We're a startup semiconductor company, just in the process of completing our first prototype and making our first few sales. We've implemented most of the GL/AP functions in Netsuite, and are now moving into the sales/purchasing/COGS phase. Most of our chip manufacturing will eventually be outsourced.  But right now, we're building the prototypes in house and we plan to sell them. 

I was wondering if anyone had an opinion on using "Kits" rather than "Assemblies" to set up items for sale and COGS?  We will be carrying very little inventory, and practically everthing eventually will be drop-shipped from the manufacturer.  This most likely will result in setting up preferred drop-ship vendors, etc.  Since we're not doing any manufacturing ourselves, at first blush it seemed that "Kits" might be the way to go.  However, now that I've seen several other user postings about problems with that, I'm open to anyone's opinion/questions.