Kitting Services in Your Supply Chain

Kitting optimizes your business operations by bundling individual items into packages, enhancing efficiency, and streamlining processes. 

This results in better inventory control, optimized storage, and quicker order fulfillment, ultimately leading to a smoother experience for both you and your customers.

What is Kitting?

Kitting involves organizing and packaging separate components into a single kit according to the Original Equipment Manufacturer’s (OEM) specifications.

This process ensures all necessary parts are readily available and easily accessible for assembly line workers. By pre-packaging components into kits, NewStream helps minimize downtime, reduce errors, and enhance overall efficiency in production operations.

Related Post: What is Kitting and Assembly?

When you outsource your kitting and packaging, you can save money by reducing storage space, labor costs, and shipping expenses. For example, NewStream’s packaging solutions led to a 71% decrease in materials cost for the top ten part numbers, resulting in cost savings for a construction equipment manufacturer.

Benefits of Fulfillment & Kitting Services

 

The benefits of kitting go far beyond inventory management. Through outsourcing, businesses can optimize their operations, reduce costs, and stay competitive.

• Reduced number of SKUs: By consolidating multiple individual components into kits or packages, businesses can significantly reduce the number of Stock Keeping Units (SKUs) they need to manage. This simplifies inventory control and minimizes the risk of stockouts or overstocking.
• Improved inventory turns: Kitting facilitates faster inventory turnover by grouping together frequently used items.
• Reduced inventory on hand: Businesses can maintain lower levels of inventory on hand while still meeting demand. This helps free up valuable warehouse space.
• Improved throughput: Kitting streamlines the assembly process by providing workers with all the necessary components in one package. This accelerates production throughput and reduces downtime.
• Custom kits for high-usage components: Businesses can create custom kits tailored to their needs, including high-usage components or frequently ordered combinations of items.
• Critical parts availability: Kitting ensures critical parts are readily available for assembly or servicing, reducing the risk of production delays or downtime.
• Improved customer service: By offering pre-packaged kits, businesses can provide customers with a convenient and hassle-free ordering experience.
• Increased ease of ordering: Outsourcing kitting simplifies the ordering process for both customers and internal stakeholders.

Related Post: Understanding Material Kitting for Manufacturers and Distributors

Cost-Effective Kitting Solutions Include:

 

• Total supply chain management
• Just-in-time operation
• Operational flexibility
• Capacity to handle a wide range of kits – from 10 components to thousands
• Barcoding and labeling to your specifications
• Total technology integration
• Packaging design expertise
• Freight management
• Full EDI capabilities

Related Post: Case Study | Adopt a “Can-Do” Mindset

About NewStream Enterprises, LLC

Whether kitting for critical orders, fulfilling your rework needs, shipping direct to customers, or supplying your distribution channel, NewStream leverages shared resources to provide cost-effective kitting solutions. 

Contact our team for a free quote or call (417) 831 3112. We understand that quality, fill rates, and on-time delivery are crucial in today’s economy, and we deliver with exceptional performance.