Complete Guide to Outsourcing Kitting and Assembly

Updated February 6, 2024

The best way to meet the consumer’s demand for repeated products is to ship those products in a kit. Kitting and assembly help you combine different products into a single unit and ship them in bulk while improving sales, making inventory management easy, reducing paperwork, and much more. Read these benefits of outsourcing your kitting and assembly services to a 3PL.

Why Outsourcing Kitting and Assembly is a Smart Choice

There are several reasons why outsourcing kitting and assembly can be a smart choice for businesses. Firstly, outsourcing these tasks can reduce labor costs, as companies are able to take advantage of lower wages in other countries. Secondly, outsourcing kitting and assembly can increase efficiency and productivity, as companies are able to focus on their core competencies while leaving the kitting and assembly to experts. Finally, outsourcing can provide access to specialized equipment and technology that may not be available in-house.

Kitting and Assembly of various components into a finished product

The Benefits of Outsourcing Kitting and Assembly Services to a 3PL

1. Volume Flexibility

Almost all business experiences change in product demand throughout the year, but it never remains the same. The change in product demand requires businesses to optimize storage space, warehouse staff, and equipment. But it is not feasible to make such changes whenever the product demand increases.

To avoid this situation and make the process smooth, you can opt for outsourcing your kitting and assembly provider/company that will help you with the changes in market demands to utilize your time and resources to grow your business.

2. Faster Assembly

Providing reliable shipping solutions to the customers becomes a challenge for the businesses who still do the picking and packing when they get the order. Doing so creates delays in shipments that ultimately affects your end meets.

You can speed up the kitting process if you start doing it in bulk. And here comes the need for a reliable shipping solution provider. A 3PL helps you with a faster kitting and assembly process. They do it in bulk using their streamlined packaging solutions.

3. Cost-Effective Packaging

The cost of packaging is one of the main factors in deciding whether you should hire a 3PL kitting and assembly service provider or not. For custom packaging of your products, getting help from a 3PL kitting and assembly service provider would be a great option.

It will help you save extra packaging costs because 3PL service providers use cost-effective and efficient packaging materials that they procure in bulk.

4. Reduced Overhead Costs

Managing kitting and assembly in-house comes with obvious direct expenses like picking and packaging, including indirect expenses like renting storage space, arranging IT management systems, hiring staff, and more. These expenses are also known as overhead costs.

However, hiring fulfillment companies having expertise in kitting and assembly operations, dedicated staff, and required infrastructure can save you from overhead or operating costs.

5. Less Shipping Mistakes

Handling kitting and assembly operations internally can increase shipping mistakes, especially when the product demand changes and you are still using the existing resources

On the other hand, if you outsource these services from a fulfillment service provider, you benefit from expert services from a skilled staff who uses advanced tools and tracks your orders in real-time. Also, they have a dedicated infrastructure and streamlined processes to handle your order fulfillment services.

How to Choose the Right Outsourcing Partner for Kitting and Assembly

When choosing an outsourcing partner for kitting and assembly, it's important to consider several factors, including:

  • Cost: Make sure to compare the cost of outsourcing to the cost of in-house kitting and assembly to determine which option is more cost-effective.
  • Quality: Choose an outsourcing partner that has a proven track record of producing high-quality products.
  • Experience: Look for an outsourcing partner with experience in your industry and a strong understanding of the kitting and assembly process.
  • Location: Consider the location of your outsourcing partner, as this can impact delivery times and shipping costs.
  • Reputation: Research the reputation of potential outsourcing partners, and choose a company with a solid reputation in the industry.

The Steps for Outsourcing Kitting and Assembly Successfully

To ensure a successful outsourcing experience for kitting and assembly, it's important to follow these steps:

  1. Define Your Needs: Clearly define your kitting and assembly needs, including the components needed, the quantity required, and any specific requirements or specifications.
  2. Research Potential Partners: Research potential outsourcing partners, taking into consideration the factors listed above.
  3. Negotiate Contracts: Once you've selected a potential partner, negotiate contracts and establish clear expectations for quality, delivery, and

Frequently Asked Questions on Outsourcing Kitting and Assembly

Outsourcing kitting and assembly involves delegating certain tasks in the production process, such as kitting and assembly, to an external partner.
The benefits of outsourcing kitting and assembly include cost savings, increased efficiency, improved quality control, and flexibility.
When choosing an outsourcing partner for kitting and assembly, consider their experience, reputation, quality control process, and pricing structure.

Are you looking for a 3PL fulfillment service provider for handling your kitting and assembly operations? You can choose Asiapack. We provide the best kitting and assembly services. We smoothly process your order fulfillment operations with our expertise and streamlined processing so that you can focus on your business growth.

Learn More and make your product stand out with Asia Pack co-packing services.