5 Ways that Kitting Saves You Money on Order Fulfillment
Want to know the secret to cutting costs on order fulfillment? Big businesses like Ikea use this technique every day to create more efficient and streamlined businesses, and you can too. The secret to these savings is kitting: packaging up the individual parts of a product into a single package that is later put together by consumers.
Here are five ways that kitting can save your business money on order fulfillment:
- Assembly is faster. It’s much faster and therefore cost efficient to package up your products into kits than it is to assemble them on site. The entire assemble process is basically outsourced.
- Shipping is easier. Remember Ikea? Their revolutionary flat pack design made the shipment of bulky furniture items much easier and more cost-efficient. This saved them the price of warehousing costs and saved consumers the price of shipping. What once could only be shipped in a big truck could now be fitted into many mid-sized vehicles and SUV’s and taken home by customers.
- Less packaging. Costs of packaging are greatly reduced when you kit items, as you will not be shipping bulky, already-completed items that could be damaged more easily in transit. Kitting also ensures a uniformity of packaging so that you can save on the cost of individually wrapping items.
- Reduced inventory costs. Kitting up projects instead of storing the components individually can reduce inventory costs by consolidating space and freeing up square footage for new products or business endeavors.
- Increased productivity. Kitting a product – whether that’s furniture or a media kit – can also increase the productivity of your staff. Time spent kitting is far less than time spent assembling items, so you can put employees to work doing other tasks.
Are you ready to start cutting costs with kits? At Ohio Valley Goodwill Industries, our motivated workforce is standing ready to kit and ship your items. Best of all, by working with us you support the greater Goodwill mission to employ veterans and people with disabilities in our communities. See our facilities and meet our workforce for yourself with a free tour.