What Are the Benefits of Kitting in Manufacturing?
Kitting, or the bundling of separate goods or materials into one package, comes in multiple forms. Subscription boxes, for example, utilize kitting to pull together multiple products that then sell in a single package. In manufacturing, kitting refers to a company grouping a collection of items, parts, or materials into one unit, or kit, with its own individual stock-keeping unit (SKU) number. That company then delivers the bundled components to their point of use for assembly prior to final sale.
Material kitting, as this process is commonly known, saves OEMs both time and money because it effectively consolidates shipments of several items that they can now ship as one package. This, in turn, helps with the following:
- Streamlining processes for added efficiency
- Reducing labor costs and fulfillment fees
- Increasing output
- Controlling quality
- Managing inventory and warehousing
- Expediting shipments
Learn more about the various ways in which kitting is advantageous in different sections of the manufacturing industry.
Kitting Improves the Manufacturing Process
For manufacturers, kitting is more than just a cost-reduction strategy; it can actually speed up the manufacturing process. This procedure decreases the overall processing and material handling time by reducing the number of stops in the production line and eliminating touch points. Also, kitting minimizes the risk of error and boosts efficiency as the worker responsible for a product’s assembly has all of the parts at hand that are necessary for the task. By consolidating to reduce the number of individual deliveries, this also helps manufacturers streamline their distribution processes.
Kitting Saves Warehouse Space
Warehousing costs are tied to how much space a product occupies in a facility. Storing a single kit takes up less space compared to storing several products separately, allowing warehouses to optimize their functional facility and shelf space and saving the manufacturers money. As bundled components with a single SKU can be shipped as one item, the predetermined nature of a kit’s contents simplifies calculations on cost predictions. Kitting also makes it easier for warehouse employees to monitor inventory levels because they only have to keep track of one unit rather than several, and workers can carry out kitting ahead of time, meaning that they can effectively get a jump on order fulfillment for greater operational efficiency.
Kitting Helps Manage Inventory
Kitting as an inventory technique allows manufacturers to bundle products and, in doing so, improve their flexibility. Like in warehousing applications, manufacturers can more easily track their inventory, especially if they employ software inventory control. Kitting reduces the number of items in stock, which reduces the SKU numbers in the system. Keeping accurate inventory allows companies to avoid stockouts or backorders and helps to streamline the supply chain, all while reducing labor costs. This method also presents a unique opportunity for manufacturers to increase their product sales. Rather than purchasing a single item, kitting encourages customers to instead purchase a grouping of related products as one unit.
Kitting and Assembly Services at Farris Group
Ultimately, kitting is beneficial for both businesses and consumers. Businesses can control shipment quality, manage their inventory and warehousing capacity, and save on labor and production costs. Consumers will receive all of their desired components in a single shipment for a positive interaction with your organization.
At Farris Group, we are dedicated to offering our customers comprehensive services from quality assurance inspections to assembly and distribution to simplify your installation procedures. We will deliver all of the high-quality parts you need, on time and intact, to enhance operational productivity and reduce costs. Contact us today for more information about our range of kitting solutions and assembly services to support your business.