What Is a Bill of Materials (BOM)?
A bill of materials (BOM) is the complete list of components, parts and quantities needed to build or assemble a finished product. It’s essential for any business that manufactures, assembles or sells bundles and kits.
What is a bill of materials?
A BOM is like a recipe for a product: it lists every component, the quantity of each, and how they come together to form the finished item. When you build or sell that item, the BOM tells your system exactly which component stock to deduct.
What a BOM includes
- Finished product — the item being built.
- Components — each part or material, by SKU.
- Quantities — how many of each component are needed.
- Unit of measure — how each component is counted.
Why a BOM matters for inventory
Without a BOM, selling a bundle or building a product leaves your component stock wrong. With one, assembling a finished item (or selling a kit) automatically deducts the right amount of each component — keeping counts accurate and preventing overselling of bundles.
BOM example
A gift set BOM might be: 1 candle + 1 box + 1 ribbon + 1 card. Sell one gift set and your system deducts one of each component, so you never oversell a bundle whose parts have run out.
Frequently asked questions
What is a bill of materials? A list of all components and quantities needed to build or assemble a finished product.
Do I need a BOM if I sell bundles? Yes — a BOM ensures selling a bundle deducts the correct component stock so kits don’t oversell.
Related reading: The complete inventory management guide.
