5 reasons to outsource kitting and assembly
Are you finding that in-house kitting and assembly are becoming a constraint? Discover how outsourcing the processes can help your business grow.
There's never been a better time to set up an eCommerce company. With online retail at a peak, the opportunities are endless. But as your company grows, you may find yourself asking the same question over and over: should I do this service myself or should it be outsourced?
From one point of view, outsourcing fulfilment is a sign that your business is moving to the next level. It shows that you're getting enough orders that it's no longer efficient for you to handle them yourself – not unless you want to be knocked off course by endless trips to the Post Office and a house filled with Scotch Tape and bubble wrap.
However, not everyone realises the options that outsourcing fulfilment can give them. It's not just that your items will be stored in a state-of-the-art warehouse where they're picked, packed and dispatched.
Third-party logistics companies (3PLs) can also help you with kitting.
What is kitting? It's when you combine different products into a single kit that has its own SKU. Kitting can be a great way to boost sales, simplify inventory and reduce paperwork. But if you're doing it all yourself, it can quickly become a headache.
At Stowsafe Fulfilment, we don't just store your products in a clean, well-maintained, secure, modern facility. We also provide kitting services. Working with us means that you can focus on all the other things that will make your business grow – from research and development to web design and branding.
So, without further ado, here are five reasons why you should consider outsourcing kitting and assembly.
1. It saves money
This is the big one. If you do your own kitting, you have to pay for your own warehousing, tools and time. If you're just starting out, this can be a viable option. But as you grow, you may find yourself wanting to unlock cost savings with a third-party kitting partner.
An established 3PL will have invested in warehouse space, equipment, technology and staff, meaning you don't have to. They'll be buying packaging materials at competitive prices. And they'll be offering the use of this infrastructure at affordable prices.
If your business is growing but not yet big enough to have its own infrastructure, it's a no-brainer.
2. It allows you to focus on building your business
Anyone who's built a business from the ground up knows just how many plates need to be kept spinning at once. Meetings. Marketing. Budgets. Inventory. Product development. The list goes on.
It's not for nothing that burnout is common among small business owners. There's simply too much to pack into the day, especially if you want to see your family, read a book or get to the gym.
This is where outsourcing comes in. It lets you streamline your own operations by leveraging an existing workflow. A fulfilment partner will have all its processes in place to ensure that kitting is smooth and accurate. You just have to get your stock ready – then you're free to work on your next email campaign or product range.
3. It's flexible
Outsourcing is all about flexibility. Unless you're a big-name brand selling a staple product, demand will go up and down across the year. In a crowded retail landscape, that's up there with death and taxes on the inevitability scale.
Seasonal fluctuations can be predicted, up to a point – more staff on hand at Christmas, for instance. But there are so many variables that it can be difficult to know how big a team to have across the year.
If you manage your own kitting, this means you're either overstaffed or understaffed, with maybe 10 minutes in every month when you've got just the right balance of work and staff.
A good 3PL will scale up and down with ease. When you initially approach a 3PL, make sure this is on the cards from the start. Scalability is the point – it needs to be able to respond to your changing needs without missing a beat.
4. It can help boost your branding
One thing that startups and small businesses sometimes overlook is the role that deliveries can play in marketing. A parcel isn't just a receptacle for your products. It's a mini-advert on your customer's doorstep, whether you're using custom labelling and packaging or including marketing flyers.
This is something that a 3PL can help you with. A good partner will have the processes in place to meet your requests and maximise your packaging.
5. It can put paid to shipping mistakes
A shipping mistake isn't the end of the world – in fact, as we've written elsewhere, a robust returns policy can do wonders for customer retention.
Nevertheless, you want to keep errors to an absolute minimum. If kitting is just one item on your to-do list, you're more likely to mess up – that's just a fact.
A good 3PL, by contrast, is dedicated to shipping and handling. Outsource kitting and be confident that your customers will be satisfied with their deliveries.
Final thoughts
Kitting can play a vital role in your order fulfilment process. But many companies find themselves outgrowing an in-house solution, yet still not big enough to justify their own premises.
If this sounds like you, outsourcing your kitting and assembly could be a real help.
It can save you money, free up time to focus on your business objectives and improve customer satisfaction. Not only that, but it has a flexibility and scalability that's hard to replicate if you're doing everything from your home office.
Interested?
Get in touch today – we'd be happy to talk you through your options.
