BILL OF

MATERIALS
(BOM) How Significant it is for
Procurement?

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 WHAT IS BILL OF
MATERIALS
(BOM)

A bill of materials (BOM) is a comprehensive list of parts, items,

assemblies, subassemblies, intermediate assemblies, and other
materials required to create a product, as well as instructions
required for gathering and using the required materials.

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 10 TYPES OF
(BOM)

1. Manufacturing Bill of Materials (mBOM)

2. Engineering Bill of Materials (eBOM)
3. Service BOM
4. Sales BOM
5. Assembly BOM
6. Production BOM
7. Template BOM
8. Configurable BOM (cBOM)
9. Single-level BOM
10. Multi-level BOM
11.

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 WHAT IS INCLUDED
IN A BILL OF
MATERIALS?)
1. BOM Level: This number shows where the item falls in the BOM hierarchy.
2. Part Number: Manufacturers assign part numbers to equipment spares.
3. Part Name: The part name serves as a distinctive identification
4. Phase: It shows the part’s so-called lifespan stage.
5. Description: The description is exclusive to the specific part or component
and offers more detailed information on the part.
6. Quantity: The number of components utilized in an assembl
7. Metric Units: This specifies the unit of measurement used when buying
and/or using a component.
8. Type of Procurement: This details the method of obtaining the part or
component.
9. Referential Identifier: The reference designator is used whan printed
circuit-board assemblies are present in a product.
10. Notes for the Bill of Materials: You can add additional details in the
BOM’s notes area

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 A SINGLE-PANE
ALUMINIUM
WINDOW)

Example of BOM

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 BILL OF MATERIALS
IN INVENTORY
SOFTWARE
The most efficient and accurate way of creating a bill of materials is
to use inventory management software with BOM functionality. Using
BOMs with inventory software has multiple benefits, for example:

Efficient production planning

Version management
Demand-driven purchasing

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 SAMPLE TEMPLATE
OF BOM
TEMPLATE

The most efficient and accurate way of creating a bill of materials is

to use inventory management software with BOM functionality. Using
BOMs with inventory software has multiple benefits, for example:

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 BOM PROCESS FLOW

Mapping of Procurement

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 WHY BOM IS OF
SIGNIFICANCE TO
PROCUREMENT?
Pan purchases of raw materials;
Track and plan material requirements;
Estimate material costs;
Mnage inventory;
Stay alert to materials shortages, expediting charges and planned and
unplanned downtime;
Control budget;
Staty on schedule;
Maintain records;
Reduce waste;
Identify the cause of a product failure;
Replace faulty components fast;
Find vulnerabilities in software components; and
Improve supply chain security.

©RAVI NISHANT
 WHY BOM IS OF
SIGNIFICANCE TO
PROCUREMENT?
Pan purchases of raw materials;
Track and plan material requirements;
Estimate material costs;
Mnage inventory;
Stay alert to materials shortages, expediting charges and planned and
unplanned downtime;
Control budget;
Staty on schedule;
Maintain records;
Reduce waste;
Identify the cause of a product failure;
Replace faulty components fast;
Find vulnerabilities in software components; and
Improve supply chain security.

©RAVI NISHANT
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