What should I ask about a fulfilment centre’s kitting and assembly services?

Start with the work itself. Ask the seller to walk you through one kitting job from receiving to shipping, and watch a live one if you can. Notice whether instructions are written down or live in a lead hand’s head. Ask who trains new temporary workers and how long a new person takes to reach a steady pace.

Then look at the money side. Ask how kitting jobs are quoted: by piece, by hour or by project. Compare a few quotes with the labour actually spent on them. Jobs that look busy but run at thin margins are common in this work, so ask your accountant to help you test it.

Finally, look at what sits behind the work. Ask who owns the parts and components on the shelves, since clients often own them while the centre only holds them. Check which workbenches, tools and wrapping machines belong to the business, and which belong to clients. Ask whether any client could move its assembly work elsewhere with short notice, and how often rework or returns happen on kits.

Key takeaways

• See one kitting job run from receiving to shipping before you trust the paperwork.
• Test quotes against the labour actually spent, with your accountant’s help.
• Confirm who owns parts, tools and workstations before you count them as assets.
• Ask how often rework or returns happen on finished kits, and who pays for them.