How to keep up with this ever-changing consumer demand is often the question of retailers and e-commerce companies, and how to do it profitably is the key to business success, growth, and continuation.
Types of Kitting and Assembly Processes
Kitting is the process of grouping together similar items that are combined to make a new SKU. Kitting is a service that takes different products and puts them together in whatever packaging is dictated by the retailer for things like sample kits and bundles. Kitting is becoming very popular across many industries in everything from hardware, cosmetics, clothing, personal care items, food, and beverage products and more.
Kitting can be done in a couple of different ways. Many companies now offer subscription boxes where customers can pick and choose the items they want to arrive regularly. Other companies conduct market research to determine which products to bundle together or let consumer demand and convenience drive their kitting process, such as offering a shaving kit in addition to just a razor or shaving cream sold separately on the shelf.
Kitting and assembly, or bundles, are put together after much thought, consideration and planning based on customer or consumer analysis.
Challenges with Assembly and Kitting
Product assembly and kitting is often one of the most challenging processes for retailers or e-commerce companies. For manufacturers that focus on niche products, taking time and space in their facility to provide assembly and kitting takes away from what they do best. Assembling and kitting is normally not the main focus of most companies, which is why utilizing the services of a contract assembling or kitting company is often well worth it and can actually increase revenue.
Many companies simply attempt to perform assembly and kitting in-house because they are unaware of the many benefits of outsourcing to a contract assembling company. They might think it is too expensive or too much of a hassle to ship their products off-site for assembly and return shipping. Speaking with an experienced contract assembly company can shed new light on the many benefits of outsourcing assembly and kitting.
The biggest problem that companies run into with assembly and kitting is bottlenecks in packaging and shipping. Time is money and anything that delays shipping is revenue lost. Using company capacity and resources, including labor, to perform assembly and packaging processes not related to your niche revenue stream may not be the best solution for company growth and sustainability.
Partner with Contract Assembly Companies to Increase Revenue
Partnering with an experienced contract assembly and kitting company can provide many benefits that allow you to meet customer demand, provide customer satisfaction and improve your own company profitability. Peoria Production Solutions, PPS, has been providing contract assembly and kitting services for more than 80 years to some of the largest companies in the nation. We follow a strict quality policy as part of our ISO9001:2015 registration, practice Value Stream Mapping (VSM) and cross training of employees to eliminate any bottlenecks and ensure the most efficient process.
PPS offers the resources, the staff, a large modern facility, and decades of experience in providing quality and cost-efficient assembly and kitting of various products. Contact us to see how we can increase your revenue with cost-efficient assembly and kitting that meets your production schedule and your budget.