On-DemandKit-to-Order
Eliminate pre-kitting and excess inventory. Execute kits at order time inside pick and pack workflows, reducing labor, inventory, and storage costs while improving speed, accuracy, and flexibility.
What Is On-Demand Kit-to-Order?
On-Demand Kit-to-Order (KTO) is a warehouse execution model where kits are assembled only when a customer order exists, rather than being pre-built, stored, and picked later as finished inventory.
In JASCI, a kit is represented as a logical parent item, while the physical work is executed through its component child lines during picking, packing, and shipping. Inventory is not committed to the kit until execution begins, and the kit is only confirmed after all required components have been successfully completed.
The Real Innovation: Deferred Commitment
Inventory is not committed to a kit until the warehouse is physically ready to execute the order. Components remain available for other orders, channels, or customers until the moment they are picked. This dramatically reduces inventory risk, improves utilization, and prevents the buildup of obsolete kits when business priorities change.
This approach removes the need for pre-kitting, eliminates excess inventory risk, and aligns warehouse execution directly with real customer demand.
The Shift from Forecast-Driven to Order-Driven Warehousing
Traditional: Forecast-Driven
The Old Way
- Kits assembled ahead of time based on forecasts
- Stored as finished inventory
- Picked when orders arrive
- Relies on accurate demand prediction
- Creates excess when forecasts are wrong
On-Demand KTO: Order-Driven
The JASCI Way
- Kits assembled only when orders exist
- Components remain available inventory
- Executed inside normal pick workflows
- Responds to real demand, not predictions
- Zero excess from forecast errors
Modern fulfillment operates differently. Promotions change weekly, bundles vary by channel, and customer expectations demand speed and accuracy. On-Demand KTO shifts kit assembly from a forecasting problem to an execution decision.
The Problem with Traditional Kitting
Traditional kitting is not inherently wrong, but it becomes inefficient as variability increases
Excess or Obsolete Kit Inventory
Bundles change, promotions end, and pre-built kits sit unsold—tying up capital and consuming space.
Double Handling Labor
Components are picked once to pre-build kits, then the finished kits are picked again to fulfill orders.
SKU Proliferation
Every kit variation becomes a new SKU requiring slotting, inventory tracking, and cycle counting.
Warehouse Space Consumed
Short-lived promotional kits occupy pick faces and pallet locations that could serve higher-velocity items.
Rework When Requirements Change
When packaging, components, or promotions change, pre-built kits must be disassembled and rebuilt.
Forecasting Risk
Kit demand is harder to predict than component demand, amplifying forecast errors and safety stock.
These inefficiencies create structural cost that compounds as operations scale. On-Demand KTO eliminates these costs at the source.
How JASCI On-Demand KTO Works
A complete execution model built directly into the core work lifecycle
Order-Driven Execution
Kits are defined at the order level. Components remain standard inventory until the order is released for fulfillment.
Parent-Child Lifecycle
The parent line represents the kit logically. Child lines represent individual components and packaging steps. Only child lines are physically picked.
Deferred Allocation
Allocation, container selection, and cartonization decisions occur during execution based on real-time inventory, work zones, and sales channels.
Component Picking
Each component is picked from its optimal location as part of normal pick waves—no separate kit-building workflow.
Assembly at Pack
Components are assembled into the kit at the pack station, verified, and packaged according to kit specifications.
Clean Confirmation
ERP systems receive a single, accurate confirmation only when the kit is fully complete—preserving inventory, financial, and operational integrity.
How On-Demand Kit-to-Order Executes in Practice
JASCI's On-Demand Kit-to-Order is not a conceptual workflow. It is implemented through a controlled, step-by-step execution model that governs allocation, picking, cartonization, exception handling, and confirmation.
Order Release and Logical Kit Definition
When an order containing a kit is released:
- The kit is created as a logical parent work line
- Individual components are created as child work lines
- No finished kit inventory is created
- No inventory is consumed at this stage
The parent line represents the kit for tracking and confirmation purposes, while all physical activity is driven by the child lines.
Deferred Allocation at Lane or Door Assignment
Allocation of kit components is deferred until execution time:
- Inventory is allocated at lane assignment or door assignment
- Allocation considers real-time inventory availability
- Work zones and sales channels are evaluated dynamically
- Non-pickable child lines are identified and handled separately
This prevents premature inventory commitment and allows the warehouse to adapt to changing conditions without manual intervention.
Controlled Parent and Child Work Lifecycle
Each line type follows a defined lifecycle:
- Pickable child lines drive physical picking
- Non-pickable child lines represent packaging, handling, or logical steps
- Parent lines remain unconfirmed until all children are complete
Statuses are updated automatically as work progresses, ensuring that partial completion does not trigger premature confirmations or inventory movements.
Dynamic Cartonization and Container Selection
Cartonization is performed after allocation, not before:
- Containers are evaluated based on work zone compatibility
- Sales channel rules are applied dynamically
- Container eligibility is validated at execution time
- Cartonization reflects the actual contents of the kit, not assumptions
This ensures correct packaging even when kits vary by order, channel, or fulfillment center.
Packaging, Validation, and Exception Handling
During packing:
- Child work lines are validated through scan-based execution
- Temporary or placeholder identifiers are replaced with final container identifiers
- Exceptions such as short picks or cuts are handled without breaking the parent kit lifecycle
- Work can be paused, reallocated, or completed independently at the child level
This allows operations to continue smoothly even when real-world exceptions occur.
Deferred Confirmation and ERP Integrity
Final confirmation occurs only when:
- All child work lines are completed
- All required quantities are processed
- Packaging and container validation is complete
- No phantom inventory
- No partial kit confirmations
- No reconciliation required downstream
Only then is the parent kit confirmed and a single, clean confirmation message sent to the ERP or host system.
Inventory and Audit Integrity
Throughout execution:
- Raw component inventory remains accurate
- Parent kits do not exist as inventory until confirmed
- Full audit history is preserved at both parent and child levels
- Cycle counting and reconciliation remain intact
This allows on-demand assembly without sacrificing inventory control or traceability.
Why This Execution Model Matters
Most systems stop at "kit logic."JASCI goes all the way through execution, exception handling, and confirmation.
"On-Demand Kit-to-Order in JASCI is not just about when kits are built. It is about controlling how they are executed so flexibility never compromises accuracy."
Why This Cannot Be Bolted On
Many warehouse systems claim to support kitting, but most do so by layering additional transactions or manufacturing-style workflows on top of picking and packing. These approaches introduce complexity, slow execution, and often require heavy customization for each customer or use case.
On-Demand KTO in JASCI is not an add-on.
It is built directly into the core work execution model. Parent and child work lines are managed as a single lifecycle, cartonization is deferred until execution, and confirmations occur only when all conditions are satisfied. This allows the warehouse to remain fast, flexible, and predictable at scale.
Not a Bolt-On Feature
On-Demand KTO is built directly into JASCI's core work execution model—not layered manufacturing workflows on top of picking.
Native Parent-Child Control
Parent and child work lines are managed as a single lifecycle with precise confirmation timing and exception handling.
Deferred Cartonization
Container selection and cartonization happen at execution time, not during order import, enabling real-time optimization.
Designed for Exceptions
Handles cuts, shorts, packaging changes, and lane shifts while maintaining data integrity and clean ERP confirmations.
Dual Model Support
Run traditional pre-kitting for stable kits and on-demand KTO for variable kits simultaneously in the same operation.
Clean ERP Integration
Single, accurate confirmation only when the kit is fully complete—no partial commits or reconciliation cleanup.
Designed for Operational Reality, Not Idealized Flows
Real warehouses deal with exceptions. Orders are cut, components are short, packaging changes, and lanes or doors shift in real time.
On-Demand KTO Was Built to Operate Inside This Reality
The result is a system that supports high variability without creating downstream reconciliation issues.
Operational and Financial Benefits
On-Demand KTO delivers ROI by removing structural cost from inventory, labor, and warehouse space rather than optimizing around it
Inventory
- 20–40% reduction in kit-related inventory
- No obsolete kits when bundles or promotions change
- Improved inventory turns
- Better cycle count accuracy
- Components available for any order until committed
Labor
- Elimination of pre-kitting labor
- Reduced double handling
- Higher throughput with same headcount
- No rework when kit definitions change
- Streamlined training—one workflow for all orders
Space
- Fewer pick faces and pallet locations for kits
- Reclaimed warehouse space
- Deferred expansion or overflow storage
- 5–15% warehouse space recovery typical
Speed & Accuracy
- Faster order release—no waiting for pre-built kits
- Fewer exceptions and holds
- Cleaner ERP confirmations
- Improved OTIF performance
- Faster launch of promotions and bundles
Quick ROI Snapshot
Most customers see meaningful ROI within 3–6 months
Reduction in on-hand inventory for mid-sized operations
Per site from eliminated pre-kitting labor
Deferred expansion, reduced overflow, or new capacity
On-demand kitting as billable value-added service
A Competitive Advantage for 3PLs and Brands Alike
3PL Providers
- Value-added services without fixed labor commitments
- Per-order billing for kit assembly
- Flexible response to changing customer requirements
- New revenue opportunities with controlled risk
Brands & Retailers
- Faster go-to-market for bundles and promotions
- Channel-specific assortments without pre-building
- Marketing moves fast without warehouse constraints
- No obsolete inventory when campaigns end
eCommerce Operations
- Dynamic bundling based on real-time demand
- Promotional kits executed on-demand
- Reduced fulfillment complexity
- Better inventory utilization across channels
When Traditional Kitting Still Makes Sense
Traditional pre-kitting remains appropriate in certain scenarios. JASCI supports both models simultaneously, allowing warehouses to pre-kit stable kits while using On-Demand KTO for variable or promotional kits within the same operation.
Traditional kitting works well when:
The best of both worlds: Run traditional pre-kitting for stable, high-volume kits while using On-Demand KTO for promotional, seasonal, or channel-specific kits—all in the same warehouse.
On-Demand Kit-to-Order does not replace traditional kitting.It replaces wasteful kitting.
By deferring assembly until demand is real, JASCI removes entire categories of cost from the warehouse while increasing speed, flexibility, and control. This capability reflects the shift toward order-driven warehousing and positions JASCI ahead of legacy systems built for a different era.
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