All manufacturers from different industries are in search of different ways to reduce the manufacturing cost. In addition to this, they want to reduce overhead and enhance the customer experience. It is only possible by hiring kitting and fulfillment services contractors.
The shipping of products is one of the costly and time-consuming parts of the distribution process. Therefore, all manufacturers should outsource shipping services to reduce hassle and improve customer experience.
The kitting is a technique in which the various products are packed in a single unit. No matter how many products are integrated into one kit, it is considered as a single product. The kits are associated with their SKUs and tracking numbers.
Advantages of Kitting in Supply Chain:
The kits are pre-assembled and placed in the warehouse, therefore, order fulfilling for these kits is simpler and faster as well. If kitting is not done before order fulfillment, then workers have to invest more time and effort in packing all individual items in a kit.
The optimum kitting services let your customers pick and choose from various options. This level of customization in order fulfillment will significantly improve the customer experience.
Different Kitting Solution to Improve Supply Chain:
The kitting services improve the product picking and packing process. These services are highly beneficial to the automotive industry and consumer electronics. The kitting services ensure that their delicate and valuable items will reach the destination safely. The innovation kitting solutions will help in reducing cost and increasing efficiency:
1. Enable Bulk Shipping
When it comes to logistics, then shipping needs a huge amount of investment. The best way to reduce the shipping cost is to hire an order Fulfillment Company. These companies will streamline shipping services and also help in reducing costs. The kitting services reduce shipping expenditure because the fulfillment company transports various parts in bulk.
The postponement helps the original equipment manufacturer transport the parts of different machines and tools as it is. It allows customization in later stages when order fulfillment is required and they need to be delivered to the customers.
The cell phones will be assembled when the order will be placed. It saves time and effort for de-kitting. There is only one big disadvantage of postponement i.e. need for additional warehousing.
The additional warehouses are required to store the parts of devices until consumers place an order to buy them. When the order will be received, the assembly process will be started and the product will be delivered to the consumers.
3. Customize Packaging Solution
If you choose to outsource the kitting and assembly services, then you will receive huge benefits of custom packaging solutions. They can pack your products for special events like the promotional event, holiday season, and many more. This service offers various benefits to retailers and they can demand the perfect packaging as per the needs.
The custom packaging solutions help in increasing revenue and maximize packaging efficiency as well. The kitting solution provider will accumulate various products and confine them in one box before shipment.
4. Managing Upgrades in Products
This kind of service is perfect for the consumer electronics industry. This aspect of kitting helps the manufacturer to manage the upgrades in the latest released consumer electronic products. For instance, the newly released electronic gadget may have bugs, and that needs to be fixed before distribution.
The kitting services help to pack the products at the distribution center and move them back to the OEM. They help in providing fast kitting and shipping services so that you can manage upgrades as soon as possible. The kitting services help in reducing delay so that you can keep everything on track.
5. Help in Material Procurement
The major advantage of outsourcing kitting services is reduced cost for material procurement for packaging. Outsource kitting service providers will manage the material required for packaging and kitting.
They will charge the fraction of cost and you can enjoy the packaging services at very low prices. Moreover, they will ensure good quality packaging and you do not need to worry about anything. Your products are safe and secure with outsourcing kitting service providers.
Moreover, the material procurement process needs proper planning. The kitting services providers have planning technology systems that they use for optimum packaging material procurement. This system helps in automating the entire process and speed up the order fulfillment and supply chain.
The kitting services help the manufactures to package their products and deliver them to their esteemed customers. All manufacturers should outsource kitting services because it reduces overhead cost and also makes the entire process simple and hassle-free.
Product manufacturers can focus on other production processes and increase the growth of the business. The kitting service provider will take care of your products.