What is a bill of materials (BoM)?

A list of all the raw materials, components and quantities needed to make one product — essentially the product's “recipe”.

In detail

The BoM is the foundation data for production and purchasing. The system uses it to calculate how much raw material a production batch needs, to determine whether stock is sufficient and how much to buy, and also to calculate product costs.

For example

Producing 100 bottles of juice requires 50 kg of concentrate, 100 bottles and 100 caps; the system checks stock accordingly and generates a material requisition.

How companies use it

Make sure the BoM matches actual production, update it promptly when recipes or packaging change, and keep a version history.

Common misconceptions

Leaving the BoM un-updated for long periods. When actual material usage differs from the list, both stock and cost data go wrong.

Back to Business Glossary

Get started

Every change begins with a conversation

Whether you are still looking for direction or already have clear business needs, we would be glad to explore them with you.

Not sure where to start?

Start with a conversation.

A free 30-minute consultation with our team to explore what digital transformation could mean for your company.

Book a free consultation

Already have clear business needs?

We start by understanding your business.

Tell us about your company's current situation, management challenges and goals, and we will explore the right digital approach for you.

Explore services

We will reply within 48 hours