Kitting transforms the way modern warehouses and fulfillment centers operate. By assembling related products into a single, ready-to-ship unit, businesses unlock faster order processing, reduced costs, and improved customer experiences. This guide explores what kitting is, why it matters, and the best practices driving smarter, scalable fulfillment strategies.
What Ιs Κitting?
Kitting is a powerful inventory management strategy that transforms how warehouses and fulfillment centers operate. Instead of processing individual SKUs one by one, businesses combine complementary items into a single “kit” with its own SKU, streamlining storage, picking, packing, and shipping.
From auto shops assembling full brake-repair kits to subscription brands curating monthly themed boxes, e-commerce kitting drives efficiency while enhancing customer experience. By preassembling kits, companies accelerate fulfillment, cut labor costs, and increase average order value. Whether handled in-house or through a 3PL partner, kitting and assembly unlock scalability and cost savings, helping businesses move inventory smarter, faster, and more profitably.
Read More: What Is The Difference Between Kitting And Assembly?
Kitting vs Bundling
Though often used interchangeably, kitting and bundling serve distinct purposes in commerce and fulfillment. Warehouse kitting is an operational strategy; complementary items are combined into a single SKU to streamline picking, packing, and delivery. Think of a home repair kit with all tools and components needed, or a camping set preassembled for immediate shipment.
Bundling, in contrast, is primarily a sales tactic: grouping items (not necessarily complementary), often with a discount, to increase exposure and encourage larger purchases. A holiday gift bundle or a beauty products combo illustrates this approach. In short, kitting optimizes operations, while bundling accelerates revenue.
Benefits Of Kitting
1. Lower Labor Costs
Kitting in the warehouse streamlines order fulfillment by eliminating wasted motion and repetitive searches for individual SKUs. With all required components preassembled into a single kit, employees fulfill orders faster, packaging time drops, and errors decrease. The result is higher productivity per worker, reduced labor cost per order, and the ability to reallocate staff to higher-value tasks that drive growth.
2. Better Managed Storage Space
Kitting optimizes warehouse capacity by consolidating multiple SKUs into a single, efficiently packaged kit. This reduces clutter, minimizes excess packaging, and frees up valuable storage space. For small businesses, it can eliminate the need for extra storage facilities. For larger operations, it may allow downsizing to lower-rent warehouses or repurposing freed capacity to launch new products and scale operations.
3. More Conscious & Cost-Efficient Packaging
Kitting reduces packaging waste and material costs by consolidating multiple items into a single parcel. Rather than shipping each product in its own box, you can use fewer cartons, fillers, and labels, lowering expenses while advancing sustainability goals. Over time, this streamlined approach delivers significant savings, especially for high-volume shippers, while also improving the unboxing experience for customers.
4. Faster Shipping That Costs Less
Kitting accelerates fulfillment while cutting shipping expenses. By consolidating multiple items into one preassembled package, you reduce parcel weight, dimensions, and labeling time. Pre-kitted orders also move through picking and packing faster, enabling quicker turnarounds and fewer errors. The result is leaner logistics, reduced overhead, and a more reliable, cost-efficient shipping process that customers notice.
5. More Efficient Inventory Management
Kitting simplifies inventory control by assigning a single SKU to a complete kit, reducing the clutter of managing countless individual items. This streamlines audits and cycle counts, saving valuable time and resources. With modern inventory management software, you can track both the kit and its individual components, ensuring accuracy, transparency, and tighter operational control across your entire supply chain.
The Kitting Process In A Warehouse
Here is a step-by-step guide to product kitting.
Step 1: Know Your Inventory
Kitting only works if you truly understand what’s in your warehouse. Start by organizing your inventory and using a system that tracks SKUs, item names, and storage locations. If products don’t already have unique IDs, create them. With clear, accurate records, you’ll avoid mistakes and build a strong foundation for efficient kitting.
Step 2: Decide What To Kit
With your inventory organized, the next step is choosing which products belong together. Look at items customers often buy as a set, tools or parts that naturally work side by side, or smaller products that are easily lost on their own. You can also combine older stock with new releases to boost sales and efficiency.
Step 3: Have Your Kit Assembled & SKU Labeled
After finalizing your kitting inventory, it’s time to activate it within your fulfillment workflow. While some companies assemble kits in-house, outsourcing to expert kitting services, like Nimbl Fulfilment, unlocks far greater efficiency. Nimbl’s precision-driven workflows, scalable solutions, and end-to-end management streamline operations, cut costs, and deliver a seamless experience that strengthens both your supply chain and your customer relationships.
Although a kit is composed of multiple individual items, once assembled, it functions as a single, streamlined product tracked, managed, and fulfilled with the efficiency of one SKU. As a result, each of your kits receives its own SKU or barcode, ensuring:
- seamless inventory management,
- faster fulfillment,
- optimized packaging,
- and scalable operations.
Step 4: Store Your Kits For Efficient Shipment
Maximize fulfillment speed by designating storage space exclusively for prepared kits. Whether preassembled or staged nearby, keeping kits in a dedicated zone eliminates wasted motion and accelerates picking. With clear visibility and precise organization, orders can be shipped immediately, reducing delays, cutting costs, and ensuring consistent, on-time delivery for your shipments.
Step 5: Ship & Track Your Kits
When an order is placed, shipping the kit becomes seamless. Pre-labeled and ready to move, each kit is dispatched with instant tracking updates, keeping customers informed while your fulfillment engine delivers unmatched speed, accuracy, and reliability.
Kitting With Nimbl Fulfillment
Partnering with Nimbl means transforming complexity into simplicity. Our tailored kitting solutions ensure:
- Faster time-to-market
- Lower operational costs
- Streamlined supply chain
- Reliable scalability
With Nimbl Fulfillment, every kit leaves your warehouse with precision, efficiency, and the power to delight customers. Discover our kitting solutions!
