Materials management is a core supply chain function that includes sourcing, procurement, storage, and utilization of all materials used in the manufacturing process. If a manufacturer fails to secure its materials on-time, at the right price, or of the relevant quality, goods cannot be produced, losing money, markets, and brand reputation.

A Bill of Materials is the most critical stage of product development and manufacturing within this process, as it ensures components are available at pre-panned costs and schedules. By leveraging optimally planned BoMs, companies increase their power in purchasing, logistics and delivery, gain control over their inventory, and ensures a robust supply chain.