Beyond the Bill: How AI is Redefining Bill of Materials Software

For complex products and services, keeping track of thousands of components while coordinating suppliers and assembly can be enormously challenging without the right systems in place.

Amid this, management of a bill of materials (BOM) has become the backbone of product lifecycle management and manufacturing processes.

However, traditional BOM management methods, often manual or semi-automated, are becoming increasingly inefficient and error-prone in the face of complex and global supply chains.

The new era of BOM management software is powered by artificial intelligence (AI), including Generative AI, and built on low-code cloud platforms. This innovative approach is transforming how companies manage their BOMs, making the process more efficient, accurate, and more adaptable.

Here's an overview:

AI-Driven Functions:

Artificial intelligence technologies, like machine learning, generative AI and natural language processing are now integrated into advanced BOM solutions. This allows for automated part classification, vendor recommendations, duplicate identification, information extraction from spec sheets, and predictions of future component demand. Some platforms can even analyze unstructured data like emails and engineering notes to identify BOM-related content.

Today, BOM software can learn from past procurement data, automatically suggesting the best suppliers, pricing, and lead times for each component in your BOM. Gen AI algorithms analyze historical data to predict future trends and identify potential risks in your supply chain. This translates to reduced procurement costs, improved lead times, and a more resilient supply chain.

Cloud-Based Low-Code Platform:

Gone are the days of complex and expensive software implementations. The latest BOM software utilizes a cloud-based low-code platform that is quicker to deploy, accessible from anywhere, and easier to keep updated. The intuitive interface empowers even procurement professionals without coding expertise to construct and update BOMs with both speed and accuracy, foster collaboration with other departments in real-time and gain insights into inventory levels and component availability, enabling informed stock management decisions.

Collaborative Workflows:

Leading options connect disparate teams across engineering, manufacturing, procurement, and suppliers into unified BOM workflows. Comments, notifications, approvals, and portals foster collaboration directly within the software environment. This breaks down silos and mitigates manual handoffs between teams. Procurement can engage suppliers early in design cycles while engineering coordinates with manufacturing far ahead of production.

Broad Integrations:

Robust connector and API capabilities allow BOM platforms to integrate with existing ERP, PLM, inventory, CAD, and other core systems. This prevents duplication while providing end-to-end visibility into BOM data. Connectors also feed critical material intelligence back into engineering tools to inform component selection and design-for-manufacturability.

Comprehensive Analytics:

Modern BOM software leverages large datasets to generate visual analytics on component lead times, costs, supply risks, lifecycle stages, compliance status, and much more. Drill-downs allow teams to pinpoint and address issues proactively. Executives gain valuable insights to guide strategic decisions.

Implementation Support Services:

Given the central nature of BOM data, adopting enterprise-grade software requires careful change management and user adoption planning. Industry leaders provide onboarding support via training programs, configuration guidance, and best practice playbooks tailored to your workflows. Ongoing assistance and regular optimization check further reinforce success.

Conclusion

Today's BOM management software leverages cloud platforms, AI, collaboration features, integrations, analytics, and implementation services to provide unprecedented control over this vital manufacturing and product lifecycle asset. Beyond efficiency gains, such software offers significant cost-saving opportunities. By automating tedious tasks, streamlining supplier collaboration, and optimizing pricing and sourcing strategies, it demonstrably reduces procurement costs.

Learn about GEP's BOM management software.