The benefits of kitting and assembly for your eCommerce business are huge.
If you work in an eCommerce business, you know that the key to success is efficiency. You need to be able to get your products to your customers as quickly and cheaply as possible. One way to do that is by kitting and assembly. Kitting and assembly can have a number of benefits for your business. Let’s learn the difference between the two first.
What is Kitting?
Kitting and assembly are two terms that are often used interchangeably, but they actually refer to two different things. Kitting is the process of putting together a kit of parts that will be used to assemble a product.
What is assembly?
Assembly, on the other hand, is the actual process of putting the product together. While kitting and assembly can be time-consuming and expensive, there are actually a number of benefits that eCommerce brands can reap by investing in these processes.
We’ve listed 8 benefits for eCom businesses which covers the kitting and assembly process in detail.
- Optimised Storage And Warehousing
Kitting and assembly can optimise your storage and warehousing. By combining components into complete kits, you can minimise the amount of space needed to store them.
Kits can also be stored more efficiently, freeing up valuable warehouse space. In addition, kitting can reduce inventory costs by reducing the number of SKUs that need to be managed.
- Efficient Production Process
Kitting and assembly can save eCommerce brands a lot of time and money by streamlining the production process. The parts are practically made readily available in a kit, the act of producing the product can become significantly quicker.
This is due in part to the idea that people in the production area won’t have to spend more energy picking and moving the parts necessary to assemble a product because everything they need is already in a kit.
- Improved Business Profitability
As eCommerce brands look for ways to improve their business profitability, kitting and assembly can be a great option. Kitting and assembly can help to improve efficiencies in the warehouse and production process, as well as improve customer satisfaction levels.
When products are shipped in individual components, it can take longer to receive them from suppliers and it can be more difficult to keep track of inventory.
Kitting and assembly can help to streamline these processes by consolidating products into kits that are then sent to the assembly line so that workers can start putting them together to create the final and actual product.
In addition, customers often prefer to receive products that are already assembled and ready to use. By offering kitted and assembled products, eCommerce brands can improve customer satisfaction levels, which can lead to repeat business and improved brand loyalty.
- Better Inventory Management
Kitting and assembly can help eCommerce brands to manage their inventory in a more efficient way. By grouping together products that are often purchased together, kitting can help to reduce the amount of time spent picking and packing orders.
This can free up staff to do other tasks, such as dealing with customer enquiries or working on new product development.
In addition, kitting can help to reduce stock levels and associated costs. By holding fewer SKUs in stock, eCommerce brands can save on storage costs and reduce the risk of obsolescence.
Kitting can also lead to increased accuracy in inventory management, as it is easier to keep track of products that are sold as part of a kit.
- Reduces Labor Cost
Kitting and assembly can save your eCommerce business money on labour costs in a number of ways. First, it can reduce the amount of time your employees spend picking and packing orders.
By having all of the items for an order grouped together in one kit, your employees can simply grab a kit and start packing. This can save a significant amount of time over the course of a busy shipping day.
Another way kitting and assembly can reduce labour costs is by reducing the amount of time spent on returns and refunds. When orders are shipped in kits, it is easy to tell if all of the items are present. This can help to eliminate the need for time-consuming refund processes.
In addition, kitting and assembly can help to improve employee morale. When employees are able to work more efficiently, they often feel better about their jobs. This can lead to decreased absenteeism and turnover, which can further reduce labour costs for your business.
- Increased Product Sales
Kitting and assembly can have a significant impact on product sales for eCommerce brands. By bundling together products that are frequently purchased together, or by assembling products that require customer assembly, eCommerce brands can make it easier for customers to find and purchase the products they need.
In addition, kitting and assembly can help to increase product sales by reducing the likelihood of customer returns. When products are properly bundled or assembled, customers are less likely to encounter problems with incorrect parts or missing pieces.
This can lead to increased customer satisfaction and loyalty, which can translate into increased sales over time.
- Faster Shipping and Reduced Shipping Cost
Kitting and assembly can save eCommerce brands a lot of time and money on shipping. By consolidating products into kits, businesses can reduce the number of shipments they need to make, which can lead to faster shipping times and reduced costs. In addition, kitting and assembly can help businesses streamline their inventory management process, making it easier to keep track of products and ensuring that items are in stock when customers need them.
- Saves Space
One big advantage of kitting and assembly for eCommerce brands is that it saves a lot of space. When all of the components of a product are packaged together in one kit, it takes up less room than if they were individually boxed. This is especially beneficial for businesses that have limited storage space or need to save on shipping costs.
Fulfilling different orders by having preassembled groups or kits carry huge benefits for eCommerce brands including improved organisation, reduced shipping costs, and increased customer satisfaction.
Kitting and assembly can be extremely beneficial for streamlining your operations and reducing waste. If you’re considering kitting and assembly for your eCommerce business, be sure to weigh the pros and cons carefully to decide if it’s right for you.
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