Bill of Materials (BOM) Software

Accuracy of production and consistency characterize strong manufacturing operations. Like a good recipe, each item on a bill of materials needs to be exactly right to produce high-quality end products while maintaining equipment effectiveness and production rates.

Bill of materials (BOM) management is a critical functionality for modern manufacturing operations, and is often included as part of a manufacturing resource planning (MRP) system or enterprise resource planning (ERP) system.

With hundreds of options for manufacturing systems, it can be challenging to identify the capabilities you need and find the vendors that best meet your requirements. This Buyer's Guide is designed to give you the information you need to make the best decision for your business quickly.

Here's what we'll cover:

What Is Bill of Materials Software?
Common Features of Bill of Materials Software
Benefits of Bill of Materials Software
Popular Bill of Materials (BOM) Softwaer
Market Trends to Know About

What Is Bill of Materials Software?

Bill of materials (BOM) software automates the process of listing the individual components that make up a product in the manufacturing setting. Users can create item profiles for every part that goes into a specific product, then use these to create multiple lists for a single product to show subassemblies.

For years, this process was performed manually on paper. Spreadsheets helped businesses track more information about each part than was possible on paper, but the manual entry of data is tedious and error-prone.

Many still rely on Excel, but manufacturing systems and ERPs with BOM functionality help companies manage and automate this important task. This becomes crucial when working with multiple teams, sites and service providers on the same project.

BOM software is also necessary for growth. Optimizing accuracy and quality from the beginning of the process allows manufacturers to increase production volume and scale the business.

Common Features of Bill of Materials Software

The features included in a BOM system support data entry, workflow management and data analysis functions. These may include:

Benefits of Bill of Materials Software

Spreadsheets have been a popular tracking method for many years, but thousands of companies reached out to Software Advice in the past year alone to upgrade to dedicated manufacturing systems.

Any organization with plans to scale the business and take on a larger volume of orders needs true automation to manage the increased complexity of a modern manufacturing operation.

Here are the main benefits BOM offers over spreadsheets:

• Easy-to-find items. BOM software assigns a code to each item and lets users create custom names, making it simple and quick to find specific items or subassemblies in the system.
  
• Share real-time data. When implemented, BOM software and other manufacturing systems are accessible by other stakeholders, including management, external service providers and other logistics teams in real time. This means any changes that occur at one site will be reflected immediately in the system for everyone else, preventing any production mistakes as a result of miscommunication.
  
• Maintain production history. Audits and compliance problems can cause big headaches for manufacturers. With a BOM system, every change to items or the production process is recorded and saved, so documents proving compliance are always on-hand.

Popular Bill of Materials (BOM) Software Comparisons

• Fishbowl Manufacturing vs NetSuite
• E2 Shop System vs NetSuite
• Odoo vs Global Shop Solutions
• Odoo vs E2 Shop System
• Priority vs Prodsmart

Market Trends to Know About

• Mobile devices are changing manufacturing. Mobile devices are increasingly being implemented as work tools in various industries, including manufacturing. With these devices, workers can carry all the important production information wherever they are in your shop, and maintenance teams in your plant can receive repair requests immediately.
  
• ERP integration becomes more widespread. ERP systems offer a holistic view of operations, so many companies, including manufacturers, are adopting these platforms to manage the front and back end of the business. An MRP offers similar functionality with a focus on manufacturing, while most other manufacturing systems, such as a manufacturing execution system (MES), can integrate with an organization's existing ERP.
  
• 3D printing is extending asset lifespan. 3D printing is another trend seeping into the manufacturing world. Also known as "additive manufacturing," companies are using 3D printing technology to craft spare parts to maintain important machinery, saving money and time. It's also being used as a supplement to the typical production process.
  
• Contract manufacturing and outsourcing on the rise. More and more manufacturers are opting to outsource portions of their production process to save money and improve quality by working with external providers that can perform certain processes better. Modern manufacturing software is able to integrate each of these partners into one system.