Thursday, 13 Dec 2018

3 Reasons Why You Should Outsource Your Small Parts Packaging and Kitting

If you’re keeping all your logistics operations in-house, you probably know how time-consuming it can be, not to mention that it involves high overhead costs. What’s more, it’s not uncommon that mistakes happen, especially during the process of packaging and kitting, which leads to shipping mistakes and even higher costs, specifically return costs.

The best way to minimize all the risk, save your company a lot of time and money, and protect your reputation, is to outsource your small parts packaging and kitting. You could outsource all the upstream logistics, but packaging and kitting are definitely the first to consider, so here are the main benefits to prove it.

Quicker Assembly

By outsourcing your packaging and kitting, you can expect a much quicker assembly of your products. This means faster shipping, which leads to a better reputation and improved customer experience. If you ship in bulk, that’s another reason for outsourcing, as you’ll save your assemblers a lot of time and process the inventory much faster.

Reduced Costs

Instead of paying for packaging and kitting equipment, personnel, various IT systems for management, and warehouse space, you can simply turn to outsourcing and reduce all those costs. You’ll be able to focus on your core business and use the saved resources to improve your customer service, marketing, sales, and anything else that will keep your business moving forward.

Accurate Shipping

Just as minimizing costs and fast shipping are important, so is accurate shipping. To prevent any packaging and kitting mistakes that ultimately lead to bad customer service and damaged reputation, outsource these operations and save yourself a lot of headaches.

Perhaps your assemblers never made such mistakes, but what happens when there’s a high demand for your products, especially if you start running promotional deals, for instance? You need to make sure that you can effectively and efficiently manage fluctuating demand, without any potential mistakes that could decrease customer satisfaction.

There are more benefits of outsourcing your packaging and kitting, such as more efficient and eco-friendly packaging, but the aforementioned three reasons are definitely the most important you should consider.

To make a smart decision, put everything on paper and see how you’re actually doing with all the costs and the efficiency and effectiveness of these logistics operations. Once you take a look at the numbers, you’ll know what you need to do to keep your business running smoothly.

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