Introduction
Kitting and bundling are powerful strategies for improving order accuracy, reducing pick‑pack time, and increasing average order value. Whether you’re assembling gift boxes, meal kits, or promotional bundles, a Warehouse Management System (WMS) can automate and streamline these processes—ensuring components are allocated, assembled, and shipped efficiently.
In this comprehensive guide, you’ll learn:
- Key concepts behind kitting vs. bundling
- Benefits of managing kits and bundles in your WMS
- Prerequisites and system configuration steps
- Operational workflows for receiving, assembly, picking, and shipping
- Best practices and common pitfalls to avoid
By the end, you’ll have a paste‑ready blueprint to configure kitting and bundling in your WMS—driving accuracy, speed, and profitability in your fulfillment operations.
1. Understanding Kitting vs. Bundling
1.1 What Is Kitting?
- Definition: Kitting is the process of pre‑assembling individual items (components) into a single “kit” SKU that’s stocked and managed as one saleable unit in the warehouse.
- Example: A smartphone package that includes the phone, charger, earphones, and USB‑C cable, all pre‑boxed as a single kit.
1.2 What Is Bundling?
- Definition: Bundling refers to grouping multiple distinct SKUs together at the point of order, without necessarily pre‑assembling them ahead of time. The WMS picks each component and ships them together as a “bundle.”
- Example: A holiday gift bundle where a customer orders a sweater (SKU A), a scarf (SKU B), and gloves (SKU C) sold as a “Winter Warmth Bundle.”
1.3 Key Differences
| Aspect | Kitting | Bundling |
|---|---|---|
| Timing | Pre‑assembled ahead of order | Assembled at order fulfillment |
| Inventory | Kit SKUs stocked in inventory | Individual SKUs remain separate |
| Pick Process | Pick 1 kit SKU per order | Pick multiple component SKUs per order |
| Complexity | Requires assembly area and labor | Requires order‑level grouping logic |
2. Benefits of Managing Kits and Bundles in Your WMS
- Increased Picking Efficiency:
- Kitting reduces picks per order to a single line, cutting travel time and labor.
- Improved Order Accuracy:
- Pre‑assembly and barcode scanning of kits/bundles minimizes missing or incorrect components.
- Simplified Inventory Tracking:
- Kits appear as discrete SKUs, making forecasting and replenishment easier.
- Enhanced Customer Experience:
- Bundles enable promotional pricing and product assortments without separate packaging steps.
- Flexible Promotions:
- Bundling allows dynamic groupings (e.g., mix‑and‑match) without reconfiguring physical kits.
3. Prerequisites and System Preparation
Before configuring kits and bundles in your WMS, ensure the following foundations are in place:
3.1 Up‑to‑Date Product Master Data
- Accurate Component SKUs: Each item must have a unique, validated SKU with dimensions, weight, and lot/serial tracking (if applicable).
- Bill of Materials (BOM) Templates: For kits, define BOMs that list each component SKU and required quantity.
3.2 Warehouse Layout and Zones
- Assembly (Kitting) Area: Designate space with workstations for kit assembly, with component pick faces nearby.
- Staging & Packing: Separate zones for finished kits and bundled orders to await final packing and shipping.
3.3 WMS Feature Licensing
- Confirm your WMS supports:
- Kit/BOM Management Modules
- Bundle‑at‑Pick Logic
- Directed Putaway/Picking
- Assembly Work Order Processing
4. Configuring Kits in Your WMS
4.1 Define Kit SKUs and BOMs
- Create a Kit SKU in the item master (e.g.,
KIT_SMRTPHN_001). - Assign a BOM: List each component SKU and quantity: Component SKUQuantityPHONE_A1CHGR_USB_C1EARPHONES_B1USB_C_CABLE1
- Set Kit Attributes:
- Unit weight and dimensions (roll‑up from components).
- Cost attributes (sum of component costs + assembly labor).
4.2 Configure Work Orders for Kit Assembly
- Work Order Templates: Define the assembly process as a work order that the WMS can release:
- Create Kit Build Order when component stock levels reach a predefined threshold.
- Directed Pick: WMS generates pick lists for components.
- Assembly Task: Workers scan component barcodes and physically assemble kits.
- Putaway: Move assembled kits to finished‑goods location; WMS decrements component inventory and increments kit inventory.
4.3 Automating Replenishment
- Min/Max Levels: Set min/max stocking levels for kits and components.
- Auto‑Create Build Orders: When kit stock dips below min level, WMS auto‑generates build orders.
5. Configuring Bundles at Pick Time
5.1 Bundle Definitions
- Create a Bundle SKU for reporting (optional) but map bundle definitions in WMS: Bundle NameComponent SKUsWINTER_WARMTH_BNDLSWEATER123, SCARF456, GLOVES789
- Dynamic Bundles: Some WMS allow parameters (e.g., “Any 3 T‑shirts”) for customer‑configured bundles.
5.2 Pick‑and‑Pack Workflow
- Order Receipt: Sales order line shows bundle SKU or component list.
- WMS Logic:
- Recognizes bundle definitions.
- Generates pick tasks for each component SKU.
- Pick Execution: Workers pick components, scan into a staging tote or pallet labeled with the bundle or order number.
- Packing & Shipment: Components are packed together; if no separate assembly is needed, the packed carton represents the bundle.
6. Operational Workflow: From Receipt to Shipment
6.1 Receiving Components
- Inbound Goods Receipt: Components received and putaway to component‑storage locations.
- Quality Inspection: If required, inspect and approve components before putaway to avoid defective kits.
6.2 Assembly (Kitting)
- Batch vs. Demand‑Based:
- Batch Kitting: Build large runs of kits in advance for predictable SKUs.
- On‑Demand Kitting: Assemble kits only when orders arrive, reducing finished‑goods inventory but requiring more dynamic labor allocation.
- WMS Tasks:
- Pick components via guided mobile screens.
- Scan and confirm assembly.
- Move finished kits into pick locations or bulk staging.
6.3 Picking Bundles
- Order‑Based Picking: WMS issues component pick tasks for each bundle in the order.
- Consolidation: Workers consolidate picks into a designated tote or pallet for the bundle, scan out, and send to packing.
6.4 Packing and Shipping
- Labeling: Apply kit or bundle labels with barcodes for downstream scanning at outbound dock.
- Load Tendering: Manifest picks by kit SKU or order number to the carrier integration (UPS, FedEx).
7. Best Practices and Common Pitfalls
7.1 Optimize Lot/Serial Tracking
- Lot Cohorts: If components are lot‑controlled, ensure assembled kits carry the correct lot attributes for traceability.
- FEFO/ FIFO: Configure kit picking to source oldest components first.
7.2 Balance Inventory Levels
- Component vs. Kit Stock: Overstocking kits can tie up capital; understocking increases order lead time.
- Use Analytics: Monitor kit vs. component turnover rates to set optimal rebuild frequencies and safety stocks.
7.3 Labor Management
- Zone Layout: Locate component pick faces adjacent to kitting stations to minimize travel.
- Cross‑Training: Enable pickers to flex between kitting and bundle fulfillment based on demand.
7.4 System Performance
- Transaction Volume: High‑volume kitting operations can strain WMS; batch build orders outside peak pick windows.
- Data Accuracy: Ensure real‑time inventory sync between WMS, ERP, and physical counts—discrepancies slow both kitting and bundling.
Conclusion
Properly setting up kitting and bundling in your WMS transforms complex, labor‑intensive workflows into efficient, accurate processes. By defining kit SKUs and BOMs, configuring assembly work orders, and leveraging bundle definitions at pick time, you’ll reduce order cycle times, improve inventory visibility, and boost customer satisfaction. Follow the best practices—optimize layouts, balance inventory, and monitor system performance—to scale your operations seamlessly as demand grows.
Implement these steps in your WMS today, and watch your fulfillment throughput accelerate—delivering the right products, in the right combinations, exactly when your customers expect them.
