In such a busy and competitive landscape, the pursuit of efficiency for e-commerce businesses is unrelenting, and a well-organized fulfillment process is essential. One way to level up your performance and streamline your operations is with kitting. Keep reading to learn about the value of custom kitting, what it is, and why it may be a game-changer for your business.
What is Kitting?
Kitting is the process of combining separate but similar items into pre-packaged sets (or kits) and storing them under a new SKU. For example, a business in the pet product industry may create a “Pet Grooming Essentials Kit” with items like shampoo, brushes, nail clippers, and towels. This practice simplifies the picking, packing, and shipping process by consolidating items into a single unit, making it easier for your team to manage and for customers to receive their orders.
Pre-Built Kitting vs. Custom Kitting
Pre-built and custom kitting are both great options to consider, but the decision between the two depends on your goals. Pre-built kits are standardized and offer convenience and simplicity. They’re often a good fit for companies with standard product offerings or those looking for a straightforward, off-the-shelf solution. On the other hand, custom kitting offers a higher level of flexibility and customization, allowing you to tailor kits to unique customer demands or project needs.
4 Benefits of Kitting
Outsourcing your kitting and bundling efforts with a third-party logistics (3PL) provider offers many benefits. If you decide to do so, here are some advantages you can look forward to:
1. Efficiency
Outsourcing kitting passes the complexities of fulfillment to the experts. This not only frees you from the stress of a complicated process but also frees up valuable business time and workspace on your end. Plus, it’s a cheaper alternative to the labor costs of hiring new employees and independently obtaining warehouse space.
2. Reduced Errors
Thanks to the single SKU convenience it offers, custom kitting improves quality control and reduces the risk of error. Consolidation eliminates the need to individually label or weigh each product and minimizes the chances of shipping incorrect items.
3. Improved Customer Experience
Kitting reduces the chances of shopping cart abandonment and increases customer satisfaction and loyalty. It does so by simplifying the shopping experience and making it easier to find multiple items at once. It also improves the unboxing experience, as sending customers a neatly organized package fosters a sense of completeness and satisfaction.
4. Increased Inventory Turnover Ratio
By creating packages tailored to customer demand and market trends, kitting can help boost sales and increase turnover rates for individual items. This can help reduce the carrying costs of stagnant inventory and improve your overall inventory management.
The bottom line is that the value of kitting cannot be overstated. Whether you’re ready to get started or would like to learn more about the process, Sherpack is here to help! We have a team in Grand Rapids, MI, who are experts in the order fulfillment process and are ready to help your business thrive. Contact us today to request a quote or learn more about our custom kitting warehouse.
