The Skinny on Kitting and How it can Add to Your Bottom Line

Let’s start with a basic definition. Kitting is the assembly of any number of individual items into a ready-to-ship set or “kit.” While kitting can sometimes be done by machines, the majority is assembled by human handwork. I know what you’re thinking so Old School, slow, and expensive. That couldn’t be farther from the truth. Kitting has become a streamlined operation capable of boosting a brand’s presence while saving money straight to the bottom line. The use of handwork allows for odd items, customization, and special touches that would be difficult, if not impossible, with machines. Large quantities aren’t needed for cost-effective campaigns; remember, bulky packages and marketing parcels have close to a 100% open rate meaning ROI rates should be way above average.

So what’s the skinny then, how can your company benefit from kitting? The options range across all industries and are perfect for anyone trying to move beyond boring flats and #10 envelopes. Some ideas to consider include:

• ● Product samples
• ● Premium fulfillment
• ● Insurance documents and Explanation of Benefits (EOBs)
• ● Banking information/stockholder annual reports
• ● Custom healthcare packages and government-mandated benefit kits
• ● Trade show booth kits and premium registration gift bags
• ● Subscription based services such as cosmetics or personal care
• ● Back-end premium donor or subscriber gifts

Benefits of Kitting – Why to Give it a Try

Faster Assembly of Order Fulfillment

When done in bulk, as opposed to each time an order arrives, it becomes more of a streamlined production process, meaning that items can be kitted more quickly and with a reduction in costs. This change in fulfillment process can reduce your pick/pack costs, as each kit will be counted as one SKU, as opposed to paying for pick/pack of each individual item. Plus, you’ll have less inventory to store and count on a regular basis.

Fewer Shipping Errors

Yet another nod to the efficiency of streamlined kitting. When items are compiled as part of a simultaneous process, it reduces the chance for error with order fulfillment. In addition your fulfillment house can pre-print shipping labels, eliminating the need for weighing and labeling of individual items.

Odd Items or Too Many Variables for a Machine

Machines are good at cookie-cutter fulfillment, but the odd duck project will pose huge obstacles. If your kit has odd-shaped or heavy items, random placement, a huge array of components, or special touches like tissue paper, bows, or hand-signed notes then kitting is your best bet hands down.

Improved Packaging that Earns Postal Discounts

Cost-effective packaging combined with the deep discounts gained by drop shipping into the USPS network can provide kitting with significant postal savings. For example, rather than packing individual items into a standard rate box, developing a custom container for your kit can reduce the size and/or weight of your packages that can possibly reduce your cost in shipping.

Now that you’re ready to get started, let’s review key elements to consider when selecting a kitting partner.

• ● Capacity to produce and handle components for your special packaging requirements.

• ● Warehousing capability for interior and exterior kitting supplies and finished kits not yet ready to ship. Can they store pre-made kits and ship on demand or regular schedule?
• ● Proven track record with kit engineering processes and quality checks that ensure accurate final products.
• ● Network of efficient distribution channels to greatly reduce postage.

Think about your current order fulfillment or any upcoming new products/promotions which could benefit from kitting; this could be the perfect chance to stand out and save money!

Ready to give Kitting a try? At Three Dog Logistics our consultants will help develop a plan that delivers your parcel at the lowest cost and fastest delivery speed possible. Remember, we take the bite out of postage and freight. Visit www.threedoglogistics.com or call 410-284-5494 extension 220 to schedule a complimentary consultation today.