Should You Outsource Kitting & Assembly: Benefits & Use Cases
Kitting and assembly (K&A) are when products are grouped and arranged in a single unit before they are shipped, which generally results in reduced costs and improved customer satisfaction. Although product K&A is a crucial aspect of many manufacturing processes, it’s often time-consuming. And if it’s not done correctly, it can result in product damage during shipment, compliance issues, and costly production delays.
In this article, we’ll discuss the primary benefits of and use cases for outsourcing this all-important process.
Reduces Lead Times
When a third-party company handles your kitting and assembly, it helps drive down pick/pack costs, as each assembled kit scans as a single SKU in a warehouse or order fulfillment center’s management system.
Many manufacturers have limited floor storage space. Outsourcing assembly and kitting frees up your warehouse space for other purposes. It also cuts back on product handling, and it can help save you even more money if you have to maintain a climate-controlled product storage environment.
Better Inventory Management
Outsourcing K&A is especially advantageous if you produce multi-component products. You’ll no longer need to define and append numerous SKUs for each component because bundled parts are linked to a single identifier code, and it’s much faster and more convenient for all parties.
There are various reasons why you might require assembly and kitting services, including:
- You need to find ways to reduce shipping costs. Outsourcing K & A reduces shipping costs by merging multi-component products into singular distribution units. You can save even more money by shipping bulk orders in larger bundles.
- You don’t have enough employees to dedicate to the task. Kitting and assembly are multi-person tasks, and many manufacturers can’t afford to dedicate a full team to this process.
- You produce custom products that need to be kept together. K&A is critical if you manufacture highly personalized, customer-specific products, and it will help ensure that consumers don’t receive the wrong products.
- You consistently manufacture smaller parts that are pieces of larger products. Assembly and kitting are also valuable to manufacturers who consistently produce parts that contain numerous smaller pieces, like automobile parts makers. Kitting ensures that all components in the larger assembly are together and accounted for.
How to Find the Right Kitting & Assembly Company
Don’t ever commit to one provider until you’ve done your research.
Look at any potential company’s reviews, assess their general industry reputation, and ask these questions:
- How many years have they provided kitting and assembly services?
- What are their limitations?
- How do they maintain quality?
- Do they have experience providing K&A for your particular industry?
- What type of inventory management software do they use?
- What is their average turnaround time?
When you schedule a consultation with a K&A provider, you must also assess their communication style. Is this someone you could effectively work with?
Learn More about Export Corporation’s Assembly & Kitting Services
Export Corporation is an ISO- and ISPM 15-certified industrial packaging company with over 70 years of experience. We provide a wide range of services, including custom wood packaging design and construction, assembly and kitting, warehousing, and repackaging. Please contact us today to learn more about our services and capabilities or to schedule a project consultation.