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A Bill of Materials is a comprehensive list of all items—components, sub-components, raw materials, intermediate assemblies, subassemblies, parts, etc.—plus the necessary amounts of each—that are needed to manufacture a finished product.
A Bill of Materials is also referred to as a BOM, product structure, BOM list, bill of material, or associated list.
In order to manufacture a bottle of Geeen4Life’s beGone solution, manufacturing facilities and co-packers must have a Bill of Materials that not only specifies which components or raw materials are needed, but also:
A Bill of Materials is vital to the manufacture of a product because it outlines, in specific (and ideally precise) terms, all of the information that’s needed to assemble a product in multitudes. Accurate BOMs benefit the efficiencies of supply chain operations across the board:
On the other hand, when a Bill of Materials is inaccurate, incoherent, or simply unclear, many of these benefits are lost. When the Bills are erroneous, or late for that matter, it could result in excess inventory (or the opposite). A missing part number could throw off an entire production schedule, meaning products take longer to get to market, which can affect a CPG company across the board, especially the S&OP process. As a result, profits could plummet.
Unioncrate is an AI-powered Supply Chain Planning Platform that gives CPG brands the technology they need to compete and win in a rapidly changing consumer landscape. Our automated demand and supply forecasts deliver unmatched accuracy, collaborative visibility, and actionable intelligence, simplifying a manual-heavy process and slashing hours from your week.