Bill of Materials Software: 10 Features for Accurate Product Structures
Bill of materials software helps manufacturers create, manage, and share the complete list of parts, materials, and subassemblies needed to build a product. Instead of maintaining BOMs in spreadsheets that drift out of date, teams keep one controlled version that engineering, purchasing, production, and finance can trust. As a result, companies order the right parts, build products correctly, and calculate costs accurately.
In this guide, we explain what bill of materials software does, the main BOM types, the 10 features worth comparing in BOM software, how it connects with ERP and PLM, the benefits and limitations, and how to choose and roll out the right system.
What Is Bill of Materials Software?
A bill of materials, or BOM, is a structured list of everything needed to make a product. It includes raw materials, components, subassemblies, quantities, units, and sometimes instructions. BOM software stores this structure digitally, controls changes, and connects it to other business systems.
For example, a furniture maker’s BOM for a desk lists the tabletop, legs, screws, brackets, and finish, along with exact quantities. When the design team changes the bracket, the software updates the BOM, notifies purchasing, and records the change history.
Why Spreadsheets Fall Short
Many small manufacturers start with spreadsheets. However, spreadsheets struggle once products grow more complex. Common problems include:
- Several versions of the same BOM saved in different folders
- No record of who changed what and why
- Manual copying of data into purchasing and production systems
- Errors in multi-level structures with nested subassemblies
- No easy way to see where a part is used across products
Each of these issues can cause wrong orders, production delays, or costly rework.
Main Types of BOMs
Different teams need different views of the same product. Therefore, many companies manage more than one BOM type.
| BOM Type | Purpose | Main Owner |
|---|---|---|
| Engineering BOM (EBOM) | Defines the product as designed | Engineering |
| Manufacturing BOM (MBOM) | Defines how the product is built, including packaging and consumables | Manufacturing |
| Sales or configurable BOM | Supports product options and variants | Sales and engineering |
| Service BOM | Lists replaceable parts for repairs | Service teams |
Keeping these in sync is a common challenge. TechTarget’s article on whether companies need both an engineering BOM and a manufacturing BOM explains why engineering changes must flow into the MBOM without losing manufacturing-specific details.
10 Features to Compare in Bill of Materials Software
1. Multi-Level BOM Structures
Most products contain subassemblies within subassemblies. The software should display and edit multi-level structures clearly, with indented views and roll-up quantities. As a result, planners see total requirements for every level.
2. Part and Item Master
Every part should have one master record with a unique number, description, unit of measure, supplier details, and cost. This prevents duplicate parts and keeps data consistent across BOMs.
3. Revision and Version Control
Products change over time. The software should track revisions, effective dates, and the full history of changes. In addition, it should show which revision applied to a specific production run.
4. Engineering Change Management
Changes need review and approval before they reach production. Look for engineering change request and change order workflows. Autodesk’s Autodesk University class on aligning engineering and manufacturing BOMs shows how formal change processes keep both structures aligned.
5. Where-Used Analysis
When a supplier discontinues a part, you need to know every product affected. Where-used reports answer that question instantly. Consequently, teams can plan substitutes before shortages hit.
6. Cost Roll-Up
The software should calculate product cost by rolling up material, labor, and overhead from each level. Finance teams can then price products accurately and see how design changes affect margins.
7. CAD and PLM Integration
Engineers design products in CAD tools. Integration lets the EBOM come straight from the design, reducing manual entry and errors.
8. ERP and MRP Integration
Production and purchasing depend on accurate BOMs. Integration with ERP and MRP systems means planning uses the latest approved structure. Our guide to MRP software explains how BOMs drive material planning.
9. Product Variants and Configurations
Companies that sell configurable products need rules for options and variants. Instead of hundreds of separate BOMs, a configurable BOM generates the right structure for each order.
10. Collaboration and Access Control
Finally, suppliers, contract manufacturers, and internal teams may all need BOM access. Role-based permissions ensure each group sees only what it should, while comments and approvals keep collaboration organized.
Before migrating, clean your item master. Merge duplicate parts and standardize descriptions. Clean data makes every later step easier.
How BOM Software Fits With ERP and PLM
BOM data often lives across several systems. In general, PLM manages product design and engineering BOMs, while ERP manages inventory, purchasing, production orders, and costs. BOM software either sits inside one of these systems or bridges them.
For small and mid-sized manufacturers, BOM features within ERP are often enough. On the other hand, companies with complex engineering processes usually benefit from PLM-based BOM management with a strong ERP connection. Our article on MRP systems covers how these pieces connect in practice.
Benefits of Bill of Materials Software
Everyone works from the same approved BOM. As a result, assembly mistakes and wrong parts drop.
Planning uses current structures, so purchasing orders the right parts in the right quantities.
Structured change workflows move updates from design to production quickly and safely.
Cost roll-ups show the true cost of each product and each design decision.
Revision history supports quality investigations, recalls, and audits.
Limitations and Tradeoffs
- Data migration: Converting spreadsheet BOMs takes careful work.
- Process discipline: Teams must follow change workflows, or data drifts again.
- Integration complexity: Connecting CAD, PLM, and ERP may require technical help.
- Cost: Full PLM systems can be expensive for small manufacturers.
How to Choose and Implement BOM Software
- Assess complexity. Count products, levels, variants, and change frequency.
- Decide where BOMs live. Choose ERP, PLM, or a dedicated BOM tool.
- Clean the item master. Remove duplicates and fix units.
- Define change workflows. Agree who requests, reviews, and approves changes.
- Pilot one product family. Test the full process from design to production.
- Train all departments. Engineering, purchasing, and production all use BOM data.
Production teams will also benefit from aligned shop-floor tools. Our guide to manufacturing management system features covers related capabilities.
Common Mistakes to Avoid
- Allowing engineers to edit production BOMs without approval
- Keeping parallel spreadsheet BOMs after go-live
- Ignoring units of measure and conversion factors
- Skipping where-used checks before changes
- Choosing a tool that cannot connect to ERP
When Custom BOM Software Makes Sense
Standard BOM tools fit many manufacturers. However, companies with highly configurable products, unique costing methods, or complex supplier collaboration often need more. For instance, a custom equipment builder may need BOMs generated from sales configurations and linked directly to production and costing.
Oxen Softwares offers custom ERP development for manufacturers that want BOM, inventory, production, and finance working together in one system.
Frequently Asked Questions
What is BOM software used for?
BOM software creates and manages the list of parts and materials needed to build products. It also controls changes and shares BOM data with purchasing, production, and finance.
What is the difference between an EBOM and an MBOM?
An EBOM shows the product as engineering designed it. An MBOM shows how manufacturing builds it, including packaging, consumables, and assembly sequence.
Is BOM software part of ERP?
Most ERP systems include BOM features. Companies with complex engineering needs often add PLM or dedicated BOM software that integrates with ERP.
Can small manufacturers use bill of materials software?
Yes. Many affordable cloud tools serve small manufacturers and quickly replace error-prone spreadsheets.
Conclusion
Bill of materials software gives manufacturers one accurate source for product structures. It reduces errors, speeds up engineering changes, improves purchasing, and clarifies costs. To choose well, compare the 10 features above, decide how BOM data will flow between engineering and ERP, and clean your item master before you migrate.
Build software around how your business works
If standard BOM tools cannot handle your products or processes, Oxen Softwares can build a system that connects design, production, and finance.
