BOM (Bill of Materials)

Category: Product

Also searched as: Bill of materials

Definition (plain English)

A bill of materials lists the components, ingredients, packaging, labels, and sometimes labor or process inputs needed to make a product.

Why it matters commercially

BOM accuracy affects costing, supplier quotes, regulatory checks, allergen control, origin claims, substitutions, and private-label approval.

Example

A food buyer found the quoted carton price excluded printed sleeves and inner bags because the BOM used for costing was incomplete.

Common mistake

Approving a price from a high-level product name without locking component specs, packaging, labels, weights, and allowed substitutions.

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