Kitting is a technique where complementary items are ordered, packaged, or shipped together as a single "kit" with a unique SKU.
Inventory kitting is a method of organizing inventory into kits.
From a production point of view, this would mean putting and storing together
all the relevant ingredients for the manufacture of a given product.
This technique can also be used to pack together individual
complimentary products to create one product that’s ready to ship to a single
customer.
The goal of kitting is to assemble products ahead of time as a way to
streamline the order fulfillment process. Companies can kit together products
in anticipation of customer orders or as a marketing strategy to drive sales
volume.
Before kitting, the traditional inventory model involved packaging separate
SKUs on their own and sending them out as multiple different shipments,
increasing both the cost and time involved for the company and the customer.
Product kitting has numerous benefits, including:
- Minimize
pick-and-pack time by preparing ahead ingredients or final products.
- Streamlining
warehouse activities and lowering shipping costs
- Optimizing
inventory management by reducing slow moving stock (items that don't sell well
as individual can be included in a kit that customers are more likely to
buy)
- Increasing customer satisfaction and
convenience
- Increase sales by pairing together items that may have not been
bought separatedly.
