Creating and Managing Kits: What is Kitting?

What is Kitting?

Packing multiple products under one SKU is known as kitting. Basically, kitting is combining two or more related items into one neat package. No need for customers to browse through multiple options - kitted bundles make getting what you want effortless!

Kitting Services Meaning

Kitting services are one-way businesses can streamline their operations: outsourcing kitting to a third-party fulfillment company helps keep costs down for retailers and their customers when it comes to final product fulfillment - you get what you need with no unnecessary packages!

Kitting services also come in handy in manufacturing; instead of struggling with in-house assembly, the retailer can trust that a third party is putting everything together. Kitting services give businesses breathing room too, so they don't have to waste precious time assembling products and can focus on selling more products instead.

Examples of Kitting

Packaged-ready-to-order sets are great for those looking to add convenience and speed of delivery to their shopping experience. Examples of kitting include buying pre-made gift baskets, 10-piece kitchenware bundles, or a 5-pack of your favorite T-shirts in assorted colors. So, rather than searching through individual items, customers can find exactly what they're looking for. ‍

Subscription boxes are the best of both worlds. Customers enjoy their favorite products without lifting a finger, and businesses get trustworthy customers who keep coming back for more. Examples of subscription kitting can range from sports drinks, supplements, and coffee, to beauty products--and most anything that you need on a recurring basis.

‍Assembled products in kitting are a powerful tool for streamlining operations in the manufacturing and wholesale world. Instead of having customers guess at the best combination or shopping for individual pieces, you can offer a build-to-order or create-to-order process that lets them start from a blank slate.

Benefits of Kitting

Here are some tried and true benefits of kitting for both retailers and customers alike.

Reduce Fulfillment Costs

Kitting and bundling product orders together reduce fulfillment costs - it's the new way to save time and money. Instead of selling and fulfilling every item one by one, organizing them as an all-in-one package with benefits like faster shipping times and fewer materials used is a simple (and often overlooked) way to reduce overall expenses.

Provide Value

Getting people on board with your newest product can be a real challenge. A great way to convince hesitant customers and demonstrate the worth of a product? Kitting! This promotional tool helps ensure no one misses out on the greatness you're offering while also helping prove that the product is valuable. Who wouldn't want to try something in a cool kit – especially when it includes items they already love?

Increase AOV

It's no surprise that customers love to get the most bang for their buck, kitting creates the perfect opportunity to take advantage of that. Stacking items together allows you to provide attractive packages that deliver a higher-order value without loss of quality - and if there is one thing everyone loves more than savings, it's convenience. Customers won't even blink an eye at spending more for bundles when it means they don't have to find the right combination individually or go to the store.

Clean Up Inventory

Suppose you're looking for an easy way to eliminate products that have taken up space in your inventory; opt for putting together a kit or bundle. Saying goodbye to those items doesn't have to be a headache. In fact, it can quickly help you turn over your inventory when you mix and match the items with more popular complementary products. A cleverly packaged kit is a great way to move more products and free up space for new arrivals.

Holiday Shopping

Shopping doesn't have to be a chore for your customers; kitting can make it much more enjoyable! Customers don't need to break out their detective skills to create the perfect gift; instead, they need the simplicity of picking a tailored kit. It's an excellent way for shoppers to simplify their shopping journey during the busy holiday season - time saved, money saved, and no decision fatigue!

Warehouse Kitting Process

Kitting products in a warehouse may seem intimidating, but with the proper planning, it doesn't have to be. Done right, warehouse kitting is a surefire way to save costs and improve quality control.

1. Collect individual items: Since multiple items are combined into one SKU, the warehouse team must pick individual items before packing begins, organizing them all at a staging area.
2. Package all items: The individual items should be scanned and placed in the same box or as few boxes as possible.
3. Create a new SKU: Once the box has been packed with individual components, make it a single SKU and add it to your inventory system.
4. Scan and ship: Place shipping labels and any other labels necessary on the packaging and send them off. Remember to inform your customer that their order has shipped.

Warehouse management software (WMS) with kitting rules can automate this process. ShipHero not only provides kitting in our fulfillment, but we're also an excellent resource for kitting advice.

Kitting Services From A 3PL

Many third-party logistics (3PL) companies know the ins and outs of kitting and can provide an efficient solution that ensures accurate kitting and fast delivery. With their help, you can wow customers with your speed and dependability.

ShipHero's WMS and outsourced fulfillment solutions make kitting (and its perks) simple to access. With kitting, you'll get all the benefits without lifting a finger. Alex Lewkowict, Founder of Black Wolf Nation and ONE23 Fulfillment, says it best: "The rate shopping alone will pay for the software. Add in the bulk shipping and kitting, and {Black Wolf Nation and ONE23 Fulfillment} are so much more efficient."

The Future of Personalized Fulfillment

Kitting is the perfect way to skyrocket your business's efficiency and appeal to customers, all while building bonds with them and creating unforgettable products. By utilizing kitting services, businesses can stay ahead of the competition in the ever-changing buying landscape. Kitting adds a unique, personalized touch to your products, making them stand out among the rest. Grab hold of this opportunity to make more money off of each and every sale and start providing the ultimate customer experience you always envisioned while running your business. To keep up with more innovative ways to build your business, subscribe to our blog!

or

—

‍Maggie M. Barnett, Esq. COO of ShipHero - Author

‍About the author: Maggie M. Barnett, Esq., is the COO of ShipHero. She is responsible for planning and executing the overall operational, legal, managerial and administrative procedures, reporting structures and operational controls of the organization. Barnett’s greatest strengths are leadership, risk mitigation, change management and a passion for business transformation. She is known for her expertise in delivering operational excellence and an ability to provide guidance and mitigating risk. Her leadership of ShipHero is grounded in a servant mentality, always doing the right thing for our stakeholders. Her passion for ShipHero comes from the ability to drive operational excellence throughout the organization impacting the lives of our employees, customers, and partners.

Follow Maggie on Twitter&LinkedIn.

—

Kitting FAQs

What is kitting in a warehouse?

Kitting consists of packaging items together into a single new product with its own SKU, which is then sold as a single new item.

What is a kitting process?

Grouping related items into a single product offering is the first step in the kitting process. After the items are organized in the warehouse, they can be quickly packed and shipped to customers. Kitting can also be outsourced to companies that pick, pack, and ship the items.

What does kitting mean in logistics?

Using kitting in logistics, products are bundled together and delivered as a single unit.

What is the purpose of kitting?

Kitting can boost sales and increase efficiency. Pairing it with more trendy items will help businesses move less-popular merchandise. In addition, the price per item is usually lower, which creates value for customers. So, kitting can increase revenue and profit while increasing customer satisfaction.