Logistionary: Kitting

 

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.