Kitting is collecting and organizing separate but related parts for future use in manufacturing a product. Kits may be stored until needed on the manufacturing assembly line or delivered directly to customers.

Putting items together into a kit sounds simple. Still, when you have thousands of parts and orders, it can be challenging to do effectively and efficiently.

At some point, every original equipment manufacturer (OEM) must decide what core competencies it wishes to retain in-house. Outsourcing frees OEMs to focus on these core competencies, which often do not include kitting.

For this reason, many companies outsource these responsibilities to a contract manufacturer.


Kitting must occur where the product inventory resides. This creates an excellent opportunity for OEMs to outsource multiple parts of their manufacturing process simultaneously.

That’s why so many OEMs partner with Riverside Integrated Solutions (RIS). As an integrated contract manufacturer, we can handle manufacturing, kitting, warehousing and many other services.

This makes even more sense for OEMs that already outsource manufacturing to a contract manufacturer. Pushing kitting to them is a natural next step since kitting is the immediate upstream operation from the assembly.

A close up of the tape machine at RiverSide Integrated Solutions. Just one part of our kitting line.

Even if an OEM decides to keep production in-house, outsourcing has significant advantages. Many of the upstream logistics processes can be outsourced. This includes procurement, inventory management, warehousing, picking, packaging of the kits, and shipping to a required destination.

Our complete start-to-finish manufacturing support is a key advantage of choosing RIS as your contract manufacturing. We do everything from procuring materials to assembly and kitting to the final shipment. With RIS, you can access our comprehensive distribution capabilities that will expand your reach into any channel.

Kitting services help OEMs save time and money and avoid the headaches that come with these operations. Let us figure out how to track inventory. Let us decide where to store products, how to package and distribute them.


If you currently perform kitting in-house and are considering outsourcing, look at why OEMs outsource kitting:

A cart full of packaged products at RiverSide Integrated Solutions.


Kitting can be very time-consuming and pricey as there are many in-house costs. These include personnel, warehouse and storage facilities, IT management systems, and equipment.

Cost reductions are one of the key reasons why OEMs outsource kitting. Contract manufacturers have the facilities, resources and processes that enable the completion of kitting operations more efficiently. The result is significantly lower costs and a competitive advantage for OEMs.


Kitting improves productivity. Assemblers utilize pre-prepared kits when needed instead of picking parts from storage when something is ordered. This further reduces labor costs and saves time on the production line.

Outsourcing to a contract manufacturer adds further kitting efficiency gains. Contract manufacturers, like RIS, can often perform kitting services faster. We have all of the necessary equipment and procedures for successful kitting already in place. The result of this is increased overall speed to market for our customers.


Kit assembly and storage of assembled kits consume a significant amount of space. When partnered with contract manufacturers, OEMs gain the benefits of that contract manufacturer. They tap into their partner’s kitting expertise and take advantage of their inventory and warehousing facilities.

This eliminates the need for OEMs to use their own floor space for these activities. Outsourcing kitting to a contract manufacturer results in fewer products in your facility and fewer storage expenses. This allows OEMs to utilize the space for other purposes, including production growth opportunities and new business ventures.


Kitting operations can be overwhelming, especially during busy periods, making processes prone to mistakes and human error. Additionally, kitting is not typically a core competency found within most OEMs. For these reasons, product quality may be at risk.

Contract manufacturers have extensive experience with inventory, assembly and kitting. This translates to high accuracy and quality in these operations.

Further, contract manufacturers typically have rigorous quality training and dedicated professionals to ensure they meet quality standards. They apply their depth of knowledge across various industries to their quality management program.

These measures lead to higher quality control and result in more consistent product quality. It also results in a healthier bottom line and happier customers.

At RIS, we have a layered and proven approach to quality management. We are ISO-9001 registered and adhere to quality systems that meet national production, product quality and customer service standards.

Quality control is more than just checking boxes for us. We engrain quality into our culture and workplace.


One of the reasons that OEMs outsource kitting is the packaging and shipping efficiencies gains. The ability of contract manufacturers to buy in bulk allows economies of scale not possible for larger companies. By ordering supplies in bulk, RIS can drive down costs and pass the savings to our customers.

Contract manufacturers are experienced in packaging all sorts of shapes and sizes of products. They can find a packaging and shipping solution that is most cost-effective for your specific application. RIS provides more economical and sustainable packaging by utilizing custom-sized boxes to reduce the size and weight of shipments.

A production worker at RIS working on the kitting line, packaging products in bubble wrap.


Partnering with a contract manufacturer for kitting provides more scalability. Contract manufacturers have the experience and resources to handle your fluctuating demands. Whether you need more inventory ready or scaling back for a while, RIS can do it. And this additional nimbleness is achieved without sacrificing quality or time to market.

About RiverSide Integrated Solutions

RIS is an advanced contract manufacturer providing robust solutions in circuit board assembly and product assembly. We employ more than 350 people and provide services to OEMs worldwide. We operate two state-of-the-art manufacturing facilities within the US.

With all of the choices in contract manufacturers out there, we know it can be challenging to find someone who understands your business model and has your best intentions in mind. RIS has always proven to be a win-win-focused relationship.

As your one-stop shop, we have the capabilities, capacity, quality assurance standards and resources to support all of your manufacturing needs. We understand that supply chain management is complex and very time-consuming, so we urge our customers to utilize us in the fullest capacity.

Our total-package solutions include:

Contact us today at (507) 523-3220 to see how we can help with your manufacturing project, or click contact us for a quote.

Why OEMs Outsource Kitting
Article Name
Why OEMs Outsource Kitting
Why OEMs outsource kitting to a contract manufacturer: cost savings, productivity gains, improved quality and more flexible and nimble operations
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RiverSide Integrated Solutions
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