What is the kitting process in warehouse?
Kitting meaning in a warehouse refers to the process of bundling together multiple individual items or products to create a single kit or set. This bundling is done to facilitate order fulfillment, enhance efficiency, and provide customers with a ready-to-use package. Kitting is particularly common in industries where customers often purchase complementary items together or where the assembly of individual components into a final product is necessary.
Kitting warehouse is a strategic inventory management technique with the primary goal of consolidating products into as few packages as possible, making it particularly advantageous for eCommerce companies.
By pre-assembling products, kitting enhances the efficiency of the order fulfillment process. Companies can proactively kit products based on anticipated customer orders or employ it as a marketing strategy to boost sales volume.
In contrast to the traditional inventory model, which involved packaging individual SKUs separately and dispatching them as multiple shipments, kitting offers several benefits:
- Reduction in pick-and-pack time
- Lower packaging expenses
- Streamlined warehouse activities
- Decreased shipping costs
- Optimized inventory management
- Improved order tracking
- Enhanced customer satisfaction and convenience
Kitting finds various applications in eCommerce, with one popular example being subscription boxes. In this scenario, kitting services play a pivotal role in packaging and shipping individual products together in a single order.
Here’s a breakdown of key kitting-related concepts and the role of an Enterprise Warehouse Management System (WMS):
Kitting process in warehouse and Workflow with an Enterprise WMS:
Kit Scheduling: Kit planning involves scheduling the creation of kits based on anticipated demand and available inventory. The Enterprise WMS helps in creating a production schedule that outlines when each kit should be assembled.
Picking Components: The system guides warehouse personnel on picking the required components for kit assembly. It optimizes the pick list, ensuring efficient routes and accurate picks.
Kit Assembly: Once components are picked, the assembly process begins. This may include combining various items, labeling the finished product if necessary, and ensuring all components are correctly assembled to meet quality standards.
Quality Control: Throughout the assembly process, the Enterprise WMS integrates quality control checks. It verifies that each kit meets specified criteria, reducing errors and ensuring consistency.
Finished Product Management: After kit assembly, the finished products need to be managed within the warehouse. The WMS assigns them specific locations, whether it’s for immediate shipment or for storage until orders are received.
Labeling: For products that require labeling, the WMS generates and applies labels with barcodes or QR codes, ensuring that the finished kits are accurately identified and can be tracked throughout their lifecycle.
Pre-Kitting vs On-Demand Kitting:
Pre-Kitting: In pre-kitting, kits are assembled and stored in the warehouse before customer orders are received. These pre-kitted products are ready for immediate shipment when an order matching the kit is placed.
On-Demand Kitting: With on-demand kitting, kits are assembled only when an order is placed. The components are picked from inventory, assembled into a kit, and then shipped to the customer. This approach is more flexible but can add time to order processing.
Benefits of Kitting in Warehouse Management:
Kitting, in the context of warehouse management, refers to the process of pre-assembling groups of items that are frequently ordered together into a single unit. This unit is then assigned a unique SKU (stock keeping unit) and treated as a single product for inventory, picking, and shipping purposes.
1. Increased Efficiency:
- Reduced picking time: By grouping commonly ordered items together, pickers only need to locate and pick one kit instead of multiple individual items. This can significantly reduce picking time and labor costs.
- Improved accuracy: Kitting minimizes the risk of picking errors, as all the necessary components are already assembled and verified.
- Faster order fulfillment: Pre-assembled kits can be shipped out immediately upon receiving an order, leading to faster delivery times and improved customer satisfaction.
2. Reduced Costs:
- Lower labor costs: As mentioned earlier, kitting reduces picking time and the need for additional packing materials, leading to lower labor costs.
- Optimized warehouse space: Kits can be stored more efficiently than individual items, as they take up less space and can be stacked more easily.
- Reduced shipping costs: Kits often weigh less and take up less space than individual items when shipped, potentially leading to lower shipping costs.
3. Enhanced Customer Experience:
- Improved order accuracy: Kitting reduces the risk of picking errors, leading to fewer incorrect or incomplete orders.
- Faster delivery times: Pre-assembled kits can be shipped out quickly, resulting in faster delivery times and happier customers.
- Value perception: Customers may perceive kits as offering more value than purchasing individual items separately, leading to increased satisfaction.
Challenges with Kit Orders:
Inventory Accuracy: Ensuring that all required components are available in the correct quantities can be challenging.
Quality Control: Verifying that each kit is assembled accurately and meets quality standards.
Tracking: Monitoring the status of individual kit components and kits in real-time.
Returns Handling: Dealing with returned kits, which may require disassembly and reintegration of components.
Optimize Operations with Warehouse Management System
Enterprise WMS and Kitting Workflow:
An Enterprise WMS plays a crucial role in managing kitting processes efficiently:
Inventory Management: The system maintains real-time inventory visibility, ensuring that all required kit components are available.
Order Processing: When a kit order is received, the WMS directs warehouse personnel to pick the necessary components from their designated storage locations.
Assembly Instructions: The WMS provides assembly instructions to ensure accurate and consistent kit assembly.
Quality Control: Quality checks can be integrated into the kitting process to confirm that each kit meets specified criteria.
Tracking: The WMS tracks the progress of kit assembly, enabling real-time visibility into the status of each order.
Returns Handling: In the event of kit returns, the WMS guides the process of disassembly, component inspection, and reintegration into inventory.
Conclusion
By orchestrating the kitting workflow, an Enterprise WMS optimizes time, space, and labor resources while ensuring that kit orders are fulfilled accurately and efficiently. This leads to improved customer satisfaction and operational effectiveness in warehouses that handle kitting operations.
FAQ
Kitting is a process in which individual items or components are grouped together to create a single unit, making it easier to fulfill orders, improve inventory management, and streamline warehouse operations.
Kitting improves efficiency by reducing order picking time, lowering error rates, and optimizing storage space. It also allows for faster order fulfillment and minimizes handling of individual components.
Items that are frequently sold together or are part of an assembly, such as electronics, automotive parts, and DIY furniture, are often kitted in a warehouse.
Determining what to kit together is based on historical sales data, customer demand, and the frequency of items being ordered together. Software and analytics tools can help with this decision.
Kitting involves grouping pre-existing items together, while assembly involves creating a new product by combining individual components. Kitting is about packaging, while assembly is about production.
Kitting can lower labor costs by reducing order picking time, minimize storage costs by using smaller containers, and decrease error-related costs by reducing the chances of picking the wrong items.
Warehouse management systems (WMS) and inventory management software often have kitting functionality. Additionally, some companies use dedicated kitting software or customize their existing systems.
Common challenges include maintaining accurate inventory counts, ensuring that kits are assembled correctly, and managing kit changes when individual components change.
Yes, kitting is applicable to both e-commerce and traditional retail warehousing. It’s a versatile approach that can be adapted to various types of businesses.
Quality control in kitting involves rigorous inspections at various stages, clear documentation, and a system to track and address any issues. Regular training of warehouse staff is also essential to maintain quality standards.
Check out the role of key kitting concepts in a Warehouse Management System (WMS). Learn more about it today!
