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Kitting and assembly services streamline packaging, reducing handling time and speeding up delivery. This makes it a pivotal service for efficient and seamless supply chain movement. When done right, these processes positively impact a company’s distribution of goods and keep business partners satisfied. Read on to discover the basics of kitting and assembly, how they work, and the benefits of outsourcing them to a trustworthy 3PL.
Kitting and assembly services are two terms that often come up in supply chain management. They refer to distinct processes that play crucial roles in ensuring an efficient logistics structure.
Kitting involves compiling individual but related items into a single package. Each item is already a finished product, but they’re packed together because they’re typically sold as a set.
One good example is packaging a smartphone, charger, earphones, and a protective case in one box. The idea is to have all the necessary components readily available in one package to simplify distribution and selling.
Assembly in logistics means putting together various components to produce one finished product. It can range from simple tasks like assembling promotional packages to more complex procedures like building machinery or electronic devices.
For example, Buske Logistics assembles promotional packages for companies like Coca-Cola and Starbucks. This ensures that all components are meticulously put together to create a cohesive and attractive final product.
The steps involved in kitting and assembly are similar. Most of the procedures can also be performed in warehouses, which helps save time and money. 3PLs that offer warehousing solutions often provide kitting and assembly as value-added services.
Here are the steps that go into warehouse kitting and assembly:
Partnering with a 3PL provider for kitting and assembly services offers numerous advantages, including:
Outsourcing kitting and assembly tasks to a 3PL can significantly reduce labor and operational costs. A 2015 Armstrong & Associates study revealed that outsourcing logistics operations led to an average of 9% cost savings while improving inventory management by 15%.
By leveraging the expertise and resources of a specialized provider, businesses can save on hiring, training, and managing additional staff dedicated to these tasks.
For example, outsourcing a consumer electronics company's kitting and assembly processes could eliminate the need for a sizable in-house assembly team and reduce labor costs. It could also help the company save on operational expenses for maintaining a large assembly facility.
Leveraging the expertise of an experienced 3PL will help streamline kitting and assembly processes for business. It can result in reduced turnaround times and improved supply chain speed.
For example, pre-assembled kits streamline the supply chain process, ensuring faster fulfillment. The study from DiVA Portal evaluates the implementation of kitting in high-variation assembly lines using a case study at Caterpillar BCP-E. The research highlights that kitting can reduce lineside storage and operator walking times, thus improving efficiency.
Additionally, the cost and time savings businesses benefit from partnering with expert 3PLs may explain the trend in outsourcing logistics. The 2020 Annual 3PL Study revealed that 73% of shippers outsource warehousing, while 21% use order management and fulfillment services of 3PLs.
The expertise and resources of trusted 3PLs allow them to easily scale operations to meet changing business needs. Additionally, 3PLs can deliver tailored solutions that meet specific needs and deadlines.
For instance, a fashion retailer may experience a surge in demand during the holiday season. By partnering with a 3PL, they could quickly scale their kitting and assembly operations to fulfill large gift set orders.
With a 3PL provider, a fashion retailer can handle the increased volume without investing in additional permanent staff or facilities.
Professional 3PLs bring specialized knowledge and experience to the table. They adhere to stringent quality control measures, ensuring every kit or assembled product meets your specifications and standards.
Instead of investing in costly permanent storage buildings, companies enter into contractual agreements with 3PLs for warehousing. Expert 3PLs also offer handling and distribution of goods and value-added services like kitting and assembly.
Contract warehousing providers offer various value-added services to enhance their clients' supply chains. These include packaging and labeling, which ensures products are retail-ready or meet specific shipping requirements. They also provide pick-and-pack services for efficient order fulfillment, cross-docking to minimize storage time and speed up deliveries, and quality control to ensure products meet standards.
Additionally, they handle reverse logistics for returns and refurbishments and offer customized reporting and analytics to provide insights into inventory levels, order statuses, and overall supply chain performance.
No, logistics and delivery are not the same. Logistics refers to managing the flow of goods from the point of origin to the end customer. On the other hand, delivery is the final step in the logistics process, involving transporting goods to consumers.
Finding the right 3PL partner is crucial to achieving efficient kitting and assembly operations, leading to a successful supply chain. Contact Buske today to learn how we can support your business with comprehensive kitting and order fulfillment services.
