Kit inventory (also known as bundled product inventory) refers to bundled products sold as a single unit. When a store sells a gift box set, this is simply one packaged unit in the customer's point of view. However, for physical warehousing and inventory management systems, it is necessary to keep track of the box and packaging, as well as the individual items inside the bundle. There are typically 2 ways to manage this type of product:
1. Real-time (on-demand) assembly, calculated by the system
2. Pre-assembled kits, where they are managed similarly to product inventory
Each approach has different implications for flexibility and operational efficiency.
To keep items in your warehouse as flexible as possible, storing components as separate items and letting the system calculate how many kits can be sold may be the most suitable option. For example, a cookie gift box may require: 20 packs of cookies, 1 gift box, and 2 ribbons. If your warehouse currently has 60 packs of cookies, 4 boxes, and 2 ribbons, the system can automatically determine that you can sell up to 1 cookie gift box.
The kit is not physically assembled until a customer places an order. At that point, the system prompts warehouse staff to pick the required components and assemble the gift box. After shipment, the remaining 40 pacs of cookies and 3 boxes can still be sold or used individually. This method offers greater inventory flexibility and reduces the risk of over-committing stock to bundles.
On the other hand, if you want orders to ship immediately without running an assembly process each time a kit is ordered, pre-assembling the kits may be a more suitable choice. This approach is similar to production management. During the inventory stage, you "assemble" kits in advance and record them in the system. For example, you may decide to use: 60 packs of cookies, 3 boxes, and 6 ribbons to produce 3 cookie gift boxes, which are then stored and tracked as finished products.
Pre-assembled kits are especially efficient during peak sales periods with high order volumes. However, this may also mean reduced flexibility. If you later need to sell the components separately, you'll have to go through a disassembly process and return the items to individual inventory.
