If your business offers any type of kit or needs to assemble multiple items in one box for shipment, then you already know just how complex and time-consuming it can be. Having the right amount of inventory on hand can be difficult to predict, and the labor-intensive process of assembling several different items into one box can have a big impact on your productivity.
When it comes to kitting and assembly, outsourcing is usually your best option for several reasons. In today’s blog from The Marco Corporation, we want to discuss the many benefits of choosing an experienced partner to help with this function. Keep reading to learn more.
What Are Kitting and Assembly?
In the most simplistic terms, kitting involves bundling two or more items together into one shipping container that is sold as a single item. By combining items in your inventory you can create sets, subscription boxes, and offer special deals. Assembly is similar to kitting, but instead of putting together multiple items to form a kit, it is usually used to refer to the process of assembling multiple items within one order to prepare it for shipment.
There are many products that require kitting and assembly services, some of the most common include: subscription boxes, nutritional supplements, and cosmetic and beauty products.
For many businesses, kitting adds to an operation’s complexity and creates inefficiencies. First, there’s the issue of needing ample space to bring out the variety of components that need to be put together. Then, there’s the issue of slowing down the production line. Kitting and assembly take more time, often have a higher rate of quality issues (which then need to be reworked), and reduces the total output of the line.
Why You Should Consider Outsourcing Kitting and Assembly
Taking on the responsibility of kitting and assembly can be a drain on resources and it can bog down an otherwise efficient operation. Outsourcing these functions may be just the solution to being able to do more and grow your business without eating away at your margin. Here’s how:
Free Up Space
There are few operations that have more space than they need. Real estate comes at a premium, and it’s necessary to use every square inch efficiently in order to make ends meet. Kitting requires extra space that most businesses just don’t have. If you do have the space, it makes more sense to use it to support your lower-cost, high-margin operations.
Kitting and assembly usually take more time and labor to accomplish. It’s different from production lines that practically run by themselves with just a couple of seasoned employees performing one or two simple tasks over and over. By nature, kitting and assembly are more complex and require more attention to detail and these things will slow down your operation. Keep your core functions running at top speed by outsourcing more labor-intensive ones.
Most businesses are equipped to handle normal demand fluctuations, but fluctuations in demand for kitting and assembly services can put you in a bind. Because these functions take more time and require more people, a significant jump in demand, say, at the holidays, can make it extremely difficult to find enough space and source the labor you need to accomplish it. By outsourcing, these services can be scaled up or down much easier than if you were to try to do it in-house.
As mentioned previously, kitting and assembly require attention to detail. It’s a more complex process so there is a greater chance for errors. For employees who are used to working on a production line that creates just one type of widget, transferring them to the more complex kitting process may not produce the results you’re looking for. Although employees can be trained, this process takes time and more resources — two things that most businesses can’t sacrifice.
Get Help From the Fulfillment Experts at The Marco Corporation
Finding the right partner to help with kitting and assembly services can make all the difference for your business. At The Marco Corporation, we have the resources to meet the needs of your business with efficiency and precision. Learn more about how we can help by contacting us today.
About The Marco Corporation
The Marco Corporation is a full-service solutions provider based in North America. We offer a wide range of services that span the functions of warehousing and distribution, fulfillment, co-packaging, merchandising, e-commerce, and more. We have over 250,000 square feet of distribution space and the capacity to meet the needs of businesses of all sizes.
We understand that no two businesses are alike and that’s why we also offer customized programs that are aligned with your goals — so you can get just the right help you need when you need it. At The Marco Corporation, we offer a personalized approach with large-scale capacity. Visit our website or contact us to learn more.