The Benefits of Cleveland Warehouse Kitting Services
Cleveland warehouse kitting services offer many competitive advantages to manufacturers and retailers hoping to streamline their processes and lower costs.
Warehouse kitting, a service typically handled by a 3PL, involves taking multiple stock keeping units (or SKUs) and combining them into a single package to create a separate SKU. In other words, we’re taking several individual products or parts of individual products and compiling them into “kits.” Those kits are then passed on for production and “just-in-time” deliveries.
Many companies take advantage of 3PL warehouse kitting because it allows for:
- Reduction in the number of purchase orders;
- Lowered administration costs;
- Faster assembly (for manufacturers and/or consumers);
- Optimized use of space;
- Better packaging quality;
- Fewer shipping mistakes;
- Happier customers.
Cleveland Warehouse Kitting Benefits for Manufacturers
Warehousing has been used by manufacturing companies to manage their inventory and storage needs for as long as both have existed. But warehousing is no longer merely just a storage space. Warehouses are dynamic and integral parts of the supply chain, and many now double as kitting and assembly hubs.
Manufacturers that compel their own assembly workers to compile parts in kits, it’s time-consuming and often unproductive. That’s because before they can even assemble anything, they have to pick and gather each part. This has been proven to lead to all sorts of errors, losses and bottlenecks.
Third-party kitting offers an opportunity for efficiency. Contracting with an experienced, third-party Cleveland warehouse kitting and assembly service streamlines the process. Assembly workers receive neatly-arranged assembly kits that contain all the components they need to do their jobs. Because 3PLs specialize in kitting, we’re ready to get the job done right – and on time, every time.
Kitting also helps manufacturers save on valuable space. Inventory can be stored with by the third-party logistics firm, as opposed to on the manufacturer’s site. This is an especially attractive advantage if inventory storage has special requirements like climate control or is particularly bulky.
Our 3PL team delivers kitted products to the manufacturer when they’re needed. The manufacturer then assembles/produces the final product using supplied kits and then our warehousing/transportation team can help package and distribute.
Product Kitting Benefits for Retailers
Some goods can be sold either as a singular piece or as part of a set or subscription. Retailers (particularly those utilizing e-commerce platforms) benefit from something we call “product kitting.” Also sometimes referred to as “product bundling,” this is when we combine several single items into one unit for sale.
For example, a retailer might sell a carry-on suitcase and also separately sell a toiletry bag. With product kitting, we can help package those two products together to create a separate SKU. Retailers can utilize that skew for various merchandising options (i.e., special deals, cross-sell promotions, etc.). Plus, kitted products are often more likely to move than single-item products because customers recognize a deal. They also don’t want to spend time adding each item individually to their online cart. It also gives retailers an opportunity to offer more SKUs and improve their search engine optimization for better ranking on platforms like Google and Bing.
Cleveland warehouse kitting services overall reduce the need for high-cost labor and operational expenses while improving efficiency and fulfilling the needs of your customers.
How Customized Warehousing and Logistics is Adding Value to Modern Manufacturing, Sept. 19, 2019, By Aditya Vazirani, Entrepreneur.com
More Blog Entries:
Secrets of Successful Cleveland Warehousing, Oct. 20, 2019, Cleveland Warehouse Kitting Blog