A bill of materials (BOM) is a comprehensive inventory of the raw materials, parts and components, as well as the quantities of each, needed to manufacture a product. It is the complete list of all the items that are required to build a product.
For example, a blinds manufacturer that wants to build 100 roller blinds. A bill of materials for roller blinds will include all the raw materials that make up the roller blind such as fabrics, headrail, tube, cassette, chain, bottom bar, motors, controls, etc, including the quantities required of each component and their cost.
It helps the companies to plan purchases of raw materials, Estimate material costs, Gain inventory control, Track and plan material requirements, Maintain accurate records, Ensure supply robustness and reduce waste.