Definition
Kitting is an inventory technique where different products or components are combined and shipped in a single SKU. It involves grouping related products or parts to form a complete package or kit. These kits are pre-assembled and ready for distribution or use, saving time and effort for customers or manufacturing processes. For example, a computer kit might include a CPU, motherboard, RAM, and other components needed to build a computer.
Inventory Kitting vs Bundling
“Bundling” is a term often used interchangeably with “kitting”. Both terms involve grouping items to sell and ship together. The difference is that “kitting” refers to a set of complementary items sold together as a new product. “Bundling” on the other hand, is an umbrella term for any group of items. The key difference is that in inventory kitting the different components combined to give one full product or extra things for it, whereas in bundling the products in the group are usually similar.
Process of Inventory Kitting
1. Product selection
The first thing to do while creating an inventory kit is to select the products you’re going to include in the kit. This includes identifying your customers’ needs and finding the right combination of products to accommodate them.
2. Inventory Management
Inventory management for kitting involves organizing and keeping track of the various components and products used for the kits. It ensures that all necessary items are available, properly stored, and easy to access when assembling kits. It also includes making a separate SKU for the kit, so it can be tracked as a product. Regular updates and efficient tracking systems help maintain accurate inventory levels and avoid stockouts during the kitting process.
3. Kit Assembly
The next step in inventory kitting is to actually assemble the kit. You will need to gather all the different products and package them together. This may include custom boxes and other specialized packaging materials, to give the kits a professional appearance and ensure safe shipping.
4. Shipment of Order
When you have assembled your kits you are ready to ship them to the customer. You’ll have to make sure that it is shipped correctly. but other than that it’s your usual order fulfillment process.
5. Quality Control
Quality control is essential in kitting, to ensure customer satisfaction and maintain quality standards. This includes inspecting kits before shipping, keeping track of inventory, and listening to customer feedback for possible improvements. Quality control helps deliver reliable and satisfactory kits to customers.
Additional Information on Inventory Kitting
Private Label Kitting
Private label kitting is referring to the process of a manufacturer producing a kit under the name of another company. This means that the second company offers a line of products that are not produced by them but are under their private label brand name.
Kitting in Manufacturing
Manufacturers use kitting to streamline product assembly and optimize warehouse space. Kitting involves gathering all necessary raw materials and components for making a “new” product. It also ensures that the production team has everything they need. This helps speed up manufacturing and ensures a smooth production process.
Kitting Warehouse
In a warehouse, kitting means gathering different products, putting them together in one package, and assigning a new SKU number to that package for shipping. Warehouse workers pick the items, assemble them in a designated area, and then ship them out as a single package. This process streamlines order fulfillment and simplifies shipping logistics.