What are Kitting Services, and why are more and more freight forwarders and logistics companies advertising their custom kitting services?
Kitting as it refers to as a warehouse service involves packaging similar or like items together in a kit, and sold as an individual new product, with its own SKU number. For example, a beauty company might put together an all-inclusive “traveler’s kit” of all the products they think customers could benefit from when traveling. This might include small-sized shampoos and conditioners, mini soaps, mini toothbrushes, etc., and all that a consumer would need when traveling.
When kitting is referenced in Logistics services, it becomes an act of assembling multiple products into a single package or “kit”, and is then delivered to the customer. This particularly refers to and is most associated with Freight Forwarders or Warehousing & Distribution providers who offer value-added services such as kitting. This method is increasingly popular with manufacturers and shippers who either don’t have the means to kit or would rather have the service completed by using their freight forwarder’s warehouse and delivered straight to the customer.
What are the benefits of Kitting?
There are many benefits of utilizing kitting services, including the below:
- Fewer Errors – Since kits are typically preplanned and preassembled, you are less likely to see common errors that you would often see in individual packing.
- Efficiency in Warehouse Spaces – When you consolidate and combine products into a kit, you free up extra space in warehouses.
- Lower labor costs – Labor costs decrease as employees often spend less time fulfilling each order than if they had the to pack individually.
- Lower shipping costs- It costs less to ship consolidated items in a single package versus shipping all parts individually.
- Higher Sales – the average company can increase their order value and sell more products, and at the same time, allow consumers to save as well.
- Faster shipping times – When you take away an individual pack and pick operation, by having all the products already in kits, the turnaround time is much quicker.
- Ecommerce – Kitting is vital to any eCommerce company because it can boost the value, and increase shipping times and sales by consolidating newer higher-priced items with any overstock or less valued items together.