BOM vs. Kit Procurement: A Comparison of Supply Chain Efficiency
Here’s a quick comparison between Bill of Materials (BOM) and Kit Procurement, emphasising the differences in supply chain management, cost, and operational efficiency.
BOM
Component
EFFORTS AND DISADVANTAGES
Supply chain
- Multiple suppliers' management
- One small screw affects delivery despite having 99% of the components, degrading SCM performance
Cost
- Component to component cost, doesn’t leverage scale
- MOQ challenges, excess inventory
- Operations cost for moving several items inwards
Operations
- Numerous movements within the store and parts to the assembly lines
- Interchangeability issues due to multiple sources, could affect plant OEE
- Lacks space utilization optimization
Kit procurement
RESULTS AND ADVANTAGES
Supply chain results
- One supplier management
- Kit with every bit, ensured in outward inspection
Cost
- Leverages scale and opportunity for savings
- Quotes are for Kits and no MOQ subjectivity at component level, hence no excess inventory
Operations
- One movement to store and an assembly line
- Interchangeability is ensured as part of kit outgoing inspection
- Optimises space utilisation, stores one kit in standard box size
Our Custom Manufacturing Capabilities
Succinnova offers a wide range of custom manufacturing solutions and engineering technologies designed to address the unique needs of various industries. With a strong focus on quality, timely delivery, and efficient service fulfillment, we are your reliable partner for global supply chain solutions.
Machining
Specialists in CNC machining with top-notch facilities spread over 3 units and growing.
Castings
Highly diversified, and a wide range of cast parts are manufactured for customers.
Forgings
Expertise in forging and machining for medium to high volumes and tolerances range.
Injection Moulding
Expert injection moulding with diverse materials and efficient, cost-effective production.
Industrial Products
We offer techno-commercial expertise in manufacturing industrial products at a global level.
Kitting & Assemblies
We offer a complete solution for customers’ sourcing needs, whether a small component or an entire assembly.
Benefits of Succinnova’s Kitting & Assembly Services
- Simplified Procurement: Single supplier management reduces complexity.
- Reduced Inventory Costs: No need to store excess individual components.
- Faster Assembly & Production: Pre-assembled kits streamline manufacturing.
- Improved Quality Control: Kits undergo inspection before delivery, ensuring accuracy.
- Lower Operational Costs: Reduces handling, movement, and labour costs.
- Minimised Supply Chain Disruptions: Ensures all components arrive together, avoiding delays.
- Optimised Space Utilisation: Pre-packaged kits require less storage space.
- Better Cost Efficiency: Bulk purchasing and kitting can lead to savings.
- Enhanced Productivity: Workers spend less time gathering parts and more time assembling.
- Customisation & Flexibility: Kits can be tailored to specific customer needs.
How Kitting & Assembly Works?
| 01. Order Receipt & Processing | 02. Inventory, Manufacturing, Sourcing | 03. Quality Control & Packaging | 04. Shipping & Tracking | 05. Returns & Exchanges |
|---|---|---|---|---|
| Orders are acknowledged by customers. Sales order is released internally for Kitting preparations. | On-hand stocks are verified, and the rest are manufactured to fulfill Kitting needs, involving sourcing to complete the needs. | Once all components are ready, they’re assembled precisely according to detailed guidelines. The goal is to ensure every kit includes exactly what was ordered. | For more complex kits, logistics partners may also conduct quality assurance checks to maintain high accuracy levels throughout the fulfillment cycle before shipment and tracking begin. | With Succinnova’s assembly and kitting solutions, you get more than just assembly. We also streamline fulfillment, packaging, and the entire returns and exchange process, providing a smooth post-purchase experience. |
By choosing our kitting and assembly solutions, customers benefit from streamlined supply chain management, reduced inventory costs, and improved production efficiency. Our process ensures that every kit is meticulously assembled, inspected, and delivered precisely, eliminating delays and minimising errors. With enhanced operational efficiency and optimised space utilisation, we provide a seamless solution that supports your manufacturing goals while maintaining the highest quality standards.
Frequently Asked Questions
What is kitting and assembly?
Kitting is the process of gathering and organising a set of parts required for an assembly, based on the customer's bill of materials
What industries use kitting and assembly solutions?
Every industry involved in manufacturing—whether B2B, B2C, or any other customer-supplier engagement—can benefit from kitting. It is a versatile solution, not limited to any one industry
What is the difference between kitting and assembly?
Kitting involves organising the essential set of components for assembly in a structured and presentable manner, whereas assembly is the physical process of building the final product using the components provided through kitting. We can either provide the Kits or supply an assembly based on customer needs.
How does a kitting and assembly company like yours ensure quality control?
Kitting and assembly are extensions of our manufacturing services. We follow a stringent manufacturing process supported by a world-class quality management system. Every stage is equipped with proper instruments and handled by qualified, experienced quality personnel, ensuring consistent quality through setup inspection, in-process checks, and final inspection, all with thorough documentation
How can kitting and assembly services reduce costs?
Here’s how kitting and assembly services can reduce costing:
- Achieves cost savings by leveraging economies of scale
- Eliminates Minimum Order Quantity (MOQ) constraints at the component level
- Prevents excess inventory by quoting and supplying complete kits instead of individual parts
- Streamlines logistics with a single movement of kits from stores to the assembly line
- Improves space efficiency by storing kits in standardised box sizes
- Reduces coordination efforts and improves reliability in the supply chain
Can kitting, packaging and assembly services be customised to specific business needs?
Yes, each kit and associated assembly are unique. We have a versatile process for customising the essentials for both kitting and assembly.
How does kitting improve order fulfillment and shipping?
Here’s our process for kitting and assembly solutions:
- Simplifies supplier management by consolidating multiple components into one kit from a single supplier
- Ensures completeness and accuracy through thorough outgoing inspection of each kit
- Reduces coordination efforts and improves reliability in the supply chain
- Streamlines logistics with a single movement of kits from stores to the assembly line
- Guarantees part interchangeability through verified outgoing inspections
- Improves space efficiency by storing kits in standardised box sizes