Fulfillment of orders can be a tedious process for manufacturers and retailers. They are always on the lookout for efficient techniques to increase productivity, reduce unnecessary costs, and make order fulfillment convenient for themselves as well as their customers. Warehouse kitting is an efficient technique to cross all the above boxes and make order fulfillment simple. Let us take a look at what warehouse kiting is and what its benefits are:
What is Warehouse kitting?
Warehouse kitting service is a process of taking multiple SKUs and combining them in a single package to create a new SKU. When a customer orders two separate items with two different SKUs, its termed as Product kitting. This allows the manufacturer to avoid shipping to the customer at a different time.
During the order fulfillment process of items with product kitting, a warehouse management system makes it easier to locate the item. The item, then retrieved by an employer before completing order fulfillment. The same process is carried out for every single item that has been ordered. An individual SKU assigned to unique articles; separately picked, packed, and shipped. In warehouse kitting, SKUs are bundled up together to create a new SKU altogether so that when your customer places an order, you can quickly locate the bundle and ship it.
Benefits of Warehouse Kitting
Warehouse kitting has some significant benefits that will improve the environment and work quality at your warehouse. Here are some of the benefits of warehouse kitting:
More Efficient Packing
Warehouse kitting increases efficiency in the warehouse. Employers spend less time trying to locate and retrieve single items, which results in more productivity. This is a healthy practice in the long run and keeps you at the top of your game.
Improves inventory Management
Warehouse kitting streamlines your inventory management as it is more organized. Kitting your products results in lesser SKUs, which ultimately makes it convenient for you to manage your inventory. The entire process just becomes efficient.
With warehouse kitting, you are not dealing with items individually. Hence, you skip the step of weighing and labeling individual items. You can print shipping labels for a single SKU instead. The ordered item spends less time in the warehouse which results in faster shipping.
Better Packing Solutions
Instead of packing each item individually in standardized boxes, you can pack your items together in customized boxes. This will reduce the size and weight of your package, as you won’t be packing them separately. In the long run, this will save up on packing material and reduce your packaging costs.
You can use warehouse kitting as an excellent sales strategy too. Items that have just been taking up space in your warehouse can be bundled up and offered at discounted rates. This would boost your inventory and increase shelf space for more products.
Lesser Labour Costs
Warehouse kitting ultimately reduces labour costs as you need fewer employees on the warehouse floor to perform the fulfillment operations.
It has more benefits than expected. It is doable and a convenient technique that could make your business stand out from others. You can save a lot of time which can be allocated for the improvement of the main goals of your business.