The Benefits of an Integrated Bill Of Materials in an ERP System

Various ERP systems have the ability for users to import their Bill of Materials in ERP. This brings with it a host of benefits for the production team and the company. Read on to find out how!

  1. Less Time Consuming with no human prone errors. 

The production department often deals with a huge list of materials, components, sub-assemblies, and other raw materials to manufacture a product. Manually entering all of this onto their BoM would be a time consuming, and an error prone affair. Shifting BoMs to an ERP system means that production engineers and managers will have tools that would enable them to import their BoMs from their spreadsheets to the ERP seamlessly.  

Another time-saving aspect of using a BoM in an ERP system is the ease with which a new BoM can be made for a new product. Team members can simply take a preexisting template from a previous Bill of Materials, edit the BoM according to the product requirements and then use that as the basis for a new BoM. 

2. Streamlined production process

BoMs in ERP systems are automated, and this will make things much easier for the production team as automated BoMs: 

  • Extract data from inventory control, integrated order entry, and master production schedule modules to create the requirements for the production order. 
  • Integrate the materials, labor, equipment, and other parts of the BoM into a single instruction set. This in turn minimizes inefficiencies and optimizes resources. 
  • Provides a hierarchical arrangement of components that lists all the child or sub-items and raw materials required to assemble and produce the finished product.

3. Successful Collaboration among different departments & teams! 

When you use a BoM in an ERP system, the entire production department has access to the recipe, materials/parts to be used and other information. This facilitates synchronized collaboration within the team as changes made by one team member are immediately visible to everyone else. Team members can discuss and make changes through the ERP system. 

4. Easy maintenance of BoM 

Firstly, BoMs present in ERP automatically record pricing and quantity for all the items listed when adding a BoM to a PO, production order, or sales order. Secondly, BoMs in ERP facilitate easy storing of descriptions, BoM numbers, warehouses, and item compositions in simple steps. Thirdly, ERP systems make recording per-item quantities, production issue methods, prices, and comments at each level in a BoM, a smooth process. Lastly, ERPs can execute mass changes to components in multiple BoMs simultaneously and add user-defined fields to BoMs and see them automatically reflected in production orders. 

If you are struggling with maintaining an accurate BoM, let us make things easy for you. Contact our specialist for a free tailor-made consultation on ERP solutions that would work best for your firm.