In today’s competitive manufacturing industry, OEMs are under constant pressure to reduce costs, improve efficiency, and speed up the time to market. A strategic move that can help achieve all three is outsourcing kitting and sub-assembly operations.
How do you know when it’s the right time to make the shift? In this blog we will look at what kitting and sub-assembly are, when it makes sense to outsource them, and some strategic benefits of outsourcing them.
What Are Kitting and Sub-Assembly?
Before we decide if outsourcing kitting and sub-assembly makes sense for your company, here is some information on what they are.
Kitting is the grouping of several individual components / part numbers into one final finished good to be sold as an individual part number.
Sub-assembly refers to the process of creating smaller finished components that will be used as part of a larger assembly.
5 Signs Outsourcing Is the Right Move for Your Company
1. Quality is Suffering
Outsourcing kitting and sub-assemblies to a partner who has processes and quality control systems in place can improve consistency and reduce the risk of errors. This is especially important for complex or high-volume builds.
2. Your Internal Team is at Capacity
If your team of engineers, operators, and managers are spending more time managing parts and prepping assemblies than innovating or focusing on core manufacturing, it may be time to consider outsourcing. Outsourcing will help free up internal talent, so they can focus their time and attention on design, production, and customer experience.
3. Reduce Costs
Outsourcing does come with the initial upfront investment, but your company will see potential savings in reduced labor, lower inventory carrying costs, and improved operational efficiency.
4. You Need to Scale Quickly
Whether you are launching a new product or expanding into a new market, outsourcing offers you the flexibility to scale operations without the added expenses of additional infrastructure or labor.
5. Quality is Suffering
Outsourcing kitting and sub-assemblies to a partner who has processes and quality control systems in place can improve consistency and reduce the risk of errors. This is especially important for complex or high-volume builds.
6. You’re Experiencing Workflow Inefficiencies
Delays in kitting and sub-assembly can slow down your entire production line. Working with a partner who specializes in kitting and sub-assembly can help minimize downtime, saving your company money, and preserving your customer’s trust.
Strategic Benefits of Outsourcing Kitting and Sub-Assembly
Outsourcing kitting and sub-assemblies aren’t just about cost cutting they are also strategic moves that can help your business:
- Speed up time to market
- Improve your supply chain resilience
- Improve product quality
- Reduce overhead costs and inventory waste
Real-World Example:
One of the Big 3 automakers partnered with Kem Krest to streamline delivery of their tire pressure monitoring systems (TPMS). By leveraging high-tech kitting machinery and customized packaging solutions, Kem Krest helped the OEM reduce bulk orders, free up dealership inventory space, and save over $50,000 through volume discounts. This strategic move not only improved operational efficiency but also strengthened the OEM’s dealer relationships.
Why Partner with Kem Krest?
At Kem Krest, our team specializes in delivering kitting and sub-assembly solutions that align with your production goals. Our team of experts, comprehensive quality management systems, and scalable operations make us the ideal partner for OEMs who are looking to optimize their supply chain, while maintaining strict compliance with regulatory standards in an ever-changing landscape.
Whether you’re facing labor shortages, rising costs, or increasing demand, we’re here to help you stay ahead.
In today’s competitive manufacturing industry, OEMs are under constant pressure to reduce costs, improve efficiency, and speed up the time to market. A strategic move that can help achieve all three is outsourcing kitting and sub-assembly operations.
How do you know when it’s the right time to make the shift? In this blog we will look at what kitting and sub-assembly are, when it makes sense to outsource them, and some strategic benefits of outsourcing them.
What Are Kitting and Sub-Assembly?
Before we decide if outsourcing kitting and sub-assembly makes sense for your company, here is some information on what they are.
Kitting is the grouping of several individual components / part numbers into one final finished good to be sold as an individual part number.
Sub-assembly refers to the process of creating smaller finished components that will be used as part of a larger assembly.
5 Signs Outsourcing Is the Right Move for Your Company
1. Quality is Suffering
Outsourcing kitting and sub-assemblies to a partner who has processes and quality control systems in place can improve consistency and reduce the risk of errors. This is especially important for complex or high-volume builds.
2. Your Internal Team is at Capacity
If your team of engineers, operators, and managers are spending more time managing parts and prepping assemblies than innovating or focusing on core manufacturing, it may be time to consider outsourcing. Outsourcing will help free up internal talent, so they can focus their time and attention on design, production, and customer experience.
3. Reduce Costs
Outsourcing does come with the initial upfront investment, but your company will see potential savings in reduced labor, lower inventory carrying costs, and improved operational efficiency.
4. You Need to Scale Quickly
Whether you are launching a new product or expanding into a new market, outsourcing offers you the flexibility to scale operations without the added expenses of additional infrastructure or labor.
5. Quality is Suffering
Outsourcing kitting and sub-assemblies to a partner who has processes and quality control systems in place can improve consistency and reduce the risk of errors. This is especially important for complex or high-volume builds.
6. You’re Experiencing Workflow Inefficiencies
Delays in kitting and sub-assembly can slow down your entire production line. Working with a partner who specializes in kitting and sub-assembly can help minimize downtime, saving your company money, and preserving your customer’s trust.
Strategic Benefits of Outsourcing Kitting and Sub-Assembly
Outsourcing kitting and sub-assemblies aren’t just about cost cutting they are also strategic moves that can help your business:
- Speed up time to market
- Improve your supply chain resilience
- Improve product quality
- Reduce overhead costs and inventory waste
Real-World Example:
One of the Big 3 automakers partnered with Kem Krest to streamline delivery of their tire pressure monitoring systems (TPMS). By leveraging high-tech kitting machinery and customized packaging solutions, Kem Krest helped the OEM reduce bulk orders, free up dealership inventory space, and save over $50,000 through volume discounts. This strategic move not only improved operational efficiency but also strengthened the OEM’s dealer relationships.
Why Partner with Kem Krest?
At Kem Krest, our team specializes in delivering kitting and sub-assembly solutions that align with your production goals. Our team of experts, comprehensive quality management systems, and scalable operations make us the ideal partner for OEMs who are looking to optimize their supply chain, while maintaining strict compliance with regulatory standards in an ever-changing landscape.
Whether you’re facing labor shortages, rising costs, or increasing demand, we’re here to help you stay ahead.