Kitting and Fixed Asset Systems
Fixed asset systems can play an invaluable role in the manufacturing setting, tracking multiple moving parts and their respective journies at every stage in the process. Kitting, a functionality supported by many fixed asset systems, offers manufacturers a potentially easier and more efficient way to organize and track their assets.
Some of the advantages manufacturers can see with kitting are:
- Improved sell-through and usage of products
- Reductions in costs for warehouse space and holding unsold and unused inventory
- Easier reporting on items that have been sitting on shelves too long
- Enhanced visibility into what items sell or are used together and can be kitted
So what is kitting, anyway? It’s the collection of parts and/or materials grouped, packaged and supplied or shipped together as a single unit with its own barcode. That group of parts is delivered to a specific destination in the manufacturer’s assembly line. An easy way to envision what kitting is and why it’s advantageous is to think about subscription boxes, currently a very popular form of kitted merchandise. Clothing, pet supplies, product samplers, cosmetics and beauty products, snacks and all-in-one recipe boxes are all great examples. A customer places their order, and the components are compiled in the warehouse and shipped. These personalized boxes are in high demand by customers who enjoy the convenience of a service centered around their personal preferences.
Other examples of kitting include build-to-order or custom-made items, like a car with features added according to customer specifications, and pre-assembled kits; IKEA may represent one of the most near-universal symbols of pre-assembly.
“In a nutshell, inventory kitting allows you to do much more with your existing stock. Bundling items that you sell individually creates merchandising options like discounted sets, cross-sell promotions, special deals, etc. – which is a benefit to customers and your business,” according to an article featured on QuickBooks Commerce.
The benefits of fixed asset systems
Fixed asset systems introduce simplicity into what is characteristically a very complex function, and empower manufacturers to save both time and money. The argument for fixed asset systems and kitting comes down to this: the more moving parts you have to track in your business, the more vulnerable you are to costly errors that could impact your customers’ experience. Manual asset tracking requires users to key in lengthy barcodes and monitor the movement of fixed assets with pen and paper or spreadsheet solutions, without much support to do so accurately. Almost inevitably, assets become lost or otherwise fall through the cracks. That loss has a ripple effect on manufacturers’ operations, leading to lost time as they attempt to locate those assets, delayed production, and lost revenue when those items have to be replaced.
With fixed asset systems, manufacturers have a read on their assets in real time 24 hours a day. They’re able to determine within seconds the exact quantity and condition of their fixed assets in seconds, as well as the last location they were scanned. In fact, with platforms like Asset Panda’s, users have access to that information with the smartphones they already carry.
Fixed asset systems don’t just address current demands; they help manufacturers prepare for the future. With kitting, manufacturers save time in the audit process by keeping assets together instead of in individual locations. Asset Panda’s mobile app enables them to conduct routine audits from an intuitive and completely customizable platform that includes a mobile barcode scanner that syncs with the cloud. It’s the easiest, most powerful and cost-effective approach to kitting and fixed asset tracking available to manufacturers today.