A kitting process in manufacturing is when a collection of parts and materials are grouped together in a single kit that has its own SKU number. These components are then delivered directly to the point-of-use, usually a specific part of the assembly line. It can help to think of kitting as pre-washing plates for a dishwasher, or how a hygienist will clean and prep your teeth before the dentist shows up. Making use of a full kitting process in a warehouse can be an impressive boon to your operations and efficiency. Here’s why.
Reduces Warehousing Requirements
Warehousing and distributions services base their costs in part on how much space your items take up. A kit containing multiple items with a single SKU will not only take up less shelf space than items stored separately, but it is considered a single item for shipping costs as well. Kitting processes in warehousing also introduce a useful level of standardization into the supply chain that helps simplify cost modeling. After all, the contents of each kit are predetermined, which makes calculating and predicting costs much easier than if the components had to be drawn separately. Kitting also makes it a lot easier to track inventory levels since you only have one item to focus on.
Enhances the Manufacturing Process
For manufacturers, the key benefit of kitting is that it reduces material handling and processing times at the point-of-use. Think of it like cooking. Without kitting, you are spending time finding each ingredient or utensil as the recipe calls for it. With kitting, you have everything you need arranged by the stove and you can get down to business without interruption. Kitting also reduces the number of deliveries to the point-of-use and the material storage space needed for assembly lines.
Better Inventory Control
Let’s continue with the cooking analogy for a moment. Imagine if your recipe calls for some milk. Without kitting, you’d go to your fridge and get the milk, except you suddenly discover that the carton is leaking or worse, the milk is expired. Now you have to delay carrying out the recipe to get a replacement. Alternatively, you might find out that you don’t have any milk at all or are running low and will need to get more in order to finish the other recipes you have planned later in the day. With kitting, both of these scenarios would not occur. This is because any shortages or quality-control issues would be resolved prior to this point when the kit is first assembled.
Look to Lean Supply Solutions for Kitting and Order Fulfillment Services
Lean Supply Solutions is a third-party order fulfillment company in Toronto whose operations are based around the Lean Methodology, a proven philosophy focused on eliminating any operations, equipment, or resources that are not capable of adding value to our clients’ supply chain. By striving to ensure that the right products are provided to the right customers at the right time, Lean Supply Solutions is able to offer consistent, accurate, and quality results. To learn more about the Lean Methodology, outsourcing to Lean Supply Solutions, or to ask any questions about kitting and fulfillment services, give us a call at 905-482-2590.