Kitting. It’s a funny word but it’s exactly what it sounds like. It’s when you put things together into a kit. In the case of fulfillment centers, putting different products into a kit is a bit more complicated. It means to pull the right products off shelves, find the right packaging for it, update the inventory system, and ship them off to the right places.
But why would you need a service to do that? Why can’t companies do it by themselves? There are plenty of reasons why and today we are going to explore each one.
What Are Kitting Services?
As we’ve already mentioned, kitting is the process of putting products or parts of products together into a kit.
For businesses, this is a very useful service to have because if they are selling hundreds or thousands of products each day and each order is different, a service who does just that would solve all their headaches about packaging and shipping.
Who Offers It?
Kitting services are usually offered by third-party logistics companies called 3PLs. They have contracts with their clients to help them specifically with packaging, inventory management, and shipping.
3PLs are paid for their manual labor, services, and knowledge on how to pull products quickly, bundle them efficiently, and shipping them off in cost-effective ways.
Often, 3PLs also have negotiations with packaging providers and shipping companies to save their clients money on all these external costs.
Who Uses Kitting Services?
Customized packaging services are widely popular with e-commerce stores. Here are some examples.
Bundle Saving Sites
Have you ever shopped for something online then you noticed at the bottom of the screen, the company has a special discount for the product you’re looking at plus something else?
That’s one example of how a company might want to use a kitting service. Companies that all of a sudden want to bundle products together to entice their buyers will find these services useful.
Box Subscription Services
Another example of a business that might use customized packaging services is a box subscription company. These are companies that you sign up with for a specific type of product and they sent you a box of goods each month. This can be food, makeup, clothes, book, dog toys, and even wine.
The third type of company that benefits from using kitting services is companies that allow their customers to customize products.
For example, some e-commerce stores allow people to build their own computers, bikes, shoes, and so much more. Whatever it is, they also need someone to help them put all these different packages together.
Companies that Want to Streamline Operations
Packing 3PLs do not just ship items to customers. Some 3PLs also bundle parts of products for the next team in line. Once they receive them, they are responsible for putting them together. This is usually the case for products that require more knowledge or more advanced technology to put them together.
Top Benefits of Using Packaging Services
Putting items together into a box sounds simple. But when you have thousands of inventory, hundreds of customized orders, and other aspects of businesses to handle, it becomes a much harder thing to do.
Kitting services not only help business save time and money but also stress from having to figure out where to store their products, how to package them, how to keep track of inventory, and how to ship them off.
Here are some other benefits:
1. More Accuracy
By using a packaging 3PL, you’re also less likely to make packaging and shipping mistakes. Instead of having to oversee manufacturing, operations, customer service, packaging, and inventory management, they can just hand off the last two to a third party company.
Kitting service 3PLs are experts at putting products together and managing inventory. They are less likely to make mistakes than a company who has to oversee a million other tasks.
2. Save Space
If your company has a huge inventory of products, a 3PL can help take some products off your hands. Since they are responsible for packaging your products, they’re going to need a large amount of them on their shelves anyway to fulfill customer orders quickly.
What this means, in the end, is fewer products in your space and less money spent on storage for you.
3. Customized Packaging Solutions
When you bundle various products together, you end up with packages in all kinds of funny shapes and sizes. Where are you going to find packaging materials and boxes that fit them just right? At a packaging services center.
Packaging 3PLs are experienced in packaging all types of products. They have boxes in every shape and size to fit your needs. And if they don’t, they can probably get them much quicker than you can.
4. Save Delivery Costs
Packaging 3PLs are constantly shipping products out. It’s their job! To make their jobs easier, they know what are the best ways to ship products.
And if they’re wise, they’ll definitely have contracts with shipping vendors who offer them discounts, something they are able to pass down onto you.
5. Increase Productivity
If you have an operations team waiting down the line for product parts, a kiting service can save them time and stress by prepping all their materials.
Once they receive them, everything they need will already be there and they can get straight to work. This will save them a lot of time and brain power to look for the parts they need and increase productivity.
Kitting services are services that 3PLs offer to help customers bundle products and ship them off. They are responsible for storing products, pulling them off shelves, packaging them, updating inventory, and sending them off.
If your business is growing and you’re struggling to get all your products out on time, consider outsourcing your packaging needs to someone else who is good at doing just that. You will be saving yourself time and money in the long run.
If you are a business who is looking for more product and service solutions like this, feel free to visit our blog today!