It has become essential for the industry to find increasingly efficient and fast working methods that allow mass production and meet the quality demanded by the global industry.
One of these processes contributing to smooth operations is Kitting, one of the services AMN offers its clients.
What is Kitting?
Kitting is a technique or strategy in logistics, inventory, and assembly management where individual materials, components, or tools that make up a product or concept are brought together to create a single package or Kit. In short, kitting is the action of converting different individual components into a single kit.
A Kit is the grouping of different products that complement its function once the assembly process has started.
In the industrial sector, once these elements are assembled into a single package, they are marked with a single SKU that is then sent to the following stages of the manufacturing or assembly process, where internal or external operators will form a fine product.
The Kitting strategy can be applied to different business approaches, from the supply of components for the automotive, pharmaceutical, electronics, aerospace, and other industries. Up to applications in direct sales to the customer, with Amazon packages or subscription packages as the most expensive examples.
What is Kitting in a Warehouse?
Kitting in a warehouse involves finding multiple SKUs, bundling them into a single package, and creating a new SKU for that package before shipping.
This involves warehouse workers picking multiple products and bringing them to an assembly area where they are packed together and shipped.
The kitting process can create custom kits for specific customers or assemble products regularly ordered together.
Kitting can help to improve order accuracy and efficiency by reducing the need for multiple pick-ups and deliveries. In addition, kitting can help to minimize damage and delays by ensuring that all products are appropriately protected during shipping.
As a result, kitting is an essential part of many warehouses’ operations.
Kitting and Packaging
Within the logistics and inventory management processes, kitting and packaging are two critical functions due to the need to pack and ship products in safe and protected conditions, minimizing the chances of product spoilage.
These two services require procedures that cover correct labeling, weight control, and quality inspections.
However, kitting defines a set of complementary items that can be sold as a new product, whereas bundling is a broader term that applies to any grouping of items.
Kitting and assembly
Agile processes are often born from combining different areas or types of service. Kitting and assembly are complementary due to the speed they bring to manufacturing processes.
Presenting kits in the production areas with items that will be assembled reduces the time that workers have to spend locating the components independently.
Within the manufacturing processes, the correct execution in Kitting is essential since it guarantees that all the necessary parts will be available and within easy reach for the operator.
This requires a previous selection of the SKUs that will integrate the Kit and a quality inspection with the intention that no damaged product reaches the hands of the customers.
After this, the components are arranged so that none of them are at risk of damage and that they follow a logical order at the time of extraction. In accordance not only with logistical standards but also with workflows.
Kits in manufacturing processes
For any industry, using kits is a factor that delivers speed and efficiency, from the assembly of auto parts, electronics, medical products, or even aircraft manufacturing.
When companies have to meet massive, time-sensitive product manufacturing requirements, having kits will create a smoother operation.
Kitting in logistics
Kitting in logistics processes complies with the general operation, which is to store two or more complementary components in a single package and with a single SKU.
This methodology simplifies the shipping processes to customers, delivering different items necessary for their operation in a single effort. Thanks to its customization capacity, it can be adapted to the customer’s temporary needs, being flexible to changes in their processes.
It is essential to understand that Kitting differs from product sourcing or VAS (Valued Added Service).
The benefits of Kitting
Many companies have already integrated kits into their processes to improve their operations. Learn about the significant advantages that can attract you to use AMN’s Kitting service.
- Reduces errors
Due to the logic in creating Kits, placed according to the use and order of the components, the probability of having related errors is reduced exponentially.
- Optimize your warehouse space
Having different items needed for manufacturing in a compact presentation allows considerable savings in using physical space.
- More cost-effective labor and a smooth supply chain
Giving workers better accessibility to the components needed for their work improves productivity, eliminates picking times, and improves operation times. Consequently, your labor expenses decrease.
- Fast and cost-effective shipping
Concentrating all items in kits reduces shipping costs thanks to the optimization of space and the reduction of picking time because the products have already been selected and packaged.
AMN Kitting Service
As you have read, the implementation of Kits brings enormous benefits. However, these processes must be backed by strict quality standards. At AMN, we have built infallible methodologies in our services; as quality experts, we know we can only deliver the best to our clients.
If you have more questions about our Kitting service, do not hesitate to contact us. We are here to serve you.