A product that is manufactured in one facility but shipped as a collection of loose parts for assembly elsewhere. This approach drastically reduces shipping volume and allows companies to bypass certain import tariffs by performing final assembly in the destination market. It is heavily used in automotive and furniture manufacturing.
We're shipping fifty KD units to the Brazil plant this week so they can handle the final weld and paint locally.
Also heard as
- knockdown
- knock-down
Related terms
CKD
A completely knocked-down kit containing all the unassembled parts required to build a final product.
Kitting
The process of gathering separate but related parts into a single package before delivering them to the assembly line.
Bill of materials
A comprehensive inventory of the raw materials, assemblies, and parts needed to manufacture a product.