For manufacturers, bill of materials is a helpful tool for managing product development and manufacturing processes from design to delivery. It tracks the cost of components and materials used to build a product, allows the bill of materials data to be stored for future reference, and provides an itemized list of all the components that make up a finished product structure. Other benefits of bill of materials are then used to track the performance of supplier and subcontractor suppliers.
In addition, bill of materials can indicate which materials BOM takes the longest to produce, and in turn, may indicate bottlenecks in the manufacturing process. This bill is also used for tracking inventory management, particularly in the bill of materials usage report, and gives managers the tools to improve floor control.