Kit smarter not harder: Pre-kitting vs. kitting to order

When it comes to subscription-based brands, customer expectations are sky-high, so getting your kitting strategy just right can make or break your operational efficiency. Whether you're a seasoned logistics pro or just starting to streamline your supply chain, understanding the difference between pre-kitting and kitting to order is essential. Let’s dive into these two approaches, uncover their pros and cons, and help you decide which is best for your brand.

The basics: What is kitting?

Kitting is the process of assembling individual items or products into a single package, often referred to as a kit, which is sold as one unit. Think of it as bundling together everything a customer needs in one tidy package. Whether it’s a subscription box, a product bundle, or a special promotion, kitting helps streamline the fulfillment process by pre-packing multiple products together, so they’re ready to ship as soon as the order comes in. It’s a smart way to keep things organized, reduce packing time, and ensure your customers get exactly what they need in one convenient delivery.

What is pre-kitting?

Pre-kitting is like having your Christmas presents wrapped and ready under the tree well before December. An analogy that might not work all year round, but it certainly does for pre-kitting. It involves assembling product kits in advance, so when orders come in, they’re ready to go. Sounds efficient, right? But, like any strategy, it has its ups and downs.

Benefits of pre-kitting:

1. Inventory clarity: With pre-kitting, you always know how many kits you have in stock. This makes managing demand easier and ensures you’re never caught short when customers start clicking ‘buy now.’
2. Streamlined fulfillment: Pre-kitting cuts down on the time it takes to get orders out the door. Since kits are pre-assembled, your warehouse team can focus on picking, packing, and shipping, rather than assembling on the fly.
3. Predictable workflow: Got some downtime in the warehouse? Use it to build kits ahead of peak times. This can help spread out the workload and keep your operations running smoothly when things get busy.

But, as with anything that sounds too good to be true, there are a few caveats to consider.

Disadvantages of pre-kitting:

1. Inventory lock-in: Pre-kitting can tie up individual SKUs in bundles, leaving you short on stock for single-item orders. This can be a real headache, especially if customer preferences shift unexpectedly.
2. Storage demands: More kits mean more storage space, which can quickly add up in costs. If those kits don’t move as fast as you hoped, you could end up with valuable warehouse space filled with unsold inventory.
3. Less flexibility: Once a kit is built, changing it can be a hassle. If a sudden trend shifts customer demand, adapting your pre-kitted stock can be both time-consuming and expensive.

Taking the agile approach: Kitting to order

Kitting to order is the ultimate in just-in-time fulfillment. Instead of pre-assembling kits, products are put together when an order is placed. This approach offers flexibility and customization but comes with its own set of challenges.

Benefits of kitting to order

1. Adaptability: Kitting to order allows you to be nimble. You can tweak kits on the fly to respond to market trends or individual customer preferences, keeping your offerings fresh and relevant.
2. Optimized inventory: By only using inventory when needed, you avoid the pitfalls of tying up stock in pre-assembled kits. This helps reduce waste and ensures that every SKU in your warehouse is working for you.
3. Scalable solutions: If your brand experiences seasonal spikes or rapid growth, kitting to order can scale with you. You’re not locked into a set number of pre-built kits, allowing you to flex your operations as needed.

However, it’s not all smooth sailing with kitting to order.

Challenges of kitting to order:

1. Longer lead times: Since kits are assembled post-purchase, this can extend your fulfillment timeline. During busy periods, this might mean customers have to wait longer for their orders - something to keep in mind if speedy delivery is a key part of your brand promise.
2. Operational complexity: Kitting to order requires a dynamic and responsive workflow. Ensuring that all the right components are on hand and that the assembly process is efficient can be tricky, especially when order volumes spike.
3. Increased risk of errors: With more hands-on assembly, there’s a higher chance for mistakes. Incorrect orders can lead to unhappy customers and the added cost of returns and replacements.

Giving a kit about which strategy to choose

Choosing between pre-kitting and kitting to order depends on your brand’s specific needs and goals. Here are a few points to consider when making your decision:

1. Customer expectations: If your customers value fast shipping and consistent product offerings, pre-kitting might be your go-to. But if they’re looking for unique, personalized experiences, kitting to order could help you stand out.
2. Demand predictability: If your sales patterns are stable and you have a good idea of what kits will sell, pre-kitting can streamline your operations. On the other hand, if you’re dealing with fluctuating demand or a broad range of products, kitting to order offers the flexibility you need.
3. Warehouse capacity: Pre-kitting takes up more space, so you’ll need to weigh the cost of additional storage against the potential benefits. Kitting to order, while space-efficient, requires a well-organized and responsive setup to avoid bottlenecks.
4. Cost considerations: Don’t just look at the upfront costs. Consider the full picture, including storage, potential stock obsolescence, and the impact on cash flow. The wrong choice could end up costing more in the long run.
5. Growth potential: If your brand is expanding rapidly or you’re expecting a surge in demand, kitting to order can provide the scalability you need without the risk of overproduction.

How fulfilmentcrowd can help

We know that getting kitting right is only half the battle. To truly deliver on your brand promise, you need a partner who can ensure that every kit reaches your customer on time and in perfect condition. That’s where our tailored solutions, like Delivery Assured™, come into play.

Delivery Assured™

When it comes to subscription-based brands, consistency and reliability are key. Delivery Assured™ is more than just a delivery service; your deliveries are tracked and monitored in real-time, ensuring complete transparency from the moment they leave the warehouse to the moment they arrive at your customer’s doorstep.

We’ve built Delivery Assured to handle the complexities of modern eCommerce. Whether you're dealing with a surge in orders or managing regular shipments, our network of premium couriers ensures that your kits arrive safely and on schedule. Plus, with our smart technology, you get instant updates on delivery status, allowing you to keep your customers informed and satisfied.

Foresights analytics

Knowledge is power - especially when it comes to optimizing your kitting strategy. That’s why we’ve developed Foresights, our advanced analytics tool designed to give you a competitive edge by turning data into actionable insights. Whether you’re managing pre-kitting or kitting to order, Foresights can help you make smarter, more informed decisions that boost efficiency and reduce costs.

For brands that rely on pre-kitting, Foresights can be a game-changer. By analyzing historical sales data and current market trends, Foresights helps you accurately forecast demand for specific kits, ensuring you’re always prepared with the right inventory levels. This means fewer unsold kits taking up warehouse space and more efficient use of your resources.

If your brand opts for kitting to order, Foresights provides the agility you need to respond quickly to shifts in customer preferences or sales spikes. The tool’s predictive analytics can identify emerging trends, allowing you to tailor your kits on the fly and capitalize on new opportunities. Plus, with real-time visibility into your inventory and orders, you can streamline your operations, reducing lead times and keeping your customers happy.

You’re not just reacting to changes - you’re anticipating them. This proactive approach to inventory and order management is what sets you apart from the competition, helping you optimize every aspect of your kitting process.

Seamless integration with your kitting strategy

No matter if you opt for pre-kitting or kitting to order, our solutions are designed to fit seamlessly into your workflow. Our platform gives you full visibility over your inventory and order processing, allowing you to make real-time decisions that keep your operations agile and responsive.

And with Delivery Assured in your toolkit, you can rest easy knowing that every kit is not only carefully packed, but also reliably delivered. Our service adapts to your needs, whether you’re scaling up for a busy season or fine-tuning your everyday operations.

Why brands trust fulfilmentcrowd

Brands trust us not just because we deliver on time, but because we understand the complexities of kitting and fulfilment in 2024 - and beyond. Our team of experts works closely with you to develop a customized solution that meets your specific needs, whether that’s ensuring the efficiency of pre-kitting or providing the agility that kitting to order demands. And with our Delivery Assured service, you can be confident that your carefully assembled kits will arrive exactly as expected, every time.

By partnering with fulfilmentcrowd, you’re not just choosing a logistics provider - you’re choosing a partner who’s committed to your brand’s success. From the moment an order is placed to the time it arrives at your customer’s door, we’re here to ensure that your kitting strategy runs smoothly, efficiently, and reliably. Bish, bash, bosh.