Many consumers appreciate the convenience of ordering products that go together in an assembled kit. This is true for many types of products and for things that consumers buy regularly, they can order things as a subscription that is delivered at determined intervals. Products that are sold kitted, or assembled, or as a subscription service are often handled by a Third-Party Logistics (3PL) company. This includes a variety of products such as personal care items, food and beverages, technology items or clothing.
Retail businesses and manufacturers often find great value in outsourcing kitting and assembly to third-party logistics companies. Some 3PL companies perform additional assembly processes as well as keeping track of inventory and shipping, although contract kitting companies can play a big role in helping 3PL companies meet their production and shipping demands.
What Is Kitting and Assembly?
Kitting and assembly is big business for retailers and e-commerce companies to meet specific consumer demands. Kitting is the process of combining related goods together into a grouping that creates a new SKU, ready for shipment. Various products are grouped for kitting such as subscription boxes, tool or hardware kits, first-aid kits, cosmetics, and more.
Contract assembly is the process of taking various products and assembling them together such as mechanical assembly operations, single or multiple step assemblies, assembly with complete packaging ready for shipping and customized, specific assembly procedures that create a final end product. Whether an e-commerce company or a 3PL provider, working with an experienced contract kitting and assembly company can provide many benefits.
Benefits of Outsourcing Kitting and Assembly
Outsourcing kitting and assembly procedures to an experienced contract kitting company can provide many benefits that increase productivity and profitability. An experienced contract kitting company has the resources in place to perform these processes efficiently and timely. Contract assembly companies utilize sophisticated software programs to keep track of all incoming material for full traceability and accountability.
With plenty of capacity to set up customized assembly stations and a staff trained in performing high-quality kitting and assembly processes, contract assembly companies help e-commerce and 3PL businesses meet demanding shipping requirements.
How to Select the Right Company to Outsource Kitting and Assembly
There are several things you should look for when selecting a company to outsource your kitting and assembly processes. Some of the most important considerations include:
Experience – the company should have experience in kitting and assembly with references, current or past comparable projects.
Resources – an experienced kitting company should already have the facility with capacity, the people, and the processes in place to meet your needs.
Inventory management – strict management of customer supplied materials with full traceability and inventory control is a must when outsourcing product kitting or assembly. Ask about the type of system used and whether or not they have ERP capability. Most companies today will use barcode traceability with the ability to scan products anywhere in the supply chain.
Quality control – what type of quality processes does the company follow and are they registered to standards like ISO9001:2015? Ask if they create specific work instructions for your process and how they can ensure those are followed?
Lead time – what is the company’s history with on-time delivery and how can they ensure meeting your production demands?
Packaging experience and flexibility – does the company have the resources to efficiently package all finished products and ship to your specifications?
Peoria Production Solutions, PPS, provides all these capabilities and more, with over 80 years of experience in meeting contract kitting and assembly requirements. We are an ISO9001:2015 registered company, with a large, modern facility, automated equipment, inventory control with ERP full product traceability and a skilled staff.
PPS is a leading Midwest contract kitting and assembly company, providing production solutions to companies of all sizes including Fortune 100 companies. We provide experienced kitting and assembly solutions with a trained staff and automated equipment. Contact us to learn how to increase your productivity and add value with cost-efficient, contract kitting and assembly services to meet all your 3PL needs.
Outsourcing your kitting, assembly, or packaging processes may seem like a foreign idea with a lot of unknowns. For small to medium sized companies particularly, those who have invested in staff, inventory, and training to sort, assemble and package their products, it may seem like a large task to start outsourcing this part of your business. The truth is, once you speak with an experienced kitting and packaging company, you may wonder why you didn’t outsource years ago.
Debunking the Top 5 Myths About Outsourcing Kitting and Packaging
Businesses spend a lot of time developing their products, with efficient production methods and quality control. When it comes to packaging for inventory or sale, this is one area that requires just as much attention but can unfortunately be an afterthought. Most companies and manufacturers are experts at what they do, the same goes for kitting and packaging companies.
By outsourcing to an experienced contract packager, you can actually improve your productivity and profitability by focusing on what you do best. Here are some of the top 5 myths that may prevent some companies from realizing the many benefits of outsourcing:
Myth #1: Outsourcing is not worth the hassle
It may seem like a giant task to pack up your products and ship to a skilled kitting and packager, although with the help of experienced contract packagers, this can be streamlined and simple. Peoria Production Solutions has been streamlining kitting and packaging processes for companies for more than 80 years. We can show you how you still have complete control of your inventory even when not on your premises. PPS keeps meticulous track of all customer supplied material with lot code traceability and strict quality control measures. Once this task is relieved from your in-house processes, you realize just how much time is opened up to focus on your niche market. This, to us, is no hassle at all, just smart business.
Myth #2: Outsourcing is only for large companies, not small to medium sized businesses.
We hope you realize the myth in that statement immediately. Nothing could be further from the truth as small to mid sized enterprises (SMEs) play a major role in the economy and help to drive innovation. SMEs focusing on producing their goods or providing their services greatly benefit by outsourcing kitting and packaging to continue to grow their business with a trusted packaging partner on their team. In fact, we might go so far as to say that outsourcing can help the SME as a bridge that allows you to grow your business and take your company to the next level.
Myth #3: My customers won’t like us outsourcing.
An experienced contract packager like PPS can have your products kitted, assembled, and shipped back to your plant without anyone knowing. In fact, you will have more products ready to ship sooner, your customers will be nothing but happy. As an ISO9001:2015 registered company, PPS takes pride in efficient operations and on-time delivery. We can package your products discreetly and to your specifications. We also specialize in creating display ready, secondary packaging, You receive your products fully assembled and ready to stock the shelves.
Myth #4: My kitting, assembly, or packaging operation is too complicated to outsource.
A seasoned kitting and packaging company has seen it all, from numerous bags of small parts to keep track of, organize and assemble to display ready packaging. PPS offers more than 80 years of experience in kitting, assembling, and packaging your goods to your exact specifications, no matter how many parts or components. We can offer suggestions to improve your packaging with the most cost-efficient solutions available.
Myth #5: Outsourcing Kitting Is Too Expensive
When considering the total cost to perform kitting, assembly and specialized packaging in house, most companies realize a cost savings by outsourcing. Consider not only the labor and cost of materials for your process, but the space and capacity that could be used for your production instead. Time and space both have value, be sure to optimize yours to the fullest.
Speak with an experienced contract kitting and packaging company at Peoria Production Solutions. We provide solutions to help you meet your production needs with high quality kitting, assembly, and packaging delivered on time.
Peoria Production Solutions offers contract assembly, kitting, and packaging from a skilled and experienced workforce. We offer more than 80 years of experience in meeting companies’ specific production needs. Contact us to learn more about the many benefits of outsourcing your secondary operations such as kitting, assembly, and packaging.
It really does not matter what you are selling, great packaging is important for businesses and consumers. Manufacturers rely on sturdy packaging to protect their products during storage or shipping. Consumers expect packaging that protects the products until they receive them and so much more.
Packaging today must be sturdy and protective, with marketing that appeals to consumers in clean and attractive bags, boxes, or assembled kits. To be competitive in today’s eco-friendly environment, companies must also use packaging that reduces waste and contributes to their corporate and social responsibility. In addition to these considerations, companies selling assembled kits need efficient packaging solutions that aligns with their goals to:
Protect products
Meet marketing demands
Produce minimum waste
Cost effective assembly
Companies that address all of these considerations are more likely to experience brand success and consumer loyalty. Companies must ask themselves today how to deliver their products with appealing wrapping or gift packaging, with recyclable materials, and at the lowest possible cost. Answers to these questions provide a good foundation for the right kitting and assembly services to meet your business model for profitability and consumer satisfaction.
Consider Cost-Efficient Pre-Assembly for Kitting
Companies selling various products that require kitting such as cosmetics, tools and hardware, arts and crafts, and any other combination of products grouped together require an efficient method of kitting and assembly. Take a makeup kit for example, while many products must be assembled into appealing gift packaging, several of those products may require individual wrappings such as eye makeup enclosed in protective cello bags prior to assembling in a kit.
Protective and appealing kitting may require pre-assembly of some products prior to final assembly. You need a custom contract wrapping and packaging specialist with experience in kitting and assembly, including pre-assembly. This saves companies money when they can rely on one wrapping and packaging company to pre-assemble certain products and then perform the final gift packaging assembly as well.
Peoria Production Solutions Provides Packaging and Kitting Solutions
Peoria Production Solutions, PPS, has been providing kitting and assembly packaging services for more than 80 years. We offer a modern facility, a highly trained and skilled staff dedicated to a high attention of detail for total customer satisfaction. PPS follows a strict quality policy as part of our ISO9001:2015 registration, practiced with top-down involvement with all employees committed to continual improvement and a job well done.
We focus on training and employee development, lean processes with value stream mapping, and cross training that eliminates potential bottlenecks. Our Enterprise Resource Planning (ERP) system tracks all incoming customer supplied material with lot code traceability and full accountability.
PPS offers secondary and specialty wrapping, packaging, and assembly to meet kitting needs for companies of all sizes. We provide secondary production and packaging solutions to some of the largest Fortune 100 companies and manufacturers with high quality and on-time delivery. Contact us to learn more about improving your packaging with great kitting and assembly services.
