Kitting is a great value-added service as it combines existing product into new configurations that allows for customers to select their exact specifications needed. And you don’t need to have any additional hands to make it happen when you work with a third-party logistics provider. But that’s just one reason why you should add it to your list of outsourced logistics tasks. Here are some more:
Create New Business Opportunities
Value-added services can significantly improve your supply chain operations in several ways. Kitting is a great opportunity because it allows companies to offer more product customization and configurations that weren’t previously available without needing to design and manufacture more products. In some cases, adding a high-ROI product with low volume output into a kit with some of your most popular products can increase profit margins, as customers are likely to flock to what they perceive as a good deal. It creates additional options for your customer to get exactly the products they like while offering suggestions to add to their cart.
With a third-party logistics provider managing a streamlined process for assembling different product bundles, order fulfillment becomes quicker. Which creates a more efficient and smooth purchase experience for your customers. All the while, your business benefits from a competitive advantage!
Boost Revenue While Minimizing Costs
Kitting services are a great value-added service that can utilize resources without demanding more space in a warehouse to get it done. It’s a great way to boost revenue and minimize costs by creating business opportunities without increasing the need for additional inventory or product development. This is a win-win for businesses and their 3PL partners.
No Need for Additional Headcount
If you’re seeing a need for product kitting but are concerned that it’s too large of an undertaking, there’s great news: you don’t have to start hiring to make it possible. Working with a knowledgeable logistics partner that offers a variety of value-added services, like kitting, makes your business more flexible than ever. Building a new kit is simple when the team only needs to add another item to the existing kit, rather than ordering pre-kitted merchandise from the manufacturer. Now that’s agile. As a bonus, working with a third-party provider can get you turnkey access to other opportunities like quality inspection, barcode labeling, sub-assembly, and more.
Free Up Storage Space
If your warehouse is tight on space, working with a supply chain management team can help your team run a smooth warehouse operation by carving out space for more storage. No need to make space to handle special requests from clients. Instead, you can farm out the space to a 3PL and maximize your ROI in your warehouse by converting temp space to more permanent pallet spaces and make more money consistently.
By utilizing a partner that specializes in 3PL solutions, you give your business the flexibility to grow without putting strain on your current resources. And there can be many more benefits depending upon your needs and opportunities. To learn more about kitting and repack services, reach out to our team today