What is Kitting?

Kitting is the inventory and fulfillment process of pre-assembling multiple individual SKUs into a single, ready-to-ship package or kit. Rather than picking each component separately when an order arrives, kitting combines the items in advance so the assembled kit can be stored and shipped as a single unit. Common examples include gift sets, starter kits, sample packs, subscription boxes, and product bundles that are always sold as a fixed combination. Kitting transforms a multi-pick operation into a single-pick operation, significantly improving fulfillment speed and reducing errors.

Why It Matters

Kitting improves warehouse efficiency by reducing the number of pick operations required per order. If a gift set contains five products, fulfilling it without kitting requires five separate picks from five different locations, plus assembly at the packing station. With kitting, the gift set is pre-assembled into a single SKU stored in one location—requiring just one pick. For businesses that sell high volumes of kits, this reduction in pick operations translates to meaningful labor savings and faster order processing times.

Kitting also improves order accuracy. Each time a picker visits a bin, there’s a small probability of error—picking the wrong item, the wrong quantity, or missing a component entirely. By consolidating multiple components into a single pre-verified kit, the opportunities for picking errors are dramatically reduced. The quality check happens once during the kitting process rather than on every individual order. Additionally, kitting creates opportunities for custom packaging and presentation that elevate the unboxing experience, which is particularly valuable for gift items and premium products.

How It Works

The kitting process involves several operational steps:

• Kit Definition: A kit is defined as a new composite SKU with a bill of materials listing all component SKUs and their quantities. For example, a “Skincare Starter Kit” might consist of one cleanser, one moisturizer, and one serum—each with its own individual SKU.
• Kit Assembly: Warehouse staff assemble the kits by pulling component inventory from individual SKU locations, combining them according to the bill of materials, packaging them in the kit-specific packaging, and placing the completed kits in their designated storage location. Assembly is typically done in batches during off-peak periods.
• Inventory Management: The inventory system must track both component-level and kit-level inventory. When kits are assembled, component inventory is decremented and kit inventory is incremented. This dual tracking ensures accurate availability across both individual products and kits, preventing situations where kit assembly consumes stock needed for individual sales.
• Fulfillment: When a customer orders a kit, it is picked and shipped as a single unit from the kit storage location. No assembly is required at the time of order—the kit is ready to go.
• Disassembly: If demand for individual components exceeds expectations while kit demand slows, kits can be disassembled to return components to individual inventory. This flexibility prevents components from being locked into slow-moving kits.

How Nventory Helps

Nventory supports kitting with composite SKU management that tracks both kit-level and component-level inventory in real time. When kits are assembled, Nventory automatically adjusts component quantities and updates kit availability across all sales channels. Bill of materials definitions ensure consistency across every kit produced, and inventory alerts notify your team when component stock is running low and may limit future kit assembly. Whether you sell pre-assembled kits or need to manage dynamic bundling at the time of order, Nventory keeps your component and kit inventory synchronized and accurate.