methods. And your company shares with many other small businesses the costs and space needed to keep inventory and bundle it efficiently. This makes the entire process less expensive than trying to do it all alone. 



Where Can You Learn More?

Do you think that kitting will be a valuable addition to your inventory processes? No matter whether you could use kitting on the manufacturing end or the sales end, it is a simple way to reduce costs and increase profit.

Learn more about outsourced kitting services by talking with the team at JBS Logistics. We offer a variety of shipping, assembly, and warehousing services to suit any business, large or small. Call to talk to a logistics pro today.