| Kitting and packaging are integral elements in the | | | | competitors, and other realities of the high tech |
| typical manufacturing process. In most cases of | | | | world force engineers to update product software |
| sourcing in supply chain management, these elements | | | | and documentation within very short time spans - |
| are taken for granted, such that many | | | | often much more rapidly than manufacturing planners |
| manufacturers underestimate the myriad advantages | | | | can respond to effectively. |
| to be gained from streamlining these important tasks. | | | | By streamlining the kitting and packaging processes |
| Electronics manufacturers, in particular, stand to | | | | so that they can be performed as closely in time as |
| benefit from more efficient kitting and packaging | | | | possible to actual product ship dates, manufacturers |
| systems. These manufacturers are often faced with | | | | can realize a significant savings in terms of avoiding |
| the unique challenge of having to find ways to | | | | these unpacking and repacking costs. |
| effectively ship the most up-to-date products and | | | | 3 - Improve relationships with retailers: |
| the latest packaging to retailers. This can be a difficult | | | | Retailers do well when their customers are happy, |
| feat to accomplish in a timely manner due to the | | | | and their customers in turn are happy when they feel |
| frequency with which product upgrades, | | | | they have access to the latest products and services |
| documentation changes, software updates, and | | | | in retail stores. Fortunately, manufacturers stand to |
| changes in promotional strategies are made by the | | | | improve the relationships they have with their |
| engineering and marketing departments. Due to the | | | | distribution partners and retailers by supplying them |
| speed with which these elements can change for any | | | | with the latest, hottest products in a more timely |
| given product, manufacturing departments often | | | | manner. By being able to react quickly to market |
| cannot effectively keep up with these changes in the | | | | changes through better efficiency in packaging, |
| context of conducting their kitting and shipping | | | | manufacturers can keep retailers (and their |
| procedures. | | | | customers) pleased. |
| Here are 5 benefits manufacturers can realize by | | | | 4 - More effectively target specific customers: |
| streamlining their kitting and packaging processes: | | | | Manufacturers that can flexibly tailor their marketing |
| 1 - Ability to implement special offers and product | | | | efforts to specific target segments have a decided |
| upgrades with shorter lead time: | | | | advantage in the marketplace today. With the |
| In today's competitive environment, corporate | | | | increasing availability and use of sophisticated market |
| marketing departments need to remain responsive to | | | | segmentation techniques by many companies, they |
| market needs by offering special promotions in short | | | | have the ability to more specifically target very |
| order. When such promotions are implemented with | | | | well-defined, niche segments. This trends often |
| short lead times, the situation affords the | | | | manifests itself in the diversification of a brand's |
| manufacturing department insufficient lead time to | | | | product lines, as well necessitating the tailoring of |
| reflect those special offers in the packaging. Similarly, | | | | product positioning and messaging for various |
| the need to upgrade products due to the detection | | | | segments or niches simultaneously. |
| of product defects or the introduction of new | | | | By remaining as flexible as possible through |
| technologies puts pressure on the manufacturing | | | | streamlined packaging, more variation (in terms of |
| department to respond to these changes quickly and | | | | both product diversification and product positioning) |
| efficiently. | | | | becomes possible - and better profitability follows. |
| When such promotional changes or product upgrades | | | | 5 - Saving money on shipping costs: |
| are required, manufacturers who are not streamlined | | | | For companies whose original equipment |
| are often forced to unpack and then repackage | | | | manufacturers (OEMs) ship their products from |
| existing stock before it leaves the warehouse. Or, | | | | overseas locations (e.g., China) to in-country |
| just as inconveniently, the special offer or product | | | | distribution warehouses, shipping costs comprise a |
| upgrade is not implemented in time for shipments to | | | | significant portion of total cost of goods sold. |
| be made. However, by outsourcing these tasks to a | | | | However, by shipping finished goods to distribution |
| third-party logistics partner who manages the kitting | | | | centers in an unpackaged state, companies can ship |
| and packaging tasks on site, products can remain | | | | up to 2-3 times more product per pallet - resulting in |
| unpackaged until just days before they are to be | | | | significant shipping cost savings. |
| shipped. The result is a much more flexible and | | | | Taking advantage of recent advances in kitting and |
| responsive manufacturing process. | | | | packaging can afford significant advantages to |
| 2 - Ship only the most up-to-date product software | | | | electronics manufacturers. These advantages include |
| and documentation: | | | | the ability to avoid the additional cost of relatively |
| Electronics and software manufacturers face the | | | | last-minute unpacking and repacking, lower shipping |
| unique challenge of needing to implement product | | | | costs, and greater responsiveness to making needed |
| updates much more frequently than do | | | | product, packaging, or documentation changes due to |
| manufacturers of most other types of products. | | | | internal or market demands. |
| Firmware updates, new specifications, actions by | | | | |