Packaging, Kitting, and Assembly: Core 3PL Services That Drive Efficiency and Growth

Packaging, kitting, and assembly are foundational third-party logistics (3PL) services that enable businesses to reduce costs, increase order accuracy, and enhance the overall customer experience. These outsourced fulfillment solutions streamline operations, helping eCommerce brands and manufacturers scale without investing in warehouse space, personnel, or logistics infrastructure.

Whether you’re launching a product, expanding into new markets, or trying to reduce operational bottlenecks, 3PL providers deliver flexible, cost-effective solutions that support long-term growth.

The Role of Fulfillment in the Supply Chain

Order fulfillment—also called order processing—encompasses the entire journey from customer purchase to delivery. It includes inventory checks, picking, packing, and shipping. A reliable 3PL partner ensures efficient, error-free fulfillment that reduces shipping delays and boosts customer satisfaction.

Common Fulfillment Methods:

• In-House Fulfillment: Managed internally by the business.

• Drop Shipping: The manufacturer fulfills and ships the order directly.

• 3PL Fulfillment: A third-party handles storage, packaging, and shipping.

• Hybrid Fulfillment: Combines multiple strategies for flexibility and efficiency.

Key 3PL Fulfillment Services: Assembly, Kitting & Packaging

Product Assembly

Assembly refers to putting together components or sub-assemblies to create a finished product. 3PLs that offer this service can handle:

• Sub-assembly production

• Build-to-order customization

• RFID tagging and labeling

• Product testing and quality control

• Multi-channel packaging

Assembly lines and expert personnel help reduce costs, maintain product quality, and speed up time-to-market. For OEMs working with tier one and tier two suppliers, 3PLs can coordinate complex supply chains using a bill of materials (BOM) to ensure accuracy and efficiency.

What Is Kitting?

Kitting is the process of bundling separate products (each with its own SKU) into one new SKU and packaging them as a single unit. Kitting is ideal for:

• Subscription box fulfillment

• Seasonal or promotional bundles

• Retail product launches

• Point-of-purchase (POP) displays

• Slow-moving inventory clearance

For example, a coffee subscription box may include several roasts, a grinder, and snacks—all packaged as one SKU. This boosts average order value (AOV) and streamlines the picking process.

Benefits of Kitting:

• Fewer picking errors and faster fulfillment

• Reduced packaging and labor costs

• Increased warehouse efficiency

• Higher perceived value for bundled products

3PL Packaging Services that Save Time and Cut Costs

Custom packaging enhances product protection, supports branding, and ensures compliance with retail and shipping standards. Services may include:

• POS-ready displays

• Blister packaging or shrink-wrapping

• Barcode/RFID application

• Re-labeling and sorting

• Returns and repackaging

3PLs also manage packaging for BOGO promotions, gift-with-purchase campaigns, and repackaging of returned or refurbished products to keep inventory ready for resale.

Eco-Friendly 3PL Solutions for Sustainable Growth

Many 3PL providers now offer eco-friendly logistics and packaging services to help clients meet sustainability goals while lowering costs. These services include:

• Lean packaging design

• GHG emissions reduction through optimized processes

• Recyclable or compostable materials

• Right-sized packaging to minimize waste

3PLs that embrace green logistics can reduce your carbon footprint while also ensuring compliance with international sustainability regulations—making them ideal partners for environmentally conscious brands.

Industries That Benefit from Kitting, Assembly, and Packaging Services

3PL packaging and kitting services are especially valuable for companies in:

• Electronics and consumer tech

• Health and wellness (supplements, test kits)

• Beauty and cosmetics

• Retail and subscription boxes

• B2B kits (e.g., trade shows, product demos)

• Medical devices and diagnostics

Beyond the Basics: Advanced 3PL Services

Leading 3PL providers also offer services like:

• Real-time inventory dashboards and analytics

• JIT (Just-in-Time) inventory management

• Product personalization and engraving

• Service activation and serialization

• Product lifecycle and end-of-life planning

These capabilities allow businesses to gain full visibility and control over their supply chain—crucial for scaling and adapting in a competitive market.

Looking for Expert Help With Assembly, Kitting or Subscription Box Fulfillment?

At ModusLink, we specialize in custom 3PL solutions, including subscription box fulfillment, eco-friendly packaging, and full-service assembly and kitting. Whether you need help launching a new product line or optimizing your global logistics strategy, we provide the tools, expertise, and technology to elevate your supply chain.

Contact ModusLink today for a private consultation with one of our knowledgeable agents.