Astute’s 3PL director, Freddie Roe, encourages companies to look at the advantages of kitting and then think beyond the kit. Read on to discover more.
How does kitting help inventory management and assembly?
In simple terms, picture an electronics assembly workstation overflowing with a multitude of components. Now envisage the same station with all the components arranged in compartments with only what is needed. By consolidating multiple parts into a single kit, businesses avoid extensive inventory tracking, storage space and managing the overheads of handling multiple components and suppliers.
Does that approach impact costs?
Absolutely. Kitting delivers precisely what’s needed, eliminating the financial drag of excess inventory. That equates to less idle stock, lower storage costs, fewer picking of multiple parts, reduced obsolescence risk and fewer MOQ headaches.
How much speed does it add?
Kitting eliminates many ‘pit stop’ dramas. Each station through the line can be fed a kit—sometimes pre-assembled—with all the parts needed for a specific product, ready and waiting: like perfectly warmed tyres. The result is a pit crew operating at peak efficiency. It goes beyond assembly speed. Kitting optimises the entire process to create lean efficiencies from component ordering to final assembly, saving time and boosting production capacity.
What complexity can be accommodated?
Any complexity. Kitting is one aspect of third-party logistics (3PL) where Astute can provide complex supply chain solutions to customers that need minimal product handling, such as defence primes. This may include deliveries across multi-site locations, direct-line feeds, kitting, sub-assemblies and box-builds.
No two 3PL projects are the same. Customers may want a complete suite of services from guidance on initial engineering support and component selection, global sourcing and vendor management, through to EoL and obsolescence, whereas some customers know what they want and provide a BoM to procure and supply in a kit.
How does kitting help businesses meet changing demand?
Kit configurations can be quickly matched to evolving product designs and component needs. For example, we can include BoM management, life-cycle analysis, global stock and pricing monitoring of components. If the project changes, Astute remains agile enough to react.
What are the administrative advantages?
Sourcing becomes simpler, order tracking easier, and the customer has to undertake fewer quality inspections. Typically, kitting allows customers to focus on their core business.
Any final words on kitting?
Kitting is one aspect of 3PL. When you’re reviewing a process, think beyond the kit—imagine how to optimise routes, minimise storage, gain cost-down advantages and manage vendors.