When it comes to building more efficient business practices, outsourcing your kitting needs is a great place to start. Korpack offers in-house kitting services for our valued customers, allowing them to save time, cut costs, and increase productivity. With labor shortages on the rise, our kitting services can provide just the help you need in your warehouse. We are able to sustainably manage and supply large amounts of packaging materials your orders need for swift assembly and delivery. With many companies struggling to fulfill orders, kitting and outsourced labor is what will help keep your business ahead of the competition.
What is Kitting?
The kitting process consists of compiling individual items or component parts into a ready to ship package, known as a kit. This kitting process typically uses an assembly line and a variety of pick and pack fulfillment methods. This process is usually done preemptively, that is before the customer’s order is received and both products will leave the inventory at the same time. Kitting is also commonly referred to as product bundling.
There are several circumstances in which a company might use this kind of kitting service. Some examples are:
- Shipping subscription boxes: instead of a company offering their best selling products at individual prices they will create subscription boxes. For example, a skincare company could offer a monthly subscription consisting of face wash, moisturizer, and a serum at a bundled price to appeal to customers who otherwise would purchase the products individually.
- Variety packs: manufacturers may want to bundle a certain amount of goods into one pack to give customers the chance to sample different items. For example, a popcorn manufacturer could sell their top flavors in a variety pack to give customers all of their favorite items at once.
- Gift with purchase: sometimes retailers like to offer sample items with purchases. For example, if you manufacture perfume you may offer a complimentary perfume bottle to all customers who purchase a large perfume bottle.
These are just a few of the many circumstances a company may invest in kitting services. Let’s explore a few of the benefits of outsourcing kitting for your business.
Benefits Of Outsourcing Kitting
Outsourcing your kitting needs to Korpack can benefit your business in many ways.
Whether you’re a CPG Company, a contract packager, marketing agency, or a manufacturer, you need a quick turn around when it comes to kitting. That’s where we step in. Here’s how we’re helping our customers work more efficiently, lower costs, and increase sales.
Increase in warehousing efficiency
One of the biggest benefits of kitting is that it streamlines the picking and packing process. Warehouse workers would no longer have to go all over searching for products because they would be relocated and stored next to each other. So, when a customer places a new order, you can quickly and easily locate the items ordered as a bundle and ship it off right away. Kitting can also save you effort, time and money when performing inventory audits.
Lower labor costs
Unsurprisingly, a streamlined warehouse flow also means lower costs. There are many unforeseen costs associated with kitting and assembly services in-house. This includes the cost of keeping equipment running, extra warehouse facilities, IT management systems and labor. After a while these can all add up and end up costing a lot more than originally anticipated. Choosing to outsource assembly services will allow you to avoid these initial costs. Assembly companies already have these systems in place and are familiar with them, which will decrease the risk of error and save you money in the long run.
Faster shipping windows
Customers expect their orders to have a quick turnaround time. Because of this, many companies will attempt to handle kitting and assembly operations internally, in hopes of saving time, but instead they see an increase in shipping mistakes. This ends up unnecessarily delaying the shipping process and could drive away customers. Outsourcing kitting will not only speed up shipping, it will also decrease shipping mistakes and inaccuracies.
Shipping items in kit form allows your warehousing staff (or your shipping partner) to use pre-printed shipping labels, which speeds up fulfillment. This way, the process can become more automated and individual items won’t need to be weighed and labeled everytime an order is placed.
Increase in product sales
Naturally, faster shipping will lead to an increase in sales. When a retailer promises customers faster shipping sales increase by 0.73%, profits increase by 2.0% and customers spend an average of 3.5% more on each order. Kitting can also enhance the customer experience overall by maximizing product exposure, targeting multiple needs through a single purchase and offering a great unboxing experience. This in turn enhances your average order value and can positively impact your bottom line by improving cash flow.
Korpack’s Kitting Services
Korpack’s kitting projects ensure efficient management of your inventory, improved material handling and workflow, and reduced storage.
We can also create custom corrugated boxes in any size or quantity you need and turn them around the same day if needed. To make sure that your boxes fit just right, we provide our QuicKOR® manufacturing program to save you precious time and money. To learn more about our kitting services contact an expert now.
