What is Kitting Logistics?
Kitting logistics is a fulfillment process where individual items are pre-assembled into kits. This approach offers several advantages, making fulfillment faster and more efficient. Many eCommerce entrepreneurs are unaware of the benefits that kitting can provide, but with eHub’s assistance, you can unlock its potential for your business.
More Than Just Bones in a Box
Assembling kits for shipment in eCommerce fulfillment can be surprisingly similar to the work of a paleontologist carefully unearthing and reconstructing fossil fragments. Once fossilized bones are unearthed, they are wrapped in a layer of protective burlap plaster and packaged into a heavy-duty wooden crate.
Wrapping the fossils in plaster allows them to be organized and packed efficiently, primarily because of the awkward size of the fossils, as well as the sometimes extreme weight!
Similar to how a paleontologist uncovers, packages, and eventually connects scattered bones to reveal the complete skeleton of a prehistoric creature, kitting involves carefully packaging individual products to create a comprehensive kit for customers. The care that goes into this process is done with the intent of protecting the product but also making it easier to ship various pieces of the product together. This also holds true for awkwardly shaped and heavy items.
Just as the paleontologist’s painstaking process of preparing and reconstructing fossils requires attention to detail, properly shipping multiple products or pieces in one package also demands a deep understanding of the products involved. By strategizing the selection and arrangement of products, businesses can ensure that they complement each other and provide value to customers.
When Does Kitting Happen in the Order Fulfillment Process?
This process occurs before order fulfillment starts. You select the products for your kit and establish a Standard Operating Procedure (SOP) for your process. This SOP ensures that your kits are packed in a specific order, providing a delightful unboxing experience for your customers.
Additionally, the process should always consider the best way to pack multiple items together, ensuring they arrive in perfect condition. Once you’ve developed your kitting SOP with an experienced 3PL team, the fulfillment process begins. The kits receive new SKUs and are assigned a dedicated warehouse location. Typically, skilled warehouse “kitters” assemble the kits at a separate station, away from pick and pack fulfillment operations.
By eliminating the pressure of filling standard orders as quickly as possible, the kitters can focus instead on efficiently assembling kits with rigorous quality control standards.
Advantages of Warehouse Kitting
By leveraging this warehouse strategy, you can reap numerous benefits that will help your eCommerce store thrive:
Create an Efficient Assembly Process: With a refined SOP in place, creating kits becomes more efficient, primarily if you sell the same group of products repeatedly. Instead of picking items from multiple locations, kitting allows for a streamlined assembly process.
Reduce Fulfillment Errors: Traditional picking processes involve rushing from one end of the warehouse to another, increasing the likelihood of errors. However, with pre-kitted items, the picker only needs to make one stop, significantly reducing fulfillment errors and safeguarding your business reputation.
Add Speed to Order Fulfillment: Simplifying the picking process by providing a single SKU for the assembled products accelerates order fulfillment. The packer’s work is minimized, with their primary task being the addition of a shipping label.
Save on Packaging Costs: Collaborating with our 3PL team to develop a kitting process that optimizes packaging. This includes fitting more items into smaller boxes and reducing packaging costs while ensuring product protection during shipping.
Use Flexible SKUs to Maximize Stock: Kitting enables inventory management flexibility. In cases where demand fluctuates, the original product SKUs can be retained, allowing kits to be disassembled and returned to their individual SKUs. This flexibility helps you quickly adapt to changing customer preferences and demands.
Which eCommerce Companies Benefit from Warehouse Kitting?
Warehouse kitting is advantageous for various eCommerce businesses. Here are some examples of companies that can leverage kitting fulfillment:
Subscription Box Companies: If you offer subscription boxes, kitting is essential to ensure a seamless and enjoyable unboxing experience for your customers. It allows you to make packaging an integral part of your product.
Online Retailers of Heavy or Bulky Items: By combining lightweight accessories with more oversized products, kitting can help reduce shipping costs associated with oversized items. Customers receive a single package, enhancing convenience and saving money on packaging and shipping.
Holiday or Seasonal Gift Box Sellers: Kitted gift assortments alleviate the stress of gift shopping, especially during holidays. By offering beautifully packaged gift sets, you provide a convenient solution for your customers and increase your revenue. Customers will appreciate the thoughtfulness of a well-curated gift kit.
Businesses That Offer Volume Discounts: Kitting is an excellent strategy for businesses that provide volume discounts or bundle similar products together. Bundling offers customers a price break for ordering in larger quantities, leading to increased sales.
Any Online Retailer for Items Commonly Ordered Together: Kitting can benefit any eCommerce business, regardless of the industry. If you frequently notice customers purchasing certain items together, creating kits can simplify the ordering process for them and increase customer satisfaction.
Streamline Your Fulfillment Process with eHub
At eHub, we understand the importance of kitting logistics in eCommerce fulfillment. Our expertise and capabilities allow us to match businesses with the perfect 3PL solution tailored to their specific needs. By implementing kitting strategies, the right 3PL can optimize your order fulfillment, reduce errors, improve efficiency, and ultimately enhance customer satisfaction.
With our assistance, you can create a seamless assembly process, save on packaging costs, and maximize your inventory. Whether you’re a subscription box company, an online retailer of heavy items, or any eCommerce business needing efficient fulfillment, eHub is here to help.
Contact us today to discover how 3PL kitting logistics services available within our network can benefit your business and take your eCommerce operations to the next level. Streamline your shipping, exceed customer expectations, and grow your online store with eHub as your trusted partner.
