Kitting combines existing product into new configurations that allows customers to select their exact specifications needed. And you don’t need to have any additional capital to make it happen when you work with a rework services provider. But that’s just one reason why you should add it to your line up. Here are some more:
Create New Business Opportunities
Kitting is a great business option 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 the company’s most popular products can increase profit margins, as customers are likely to flock to what they perceive as a good deal. It allows them to get exactly the products they like while offering suggestions to add to their cart.
Simplify Inventory Management
By offering kits to customers looking for custom solutions you’re meeting their individual needs while also minimizing the overhead of inventory management. In the past, warehouses have stocked not only the individual items offered by a business, but each of their additional product configurations as well. But by reworking the individual items and kitting them into new packaging, a business can offer a kit while only needing to keep safety stock available for each of the individual products within a given kit. This makes building a new kit easier than ever, as the rework team simply needs to add another item to the kit, rather than ordering pre-kitted merchandise from the manufacturer. Now that’s agile.
Boost Revenue While Minimizing Costs
Kitting services are a great because they can utilize resources without demanding more space in a warehouse to get it done. This is even more true when kits create business opportunities without increasing the need for additional inventory or product development.
No Need for Additional Headcount
If you’re looking to add kits to your product lineup, there’s great news: you don’t have to start hiring to make it possible. In fact, there are many opportunities when working with labor support provided by a partner. Working with a knowledgeable dock support team that offers rework services can get you turnkey access to kitting as well as other rework options like palletizing, repackaging, repair services, and more.
Utilize a Rework Facility to Free Up Space
If your warehouse is tight on space, working with a dock support team with an independent rework facility can help your team carve out space for more storage. Working with a partner can bring support to your team and maximize ROI in your warehouse by converting temp space used for rework projects to more permanent pallet spaces.
By utilizing a rework service provider, your business can maximize profitability without any additional capital necessary, making it a win-win deal for logistics providers. And there can be many more benefits depending upon your needs and opportunities. To learn more about kitting and rework services, reach out to our team today.