Kitting Services Management and Benefits

Kitting Services: Management and Benefits

Business people need to be always on the lookout for new strategies to improve their service quality and profits. This is how one can sustain the competition and work for a long time. 

One of the many strategies companies adopt in this regard is kitting services. It is an inventory management method that helps companies minimise costs and, thus, improve returns. 

With kitting services, businesses determine a group of goods consumers may order as a single unit. Because it increases the average order value, companies can sell more whilst reducing the cost of pick-and-pack services. 


When different but related goods form one bundle, it is called a “kit.” Often, warehouse staff preassemble the kits and keep them ready to ship as soon as receiving an order. This deletes the need to pick, pack, and ship items individually, thus, saving time. 

For instance, a provider may put a phone, charger, phone cover, and earbuds together and sell them as one kit. 

However, kitting and bundling are two different things. Both include grouping items together for sale, but there is one difference. A kit is a new product altogether (with a unique SKU), whereas a bundle is a much broader concept applicable to any grouping of goods. 

Management of Kitting 

Many industries can take advantage of kitting services. In-depth, the details may vary from company to company, but here’s the basic outline of it. 

  1. Identify the kit contents 

Various factors will influence this selection. For instance, some businesses may consider combining products consumers frequently purchase. Others may provide new products they wish to showcase, whereas some would concentrate on older and slow-selling products they need to get rid of.

  1. Determine who will put the kit together. 

Businesses have the choice of piecing the kit together or hiring a private kitting contractor who will ship and label the finished version. 

  1. Allocate a new SKU. 

The kit receives a new product number, which enables the business to monitor sales and inventories.

  1. Sort the goods

Businesses may preassemble the kits or place the kit’s parts next to one another in the warehouse to improve picking efficiency.

  1. Shipping

Finally, the final step in the kitting is the shipment of the kit prepared to the customer. So, gather the kits and send them to the customer who placed the orders. 

Benefits of Kitting Services

If executed properly, companies can benefit in many ways from kitting services. Among many, these are some of the prime benefits you will notice right away. 

  1. Minimal Errors

The chance of mistakes that can happen when separately choosing and packaging the goods is less because all the components in the kit are predetermined and frequently preassembled. 

More precise order fulfilment can increase customer satisfaction while saving the organisation money since it processes few returns.

  1. Faster delivery  

Because staff don’t have to spend time searching for, selecting, and packing the separate components of the kit, businesses can process orders swiftly.

  1. Reduced shipping charges. 

Because sending numerous things in one box is typically less expensive than shipping each item separately, you can cut down on overall shipping costs. 

  1. Increased sales revenue 

Businesses that use kitting services can enhance the average order value and boost overall product sales. At the same time, buyers receive greater value because buying the kit saves them money compared to purchasing the products separately.

  1. Better utilisation of warehouse space. 

By combining items into kits, you may use less packaging overall, which frees up space for storage in the warehouse. 

  1. Reduced labour expenses 

Fulfilling orders take less time for employees than choosing each item separately. As productivity rises, labour expenses per order fall.

  1. Clears slow-selling products

Businesses can clear less-popular products by pairing them with trendy ones. Based on the popularity of your popular products, the failed goods can also become eligible for sale. This creates both revenue and storage space. 

Final Say

Kitting helps producers simplify and accelerate the order fulfilment process. Producers from almost all industries can use this service to enhance their business operations, be it automobiles or packaged foods. 

In a nutshell, every business depends on customer satisfaction and kitting services can be of great help in this regard. You can either create these services yourself or outsource them. For most businesses, outsourcing has proven to be a more viable option. 

Do you wish to know more about outsourcing kitting?

Get in touch with Efficient Services Group. They offer a broad range of services—fashion warehousing and distribution, pick-and-pack services, garment steaming, kitting, and more. Consider talking to a professional and communicating your specific needs to get a customised suggestion. 

We hope you consider incorporating this revolutionary strategy into your business and give your customers a satisfying shopping experience.

Fashion journey as a small manufacturer in the 1990’s upon stepping foot onto Australian soil. As manufacturing moved offshore, the business adapted and evolved to become today’s Melbourne’s best garment finishing and distribution provider.

Being a part of the ever-evolving fashion industry, every day is a challenge, with decades of experience we take up these challenges and provide you the best warehouse solutions for your supply chain. Call us now!

As the owners and operators of the business, our hands-on approach has enabled us to enrich our knowledge and increase our mastery in distribution across all fashion markets, from high-end apparel to a volume product line for Kmart, and Big W. We service manufacturers, wholesalers, and retailers and have extensive experience processing for reputable brands including Mossman, Kookai, KSCY, Basque, Portmans, Blazer, Reiss, Ginia, Talulah and Majestic Athletic just to name a few. We have solid experience in distributing to Amazon, The Iconic, Catch of the Day, Nike, Rebel Sports, Platypus, Footlocker, Myer, David Jones, Big W, Kmart, Harris Scrafe, Ozsale, TkMaxx, Woolworths, Coles, Chemist warehouse, boutiques stores and households across the globe. Yet specialized in Apparel we also process many more products including accessories, footwear, headwear, jewelry, cosmetics, toys and more. Our distribution competencies are beyond Fashion!