You receive a highly anticipated package this holiday season, open the box and find a small bag of miscellaneous parts included with the item. Have you ever wondered how those parts make it inside of the small bag and how a company ensures the number of parts is correct?

That's where companies like Pierce Distribution come into play.

Kitting is the process in which individually separate but related items are grouped, packaged, and supplied together as one unit. Before the process begins, it's important to understand which category your kitting falls under: customer owned inventory, vendor owned inventory or procurement.

• Customer Owned Inventory: Inventory that is warehoused by Pierce or by the customer. If inventory is warehoused by the customer, they ship the parts to Pierce to be kitted. If inventory is warehoused by Pierce, we are able to pull items and begin kitting quickly in-house.
• Vendor Owned Inventory: Also known as consignment, vendor owned inventory is warehoused by Pierce and kitted based on customer demand.
• Procurement: Under procurement, Pierce purchases kit parts from its customers' suppliers, warehouses and kits the parts when our customers place an order with Pierce. When kitting in this manner, the customer is required to purchase the completed kits from Pierce, as we own the kit parts.

At Pierce, we're able to handle any customer requirement – meaning our customers call the shots! Still not sure of the most efficient way for your company to handle kitting? Contact us!