Apr 8, 20233 min read

Overview Kitting Process

Updated: Apr 9, 2023

What is Kitting?

Kitting is a shipping and warehouse technique that has become popular with rise of online stores. Product kitting is particularly popular with business like AMZONE, FLIPCART, large retail chains and on online market place or B2B online market place.

Kitting is an inventory technique where individual, but related products are packed and shipped together as a single bundle.

Kitting Meaning in logistics

Kitting in logistics is the act of compiling multiple products into single “Kit” that is shipped to customer. Business and logistics companies can streamline shipment processes, lower shipping costs, and delivered customer order in time using kitting process. This also makes tracking shipment easier and increase customer satisfaction, which is key pillar of CRM.

Kitting Meaning in Warehouse Management

Kitting in warehouse is the physical activity of finding multiple SKUs, building them into a single package, and creating a new SKU for that package before shipping. This involves warehouse workers picking multiple products and bringing them to assembly area where they are packed together and shipped.

Kitting Process with SAP ERP WM

The kitting process can be mapped with SAP WM in combination with the PP module.

Process

Customer order with defined order reason release the kitting process: the plan order will be automatically created and is the basis for the production order.
In the production order are all relevant data listed like material, events and clients. The material number is at the same time the order number. For changing the production order is a process-or component overview available.
With the release order, the WM provision automatically executed; transport needs for production order are created and transferred is transfer orders. The transfer order can be printed after the creation.
During the redistribution the transfer order is receipted so the stock in inventory structure is changing.
Responses to the production order can be controlled in the system, the order is responded, the component stocks are booked out and the assembly is booked to storage type. The customer order can be supplied and goods issue can be booked.

Kitting With SAP EWM

Functional Overview

The kitting process is illustrated by means of examples performed on a SAP SCM EWM system configured trough standard BC set

Kitting Key Concepts

Kitting is a the process of building kit products by assembling their component material (raw materials, semi-finished products or finished products)

In Extended Warehouse Management the kitting process can be takes place in two forms

Kit to Stock: When kitting is performed as a simple, streamlined manufacturing process with reference to an ERP production order or initiated through an EWM VAS order and the kit is put-away in the warehouse
Kit to Order: When kitting is performed in relation to sales order for the kit. The disassembly of a kit into its component materials is called “reverse kitting”.

The Bill of Material is not stored in EWM; the kit structure managed in EWM through VAS order (kit-to-stock) or through item level hierarchy in the Outbound Delivery Order (Kit-to-order)

Nested kitting (kit within a kit) is not currently supported but complex kit structures can be used in combination with the SCM iPPE when for example a sales order is created from CRM.

Kits are physically assembled in a work center apart from “kitting during picking” scenario where the picker is assembling the kit in the aisle (or no assembly required).