Kitting is a procedure that involves consolidating multiple SKUs into a single unit that acts as a new SKU. Kitting is primarily implemented at fulfilment centres. However, kitting is also being actively practised for B2B fulfilment. For instance, a raw material supplier can deliver bundled kits of multiple related items required for the assembly of a product at a manufacturing centre. The basic idea that fuels 'kitting' is providing a variety of products in the form of bundles to add convenience for both customers and sellers.

What is the Kitting process?

Every product that arrives at the warehouse has a unique barcode that is scanned by WMS for tracking and management purposes. When individual items are examined, WMS identifies a unique SKU for each product. SKUs are the primary components of kits. SKU allows warehouse managers to understand the physical blueprint of the inventory at a warehouse. Whenever a customer places an order, SKUs enable workers to locate the product in the warehouse. The staff member then uses WMS to allocate products that are sold individually and products that are sold together, in the form of kits.

Let's take the example of an Xbox bundle. An Xbox bundle comprises of the primary device, the power adapter, an HDMI cable, a headset and one or more video games. All of these items are manufactured separately and arrive at warehouses as individual SKUs. Xbox and many products such as a desktop computer are typically sold in the form of a kit, rather than individually. Product kitting process in manufacturing allows consolidation of such items that customers prefer to buy in the form of a package.

Why Choose Kitting?

• Since all products enter the warehouse separately, kitting allows you to organise products that sell in packages and products that sell individually. Thus, ensuring optimal inventory management.
• WMS at your warehouse determines products that sell better in kits and products that sell better individually. Pre-defining 'bundles' through WMS increases efficiency as workers know exactly where to find SKUs and which SKUs require consolidation.
• Increased efficiency indicates more work is accomplished with lesser efforts, consequently resulting in reduced labour costs.
• The kitting process promotes better utilisation of packaging resources and induces cost savings, as numerous products can be packed together instead of separately.
• At warehouses, kitting can be implemented before orders arrive. Since kits can be made beforehand, it frees space and ensures optimised utilisation of storage space.
• Kitting can also be performed for slow-moving SKUs. Many individual SKUs sell slower in comparison to others that are best-sellers. A successful sales strategy would be to bundle several slow-moving SKUs and sell those kits at a discounted rate, thus improving sales conversions and boosting inventory turnover.

Kitting is a holistic way to be customer-centric and operationally efficient at the same time.

Stockarea is a one-stop destination that makes storage and order fulfilment quick and easy. Stockarea’s cloud-platform allows brands to have full control over inventory with seamless inventory management, a dedicated support system and accurate inventory visibility at all times. Our digital warehousing platform is a network of hundreds of warehouses that offer tailored warehousing and fulfilment solutions like ‘Product Kitting’ and ‘Pick and Pack’ as and when required. Let us know about your kitting requirements today.