Kitting and assembly services provide many benefits to original equipment manufacturers (OEMs) such as reducing internal assembly costs, improving quality, efficiency and profitability.

Kitting is a fulfillment process that involves the combining of multiple SKUs into one component.

 

What are the Key Benefits of Kitting?

      • Free Up Space
        • Moving inventory and kitting services to an outside firm allows for more floor space for production needs.
      • Reduce Cost of Labor and Improve Efficiency
        • Kitting saves time and labor by ensuring components are available by eliminating “search time”.
      • Control and Reduce Stock
        • Combining products allows inventory to be reduced, which ultimately leads to better material traceability and stock control.

Contract Assembly

Contract assembly is an approach where an original manufacturer hires an outside manufacturer to produce components determined by the original OEM’s specifications.

What are the Key Benefits of Contract Assembly? 

      • Higher quality products
        • Contract manufacturers have the tools and expertise to create exceptional products that might not have been available in-house such as automated assembly tools.
      • Reduced Costs
        • Contract manufacturers use advanced technology which means outsourcing contract assembly eliminates the need for original manufacturers to invest in manufacturing instruments. Likewise, the original manufacturers do not have to hire a large staff. Hiring a subcontractor allows for the company to reap the benefits of a large workforce without spending the extra funds on staffing.
      • Saving Resources
        • Contract assemblers use lean manufacturing to help reduce waste and add value to the proper processes.
      • Industry-specific solutions
        • Experienced contract manufacturers can provide knowledge for a niche industry. The contract manufacturer’s expertise of the industry can help to negotiate prices for bulk materials which can help reduce costs.

Peoria Production Shop has been providing solutions to original manufacturers needs for 80 years. We work closely with our customers to ensure projects are completed with efficient processes and attention to detail, providing a competitive value. Visit our website to learn how our kitting and assembly solutions add value to your project.

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