Kitting is the process of combining multiple SKUs into a single saleable or deployable unit. In warehouse logistics, kitting plays a crucial role in the efficiency of order fulfilment services. The choice between pre-kitting and order-based kitting has a direct impact on inventory holding, order picking speed, and customer satisfaction. Choosing the right kitting approach depends on demand patterns, product complexity, and how mature your order fulfillment solutions are.
Pre-Kitting
Pre-kitting involves assembling kits in advance, before customer orders are received. These kits are stored as finished units and picked like a single SKU during fulfillment.
It is used for a myriad of reasons, including when:
Demand is predictable
Pre-kitting works best when historical data shows stable, repeatable demand. In such cases, warehouses can confidently prepare kits in advance without the risk of frequent rework.
Kits have a long shelf life
Products that do not expire quickly or become outdated are ideal for pre-kitting. This reduces the risk of obsolescence while allowing inventory to be staged closer to dispatch.
Assembly is time-consuming
When assembling a kit requires multiple steps or quality checks, doing it ahead of time reduces pressure during peak order fulfillment windows.
Advantages:
Faster order processing
Since kits are already assembled, fulfillment teams can skip the assembly step entirely. This significantly improves turnaround time for order fulfillment services, especially during high-volume periods.
Lower order picking time
Pre-kitted items reduce the number of individual SKUs that need to be picked. This simplifies order picking, minimises errors, and improves warehouse productivity.
Challenges:
Excess inventory
If demand forecasts are inaccurate, pre-kitted stock can pile up, tying up working capital and warehouse space.
Obsolescence if demand changes
Changes in customer preferences, regulations, or product configurations can render pre-kitted inventory unusable, leading to write-offs.
Order-Based Kitting
Order-based kitting involves assembling kits only after a customer order is confirmed. Components are picked individually and assembled specifically for that order. It’s used in various situations and conditions, including:
Demand is volatile
For products with fluctuating or unpredictable demand, order-based kitting prevents overproduction and aligns inventory directly with real orders.
High SKU combinations
When products can be bundled in many possible configurations, pre-kitting every combination becomes impractical. Order-based kitting offers greater flexibility.
Customisation is required
Customer-specific requirements, such as region-specific components or optional add-ons, are easier to manage when kits are assembled on demand.
Advantages:
Zero dead stock
Since kits are not assembled until needed, there is no risk of unsold or outdated kit inventory.
Better flexibility
Warehouses can quickly adapt to changes in demand, product structure, or customer requirements, making this approach ideal for dynamic kitting solutions.
Challenges:
The Role of WMS in Kitting Operations
A Warehouse Management System (WMS) is essential for executing both pre-kitting and order-based kitting efficiently within modern order fulfillment services.
A WMS:
- Defines kit Bills of Materials (BOMs)
- Validates real-time component availability
- Guides order picking and assembly workflows
- Ensures inventory accuracy across both kits and components
By integrating kitting logic into daily warehouse operations, WMS-powered order fulfillment solutions help reduce errors, improve speed, and deliver predictable outcomes—no matter which kitting strategy is used.