In today’s competitive marketplace, every business seeks to reduce costs, streamline its operations, and enhance customer experience. One effective strategy becoming popular among businesses is knitting. This involves assembling individual items into ready-to-ship sets or packages. This process optimizes shipping and offers numerous benefits to businesses.
This article will explore what kitting is and the benefits of kitting services for businesses.
Overview of Kitting?
Kitting is a process that involves grouping individual items, packaging, and supplying them together as a single unit. Instead of packing these items separately, they are assembled into a kit. This strategy is commonly used across industries such as manufacturing, retail, and e-commerce.
For instance, a computer manufacturer may assemble a desktop, monitor, keyboard, and mouse into a single product SKU. This approach makes it easier to manage inventory and fulfil orders.
Benefits of Kitting for your Brand
Kitting service offers numerous benefits to your brand, such as:
Faster Delivery And Reduced Lead Times
Traditional shipping involves picking all the ordered products, packing them, and then shipping each item separately. This required significant time and additional labour costs, which led to higher logistics costs for the business.
Whereas, with a kitting service, the warehouse assembles the item’s kit in advance. When an order is placed, the staff prepares the entire kit, packs it, and ships it as a single unit. This helps to save the company’s time and effort. Kitting can quickly fulfil orders, reduce lead times, and increase customer satisfaction.
Cost Savings
Kitting can reduce costs on shipping, labour, and packaging. Shipping costs are reduced because kitted items can be packed more efficiently into smaller, lighter packages. And labour costs reduce because they don’t need to pack ordered items separately. The time spent on picking, packing, and processing orders is minimized. Additionally, when all items are packed into a single package, it reduces the need for bulk packaging materials, which can further reduce expenses.
Increased Sales Opportunities
Kitting also helps increase sales by introducing new items bundled with products. This allows businesses to create new product offerings without developing new products. This approach can be particularly practical for promoting slow-moving products by pairing them with best-sellers. This provides greater value to customers and encourages purchases.
Improved Customer Experience
Every business wants to retain existing customers and get new ones. Satisfied customers are repeat customers, and kitting can significantly enhance the customer experience. Suppose a customer is looking for a perfect gift for a friend’s birthday, and they are browsing your online store.
Instead of selecting each item individually for the cart, they choose a beautifully designed kit that includes bath bombs, scented candles, and a luxurious robe. This thoughtfully prepared package reduces decision fatigue and improves the overall shopping experience.
Reduces Errors
Kitting is a process performed by experienced personnel that reduces the risk of errors. They pick up a prepackaged kit directly from the warehouse shelf. This strategy reduces picking mistakes and increases the packaging speed. This is why there are fewer errors in both shipping and ecommerce order fulfilment.