Choosing the Right Bill of Materials (BOM) Management Software [5 Tools]

Imagine building a complex machine blindfolded 一 no parts list, no plan, no subassemblies, just guesswork. It would be chaotic, right?

Wrong parts ordered, critical pieces missing and costs spiraling out of control. That’s life without a solid bill of materials (BOM). A BOM is your manufacturing blueprint that keeps your production process smooth, accurate, and cost-effective.

But here’s the catch: managing BOMs on clunky spreadsheets eats time, invites errors, and frustrates your team. That’s where BOM management software comes in. It gives you real-time visibility over your production pipeline and components, slashes waste, tracks revisions like a pro, and improves efficiency.

Ready to upgrade your manufacturing processes? In this article, we walk you through the must-have features in your BOM management software and the top 5 tools to try. Let’s dive in!

What is a Bill of Materials (BOM)?

A bill of materials (BOM) is an all-inclusive list of raw materials, subassemblies, components, and parts needed to manufacture a product. It outlines every production item with quantities and specifications.

A BOM is like a production recipe that manufacturers and suppliers lean on to nail inventory and streamline product development processes.

Why is BOM Management a Big Deal for Manufacturers?

BOM management is organizing, updating, and tracking your bill of materials across a product’s lifecycle. Here’s why it is a non-negotiable if you want to ensure product quality, improve efficiency, and lower costs:

• Saves time: A clear roadmap means faster, smoother production.

• Cuts costs: Pinpoint every part’s price to dodge budget blowouts.

• Keeps inventory lean: Order exactly what you need; no more, no less.

• Boosts teamwork: Align every department with one centralized data source.

• Ensures product quality: Detailed records keep compliance and standards in check.

• Handles variants: Got custom products? Track every variation in real time.

Skip BOM management and you will be signing up for production delays, errors, and unhappy customers. No business has got time for this.

Why Use BOM Management Software Instead of Spreadsheets

Small companies often start with Excel or Google Sheets to manage their bill of materials for every product. It’s cheap and familiar 一 until it starts costing you time and money because of its limitations:

• No centralized hub for BOM data

• Endless manual updates = wasted hours and resources

• Typos and missed data because of human error

• Challenging to track changes

Enter BOM management software 一 a solution to all of the above challenges and more. It offers:

• One centralized data hub

• Real-time visibility of your product lifecycle

• Changes tracking - know who did what and when.

• Greater accuracy with costing features

• Live inventory management for improved PLM

• Improved coordination and communication among departments

• Integration with business systems such as ERP and CRM solutions

• Scalability and flexibility to adapt to your business growth

• Regulatory compliance made easy

• User-specific access controls

Why would you want to wrestle with static spreadsheets when you can go dynamic with BOM management software or ERP/PLM software?

How to Choose the Right Bill of Materials Software (Features That Matter)

When choosing the BOM management software for your company, you should look for the following features or aspects of the potential tools:

1. BOM Types and Flexibility

Your product complexity determines the type of BOM management software you need.

• Single-level BOM for simple products, no subassemblies

• Multi-level BOMs or indented BOMs for complex product builds with subassemblies and nested components

• Flattened BOMs for one clean and comprehensive list of every component

Here’s a simple illustration of the three BOM types:

Source

2. Changes Tracking

BOMs may change over your product lifecycle, which is why tracking who made what changes and when is important. Look for a BOM management software solution with:

• Version control to view older product BOM versions and restore iterations

• Audit trails to trace who made changes and when

• Approval workflow to ensure BOM changes follow an internal review process before execution

3. Custom Views for Every Department/Team

Not everyone on the team needs access to everything stored in your BOM. Ensure your BOM management software solution enables you to provide user-specific access and protect your company’s sensitive data. It should offer:

• Custom views for every department: The procurement department sees costs, the engineering team sees component specifications.

• Role-based access: Manage who can view or change certain parts or fields on your BOM.

4. Cost Estimation and Budgeting Tools

Since cost management is a key aspect of your product development, you should look for a BOM management software tool that offers:

• Real-time cost calculation updates as prices shift (including labor costs, components pricing, and overhead costs)

• Supplier price comparisons to get the best deals on all components

• Forecasting tools to predict costs at scale

5. Supplier Management

To ensure efficient procurement, the BOM software should have:

• Supplier database for vendor particulars, certification, and order execution history

• Linking components to suppliers for precise and painless sourcing

• Lead time monitoring to track delivery timelines and dodge delays

6. Document Management

Accurate documentation reduces overhead costs by 30-40%. So you’d want a BOM management software that:

• Stores all files such as CAD files, PDFs, and manuals in one spot

• Store data about compliance, usage, and quality

• Maintains a manufacturing manual to guide production teams on the latest operation standards

7. Integration with Existing Business Systems

To reduce errors and boost efficiency, an optimal BOM software should flawlessly integrate with:

• Enterprise resource planning (ERP) systems to sync costs and procurement

• Material requirements planning (MRP) systems for real-time inventory alignment wth the production calendar

• Product lifecycle management (PLM) tools to streamline design-to-production updates

• Customer relationship management (CRM) tools to match sales promises with product builds

Top 5 BOM Management Software to Boost Efficiency

Here’s a list of the top five BOM management software that boost efficiency, collaboration, and control over your production processes:

1. OpenBOM

OpenBOM is a cloud-based BOM management software tool designed to meet the needs of expanding manufacturing teams and medium-sized enterprises. It offers integrated suites of PDM, PLM, and ERP functionalities to help you manage all components and connect them with their respective suppliers.

Key features

• Helps you integrate design, quoting, and production processes

• Improves your order management (RFQ, PO, inventory)

• Enables you to track changes, make change requests, and set approval mechanisms

• Smoothens your CAD data management and BOM creation

Pricing

OpenBOM plans start at $190/month and offer a 14-day free trial.

2. Arena PLM

Arena PLM is a product lifecycle management tool that makes collaboration easy with your supply chain partners. It helps speed up your product design, development, and launch processes and eliminate common production bottlenecks that could cause delays.

Key features

• Speeds your product design improvements and reviews within a centralized system

• Lets you optimize product documentation, review manufacturing details, and communicate engineering changes to your supply chain

• Lets you coordinate with your internal team and external partners through one dashboard, eliminating silos and confusion

Pricing

Arena PLM has two pricing plans, but they don’t display the cost publicly. You can however request a demo and quote.

3. Duro PLM

Duro PLM centralizes components data, manages change orders, and connects all departments. It enables hardware engineering teams to innovate, collaborate, and improve data quality and products to penetrate the market faster.

Key features

• Harmonizes data across your organization through its out-of-the-box CAD, MES, and ERP integrations

• Lets you merge all revisions, components, and changes, providing you with an audit trail and full traceability

• Helps estimate final product lead times and locate acceptable component alternates

• Displays duplicate or error alerts to ensure the accuracy of your entire assembly

Pricing

Duro PLM has 3 plans depending on the number of users and storage data you require. You can schedule a call to get a quote and enjoy a 2-week trial.

4. Katana

Katana BOM management software helps automatically prioritize production orders, change production plans, and efficiently reallocate resources. It gives you complete control over your manufacturing processes and product composition, allowing you to stay lean while maximizing your sales revenue.

Key features

• Ensures accurate BOM management and protects product ownership even when your business scales

• Lets you keep up with increasing demand, staff, and revenue, refining operations without overburdening your team

• Offers accurate production schedules with real-time visibility into each step of your operations

Pricing

Katana’s pricing starts at $199/month and offers a 14-day free trial.

5. ERPAG

ERPAG helps manufacturers automate ordering, design and print labels, and accurately determine costs, deadlines, and expected manufacturing dates. The software has integrated tools to generate missing parts reports and access item-level particulars directly from the work order.

Key features

• Filters components depending on your chosen type for precise management

• Helps edit components from the BOM with a few clicks

• Lets you promptly compare BOM requirements against inventory and generate real-time missing quantity reports

• Smoothens procurement by generating purchase orders directly from the BOM for missing parts

Pricing

ERPAG plans start at $49/month. It also offers a 15-day free trial.

Conclusion

Effective BOM management sets the foundation for refined product development, reducing errors and speeding up production cycles. By executing structured BOM practices, you can control costs, boost cooperation, and maximize supply chain operations.

Modern solutions like no-code or low-code ERP systems make BOM management even more accessible with smooth data flows and automated workflows. So, consider investing in the right BOM management software to improve product development and sales efficiency.

Waveon BOM Management Template is designed to simplify and automate BOM management in a rapid and efficient manner.

Key Features of Waveon BOM Management Template

• Automatic Calculation of Production Quantities – Automatically calculates based on the BOM and inventory quantities.

• Multi-Level BOM Management – Easily manages complex BOMs with 3rd level components or higher.

• Easy BOM Version Management – Easily register component changes and material requirements when the version changes.

• Mass Data Processing – Supports uploading and downloading Excel (.csv) files.

• Cloud-Based – Access anytime, anywhere without installation.

• Automation Features – Includes automated alerts, automatic ordering, and other features to improve operational efficiency.

Try our BOM management template to get started.