What is Kitting?
Kitting is the process of grouping individual components into a single packaged kit that is stocked, picked, or shipped as one unit.
Definition
Kitting combines separate items into a predefined assembly or bundle that is handled as a single sellable or consumable unit. It is used to simplify order fulfillment, support assembly operations, create promotional bundles, and stage components for production. Kits can be pre-assembled and stocked under their own SKU, or assembled on demand at the time of order. Effective kitting requires the system to relate the kit to its component parts and to manage inventory at both levels.
How Kitting Works in ERP
ERP systems define a kit through a bill of materials or kit structure that lists the component items and quantities. For stocked kits, an assembly transaction consumes components and creates kit inventory; for on-demand kits, the system explodes the kit into its components at order or pick time and depletes each component's stock. This keeps component-level inventory accurate while letting sales and shipping work with the simpler kit unit.
ERP Vendors with Strong Kitting
Frequently Asked Questions
What is the difference between a kit and a manufactured assembly?
A kit is typically a grouping of components that requires little or no transformation, such as bundling products for a promotion or staging parts together. A manufactured assembly involves a production process that physically transforms components into a distinct new item. Kits are usually handled in distribution and order management, while assemblies run through manufacturing work orders.
What is assemble-to-order or on-demand kitting?
On-demand kitting builds the kit only when an order is placed, so the system reserves and consumes components at pick time rather than holding pre-built kits in stock. This avoids carrying finished-kit inventory and offers flexibility when bundles vary. The trade-off is added handling at fulfillment time compared with stocking ready-made kits.