Kitting and Fulfillment Services in Warehousing

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Combining goods or services into a single package involves cost and difference in convenience. Understanding the difference between kitting and bundling is crucial for making wise purchase decisions. Here, you’ll thoroughly grasp these procedures and learn how kitting and bundling can benefit you, especially in speeding up fulfillment. Finally, we will discuss ways to gauge whether or not outsourcing your kitting and bundling services with a fulfillment center is the best option, and how to tell if a fulfillment service is adept at kitting in general.

What are Inventory Kitting and Bundling?

Inventory kitting is the technique of pre-assembling kits or packages by grouping various goods beforehand. These kits expedite the order fulfillment process and are available for purchase. For instance, a clothes store might package an entire ensemble, comprising a top, jeans, and accessories, making it simple for clients to buy a matched look.

To enable customers to select individual items bundled together at checkout, bundles are created at the point of sale. Customers may now customize and have more flexibility, which improves their buying experience. A typical illustration would be a computer shop offering a package deal where clients may customize the bundle by choosing what they want to include.

Inventory kitting and bundling aim to simplify the purchasing process by offering pre-assembled solutions or allowing customers to personalize their selections.

How Kitting and Bundling Works

Kitting involves grouping different items to create a pre-assembled kit or package. This process simplifies order fulfillment as these kits are ready to be shipped, saving time and reducing handling errors. For example, a tech accessories kit may include charging cables, phone stands, and screen protectors all packaged together, providing customers with all the necessary things their device needs.

Bundling allows customers to select individual products combined into a package during checkout. This gives customers the flexibility to personalize their purchase, choosing specific items that suit their preferences. For instance, a skincare bundle might include a cleanser, moisturizer, and serum, but customers can customize the bundle based on their skin type or preferences.

What is the Difference Between Inventory Kitting and Bundling?

Inventory kitting involves pre-assembling separate items into kits that are then sold. The fulfillment process is simplified because these kits can be picked up and dispatched quickly. Bundling, on the other hand, usually takes place at the point of sale. Clients can choose particular items bundled together at the time of sale.

While both strategies improve customer satisfaction and boost revenue, inventory kitting emphasizes fulfillment efficiency, whereas bundling allows customers greater personalization and flexibility. Inventory kitting prioritizes front-end flexibility by enabling customers to customize their buying experience, whereas bundling focuses on back-end process optimization by prepping product groups.

What are the Examples of Kitting and Bundling?

You may draw in customers and improve your product options with creative pairings. Kitting and bundling provide creative solutions that simplify purchasing and increase sales. Look at the following examples to get you started in the field of strategic product packaging.

  • Tech Accessories Package: Give clients a one-stop shop for all of their device needs at a discounted price by combining necessary tech accessories like screen protectors, phone stands, and charging cords into a handy package.
  • DIY Home Improvement Kit: You can put together a DIY home remodeling kit combining paints, brushes, equipment, and how-to manuals. It lets your consumers know what they need in one bundle for a particular job.
  • Skincare Routine Set: Provide clients with a thorough and well-chosen solution for their skincare requirements by assembling a skincare routine set consisting of cleansers, moisturizers, and serums suited for various skin types.
  • Fitness Starter Kit: Combine workout gear, water bottles, and fitness trackers into a fitness starter kit, giving customers the essentials to kickstart their fitness journey.

What are the Benefits of Using Kitting and Bundling?

Using kitting and bundling tactics can transform your sales approach and unlock a multitude of benefits. These methods give firms operational efficiencies in addition to increasing consumer pleasure through convenience. Now let’s explore the advantages:

  • Increased Marketing Opportunities: A compelling bundle will draw in prospective buyers. It also assists in directing them toward various complimentary items that work well when combined.
  • Higher Sales: Having more products brings in more money. Customers who only require two or three things in a bundle of five can be drawn to your offering because of the savings.
  • Reduced Competition: Consider developing a distinctive kit if you’re finding it difficult to compete with your listings. Customers searching for a good price may be drawn to your kit even though your rivals may have a higher-ranked listing for individual goods.
  • Simplified Shopping Experience: It can be inconvenient to look for several different goods to add to their cart, especially while buying at an online store using your phone. Giving your customers the convenience of one-click shopping with kitting and bundling is a huge help.
  • Enhanced Packing Effectiveness: If you have holiday kits or bundles, pre-pack your packages to save time. When kits and bundles are pre-packed, shipping is quicker and easier.

Three Simple Tests to Make Sure Your Fulfillment Company is up to the Challenge

It makes perfect sense – have your fulfillment company, who already stores and ships your goods, handle your upcoming kitting project. After all, they are experienced in picking and packing orders and should be able to complete it without any issues, right? Unfortunately, the answer may very well be “no” if they don’t have some fundamental practices in place. Make sure that you talk to your fulfillment provider about these key indicators of success before you pass them your next project.

Are Kitting Services a Part of Their Software?

Most fulfillment services companies use a warehouse management system that helps them keep track of receipts, inventory, orders, and shipping information electronically. This software oftentimes has sophisticated components that systematize the picking and shipping processes, helping to eliminate potential errors. And most of the warehouse management systems on the market today have a “kitting” component to them as well. This kitting component allows the system to track all of the components of the completed kit, so that the warehouse team can allocate all of the necessary products to be kitted together, take them out of inventory, track the number of completed kits once the project is finished, and monitor the number of finished units shipped and remaining in inventory. Is your fulfillment company using a software program to properly track and manage the flow of your kitting project from start to finish? If not, it could spell disaster, as manual processes are always subject to human error.

Who Handles the Kitting Project?

Another vital component to ensuring the success of your kitting project with an outsourced fulfillment provider is to make sure that the actual staff that will be completing the project is highly skilled and competent. Fulfillment companies are notorious for hiring “temp labor” to complete a kitting project. And while there is nothing inherently wrong with this thought process, be careful when it comes to the people that are actually processing your project – especially if it is a complicated project. The best scenario is to have people that are familiar with your company and your product, perform the kitting services. This way, you can remain confident that there won’t be a significant learning curve and corresponding error potential. And if the entire project can’t be completed by the internal full time staff of the fulfillment provider, at least make sure that a member of their team is managing the project. Things can easily spiral out of control when a temp worker that doesn’t have any familiarity with your product is suddenly thrust into the management of the kitting function. Ask your provider what staff will complete your project to gain comfort that it will be handled appropriately.

Do They Have a Process?

The last thing that you need is to have your fulfillment house fly by the seat of their pants when it comes to kitting. Make sure that they have standard operating procedures for these types of projects. Companies that successfully manage kitting projects usually have procedures manuals, allocated space with effective lighting, proper tools and relevant equipment to process work, among other things. Be sure to check with your provider about what processes they have in place to ensure success. And in particular, make sure that they have a method of tracking the success of the project. This will help everyone understand exactly what happened at every stage of the project.

Get Started With Kitting And Bundling With Pre-Vetted Fulfillment Companies

Discover the power of strategic product bundling and kitting to enhance customer experience and increase sales. Our experts will guide you through the process, helping you find 3PL companies that can create appealing bundles that cater to your target audience.

From pre-assembly to dynamic kitting, fulfillment companies can offer flexible solutions tailored to your business needs. Join us in maximizing efficiency and driving revenue through product bundling. Contact us now for a hassle-free journey towards a profitable business. Get matched with pre-screened kitting and fulfillment companies now!

FAQs about Inventory Kitting and Bundling

What is the Kitting Process?

Individual goods or products are grouped throughout the kitting process to produce a new, packaged product. This strategy expedites fulfillment and increases efficiency while potentially cutting costs because pre-assembled kits can be swiftly chosen and dispatched. Order processing times are also shortened.

What is the Use of Product Bundling?

Product bundling is a strategic marketing and sales approach where complementary products are packaged. This provides customers with a convenient and affordable way to purchase related items. It allows businesses to increase the average transaction value and promote the sale of specific products by associating them with others.

What are the Different Types of Kitting?

Pre-pack, in which items are gathered before receiving an order, and dynamic kitting, in which items are constructed in real-time contingent on consumer demand, are two examples of kitting procedures. Reverse kitting also includes unbundling products, a helpful procedure for product returns or recycling.

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