Many industries find cost saving benefits by kitting different products into one package. Product kitting, also called product bundling, is the process of combining several single item products into one package, then creating a new SKU for that package. Kitting services is an extremely useful tool for company’s, mainly because it allows them to do much more with their existing stock. With kitting, company’s can easily bundle products that sell by the piece to create package options like discounted sets, cross-sell promotions, special deals, and more. Kitting services may be used in conjunction with co-packing services to arrange your products or components within a single package. The co-packing and the kitting may be done in a variety of ways, such as placing your product into thermoformed/corrugated inserts, poly-bagging, stand-up pouches, decorative baskets, setup boxes or any other sort of promotional kit or package. The possibilities are truly endless.
Subscription boxes are a great example of kitting since they are a single item made up of many different items. Some are sold as-packed only, while others give their buyers options per box contents. In both cases, the product kitting process makes tracking inventory, costs, and reorders for individual items manageable. You can even track your customized box as a single inventory component. This is handy since boxes are one item you’re sure to reorder in this type of ecommerce business.
Central Valley Assembly and Packaging kitting services allow companies to decrease inventory space, reduce shipping costs and improve their own throughput. We build thousands of kits daily for e-commerce fulfillment, retail distribution or a combination of both. Numerous years of industry experience has united us with some of the best packaging supplier. This allowing our customers to enjoy our discounted supply rates. We view ourselves as an extension of our customer’s business.
Benefits of Outsourcing your Kitting Services…
It will streamline your distribution Kitting helps in streamlining the distribution process. Let us take an example here. Suppose you are an online merchant who buys products from different suppliers and then sell them through your online store. Kitting will help you combine individual components into new product kits or packages before delivery. Distribution of products becomes easy as the items have been kitted in advance.
Kitting lowers inventory costs and saves money on shipping
Excess inventory consumes working capital which limits the ability to grow. Kitting is an effective way to eliminate inventory that isn’t moving in the supply chain. Often companies will bundle older, outdated inventory with new inventory as a discounted kit to eliminate old inventory. It also helps sellers save money on shipping by bundling items that go to the same address. And, as a seller, if you pass on cost-savings to customers for ordering kits, this can enhance customer satisfaction.