5 ways NetSuite helps you better manage bills of materials

In this blog we look at five practical ways that NetSuite Bill of Materials (BOM) functionality helps you manage product structures more efficiently. If you recognise these topics and want to go deeper, take a look at our NetSuite production page for a broader view of what is possible.

1. Bills of materials as first class objects

Bills of materials or BOMs are ordered lists of all components and materials that make up a finished or semi finished product. In NetSuite, BOMs are stored as their own records. That means you can design and maintain a BOM without directly linking it to a single item.

This is especially useful in the product development phase. You can:

• Create and refine BOMs while engineering is still in progress
• Decide later which finished or semi finished items use that BOM
• Control where a BOM is available by item, location or entity

This separation between item and BOM gives you more flexibility and better structure in your product data.

 

2. Built in revision control and collaboration

Product structures change over time. Components are replaced, packaging changes or quality requirements become stricter. NetSuite supports this with BOM revision management.

Per bill of materials you can:

• Create and store multiple revisions
• Copy an existing revision when you introduce a change
• Record on each work order which revision was used

This delivers strong traceability for service and warranty, especially in combination with batch or serial number tracking.

NetSuite also supports collaboration around BOMs. You can:

• Attach drawings, certificates and work instructions to a BOM or even to a specific revision
• Create tasks that are linked to a BOM or revision and assign them to colleagues

This keeps product related communication and actions in one place.

Example of a parts list in NetSuite with multiple revisions (open in separate tab to enlarge)

 

3. Flexible BOM assignment per item and location

To use a BOM in production, you link it to a semi finished or finished item. In NetSuite, you can link one or more BOMs to the same item.

Typical scenarios:

• One global default BOM for the item
• A different BOM per location because specifications differ
• A location that assembles a simpler version of the product

During the production process you can also switch from the standard BOM to an alternative BOM when the situation requires it. This gives planners and production managers the flexibility they need without losing control.

In NetSuite, determine how to assemble an item per location (open in separate tab to enlarge)

 

4. Support for multi level and phantom BOMs

Many manufacturers work with multi level structures. NetSuite fully supports multi level BOMs by allowing you to include assembly items as components in another BOM.

In practice this gives you two options:

• Use true semi finished items with their own production orders
• Use phantom BOMs for extra structure without separate work orders

A phantom item adds another logical layer in your BOM, but when you create a work order the phantom item is automatically “exploded” and only the underlying components appear in the order. If the process requires real semi finished items instead, you can create work orders for those with a single click.

This approach keeps your BOMs clear while avoiding unnecessary production steps.

 

5. Smarter planning with supply methods, scrap and loss

NetSuite allows you to specify how each component is normally supplied. The available methods depend on the item type.

Examples:

• For semi finished items, you can choose to take them from stock, create a work order or explode them and include their components in the work order
• For stock items, you can decide to consume them from inventory or create a purchase order

If the situation requires it, you can deviate from the default supply method during production.

NetSuite also helps you deal with scrap and material loss. For each component you can store a scrap percentage. NetSuite then calculates the required quantity including expected loss. This quantity is used consistently throughout the system in purchasing recommendations and inventory allocation.

This improves planning accuracy and prevents unpleasant surprises on the shop floor and in procurement.

Waste and losses are automatically passed on in NetSuite in a production order (open in separate tab to enlarge)

 

Curious what NetSuite can do for your production environment?

Bills of materials are only one part of what NetSuite offers for manufacturing and assembly. From planning and capacity management to quality control and costing, you can manage the entire production process in one ERP platform.

Want to see how this works in practice for your organisation?
Get in touch with Fortiqo for a demo or take a look at our NetSuite production page.