Moving toward lean manufacturing is a great way to improve production and reduce waste. A good chunk of time is spent placing orders, waiting for deliveries and storing inventory. With kitting services, you can streamline all of these processes. Suppliers combine certain parts, like class C components and fasteners, so you can significantly reduce the number of stock keeping units (SKUs). This will allow you to track inventory per package rather than checking each individual part. One of the best parts of this service is that you'll be able to just grab kits for a build instead of counting out each individual item, which can eat up valuable time. Kitting services can make for more cost efficient manufacturing in a variety of ways.

Less time to order
Whether your purchase orders consist of five or 50 different parts, it can be time-consuming to individually list each specific part, especially when you are ordering the same items regularly. To save time, kitting services may prove useful. This method of order fulfillment can make it easier and faster to place orders, leaving more time for factory employees to build your products. Plus, lead times can be significantly reduced if you have in place a vendor managed inventory (VMI) program with your supplier.

Easier to pick inventory
Some build lists may only consist of a dozen parts, but if you're build is large, counting out all the individual class C components and parts can be time-consuming. Sending a worker back to inventory in the middle of a build is an issue that can increase the likelihood of human error and eat up time. When your inventory is already parsed out into pre-counted kits, it's a lot easier to make sure you have the right amount, and pulling bags of parts off the shelves instead of collecting all the individual pieces has the potential to cut this step of the process down significantly.

Reduced costs
By prepackaging groups of parts and components, suppliers are able to reduce the cost on their end, and that savings can be passed on to you. Practical Ecommerce pointed out that kitting services may allow suppliers to save on fulfillment fees, postage and other shipping costs. For instance, the source pointed out that assembling large lots of prepackaged orders reduced the cost of labor and saved time versus assembling orders individually. Shipping in larger batches may help vendors reduce their own costs, allowing them to offer you a discount on services as well.

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Kitting Case Study

An aftermarket automotive parts manufacturer provides a list of hardware items for the installation and set-up of their equipment. This was challenging and time consuming as the list of items varied with different machines. On select kits, internally they would add additional non-hardware items to the kits prior to sending to the field...

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