What’s a BOM?

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A BOM is a list of items for sale, providing details about products included in a shipment. It is used to avoid confusion and ensure that shipped goods match the details on the bill. BOM can also refer to misleading promotions.

A BOM is a type of list that provides details about items that are currently listed for sale. This list of details is much like a playbill used in a theater to acquaint the audience with details regarding the play and cast, or even a bill in a restaurant detailing menu selections. In addition to being a detailed listing of the items included in a purchase, a bill of materials is also sometimes used to refer to extended promises or offers for the purchase.

When used as a commercial document, a BOM provides information about all products included in a given shipment. The range of information included will vary, with some formats including nothing more than a brief description, an order number, and the quantity of each unit included. Other examples are more comprehensive, offering detailed descriptions, extended units and pricing, and even information on how to ship. The content of a BOM will normally comply with any government regulations relating to this type of document, allowing sellers the option of meeting the bare minimum or creating a format that includes information beyond that minimum.

The purpose of a BOM is to document the order in a way that doesn’t create confusion about what the customer will actually receive. Upon receipt, the document can be used to verify the items and ensure that the shipped goods match the details on the bill of material. In case of discrepancies, the two parties can take the necessary measures to correct the situation, possibly even issue an amended bill in order to comply with what was actually received as part of the shipment.

A BOM can also refer to situations where individuals or businesses attempt to generate enthusiasm among buyers by making promises or promoting products in a less than ethical manner. With this application, you can make claims for the function and quality of your products that are somewhat dubious, while trying to minimize any obvious defects. For example, a product may be advertised as containing the same ingredients as a more well-known product while omitting the fact that those ingredients are used in much smaller quantities in the advertised product. The end result is to mislead the shopper into thinking that the promoted product is as effective as the more well-known brand, when in reality it performs slightly less. When this becomes apparent to the buyer, the seller is often accused of trying to sell a BOM, meaning the presentation was intentionally misleading.




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