With the invention of subscription boxes, kitting and assembly have become all the rage. If you run a small business, you may be wondering: what is kitting, and how can it boost my sales? Kitting can range from a super simple process to a complex, time-sensitive operation. Let’s dig into what kitting and assembly are and how they affect your relationship with your 3PL partner.
Technically speaking, kitting is a warehouse service that combines multiple SKUs into a single SKU. What does that mean in the real world? It means combining several related products into a kit or bundle for customers to use and enjoy.
Kitting can range from simple bundles to extensive sets. Let’s take a look at two different examples of kitting for businesses.
Bundles are simple kits that allow you to provide customers with options when selling multiple products together. Say you sell pajamas, and offer tops, bottoms, and slippers in men’s, women’s, and children’s sizes. In the beginning, you may offer them as simple sets, where customers can choose one size and one style. This would allow you to give the pajamas a single SKU.
But what if a customer wants to order their top and bottom in different sizes? Maybe you’d like to offer further customization for slipper size, instead of “one size fits all”? Or perhaps you want to allow customers to mix and match tops and bottoms? Now each product needs its own SKU, and in turn, your business needs to bundle the products with kitting.
Simple bundles can benefit your business greatly by providing customers with more choice in their purchase.
The biggest complication when it comes to kitting is assembly. Once you begin combining products, you now need someone to provide packaging and assembly services for your kits. This is the point where many home-run businesses look to a 3PL partner for assistance, because it adds a level of complexity to fulfillment.
The other warehouse kitting process is assembling kits on the fly. As each order comes in, the SKUs are combined and assembled. Essentially, these boxes are made to order. This process is best for more complex kits with irregular or unknown order volumes.
In addition to the obvious benefits of both processes, there are a few downsides. Kitting in advance means that any unused kits will have to be disassembled. For this reason, many 3PL companies kit in batches, so that they don’t end up with leftovers when a client stops selling a certain kit.
The downside to kitting on the fly is that it consumes more time per order and may be more costly. However, if you have complicated kits or subscription boxes, it may be the best process for you. While complex kits may be more expensive to assemble, they are often extremely profitable once sold.
If you were wondering “what is kitting?”, hopefully, you now have a better understanding of what it is and why you might need it for your business. If you’re considering starting to offer bundles or subscription boxes, here are a few good ways to know that you’re ready:
Ready to dive into kitting with your business? Check out our kitting and assembly service page for more information on getting started!