Kitting is a fulfillment strategy where multiple products are bundled and treated as a single SKU. It can streamline operations, enhance the customer experience, and even reduce costs—but the right approach depends on your business needs.

The two main kitting methods are pre-kitting and on-demand kitting, each with its own advantages and trade-offs. At Warehut, we offer both types, so make sure to get in touch if you need a 3PL that offers kitting.

Pre-kitting (also called batch kitting)

Pre-kitting involves assembling kits in advance, before orders come in. These pre-packaged kits are stored as single SKUs, allowing for quicker fulfillment once an order is placed.

Pros of pre-kitting:

✅ Faster Fulfillment – Since kits are pre-assembled, they can be picked, packed, and shipped immediately when ordered.

✅ Potential Cost Savings – If demand is forecasted accurately, pre-kitting can reduce labor costs by handling kitting in bulk rather than assembling each order individually.

✅ Simplified Packing Process – Warehouse staff only need to pick one SKU instead of multiple items, reducing the chance of packing errors.

Cons of pre-kitting:

❌ Requires Inventory Commitment – Once products are kitted together, they are no longer available as individual SKUs unless manually de-kitted, which takes time and incurs costs.

❌ Risk of Overstocking or Stockouts – If demand shifts unexpectedly, you may end up with too many or too few kits, potentially leading to lost sales or excess inventory.

❌ Less Flexibility – If customers prefer to mix and match items differently, pre-kitting limits their options.

Best for:

• Products that are frequently sold together (e.g., subscription boxes, gift sets).

• High-demand kits with predictable sales trends.

• Businesses looking to optimize labor efficiency in advance.

On-demand kitting (also called dynamic kitting)

With on-demand kitting, products are stored separately and only assembled into kits once an order is placed. This allows for greater flexibility and better inventory management.

Pros of on-demand kitting:

✅ Inventory Versatility – Products remain available as both individual SKUs and as part of a kit, maximizing sales opportunities.

✅ No Need for Perfect Forecasting – Since kitting happens as orders arrive, there’s no risk of overcommitting inventory to a specific kit that may not sell.

✅ Greater Customization – Customers can choose different combinations of products, creating a more personalized experience.

Cons of on-demand kitting:

❌ Slightly Slower Fulfillment – Since kits must be assembled at the time of order, fulfillment takes a bit longer than pre-kitted items.

❌ Potentially Higher Costs – The additional labor required to pick multiple SKUs and assemble them on demand may increase fulfillment costs.

Best for:

• Businesses with fluctuating demand or unpredictable sales patterns.

• Brands that sell kits but also want to offer individual SKUs.

• Customizable product bundles where customers can select different variations.

Which kitting strategy is right for your business?

• If you have predictable demand and want to speed up fulfillment, pre-kitting is a strong choice.

• If you need inventory flexibility and want to capture more sales opportunities, on-demand kitting is likely the better option.

In some cases, a hybrid approach works best—pre-kitting your most popular bundles while using on-demand kitting for more customizable or lower-volume kits.

Warehut offers both pre-kitting and on-demand kitting services. Whether you need bulk assembly for high-demand bundles or flexible on-the-fly kitting for personalized orders, our team ensures smooth and cost-effective fulfillment. We handle everything from kit assembly to labeling and shipping, so you can focus on growing your brand.

Still unsure? Contact the Warehut help team to discuss your kitting strategy and find the best solution for your business.