The first of our series, Stitch’s ‘Feature of the Month’ is here! In this monthly series, we’ll highlight an operational or logistical challenge one of our customers or prospective customers are facing, and share details into how Stitch’s inventory management software can help to solve these common challenges.
This month’s feature highlight? Bundling and Kitting.
A luxury bamboo bedding company which has hit a high-growth period in their sales over the past few months.
Challenge: Bundling and Kitting
Bundling, or kitting, is important in their workflow because it provides the consumer with an additional product at a lower cost, helps to turn inventory, and assists them in increasing the value of each order placed.
Currently, the brand is experiencing problems controlling and tracking the bundles they create because they run a manual inventory count each week. The goal would be to have customers purchase all items in their order at the same time, even if some are temporarily unfulfillable. They have successfully built out the bundles on their ecommerce platform, but they face challenges pulling multiple items under one SKU upon fulfillment in the warehouse.
As the brand continues to grow, there are concerns that orders of their bundled items will become increasingly overwhelming as they hit the picking and packing stages of the process. Additionally, understanding the unit sales of each item whether or not it’s a component of the bundle can prove challenging and time-consuming. This winds up hurting the sales of the bundled items instead of helping the brand grow, since reconciling bundling issues typically lead to delayed purchasing decisions, increased time with customer service, excess promotions given, and decreased repeat customers.
Stitch Solution: Exploded Bundles
Stitch handles inventory in a way that allows for brands to easily create and accurately track bundles. When picking, packing, and shipping bundles, Stitch assigns a single SKU to the entire bundle, as well as individual SKUs to each product so the picking and packing process runs efficiently at the warehouse level.
For brands with multiple warehouses, Stitch also has the ability to fulfill the items in a bundle from different warehouses. For example, if there are three items in a bundle and two of them are available in Warehouse A while one of them is available in Warehouse B, Stitch can separate these into two orders by SKU and ship them individually through the routing feature.
The additional complexity of bundling arises when there are items in that bundle which cannot be immediately fulfilled from the same warehouse or at the same time. Typically, this results in having the the entire order put on hold. To prevent this, Stitch is able to ship each line-item separately so the available items can ship immediately and the other items are shipped from a different warehouse when they become available.
With routing, your brand can track each product in future forecasting, but also ensure accuracy of stock, timeliness of products that are available for shipment, and overall happiness of the customer. Giving visibility into the velocity of your inventory will improve the efficiency and accuracy of sales information which will in-turn inform proper purchasing decisions. Their high-growth trajectory necessitates this feature in order to maintain a successful business, and we’re happy that Stitch is able to provide it.
Latest posts by Emma Crimm (see all)
- Feature of the Month: Fulfillment Routing & Splitting - June 14, 2018
- Feature of the Month: Bundling & Kitting - May 17, 2018