As part of their competitive strategy, some companies are constantly looking for new ways to meet individual customer needs. Leveraging value-added solutions can be a way to position and maintain customer loyalty.
Kitting, customization, packaging, packing, labeling, crating, heavy lift handling, palletizing, replacements, reverse logistics, product reconditioning and vendor inventory management are some of the value-added services that specialized logistics companies can provide as part of a comprehensive strategy.
Some of the advantages of contracting value-added services include expanding product offerings, preparing shelves for the sourcing process, ensuring continuous improvement, managing inventory more efficiently, reacting faster to demand, managing transportation expenses, and controlling labor costs.
Are you interested in learn more? Visit our blog You need to send various products to a costumer? Here’s the product kitting solution!
As product life cycles become shorter and shorter, manufacturers and customers require more spares, replacements and new parts, leading to a greater need for warehousing. Kitting can help with this.
Kitting is a value-added service that involves bundling and assembling product parts or complete products into a single package. This process of combining two or more components is intended to reduce costs and improve efficiency.
Through kitting, time is saved and order and processes are optimized. Employees do not need to search for parts or do pre-assembly work, so the operation is cleaner and faster; they receive the kits with the necessary components at each stage of the supply chain.
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Kitting improves speed and reduces overall costs because as kits are produced, assembly time and disruptions from individual production are reduced. These kits are generally assigned a separate SKU to the one that handles the separate items. Likewise, they are stored and tracked as a single unit.
Kitting is ideal especially when you want to assemble packages of identical or similar items – to which a discount or promotion, such as free shipping, can be applied – for example, books, CDs, DVDs, skin care products, makeup, board games, video games, toys, auto parts, papers and product samples.
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When a company outsources this value-added service to a 3PL, it gets several benefits:
It gets more space as employees have what they need when they need it. They are no longer surrounded by materials and components.
Eliminates wasted time by reducing the time employees spend looking for certain parts and components because they all come in the same kit.
Improves worker safety by reducing the number of parts in the work area.
- Reduces shipping errors and ensures continuous improvement because assembly becomes a filter.
- Facilitates inventory management and invoicing by knowing which parts are needed and which should be ordered.
- Improves productivity and reduces labor costs since the manufacturing process starts outside the plant.
- Improves box flow, customization and packaging.
Reduces the number of suppliers
When kitting is implemented, employees save time picking and packing individual orders, making it possible to customize a large number of kits at once and fulfill orders quickly. This translates into a positive and efficient experience that reduces costs for both the customer and manufacturers in industries such as pharmaceuticals, personal care and some manufacturing.
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To achieve these savings, many manufacturing companies are increasingly engaging the services of a 3PL or logistics operator, such as Solistica, for its knowledge, experience and technology that ensures the highest accuracy in package assembly and its other value-added services.
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