Bill of materials often sounds a little bit unsettling for the supply chain professionals, and the main reason for this is the time and efforts that are required for the management of the bill of materials. Most of the people try to ignore this bill of materials due to the same reasons. This makes the inventory management a little bit complicated and even ends up with some errors too. So, even if it takes time and efforts, one has to make learn management of bill of materials so that they can optimize the inventory control on the whole.
Here are some of the tips for an effective bill of materials management.
Create BOM As Soon As Possible
The first thing that you have to do is to create a BOM as soon as possible. It is important to create BOM in the early stages of the product lifecycle. The BOM that you are planning to create must be understood by all the departments and people present in your organization. Craft it as simple as you can and easily understandable. If you have an inventory management software, then the creation of BOM won’t take a lot of time.
BOM is the blueprint of the product so make sure to include every minute detail that goes into the manufacturing of the product. The details that you should enter mandatorily into the BOM are
- Part number
- Part description
- Revision level
- Quantity per vehicle
The automation of the bill of materials is one of the most important factors that will ensure the successful management of BOM. Automation helps in tracing the products and its parts and this automation results in the accountability too. There are different departments present in an organization, and different departments have various BOM lists, with the help of automation it becomes easier to take a look at all the BOM lists at once.
Another benefit of this automation is it helps in reducing human errors.
Flow of Information
The flow of information is one of the most important parts of the BOM. It has the capability of making or breaking the BOM, and it is important to have proper communication between various parties so that it becomes easy to manage the BOM. You can use project management software for effective communication and limit the number of people who can access and edit the BOM.
Take Care of Retired Assets
Most of the people usually ignore the retired assets present in the inventory. It is important to create a separate column for all the retired assets that have been accumulated in the inventory. This gives a clear picture of your investment on those assets and the loss that you are bearing with it.
It isn’t easy to manage the billing of materials, and it even takes a lot of time. But the time is worth investing in it as it reduces so many issues that you are facing with. You can incorporate ERP software into your organization for the better management of the inventory.
Author Bio: Nilam Oswal
Email ID: email@example.com
Nilam Oswal is a Content Marketing Head at SoftwareSuggest, as well as a gadget enthusiast. When she’s not hard at work, she can be found wandering, reading and just generally having a good time in life. She writes about software such as Hotel Software, Applicant Tracking System and more.