Kitting is an inventory strategy that, when executed correctly, can dramatically reduce labor time, eliminate disorganization, and make high‑movement inventory far easier to manage. Whether you’re running a warehouse, supporting ecommerce fulfillment, maintaining tools across multiple job sites, or keeping essential supplies stocked for healthcare providers, kitting can help you streamline your workflows and reduce costly mistakes.
This guide breaks down the kitting process, how it works in real‑world operations, and when it’s the right (or wrong) choice for your business. You’ll also learn how to build kits step by step and how inventory management software like Sortly can make the entire kitting process more efficient.
What is kitting?
What is kitting in inventory management?
In inventory management, kitting refers to the process of combining multiple individual components, each with its own SKU, into a single, trackable unit. This simplifies picking, replenishment, and usage because teams no longer need to manage each item separately.
What’s the difference between kitting and bundling?
Kitting is an operational strategy designed to streamline workflows and reduce labor costs. Bundling, on the other hand, is typically a sales or merchandising strategy where individual products are packaged together for purchase.
While both involve grouping items, kitting focuses on efficiency and accuracy, while bundling focuses on customer value and pricing.
How does kitting improve inventory accuracy?
Kitting reduces the number of individual items you need to track, which decreases errors during picking, packing, audits, and cycle counts. When several items are consolidated into a single unit, it becomes easier to maintain accurate records and optimize your supply chain.
How kitting is used in inventory management
Kitting is especially valuable in environments where inventory moves quickly, tasks repeat frequently, or employees rely on the same sets of tools or materials over and over again. Here are a few ways teams use kitting to stay organized and reduce friction in their day-to-day tasks.
Grad-and-go readiness
In construction, field services, and maintenance operations, kitting ensures teams always have the right tools and materials on hand. Instead of gathering items one by one, employees grab a prebuilt kit and head to the job site.
Staying organized
Loose parts, small components, and frequently misplaced items are common pain points. Kitting consolidates them into a single, trackable unit, which reduces inventory shrinkage and saves time and money.
Speeding the picking process
Warehouse kitting is especially useful when items are frequently sold or picked together. This reduces pick and pack time and helps pickers move through the fulfillment process with fewer errors.
Simplifying ordering
When kitted items are tracked as a single unit, it becomes easier to see when your most commonly used components are running low—especially if you’re also using inventory management software with low stock alerts.
This helps prevent stockouts, shortens lead time, and improves your ability to forecast demand reliably.
This easy, comprehensive guide will help you:
Free Ebook: Getting Started With Inventory Tracking
5 key benefits of kitting
Kitting offers a wide range of operational benefits. Here are the most impactful advantages for inventory‑heavy teams.
1. Lower labor costs
When employees no longer need to hunt for missing parts or gather items individually, tasks get done faster. Kits reduce wasted time and help teams stay focused on the work that matters.
2. Boosted efficiency within warehouses
Preassembled kits speed up picking, packing, and order fulfillment. This is especially valuable for ecommerce businesses, retailers, and teams managing complex customer orders.
3. Fewer fulfillment errors
Kitting reduces the risk of missing components or incorrect picks. When everything is bundled together, accuracy improves, and customer satisfaction increases.
4. Easier inventory management
Kitting reduces the total number of items you need to track. This simplifies cycle counts, audits, and day‑to‑day inventory tasks, especially when paired with inventory management software.
5. Smarter forecasting
Tracking kits as single units makes it easier to understand usage patterns. Teams can see which kits move fastest, which components need more frequent replenishment, and where demand is trending. This leads to better forecasting and cost savings.
When to use kitting (or not)
Kitting can be incredibly effective, but it’s not the right solution for every situation. Here’s how to determine whether it fits your workflow.
When to consider kitting:
Kitting works well when items are used together repeatedly or need to stay organized as a set. Common examples include:
- Repeat builds for manufacturing processes or assembly lines
- Maintenance kits for recurring tasks
- Event setup kits for installations
- Material kitting for production runs
Where kitting is not an ideal fit:
Kitting may not be the best choice when items have low movement, unpredictable demand, or when components frequently change or require customization. If kitting is ultimately not a fit for your organization, you can do what’s known as “de-kitting” which is the process of breaking down a pre-assembled kit back into its individual components and returning them to your active inventory.
How to kit your inventory
Kitting your inventory is straightforward, especially when you use an inventory management system to track your kits. Here’s how to get started.
1. Inventory what you have on hand
Start by organizing your existing inventory. Make sure each item has a unique identifier, such as a SKU or Sortly ID, and capture details like descriptions, quantities, and locations.
Sortly inventory software makes this step easier with features like photo uploads, barcodes, QR code scanning, and customizable item fields.
2. Determine what items to kit
Next, identify which items naturally belong together. Ask questions like:
- What items travel together to job sites?
- What small components are frequently misplaced?
- What tools or materials are already stored together?
- What products are often sold together?
Once you’ve identified your kit combinations, you’re ready to build them.
3. Officially “kit” those items
Create a new entry in your inventory system for each kit. Assign it a unique identifier and record the components included. If you’re using Sortly, you can:
- Create a new Sortly ID (or your own SKU)
- Add photos of the kit
- Link or list the individual items inside the kit
- Generate a barcode or QR code, then print it out and adhere it to the kit for easy check‑in and check‑out
Sortly’s customizable folders function like virtual kits, allowing you to group items digitally even if they’re stored across multiple locations. This gives you real‑time visibility into both the kit and its individual components.
4. Monitor usage and returns
Once your kits are in circulation, track how they’re used. This helps you replenish components on time, identify damaged or missing items, understand which kits are most valuable, and improve forecasting and ordering.
Simplify kitting and inventory management with Sortly
Sortly makes it easy to create, track, and manage kits across your entire operation. With features like barcode and QR code scanning, high‑resolution photos, customizable folders, and multi‑location tracking, Sortly gives you complete visibility into both your kits and their individual components.
Whether you’re organizing tools, managing warehouse kitting, supporting ecommerce fulfillment, or preparing technicians for the field, Sortly helps you work faster, reduce waste, and stay ahead of demand.
Start your two‑week free trial of Sortly today.
