Kitting is the process of grouping items together in advance for shipping. Also known as bundling, kitting is often used when many separate raw materials are required to complete a single order, as in an item that requires assembly. Kitting can also be used when two or more finished items are commonly shipped together.
When to Use Kitting There are many different scenarios in which kitting makes sense. If an item comes with a manual and a C.D., these items should always be shipped together, so kitting will save time and trouble. If two items are being offered by a company at a discounted rate, kitting will not only help to save time from packing each order individually, it will also help to track the effectiveness of the promotion. However, if a discount is being offered when two items are purchased from a variety of twelve, kitting may not be effective.
Commonly Kitted Items While many different items can be kitted, a few of the most common include:
- Sample packages
- First aid kits
- Repair kits for equipment
- New product launches
- Game sets
- Media Kits
Preparing kitting in advance can save sellers time and money. Packaging kits can be done all at once during down-time, as opposed to during a peak time when many orders are coming through, maximizing time management. Packaging many kits that are similar at once is also more efficient than packaging different types of kits. If an outside company is used to fulfill shipments, each kit will be charged as a single item, as opposed to multiple items.
Shipping Costs Kitting helps sellers to save money on shipping by bundling items that will go to the same address. This cost may be further reduced by utilizing customized packaging as opposed to standard packaging when many kits of similar size are being shipped. Customized packaging may weigh less or take up less space, which may also enhance buyer’s perceptions in addition to reducing costs.
Reducing Errors Kitting often results in fewer errors than the pack-to-ship method. Depending upon the nature of the products or materials, kitting may help to reduce the possibility of losing smaller items or inadvertently packaging the wrong quantity of a certain part or product. When kitting is done in advance, it is also easier to catch errors before the package is shipped.
Customer Satisfaction Kitting can increase customer satisfaction in a few ways. Shipping time can be reduced dramatically with the use of kitting, as sellers can not only package but also weigh and label kits in advance. Customers have the added advantage of receiving all kitted products at the same time. If sellers pass on cost savings to customers for ordering kits, this can also work to increase satisfaction.
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