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Understanding how fulfillmentoutsourcingcanhelpyourbusiness

by Markwilson

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Do you own a small or medium-sized retail business? Is your business transacted online through your website and orders shipped to customers? Does your business deal in products that often go hand in hand (such as watercolors, paintbrushes and pencils used by art students)? Do you need to send promotional material to customers on a regular basis? Do you want to cut costs and improve your bottom line? If you answered "yes" to most of these questions then your business stands to benefit a lot from implementation outsourcing services. In particular, your business will gain from outsourcing kittingservices. Read on to find out how but first we need to understand what it means to 'kit' in this context.


Kitting is about practically putting into one kit items that customers always buy as a set. We can again use the example of art students. An art student will likely need watercolors, paintbrushes and various shades of pencil. If you have established that most art students order these items as a set you can preselect and bundle them together. Each set will then be treated as a discrete entity just like other items in the inventory. When orders arrive for the set it'll be shipped out as a single unit. The same case applies to marketing and promotional materials. If you want to market your business using catalogues or brochures you will often want to send several documents to each customer at the same time. It is certainly easier to do so if the various documents are sorted and bundled together so that only one all-inclusive package is mailed to each customer at a time.


Many of the companies that offer fulfillment outsourcing services also make kits and they will help your business a great deal in this regard. To start with, putting items into ready kits saves a lot of time when orders are made for them. The fulfillment service will quickly dispatch these kits when customers ask for them. The net result is that orders will leave the fulfillment house faster and reach your customers in good time.


Fulfillment outsourcing is good for your bottom line. This is because you'll shift some of your routine tasks to a fulfillmenthouse that can do those same tasks more efficiently and at a much lower overall cost than you could. When you add kitting to the package then costs will tumble even further because of the efficiency it adds to the order fulfillment process. It is cheaper to preassemble kits and have them ready for customers. The more sophisticated implementation outsourcing companies have invested in systems and equipment that they use to efficiently sort and assemble items into kits. This approach beats the normal pick and pack method used by many businesses.


Finally,making kits brings the costs of packaging and shipping to a lower level. These costs are cut significantly because a number of items that would ordinarily be packed and shipped separately are being combined into kits to be handled as discrete units. This advantage is very clear when it comes to promotional materials. Most promotional material isn't that bulky - think of catalogues or brochures, for instance. The cost of sending a bunch of these documents remains largely unchanged regardless of how many documents are in a package. Several items can therefore be sent for the price of one.



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