Warehouse kitting Dallas is an excellent opportunity for ecommerce businesses to save money and time and even enhance their inventory management. While kitting is a value-added service, it can be extremely important in your ecommerce fulfillment as packing, picking, and shipping.
Moreover, kitting is particularly excellent if you sell items that are usually purchased together, as you can prepare a bundle before someone places an order. In this article, we will explore what kitting Dallas is and its advantages for your business, along with outsourcing the kitting process to a fulfillment solutions provider.
What Is Kitting Dallas?
Kitting is the process of taking multiple individual items and bundling them in a single unit to come up with a completely new SKU that comprises several products but is sold as a single unit. By bundling together individual items before someone places an order, you can ship the items quickly instead of picking and packing them separately, which can be quite time-consuming.
Usually, when fulfilling an order for separate products, the item is identified through the SKU code in the warehouse management system. When you use kitting, you essentially bundle products that are typically bought together to make a single unit that you can store in your fulfillment center. The benefit of this is that you can easily and quickly locate the products as a bundle and do not need to stress about assembling the different products after receiving an order.
Difference between Bundling and Kitting
The terms “bundling” and “kitting” are sometimes used interchangeably. While both involve grouping several items together for sale and shipment, the two are actually quite different. Kitting particularly defines a set of complementary products that can be sold as a new product, whereas bundling is a broader term that applies to any grouping of products. One example of kitting is a subscription box that contains all the ingredients required to prepare particular meals.
Advantages of Kitting Dallas
Kitting offers numerous benefits for businesses, including cost and time savings. It’s an incredibly helpful ecommerce tool as it allows retailers to offer a higher number of SKUs by combining individual pieces into bigger orders. When you give the option to purchase a kit, your customer will be motivated to make a bigger purchase.
In some cases, you can offer a discounted price as an incentive to purchase more products at a time. You have the potential for higher sales while simultaneously reducing your average shipping costs. As kitting can be done before time, at a bigger scale, it allows warehouses to get ahead of the order fulfillment process.
Since product bundles are pre-made, fulfilling orders for these kitted items becomes much more efficient and quicker. In addition, they even improve customer experience as the top items are bundled together, and your customers will not need to search for them and add them to their cart separately. Here are some advantages of kitting Dallas.
1. Lower Packing Costs
Kitting helps in reducing costs for packing materials. Usually, products pack separately into standard containers. When it is time to pack and ship, they combine into a bigger ship or container in their own bigger container. This consumes more packing materials than if a bigger number of kits build into their own SKU.
In addition, kitting lowers the package’s dimensions. It even lowers the costs of packaging tape and filler. These costs can add up as your order demand increases. It is also true that a kitted package might be safer to ship instead of a regular package. This is particularly true when the kit packaging has a customized design for the products making up the bundle.
2. Efficiency and Organization
Kitting is an excellent opportunity to make the process of order fulfillment more efficient and streamlined. When you make use of kitting, you can generate lower high-selling SKUs. This can make it simpler for you to organize the inventory in your distribution center. You might think of it to be counterintuitive; however, if you have items that are often purchased with one another, then kitting them in a bundle can result in a reduced SKU count. Consequently, this enhances warehouse space. Plus, it makes the process much more efficient overall.
If you do not kit products together and pack items after receiving an order, it’s going to take a considerably longer time to complete the fulfillment process, possibly leading to shipping delays. All in all, kitting makes it simpler to identify what’s required for your bestselling product combinations, increasing its efficiency and enhancing your fulfillment process’s productivity.
3. Streamlines the Process of Shipping
Kitting products into a bundle can even simplify the process of shipping and make it significantly more efficient. By automating this process, you reduce the chances of human errors and reduce average fulfillment time. Weighing the bundled items and printing shaping labels before rather than when you receive the order can provide major cost and time savings.
4. Lower Storage Costs
Services such as distribution and warehousing are based on the square feet or volume of storage used by your inventory. Kitting products together has the possibility of minimizing the total amount of storage needed to store those products. This is particularly true if the SKUs have too much “air space,” such as open spaces or large cavities. Other products can ship inside the bigger cavities of the relative SKUs, lowering the total storage use.
Nevertheless, the opposite also holds true. As you kit products together, it is possible that the storage space needed to store these products might increase. It depends hugely on the kinds of kitted items.
Kitting is an easy yet effective fulfillment technique that can help your business save money and time. Plus, it also makes your order fulfillment process more organized and streamlined. At 3PL Bridge, we provide tailored order fulfillment solutions to businesses. If you want a contemporary 3PL to help with kitting Dallas to enhance your order fulfillment strategy, contact us today!