How to use Kitting and Assembly in eCommerce Fulfillment
Kitting in logistics and Assembly is accountable as one of the significant pieces of eCommerce fulfillment strategy. When you execute it correctly, you will be liable for saving a lot of time and money. This ideology will help the companies ship the products quicker than usual. Therefore, understanding the execution process for this concept is essential for an ideal implementation.
Hence, this article intends to give you complete exposure to the idea of kitting and Assembly and its performance.
Understanding Kitting and Assembly
Kitting and assembly are fulfillment services often carried out by third-party logistics companies. They involve packaging items from different orders or components into a single grouped order before the customer places their order.
What is Kitting?
Kitting refers to collecting and separating pieces into a single offering known as a "kit." Kits are pre-built in batches so they are ready to ship as soon as the customer places their order. Kitting helps adapt the retail fulfillment process.
Kitting works best when the product variations are known ahead of time, as it's difficult to predict every combination a customer might order.
It's important to consult with a kitting company to determine if kitting services are right for your business. They can provide recommendations tailored to your operations and help you decide if their proposed solutions fit your process.
What is Assembly?
Assembly involves putting the individual components of a kit together so it's ready to ship when ordered. Both kitting and assembly may happen at separate workstations, allowing the fulfillment staff to streamline the process for efficiency.
Companies often kit everyday items like promotional materials, product samples, and components to make a cohesive product set.
Examples of Kitting
Some common examples of kitting bundles in ecommerce include:
Ready-to-Order Sets
Pre-packaged sets with specific quantities, combinations, or variations for customers to choose from. Using professional kitting can help select the best products to boost sales.
Subscription Boxes
Recurring shipments of product bundles like health drinks, beauty items, or coffee. This provides convenience to subscribers and repeat business.
Assembled Products
Bundling all necessary parts of a final product, like furniture components, fittings, and assembly hardware to ship together.
Gifts with Purchases
Adding promotional items to existing purchases as gifts. These can help encourage larger customer orders.
Benefits of Kitting and Assembly
Key benefits of using kitting and assembly in ecommerce fulfillment include:
- Lower shipping costs by bundling items
- Increased sales and order values via upselling/cross-selling
- Improved customer satisfaction with faster, accurate orders
- Streamlined picking, packing, and shipping
- Greater efficiency through process automation
Implementing Kitting and Assembly
Key steps when adding kitting/assembly to your fulfillment include:
- Select complementary products for kits
- Price kits considering individual costs and promotions
- Determine packaging to protect items
- Evaluate shipping considerations like size, weight, distance
- Create return policy for exchanges or refunds
Outsourcing Tips
When outsourcing kitting/assembly services, look for providers that offer:
- Cost-effective pricing and shipping
- High-quality materials and good reputation
- Industry knowledge and expertise
- Responsive, helpful customer service
Conclusion
Kitting can be a great way to reduce fulfillment effort and time. Partnering with an experienced logistics company provides access to experts who can help implement a kitting strategy tailored to your operations.
Recommended: 13 Important Questions to Ask 3PL Providers
FAQs
What is kitting in ecommerce fulfillment?
Kitting refers to the process of grouping related products together into kits or bundles prior to an order being placed. This allows the kits to be picked, packed, and shipped faster once an order comes through.
What are some examples of kitted products?
Some common examples include subscription boxes, assembled products like furniture or bicycles, gift with purchase items, and product bundles that allow for upselling or cross-selling.
How does kitting reduce shipping costs?
Kitting allows multiple items to be shipped together in a single box or package. This consolidates shipments and reduces the number of individual packages being sent out, lowering overall shipping costs.
What are the benefits of assembly services?
Assembly services ensure products that require some construction, like furniture, are correctly and securely put together before shipment. This improves customer satisfaction by reducing shipping damage related issues.
What should you look for in a kitting and assembly provider?
Important factors to consider include service costs, quality control procedures, customization capabilities, experience level with kitting and assembly, and responsiveness of customer service.
How can outsourcing kitting improve business operations?
Outsourcing kitting and assembly allows companies to focus resources on core business activities instead of fulfillment tasks. It also provides access to greater expertise and technology for improved efficiency.
What kitting and assembly services does Simpl offer?
Simpl provides custom kitting solutions, bulk kitting capabilities, product assembly services, quality control checks, and global shipping services to get kits to customers.
