Inventory Management Technique: Kitting

Inventory kitting

Inventory Kitting

Kitting, an often overlooked yet effective inventory management technique, works well for many retailers and wholesalers, especially in a lean manufacturing environment. Inventory kitting, or product bundling, is the process of grouping individual but related items into one sellable item. IKEA is a retailer that is well known for inventory kitting.

A good example of inventory kitting is manufacturing a pre-assembled item such as a bicycle, which is made up of many individual parts bundled together to sell as an individual product. When the bicycle is sold as an individual unit, an effective inventory management system will automatically link each individual part to the bicycle. Inventory kitting is also used to produce subscription boxes, packed sets and customized goods.

Kitting has numerous benefits including:

    • Increases profitability by allowing companies to sell multiple products in one transaction
    • Reduces the amount of inventory on hand to reduce costs
    • Decreases labor costs
    • Increases sales opportunities
    • Increases order values
    • Allows users to consolidate storage space
    • Improves cash flow
    • Increases employee productivity
    • Allows for more flexibility to customers
    • Provides an opportunity to sell outdated or unwanted products

TRXio is a leading provider of kitting inventory software since it offers capability to easily combine multiple products into a bundle and produce one QR code for the entire kit. TRXio is ideal for inventory kitting because its unique traceability feature allows companies to trace an individual part through many life cycles – from the time a bicycle part is produced to when it is installed. And,  traceability can help locate defective parts for warranty work.

For more information on TRXio’s ability to be used for inventory kitting, or questions on other inventory management techniques, please contact us at 844-868-7225.

Other Inventory Management Techniques:

ABC

Cycle Counting

Dead Inventory

Decline Stage

Excel/Spreadsheets

Just-In-Time Inventory Technique

Inventory Management Techniques: The Rundown

Kitting

Labeling

LIFO or FIFO

Manual

Min/Max Inventory Method

RFID Versus Barcodes