How Kitting can Save you Money on Order Fulfillment
You know how crucial efficiency is for getting the most value from your warehousing and distribution systems. Optimum efficiency saves you time and money, money that you can use to expand other areas of your operation. If you haven’t already, consider kitting as another way to save money.
What is Warehouse Kitting?
Warehouse kitting in the process of combining several stock-keeping-units (SKUs) into a larger unit. This is then delivered as one complete package. Kitting can be applied to different types of products. Each kit is considered to be a single unit even if the individual products that make it up have their own tracking numbers. Examples of kits include:
- Product samplers
- Bundles of video games
- Book series
- Media kits
- Promotional packages
- Special deals (two for one etc.)
As such, a kit is any combination of products that would be grouped together and purchased as a single package.
Advantages of Kitting
Kitting saves you money by increasing your warehouse’s productivity flow. It allows package assembly to be done before the order comes in so that the kit becomes a single inventory item that can be sent to the customer. Other advantages include:
- Saving time. You can get ahead of your orders.
- Lower costs. If you’re outsourcing fulfillment, kitting will reduce pick-and-pack costs.
- Fewer errors. Shipping kits instead of assembling items later reduce the risk of mistakes and means fewer returns.
- Custom boxes. Custom packaging is more cost-effective.
At Bonded Service our expert team has been providing public warehousing for more than half a century. We offer flexible warehouse space, which means that you only pay for the space you need to use. Contact us today to find out how we can help you store your products in our safe environment and to consult with us about the support services we provide.