In order to navigate today’s complex supply chain, shippers need a partner who can help simplify the process for them. One crucial way that a third-party logistics (3PL) provider such as Star Distribution Systems can help certain shippers make the supply chain process simpler and more efficient is through kitting.
Kitting is a fulfillment service that involves collecting items that arrive separately to a warehouse or distribution center and packaging them into a single item or SKU for delivery to customers as a unit rather than individually. Kitting can bring vital efficiencies to the supply chain, bolster sales, improve customer service and make for more effective inventory management. Here’s what you need to know about kitting and its benefits.
The basics of kitting
Kitting, which is particularly helpful in eCommerce fulfillment, is used when shippers bundle similar items together for sale, often through promotions or deals. The practice helps retailers creatively and strategically link items to bolster sales, but it also helps them manage complex SKUs that routinely include a variety of individual items. Instead of being restricted to selling items individually, shippers can identify bundling opportunities that make items more appealing than they would be on their own. Common uses of kitting include subscription boxes, ready-to-assemble products, and products that can be packed according to a variety of choices of quantities, colors and product mixes.
Advantages of kitting
Kitting gives shippers a chance to make the most of their existing inventory, maximizing sales with the items they already have. It leads to more customer options, including providing more chances for customers to customize their orders based on their preferences. When a 3PL such as Star Distribution provides kitting fulfillment services, it leads to fewer purchase orders and administration costs and an efficient use of labor through sharpened processes. It also leads to a faster response to customer orders, fewer shipping mistakes and better packaging.
Cost A 3PL can help
The best, most efficient approach to kitting is to enlist a 3PL such as Star Distribution that is experienced in the practice. A 3PL can manage and store individual items in a single location and then provide kitting services, combining items into designated kits either when orders come in or in anticipation of those orders – all while working closely with the retailer on the makeup, packaging, labeling and overall presentation of the kit to the customer to ensure appropriate branding. The 3PL can manage their clients’ inventories to ensure that each piece of a kit is available so that orders are not held up because of missing items. This can be especially critical with complex kits that include a dozen different items or more.
Star Distribution Systems provides 1.5 million square feet of food grade and general commodity public and private warehousing, strategically located on the I-4 corridor in Central Florida. Utilizing our RF proficiencies and our state-of-the-art WMS, we guarantee your merchandise will get in and out without delay. For more information, contact us.