What is Kitting?
Published by iLogistics USA Team en 10/14/2019
We put together this guide to help you better understand kitting fulfillment services, best practices, and how it applies to your supply chain. This guide will also explain why using a fulfillment partner like iLogistics USA is the best choice for warehousing and fulfillment services.
What is Kitting Fulfillment?
Though kitting is a common service offered by many 3PL logistics companies, few people outside of the eCommerce fulfillment industry have heard of it. Like pick-pack, warehousing, and shipping services, it is an essential part of any eCommerce fulfillment service.
Defined simply, kitting is a service that combines various single items into one unit for sale, such as subscription boxes of various items. It is an extremely useful eCommerce merchandising tool because it enables e-retailers to do more with the items in their inventory.
Let’s dive deeper into kitting fulfillment to discover if it will benefit your business.
Why Use Product Kitting for eCommerce?
Kitting fulfillment allows you to put more merchandise on the market – instead of selling merchandise items by the piece, an eCommerce store can bundle similar items together to create sets, offer special deals, and cross-sell promotions.
By combining existing items in your inventory, kitting fulfillment extends your inventory without adding to your storage costs.
Is Kitting Right for Your Business?
Kitting fulfillment services provide many benefits such as a reduced number of purchase orders, reduced administration costs, better utilization of space, faster production cycles, faster response to customer orders, and more, including:
Fewer Shipping Mistakes
Kitting services will benefit your business if you offer combination packs, sell ready to assemble items, or must maintain high standards and quality control measures to ensure all components of a kit appear in every order.
If you handle order fulfillment yourself, or have limited space for large projects, using a third-party fulfillment service like iLogistics USA is a winning strategy.
Types of eCommerce Product Kitting
Kitting fulfillment makes it easier to manage different eCommerce items and business models. In the context of a larger production process kitting fulfillment services typically include:
Storage – A 3PL manages and stores the manufacturer’s parts.
Kitting – Once parts have been ordered, a 3PL will pick the requested parts from inventory and combine them into designated kits.
Packaging and Distribution – The 3PL packages the final product as designated by the retailer and delivers the kit to the consumer.