Kitting and assembly

What is warehouse kitting?

Warehouse kitting is the process of combining multiple individual items into bundled packages or sets that ship together as a single stock keeping unit (SKU).

For example, a business offers a computer, mouse and headset as a “gamer starter pack” bundle.

There are two types of kitting fulfillment:

1. Build-to-stock: kits are pre-assembled

2. Build-to-order: kits are assembled as orders come through

What is the different between kitting and warehouse assembly?

Warehouse assembly is the process of physically putting components together to create a brand-new finished product, rather than bundling ready-made items into a set.

For example, a business offers a feature where customers can build their own computer from a range of parts. The warehouse stocks the individual parts and a skilled operative assembles them into a fully functional computer.

The distinction matters operationally: kitting combines finished items that don’t need to be permanently joined, while assembly creates something that didn’t exist as a single product before.

The benefits of assembly and kitting operations

Warehouse kitting allows businesses to offer product bundles, promotional sets and subscription boxes, increasing sales and boosting average order value (AOV).

It also means faster order fulfillment and fewer mistakes, as if build-to-stock is in use, operatives only need to collect one pre-packed box.

Warehouse assembly reduces inventory overheads as businesses store individual components that take up less space and only assemble products as they are needed.

How WMS handles kitting and assembly

The kitting process begins when the warehouse management system (WMS) identifies orders requiring kits and generates work assignments listing all components needed.

The WMS generates a kit bill of materials (BOM), defines which items comprise each kit, including quantities, packaging materials and assembly instructions.

Operatives collect items from storage locations, verify quantities through barcode scanning and package components together according to kit specifications stored in the system.

The WMS consumes component inventory as kits are built, maintaining accurate stock levels for both components and completed kits. In the case of warehouse assembly, the WMS also tracks labor time and completed product output.