Most small and medium-sized retailers recognize the benefits of outsourcing their kitting and assembly solutions to third-party fulfillment businesses. Ecommerce businesses that wish to focus on production and sales, on the other hand, might profit from hiring a 3PL service provider to gather, package, and ship products to customers.
This article will define kitting and assembly solutions and explain the primary benefits of outsourcing these processes to a 3PL service provider.
While kitting and assembly solutions as terms are sometimes used interchangeably, they serve distinct functions. It's critical to understand the various roles they play in your entire order fulfillment process.
This might assist you in determining whether you should handle kitting services in-house or outsource them to a 3PL company here.
Merging two or more goods into a single unit of sale, or SKU (stock keeping unit), is known as kitting. Instead of selling things separately, an eCommerce company may group comparable items to build one kit, provide special prices, and cross-sell promotions.
The goal of producing kits is to have a ready-to-ship set when a consumer orders to speed up eCommerce fulfillment.
This is usually done before the customer's purchase is received, and both goods are shipped at the same moment. Product bundling is another term for kitting solutions.
An assembly process usually follows kitting implementation. The actual process consists of carefully organizing the separate pieces that comprise the entire kit. The kit is ready to ship when a buyer orders that combination.
Both kitting and assembly are handled at separate locations. The fulfillment crew is in charge of finishing the procedure in bulk to shorten the process and boost the business's efficiency. After the kits have been created, they will be stored until an order is received.
Companies employ commonplace goods such as promotional brochures, product samples, and other items to create a compatible set of products.
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Subscription boxes - Instead of selling shaving supplies individually, you could bundle them and offer them as a single item or subscription box.
Rainbow packs - Manufacturers may wish to package six different drink tastes into a single kit and market it as a rainbow pack.
Purchase includes a free gift - Most retailers aim to incorporate product kitting by including a free gift with orders. , such as a little toiletry kit with a high-end fragrance.
Customization in the final stages enables producers to tailor packages to individual retail outlets or distribution methods (for example, club store bundle packs).
Assembled products - Companies frequently kit all required components of a finished product. For example, if you sell furniture, you must ship the appropriate accessories, connected combination goods, and other components that the consumer will require to complete the finished product. Keeping these products wrapped will eventually enable eCommerce retailers to send the product as soon as an order is placed.
Kitting and assembly are critical components of your company's order fulfillment process. You'll be able to fulfill client orders on time and save on shipping costs if you choose a 3PL firm specializing in these operations.
Many eCommerce businesses encounter seasonal waves in product demand, forcing them to search for ways to maximize their storage space, warehouse staff, and equipment.
However, hiring more staff and securing storage space whenever demand increases may be difficult or expensive. 3PL order fulfillment service providers often collaborate with multiple businesses simultaneously and may supply their services on a large scale.
Furthermore, they have the resources to anticipate market demand variability and the flexibility to scale up and down based on your requirements.
Working with a 3PL allows you to tackle unexpected increases in client orders front on and transform seasonality risk into an opportunity.
In addition to the direct costs of kitting, such as picking, grouping, packing, and selling, there are overhead expenditures, such as purchasing new equipment, renting space, hiring staff, etc.
These overhead charges might deplete your resources and hurt your bottom line. In other circumstances, it may even make establishing kitting and assembly activities problematic in the first place.
You may save money on overhead by employing a 3PL business to manage your kitting and assembly processes. Why? Because fulfillment firms have experience with kitting and assembly and are likely to have the needed infrastructure.
Outsourcing your kitting and assembly will save you money over managing it in-house.
Ecommerce businesses are constantly seeking methods to provide their clients with faster and cost-effective shipping methods.
You can speed up kit assembly services by doing it in bulk rather than repeating similar selection and packing tasks with each new order. The bulk method helps simplify your product assembly and increase warehouse staff productivity.
The cost of packaging is another factor determining whether you should outsource your kitting services. By enlisting the help of a 3PL service provider to manage the kitting process, you may save money on shipping costs by employing efficient and cost-effective packing.
For example, instead of using a conventional, one-size box for commonly requested kits, consider designing a custom box to reduce the weight and size of your products.
Therefore, you'll be able to save money on shipping. This is achievable because 3PL service providers buy packing materials, customize boxes in bulk, and charge a fair price.
A rise in shipping errors indicates that you cannot handle your kitting and assembly processes properly internally.
When product demand increases, most companies try to fill client orders with current resources. This leads to a series of shipping errors and inaccuracies.
Ship your things in the efficient kitting form to reduce shipping mistakes during order fulfillment.
A 3PL order fulfillment business provides you with access to qualified personnel with experience in kitting and assembly processes. They also have the tools to track your sales in real-time, the necessary infrastructure, and simplified processes to conduct order fulfillment tasks.