Bill of Materials
We always strive to emphasize the importance of accurate and consistent documentation during the product development lifecycle. This documentation can be a lifeboat when your product development efforts break down between your development teams. One document – the bill of materials is no exception and is critical to drive profits to the bottom line.
The bill of materials is a document that tracks the costs related to materials used in the production of a product. Because the bill of materials or “B.O.M.” offers transparency into the true costs of materials, this is where profits can be made or lost and therefore it becomes a document that is critical to tracking costs and margins.
If your chosen sourcing vendor or manufacturer is not sharing an honest “B.O.M” with you, it’s time to reconsider the relationship as it will become difficult to compare costs if the quality, availability or margins on materials become an area of concern.
You can find a bill of materials template here
and learn more about the specifics here
Have questions about your bill of materials? Contact us today!