BOM

Bill of Materials

A structured list of raw materials, components, assemblies, and subassemblies required to manufacture a product. It serves as a blueprint for production, detailing quantities, relationships, and dependencies among parts. BOMs can be single-level, listing only the immediate components of a product, or multi-level, breaking down subassemblies and their respective materials.

BOMs are a fundamental component of Enterprise Resource Planning (ERP) systems, which integrate various business functions, including manufacturing, procurement, inventory management, and financial planning. Within an ERP system, the BOM ensures that all departments—from production to purchasing—have accurate and up-to-date information to coordinate manufacturing processes efficiently.

Businesses can streamline procurement, optimize inventory, reduce waste, and improve production planning by linking BOM data with ERP modules such as Material Requirements Planning (MRP) and Advanced Planning and Scheduling (APS). This integration ensures that the right materials are available at the right time, enhancing supply chain efficiency and overall operational performance.