Some Facts about BOM Management

The development, production, and overall success of your product cannot be achieved without a smooth, reliable BOM management system. What is a BOM and how can it help your company? Allow us to provide some facts about BOM management to help you understand how it can help your company gain an advantage by improving communication, transparency, and by streamlining the supply chain process.

What is a BOM?

Also known as bill of materials? A BOM is a listing of the quantities of each of the materials used in manufacturing a product, similar to a grocery list itemizing the parts needed to make your product. In order for a company to produce a single product within a structured timetable, they must have a detailed list of all the raw materials, sub-assemblies and the respective quantities needed to build the product. With a BOM, the list is interactive. You can keep track of unit costs and shipping costs, allowing your team to easily identify where and when in the process you can cut costs and increase efficiency.

Take a moment to think about all of the parts that go into making a bike. You need wheels, handlebars, aluminum parts, pedals, and other materials. The production of these parts needed to be coordinated and the precise number of parts must be produced in order to keep costs low and waste at a minimum. At a certain point, your company’s needs will outgrow excel if it hasn’t already. It becomes absolutely necessary to upgrade to a BOM management system designed for more complex, sophisticated supply chain processes. Upgrading will ultimately reduce company costs and ensure that the right parts are manufactured at the right time, which will ultimately impact your company’s brand, reputation, and revenue.

The platform allows for “real time” decision making between manufacturing partners, as well as other internal and external stakeholders. Given the multiple steps and opportunities for hiccups and miscommunications, BOM management is absolutely crucial for both small and large companies.

How will BOM management revolutionize your company?

You will be amazed at how using a management system will improve your products quality, result in a faster turn out of your product, help you eliminate the roadblocks in the supply chain process, and will also contribute to overall employee satisfaction and retention. Your employees will benefit from viewing up-to-date data right in front of them, instead of working on different systems that are not in sync with each other. Once you learn some facts about BOM management, it because clear how this management system will instantly improve business.

BOM management has a serious impact especially with companies who have offices located throughout the world. Now offices throughout the world can see accurate, up-to-date information at the same time, despite time zone differences. BOM management will also help promote one company culture and help all employees “get on the same page” so to speak.

Hopefully learning some facts about BOM management has helped you understand its benefits and how it can help your company achieve its goals.