Kitting is a process in manufacturing in which various parts and materials are grouped together and placed in a single kit, typically under one SKU number. Once these like parts are packaged together into a single kit, they are then delivered directly to the point of us, usually to one point of an assembly line. Implementing a kitting process for your business can benefit your company in the long run by helping you to become more efficient and ultimately cut costs.
Cuts Back on Warehouse Requirements
When considering cost, companies will typically base it on their warehousing and distribution services, such as the amount of product on shelves and how much it will cost to ship items. Since kits contain multiple items and are grouped together under a single SKU, the excess shelf space for stored items will be eliminated and your business will be able to cut shipping costs because kits are considered a single item.
Keeps Inventory Under Control
When your business uses multiple parts for manufacturing processes, this can increase the risk of having a disorganized inventory. Utilizing a kitting process will allow your company to have a better understanding of your inventory as you will be able to easily determine how many kits you have on hand which will allow you to calculate the total number of parts based on the items in each kit.
Increases Manufacturing Capabilities
Without kits in your warehouse, during the manufacturing process your staff will have to take extra time to locate each necessary part. When utilizing individual kits, the production process will become seamless, with little to no interruption ultimately reducing errors as the focus will stay on production.
Improves Organization
Keeping kits on your shelves instead of individual parts can improve your warehouse organization tremendously. Not only will all of your kits be in one area of your warehouse but the workload for organizing multiple parts will be reduced. Additionally, improving organization within your warehouse can improve your overall efficiency during production and inventory counts as well as create a safe work environment as there will be more floor space.
If you start to notice that your business is becoming disorganized, is having trouble keeping track of inventory, and is inefficient during manufacturing then it may be time to adopt a kitting process. As a reputable 3PL company, our NewStream team is equipped with proper tools and technology to help you take on your kitting projects so that your business can work more efficiently and help customers love their supply chain!
Ready to start your kitting process? Let’s chat, our team is here to help!