Whether your company is small or large, chances are you’re constantly searching for ways to streamline processes, reduce costs and improve productivity. One method for achieving this is by utilising software solutions like assemblies and kitting within an ERP system.
While assembly and kitting are terms often used interchangeably, they refer to different processes with distinct advantages and applications. In this article, we’ll explore the differences between assemblies and kitting software, their purposes, and how they benefit businesses.
In the context of ERP systems, an assembly refers to the process of combining multiple components or parts to create a final product.
This is typically used by companies that need to build products from various raw materials or semi-finished parts. Assemblies involve a more complex, structured process compared to kitting. They often require the addition of labour costs, overheads and even multi-level assemblies, where several stages of assembly are necessary before the final product is created.
When using assembly software, companies can manage the creation of these products more efficiently.Profit4 monitors each component's stock levels, helping businesses keep track of the necessary materials needed to meet production demands. Additionally, it can also manage a bill of materials, track costs, and monitor production progress.
Assemblies typically require detailed planning and involve a step-by-step process where each part is added to the final product in a specific order. For example, a company manufacturing electronic devices might use assemblies to track and combine different components, such as circuit boards, casings, and batteries into one finished product.
On the other hand, kitting refers to the process of grouping multiple items together. In contrast to assemblies, the components do not undergo any transformation. Instead, the items are pre-packaged as a kit and sold as a single unit.
Kitting is more common in industries such as retail and distribution, where businesses may sell bundles of related products. An electronics retailer might sell a computer accessory kit, for example, which includes a mouse, keyboard and monitor, all in one package.
Kitting software allows businesses to manage this process efficiently by tracking inventory levels for each individual item within the kit, ensuring that there is enough stock to fulfil customer orders. When an order for a kit is placed, Profit4ensures that all the necessary items are available, reserving them for that order. Once the kit is sold, the software updates the stock levels for each item accordingly.
Unlike assemblies, there is no manufacturing process involved in kitting. Instead, it focuses on packaging and order fulfilment. This is why kitting is often used by businesses that handle a larger number of products but do not necessarily manufacture them. It helps reduce the time spent on packaging and improves order accuracy.
Both assemblies and kitting software offer significant benefits to businesses, particularly when integrated into a comprehensive ERP system like Profit4. Here’s how the two processes can improve efficiency and profitability:
The key difference between assemblies and kitting software lies in their functionality. Assembly software is designed to manage the creation of a new product from individual components, often used in light manufacturing. It tracks everything from the bill of materials to production costs, resulting in efficient management of often complex multi-level assemblies.
Kitting software differs in that it focuses on grouping existing products into kits for sale, without changing the components themselves. It means that businesses can quickly fulfil customer orders by managing stock levels and reserving items foreach kit.
Profit4 integrates both assemblies and kitting software into one platform, allowing your business to manage these processes seamlessly. For light manufacturers, Profit4 offers comprehensive assembly management tools, including BOM management, stock control and production tracking.
For distributors and retailers, the system’s kitting capabilities enable quick and accurate order fulfilment, improving customer satisfaction and reducing operational costs.
Profit4’s flexible, configurable software means that your business can manage both assemblies and kitting in a way that suits your specific needs. Whether you need to track simple production processes or streamline your order fulfilment, Profit4 offers the tools and visibility you require to boost efficiency across your operations.
While assemblies and kitting may seem similar, they serve distinct purposes in business operations. Both processes are essential to improving efficiency. But you don’t need to invest in multiple software solutions to manage them.
With Profit4, your business can streamline assemblies and kitting, and gain greater control over stock levels, production workflows and order fulfilment.
Want to learn more about how Profit4 can help instantly improve your stock control? Watch our3-minute demo to discover the benefits of our cloud-based software’s assembly features.
