What is Bill of Materials?

A bill of materials is the list of all the raw materials, resources, components, assemblies and parts - and the quantities of each of them - that are required to manufacture a product. In a simpler sense, a bill of materials is like an industrial recipe for creating an end product. From a procurement point of view, a bill of materials is a very useful document as it highlights the materials needed to be sourced as well as the ideal quantities of each of them. Explore more to learn more about the GEP’s bill of materials software for procurement.

Related Terms

What is Backward Integration?What is Bullwhip Effect?