What is Kitting? A Guide to Order Fulfillment for Ecommerce

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by Stephen Gould
December 7, 2021
By Stephen Gould
December 7, 2021

Our kitting services can assist you with everything from sourcing and procurement, to inventory management and order fulfillment, to developing multiple kit configurations. We can pick, pack and ship each kit to customers according to your business’s specifications.

Order fulfillment can be a stressful and complex process for ecommerce merchants. Heavy shipping seasons make the process even more difficult.

That’s why Stephen Gould offers kitting services that can improve your order fulfillment process, streamline your warehousing, and ensure your products are ready to be shipped when orders come in.

Kitting services are essential for ecommerce businesses. Warehouse kitting optimizes your inventory management, saving you time and money. Our guide to kitting will give you a closer look at how kitting can benefit your ecommerce business.

What is Warehouse Kitting?

The kitting process takes related SKUs and bundles them together to make a new SKU. It fulfills customer orders by pre-assembling individual products into kits that are ready to ship out immediately, rather than picking and packing them individually.

For example, if a customer orders a computer online, they might also purchase a certain software, a keyboard, external monitor, and other accessories. The supplier would then assemble all of these parts into a single kit that is shipped to the customer.

It is important to understand what happens in the warehouse after an order is placed. When fulfilling an order for products, individual items are located through the unique identification code generated by a warehousing management system. A staff member then retrieves the product before updating the inventory to complete the order. This process is repeated for every product that is ordered, since individual SKUs assigned to individual items are all picked, packed, and shipped separately.

With kitting, each product in the bundle is ordered together to create one single unit in your inventory. When a new order is placed, you can locate and package each product as a kit quickly and easily. This ensures quick shipment processes.

Benefits to Warehouse Kitting

Kitting services offer a number of benefits for companies looking to optimize their supply chain.

  • Organized Inventory

    Kitting is an effective process for organizing and streamlining warehouse inventory. Because kitting consolidates inventory into fewer overall SKUs, tracking and managing inventory becomes much easier. This also allows warehouse space to be better optimized for assembling and fulfilling shipments.

  • Increased Efficiency

    Warehouse kitting greatly increases efficiency too. If you have to assemble an order, kitting makes it easier for workers to locate their parts in one place. This enables workers to save time and energy while increasing productivity. These small gains in efficiency can create a greater competitive advantage in the long run.

  • Reduce Labor Costs

    Increased efficiency helps decrease labor costs. Fewer workforces are required to perform tasks. This lowers your labor costs which saves your business money.

  • Seamless Shipping Process

    Kitting can make your shipping process simpler, quicker and streamlined by cutting down the number of steps involved in shipping. Quickly shipping off the pre-assembled kits reduces human error and fulfillment times. You don’t have to print shipping labels at the source, nor do you need to weigh and label parts at the time of shipping. Your company can save considerable amounts of time and money.

  • Improved Packaging

    Warehouse kitting can make packaging efficient and affordable. Instead of packaging each item separately into standard-sized boxes, you can pack items together into a custom-sized box that reduces the size and weight of your deliveries. You can save on packaging materials since items don’t have to be packed separately. This can ultimately help cut packaging costs significantly.

  • Free Up Warehouse Space

    Warehouse kitting is a huge space saver. By bundling similar items together, you can optimize and reduce warehouse space. As a result, your business can operate in a smaller and more efficient warehouse, which ultimately reduces costs.

  • Smart Sales Strategy

    Warehouse kitting can also be leveraged as a great sales strategy. Bundling current stock into kits that you want to sell can clear room for new kits to be ordered. Customers will enjoy a bundled discount package for items that they were willing to pay full price for.

If your business is in need of new and effective sales strategies, one might be kitting. It is an excellent way to boost sales, while optimizing your inventory turnover.

Streamline your Fulfillment Process With Kitting Services

Outsourcing kitting to an experienced partner is a simple and effective strategy to streamline your order fulfillment strategy and save time and money. Stephen Gould is trusted by some of the world’s top companies to provide kitting services that optimize their shipping and fulfillment processes. Contact us today to learn more about our warehouse kitting services.