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Kitting

What is kitting?

Kitting is a warehouse and inventory management technique where individual products are assembled and shipped together as a single bundle or SKU. When an ecommerce company uses kitting, similar items are grouped in a custom package or ready-to-ship unit, rather than picking and packing products one-by-one. For this reason, kitting offers significant savings on labor costs, and helps streamline fulfillment operations in a big way. Kitting has become incredibly popular with online marketplaces like Amazon and similar retail chains.

Frequently Asked Questions

  • What are the benefits of kitting?

    Kitting services offer benefits to retailers, 3PLs, and consumers alike. Not only does kitting provide cost savings on each order, it also promotes faster shipping and increased sales overall. In addition, kitting is known to optimize warehousing efficiency, as it simplifies the picking and packing process. And since all products in the kit will be stored near one another, it saves time when the warehouse team has to locate a specific SKU or perform a routine inventory audit.

  • What is the kitting process?

    The kitting process consists of assembling multiple products and assigning them a single SKU in your point of sale system. To create a kit, companies first need to decide what items will be included. From there, these product offerings will receive a new SKU or barcode, and then the individual items will be bundled using a variety of pick and pack fulfillment methods. Lastly, it’ll be time to market, sell, and ship the kits according to consumer demand.

  • What is the difference between kitting in logistics and kitting in warehouses?

    Kitting in logistics is the process of compiling related items into a single unit that’s shipped to the customer. Warehouse kitting, on the other hand, is the physical act of locating items, bundling them together on the assembly line, and then creating a new SKU for that package before it ships. With the help of kitting, online stores and product-based brands can streamline their supply chain, enhance their order fulfillment services, and lower their shipping costs with ease.

More terms and formulas

formulas Fill Rate See definition and examples
Inventory Management Batch Tracking See definition and examples
formulas Work in Process (WIP) Inventory See definition and examples

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