Bill of Materials: Definition of BOMs and Best Practices

Each manufacturer has its own unique production process, and production is reliant on your Bill of Materials (BOM). An accurate and well-managed BOM can increase sales revenue through faster product releases and lower product costs. 

However, a poorly managed BOM can lead to a higher Cost of Goods Sold or loss of revenue due to:

• inaccurate part information
• excess or inadequate inventory
• quality issues
• longer time to market
• poor collaboration between suppliers, vendors and contract manufacturers

As such, manufacturers looking to run lean must be able to change quickly in order to remain competitive.

Watch this video clip to see a sneak peek of our BOMs Best Practices: Tips for Manufacturers webinar.

What is Bill of Materials in ERP?

So how does BOM and ERP work together? An ERP solution can help you to configure your BOMs so that you can track any process, even a one-time customized order. An ERP sysyem will enable you to create BOM plans to strategize and forecast your material needs. All in all, BOM management in an ERP solution like SAP Business One can enhance inventory flow, improve material planning, and provide a strategic advantage to your company.

Watch the full webinar as we address common bill of materials questions and concerns such as:

• What is bill of materials and what is BOMs in ERP?
• Why bill of materials is important?
• How to identify common errors that result in poor BOMs management?
• How to establish and maintain accurate BOMs?