What is Kitting?
Essentially, kitting involves taking different but similar products and bundling them together to create a single SKU and/or to create a single parcel in which to ship all the products. For example, let’s say you’re running a subscription business that involves products from several different manufacturers. Instead of sending your customers several different boxes, you instead put all those related products into a single package.
Kitting in Manufacturing
This often refers to the practice of taking related assembly parts, bundling them together in a single package, then transferring them to the next stage in assembly.
Meaning in Warehouses and Fulfillment Centers
Kitting happens in warehouses and fulfillment centers when a customer purchases multiple items from your e-commerce store within a single order. The people working at these facilities will then collect each item, package them together, assign them a new SKU and then ship out that parcel.
Benefits of Kitting
There are several benefits of using kitting within your e-commerce operations. Some of the most common benefits are:
- Increased warehouse efficiency: The picking and packing process is minimized and workers don’t have to walk too much within the facility.
- Lower labor costs: With time saved on each order, the potential for workers working overtime is limited.
- Increase sales: By having kitting available to you, your business can incentivize customers to make an additional purchase without having to pay a higher shipping cost.
- Faster shipping: With less time spent on packaging individual products, your products can get out the door and shipped faster.
Kitting isn’t limited to larger e-commerce brands. Small businesses can also use this strategy as an additional fulfillment method to their current fulfillment operations.