A Bill of Materials (BOM) is a comprehensive list of items and components that make up a product or service. It specifies the quantity, type, and design of each component and provides a guideline to ensure correct selection and assembly during production. BOMs are an essential part of the business process – understanding them helps manufacturers effectively plan their production and operations, as well as understand cost implications. With a good BOM, you can hypothesize and estimate the cost of goods before they’re produced. Plus, they help with satisfying customer demands — providing you with enough time to order all necessary components on time!