What is Kitting and how is it used in the Industry?

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Kitting is the process of placing two or more items together to form one group of product, to be sold as one single item. Inventory updates itself by accounting for each individual part and crediting the whole it as a unit. Kitting is good for business because it helps to save the business time and it saves the customer money. Putting components into kits saves money because the seller would give a discount off each part. Thereby instead of selling each part at a certain price, the seller would discount each part and put it together in kit form to sell it as one unit.

If you think about it, you as a manufacturer also save on money because when you go to purchase the parts needed to assemble in your factory, by getting every part in kit form saves you money as well. But you not only save on money, but you also save on time. Why? Because instead of having to search for each component separately, all you do is search in a catalogue, find the kit you need, and order it.

By having your customers order by kit you can expedite the order faster and get the purchase order to them in a more timely way. This way the whole transaction is done in a smooth, efficient way.



Next Page: What Are the Benefits of Kitting?

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