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What Are the Benefits of Kitting?

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There are many benefits that can be derived from kitting. Manufacturers as well as customers benefit greatly by using kitting. As a matter of fact, you will notice in certain industries, especially electronic assembly, that kitting is a standard way of ordering parts for boards. The whole thing comes together in one unit. All the employees have to do is set the board up on their desk and put the kit together. Or, if they have am machine to do it, they put the board in the machine with the parts connected to the board. The machine then solders the components to the board.

If this is another type of industry, the process may be different, but the outcome is the same – save on money by getting everything in a kit. The bottom line is savings. Now of course, there is are more benefits than this. These benefits are:

• Stock reduction: By ordering everything from a kit you have fewer inventories. This also helps save on money because with fewer inventories you don’t lose money having parts just sit and not being used.
• Stock control lessens: Another benefit to kitting is you have less concern over inventory. When you have inventory you have to control it. You have to know how much you have and when it is used up. If you are involved in kitting, there is no need for this since you have fewer inventories to control.
• Less paperwork: By using kitting, you have less paperwork. Instead of receiving multiple shipments of components with receipts in each one, you receive on one shipment with one receipt. This helps cut down on paperwork and makes the process of recording the inventory less confusing.
• Shipping mistakes: By having everything shipped as a kit you do not have that chance for error, in that one component may be missing or not arrive at all. By ordering your product in kit form you get everything in one box which saves on shipping problems.
• Less purchase orders: When you order kits from companies that carry what you are looking for, you save on purchase orders because you only have to send one invoice instead of one for each component.
• Customer retention: From each customer’s perspective, they save on money and keep you as a supplier when you constantly deliver the products they order in a timely fashion. This is what happens when they order everything in kit form. This is one of the biggest benefits you could have between you and your customer.
• Less accounts payable: By using the kitting method of shipping, you actually lessen the load on accounts payable, because they have less bills to worry about. Instead of getting many bills, they only get one bill.

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