What Is Kitting In A Warehouse?

There's a lot that goes into running a warehouse. You have to make sure you have the right stock on hand, keep track of what's coming in and going out, and manage your employees. But one aspect of warehousing that often goes overlooked is kitting. So what is kitting, and why is it so important? Let's take a closer look.

Kitting Meaning And Kiting Definition

Assembling different but related SKUs to generate a new SKU is known as warehouse kitting.

Instead of picking and packing products individually, warehouse kitting fulfills client orders by pre-assembling individual items into kits ready to ship out straight away. When customers order a computer online, they can choose from various software, USB drives, monitors, and other components. After that, the provider would put all of these pieces into a single kit supplied to the consumer.

To better understand the warehouse kitting operation, consider what happens in a warehouse when an order is submitted. The item is typically located using the warehouse management system's unique identifying code when fulfilling an order for particular products. The thing is then retrieved by a member of staff, who then updates the inventory and completes the order fulfillment. Specific SKUs assigned to individual items are all picked, packed, and sent separately, and this process is repeated for every ordered product.

On the other hand, Kitting is when you combine products that are often ordered together to make a single inventory unit. As a result, when a new order comes in, you can quickly discover the items as a bundle and ship them out.

What Are The Benefits Of Warehouse Kitting?

Kitting services offer a vast number of benefits for companies to consider. Just a few of these include:

Organizes Your Inventory

First and foremost, the warehouse kitting service is an excellent approach to improving your warehouse's general organization and efficiency.

When you employ kitting, you generate fewer SKUs, making it easier to keep track of your inventory. This, in turn, optimizes warehouse space and improves overall efficiency.

Increases Efficiency

When it comes to efficiency, warehouse kitting service is a huge help!

If you need to build an order, the kit makes it easier for your workers to find all parts in one space, increasing worker efficiency and production. This, crucially, can provide your company with a long-term competitive advantage.

Reduces Labor Costs

An increase in efficiency, in turn, also helps to decrease labor costs!

Fewer workforces are then required to perform tasks, ultimately which will lower your labor costs and save your company money.

Faster, More Seamless Shipping Process

Kitting can also simplify, streamline, and speed up your shipping procedure.

Warehouse kitting may go a long way toward making your shipping process easier and more efficient, reducing the risk of human mistakes and shortening fulfillment timeframes. You can print shipping labels ahead of time and avoid having to weigh and label individual items at the time of shipping, saving time and money.

Quickly shipping the pre-assembled kits can also save time and prevent fulfillment errors.

Improved Packaging

Warehouse kitting is another excellent approach to reduce packaging costs and improve efficiency.

Rather than packaging each item separately into standard-sized boxes, you can combine them in a custom-sized container, which will reduce the size and weight of your packages. You can also save money on packing materials because you won't segregate products. Eventually, this can significantly reduce your packaging expenditures!

Conclusion 

Kitting is an important part of warehousing, yet it's often overlooked. By taking the time to understand what kitting is and why it's so important, you can make sure your warehouse runs smoothly and efficiently. If you're looking for a reliable software to help you with your kitting needs, get in touch with us today. We have years of experience helping warehouses just like yours run more efficiently and cost-effectively.