Hi! Long post alert… just want to say i appreciate your time in advance.
I’d love to hear how others have handled configuring variations of a product without using manufacturing.
Our client is a manufacturer’s representative that has expanded into distributing manufactured products from their warehouse. One of their manufacturers provides a base product that is always customized to the customer’s request—customers rarely, if ever, order the base product as-is.
To streamline fulfillment, the client has identified common configurations of this product and now stocks those pre-assembled versions in their warehouse. These configurations involve minor modifications, such as swapping out the base pressure valve for an upgraded version. Additionally, the client stocks individual parts, which can also be sold separately.
Item Setup Overview:
- Mfg. Base Model 1 – Not stocked, never ordered directly.
- Model1V1, Model1V2, etc. – Pre-configured versions of the base model.
- These items are set up as kits, but the kits only contain variable components (not the base product itself).
- Example: Model1V1 consists of Component 1, Component 2, and Component 3.
Order Fulfillment Process:
- If a customer orders a stocked version (e.g., Model1V1), it is shipped from inventory or drop-shipped if out of stock.
- If a customer requests a new variation (e.g., Model1V3) that is not stocked, the order taker contacts the warehouse manager.
- The warehouse manager checks if an existing model can be modified to meet the new specs.
- If so, they disassemble an existing model (e.g., Model1V1) and reassemble it with the necessary changes (e.g., swapping components).
Currently, this modification process is done manually through inventory adjustments—removing old components and adding new ones.
Costing Challenge:
The client is satisfied with their assemble/disassemble process but has noticed a gap in costing. Since the base product itself is not stocked or tracked, its cost is missing from the assembled kits.
Potential Solution:
Would it make sense to set up the base product as a non-stock item and include it as a component in all configurations? This way, any new variation would only modify the variable components, while still ensuring the base product’s cost is included.
Would love to hear if anyone has dealt with a similar setup?
Thank You,
Iqra
