Tips and Tricks for Bundling and Kitting Inventory Efficiently
Effective inventory management can make or break a company’s supply chain. Whether you are dealing with ecommerce fulfillment or managing a local warehouse, bundling and kitting are essential strategies for saving space and reducing logistical complexity. But how do you master these processes and make them work for you? Today, we will explore the best practices for inventory bundling and kitting with some practical advice you can apply right away.
What Software Do Companies Use For Inventory?
To stay ahead, many companies use specialized software for tracking inventory levels, orders, sales, and deliveries. Here are some of the most popular solutions:
- NetSuite: A fully customizable cloud-based ERP that integrates with various third-party logistics (3PL) platforms.
- Zoho Inventory: Ideal for small and mid-sized businesses, Zoho offers affordable, scalable solutions.
- QuickBooks Commerce: Well-suited for businesses looking for accounting and inventory management in one tool.
- Fishbowl: A popular inventory software that integrates seamlessly with QuickBooks for small to medium-sized companies.
- Cin7: Known for robust inventory tracking, order management, and point-of-sale solutions for larger organizations.
Why Use Specialized Software?
Bundling and kitting inventory without real-time updates can be a logistical nightmare. A well-designed software platform ensures you always know what’s in stock, where it’s located, and how soon you need to reorder. With features such as automated reorder alerts, customizable dashboards, and cloud syncing, these tools can streamline processes significantly.
How Does a Closeout Inventory Work?
Closeout inventory, also known as clearance inventory, refers to items sold at a deep discount to make room for new stock. This strategy is especially useful for businesses looking to move outdated, seasonal, or surplus goods.
Key Steps in Managing Closeout Inventory
- Identify Slow-moving Items: Use inventory analytics to flag products that haven’t sold as expected.
- Plan Sales Promotions: Time these to coincide with consumer behavior (e.g., end-of-season sales).
- Bundle Products for Added Value: Instead of selling items individually, create bundles that offer more perceived value to the customer.
- Leverage Online Marketplaces: Consider listing closeout items on third-party platforms like Amazon or eBay for additional exposure.
By managing closeout inventory effectively, you free up warehouse space while recovering some of the initial investment in products. This strategy minimizes losses and opens up opportunities for new, more relevant stock to enter the warehouse.
Pro Tip: Always keep closeout products organized separately from active inventory. This reduces the chances of mistakes when picking and packing items.
What is the Best Software to Use for Inventory Control?
The best software for your inventory control needs depends on your company size, type of inventory, and business model. Below is a breakdown of the top software solutions based on different criteria:
- For Small Businesses
- Zoho Inventory: This platform is affordable and scales well for growing businesses.
- Ordoro: Known for its simplicity, Ordoro offers basic inventory tracking and order fulfillment features, which are ideal for startups.
- For Medium-sized Businesses
- Fishbowl: Fishbowl is a fantastic choice for companies that need comprehensive inventory tracking and integration with accounting platforms like QuickBooks.
- Cin7: Offers robust features, such as multi-channel sales management, perfect for companies with an e-commerce presence.
- For Large Enterprises
- Oracle NetSuite: Best for large-scale operations, NetSuite offers a fully customizable platform that integrates with multiple warehouse locations, suppliers, and channels.
- SAP Business One: Ideal for global enterprises, SAP Business One is designed to handle vast, complex inventories.
The software you choose should integrate with other tools you already use, like CRM systems or ecommerce platforms, to create a seamless workflow across all operations.
What is an Online Inventory Management System?
Managing inventory through cloud-based platforms has become essential. An online inventory management system offers several advantages that traditional, on-premises software cannot match.
Key Benefits of Online Inventory Management Systems
- Real-time Updates: Changes in stock levels, sales, or orders are reflected instantly across all users and locations.
- Remote Accessibility: You can manage your inventory from any device, anywhere in the world.
- Easy Scalability: Whether your business is expanding to new locations or increasing order volume, online systems are built to scale with you.
- Analytics and Reporting: Many online platforms provide in-depth reporting tools that allow you to track sales trends, product performance, and customer demand.
- Integration with Third-party Tools: Most online systems integrate with 3PL services, accounting software, and ecommerce platforms, providing a streamlined flow of data between your inventory and other aspects of your business.
Examples of Online Inventory Management Systems:
- TradeGecko (Now part of QuickBooks Commerce): Best for small and medium-sized businesses that need multi-channel inventory management.
- Unleashed: Known for its comprehensive reporting and analytics features, making it ideal for growing businesses.
If you’re running an international fulfillment operation or require 3PL services in Detroit, an online system ensures you can keep your entire supply chain network in check, from order placement to delivery.
How to Manage Construction Projects’ Warehouse?
Warehousing for construction projects requires a more specialized approach due to the nature of materials and their usage over the life of a project. Here’s how to ensure your construction warehouse operates smoothly:
- Create a Material Tracking System: Each material type should be logged with its quantity, location, and expected usage dates.
- Schedule Deliveries based on Project Phases: Rather than ordering all materials at once, coordinate deliveries with the project timeline to avoid overstocking.
- Monitor Stock Levels in Real-time: Use software like Procore or Buildertrend to track inventory levels across multiple projects and locations.
- Coordinate with Subcontractors: Ensure that subcontractors know when materials will arrive, allowing for a smooth handoff and minimizing project delays.
- Implement RFID Tags or Barcodes: Using technology to track materials reduces human error and speeds up the pick-and-pack process.
Pro Tip: Assign a warehouse manager to oversee the flow of materials and coordinate with the project manager. This can drastically reduce wasted time and money by ensuring that the correct materials are available when needed.
How Bundling and Kitting Enhance Efficiency
Now that we’ve covered software, closeout inventory, and warehouse management, it’s time to address how bundling and kitting can help improve your inventory system.
What is Bundling?
Bundling refers to the process of packaging multiple products together and selling them as one unit. This is commonly used in retail to move stock faster and provide customers with more value.
What is Kitting?
Kitting involves grouping individual items together to form a single SKU (stock keeping unit). It’s typically used in international ecommerce fulfillment, manufacturing, or assembly lines where parts are grouped to create a finished product.
Why it Works
- Space Optimization: Bundling and kitting reduce the overall number of SKUs you need to track, freeing up valuable warehouse space.
- Faster Fulfillment: Pre-packaged kits can be picked and packed quicker, streamlining the order fulfillment process.
- Better Product Movement: Bundles encourage customers to buy more, helping you move excess inventory while providing extra value.
How to Implement Bundling and Kitting
- Analyze Inventory Data: Identify which products are often purchased together and create bundles based on customer behavior.
- Pre-assemble Kits: For items that will always be shipped together, such as component parts, have your warehouse team pre-assemble these kits to speed up fulfillment.
- Label Bundles Clearly: Make sure all bundled items are clearly labeled so there’s no confusion regarding order picking and packing.
- Use Inventory Management Software: Many systems allow automatic bundling, tracking individual components while listing the bundle as a single SKU.
Conclusion
Efficient bundling and kitting practices, supported by the right software and organizational strategies, can significantly boost the performance of your warehouse or fulfillment center. Whether you’re managing construction projects or running an ecommerce store, the principles of bundling and inventory control remain universal. Taking steps to streamline your processes reduces costs and improves customer satisfaction by speeding up order fulfillment.
Adopting solutions like these to manage your warehouse operations can provide additional benefits, ensuring that your business is always ready to meet demand, no matter how complex or global your operations may become.
