A poorly managed BOM can cause havoc within your manufacturing enterprise. While this simple document may only seem like a comprehensive shopping list and assembly instructions, the efficiency and accuracy of your Bill of Materials can dictate the productivity of your entire assembly line, and your ability to maintain a streamlined and profitable supply chain.
Your inventory is also at risk of mismanagement when you fail to align your BOM with your needs. An imbalanced inventory with surplus stock can depreciate the value of your products over time, delay the delivery of your orders leading to unsatisfied customers, present issues with in stock availability, and increase your overall costs, eating away into your profits. By taking the management of your BOM seriously, you’ll have more control of your purchasing and costs, interdepartmental communications across your business and most importantly, your inventory.
Let’s explore some foolproof ways you can improve your inventory management with your BOM.
Switch To An Online Model
Many OEM enterprises rely on traditional formats of BOMs, either paper forms or spreadsheets, cobbled together with minimal information and often at the last minute, causing stress and inaccuracies across the board. This traditional approach can wreak havoc within your inventory, as you’ll have no way of keeping accurate order records or keeping track of who has ordered what and in what quantity. By switching to an online model, your purchasing team will be in better control of your inventory and your costs, as you can quickly upload your Bill of Materials with one simple click and order the parts you need individually or all at once.
Make Communication a Priority
When departments fail to communicate effectively, problems and frustrations are inevitable. Poor communications across your business can also impact your inventory handling, leading to issues with surplus stock, or not meeting the required quantities for your latest orders. It’s impossible to achieve fulfilment without consistent levels of communication throughout your business. Again, your BOM can help you here. When you use a BOM tool, you’ll have the opportunity to share orders and important information with others across your business, highlighting what components are on their way and when to expect them. This simple approach means fewer duplicate orders and more accuracy.
Invest in High-Quality Products
When your inventory is filled with substandard components, or you experience a recall of completed products due to faults and electronic defects, then you’re not only facing a logistical and resource nightmare but your inventory is also impacted. You may be potentially stuck with thousands of sub-standard components! By using a BOM tool to enhance your procurement process, you’ll be able to source high-quality electrical parts from fully vetted vendors, all with a 3-year warranty, guaranteeing quality for your clients and an inventory filled with reliable stock.
Final thoughts…
Good inventory management is key to your OEM enterprise success, and a new BOM approach will help you prioritise this vital business component. Start by switching your BOM to an online model instead.