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Benefits Of Outsourcing Kitting To A 3PL

Kitting is a significant characteristic of a company’s fulfilment process. When clients constantly order the same group of items, kitting helps handle such situations. You can sell the combination as a solo product by grouping the items into one distinctive Stock Keeping Unit(SKU). Kitting allows you to bundle the products in your warehouse rather than searching for individual items when fulfilling orders. This helps locate and ship items more easily and quickly, lacking the requirement to bring them together after placing an order. 

Kitting can optimise supply chain management, minimise material, labour, warehouse, and shipping costs, and create a resourceful fulfilment process that leads to faster and more cost-effective fulfilment. We take pride in Prolog’s positive impact on clients.

Custom Kitting

3PL services from Prolog Fulfilment are used at various parts of the production process.

  • Used in storing inventory parts.
  • This is for the production and assembly of parts into sets.
  • Delivery of kits to the manufacturer is done by 3PL on time. This is also a “just in time JIT” delivery.
  • By using supplied kits, the manufacturer’s connection builds the final product.
  • Custom packaging of final products is also done by 3PL and then delivered to their final destination.
  • Prolog fulfillment plays a crucial role in improving time and custom kitting services.
  • For bundling multiple products into a single package for sale.
  • The pre-gathering of products is done to accelerate the final collection process for customers.
  • Labelling to products or kits that include barcodes, branding materials, or regulatory labels has been added.
  • Inspection of products is done to ensure the quality standards of products during kitting. This inspection checks defects and compatibility of bundled items.

Benefits Of Outsourcing Kitting to a 3PL

The following are the benefits of outsourcing kitting to a 3PL provider:

Faster Shipping

E-commerce businesses need help meeting customer expectations by proposing quicker and more dependable shipping options. Kitting in bulk for widespread product combinations, restructuring operations, and improving warehouse staff productivity are the sole approaches to improving shipping time.

By outsourcing order fulfilment to Prolog fulfilment, you’ll be able to complete the kitting of your orders much more cost-effectively. With the availability of efficient, cost-effective, and quick shipping of products upon order, ensuring timely delivery can be done by partnering with a 3PL with expertise in picking and packing.

Reduce Overhead Costs

Fulfilling orders in-house can incur overhead expenses like IT management systems, staff, storage space, and specialised equipment. This cost can increase through acceleration when handling kitting operations. To reduce costs significantly, having a 3PL handle kitting and assembly operations is an optimal solution.

Fulfilment companies are proficient in handling these operations and likely have the necessary infrastructure, so it is less costly to have them hold it instead of setting it up yourself. A well-established 3PL will have valuable historical intelligence and data on market conditions and be able to respond quickly without needing to adjust your monthly costs grossly.

Scalability

E-commerce businesses face seasonal fluctuations in product demand. This necessitates optimising warehouse space, staff, and inventory management. Hiring staff and acquiring storage space for increased demand is unrealistic because it would result in vacant warehousing capacity and excessive staff. If sales decline, businesses will have unused capacity and too many staff on the payroll. 

You’re primarily growing your business and implementing scalable solutions that can adjust to changing environments, allowing you to stay flexible even if product demand swings. At Prolog fulfilment, we usually work with multiple companies at a time, so it can scale up or down depending on the changes in the marketplace, whether positive or negative. By working with 3PL kitting services, you can successfully meet sudden outpourings in customer orders and turn the risks linked with seasonality into an opportunity.

Kitting Material Costs

The capability to gain and manage materials for kitting and packaging at a fraction of the cost of doing so in-house is one of the most cost-effective benefits of 3PL services. Performing kitting for many clients builds a network of vendors, which results in obtaining materials in bulk and lowering the cost.

This is especially valuable if you offer subscription boxes or use branded packaging. The cost savings are then passed along to you, which helps increase your overall profit margin.

Bottom Line

Kitting and assembly play an integral part in order fulfilment. At an ineffective and efficient cost, the 3PL order fulfilment company proposes access to its skilled staff with expertise in offering kitting solutions and other fulfilment services. Furthermore, it provides a real-time track record of your orders and infrastructure and a streamlined process for smooth order fulfilment.

They facilitate smooth order fulfilment with skilled staff and real-time order tracking tools. Knowledge of benefits is vital in making decisions like handling them in-house or outsourcing them. Prolog Fulfilment offers value-added services like kitting, assembly, postponement work, and customised fulfilment solutions for high-growth brands.

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