Beyond the Traditional BoM: Challenges of Bill of Materials in Global Industrial Companies

Industrial companies are progressively challenged by managing the growing complexity of products, global supply chains, and regulatory requirements in Bill of Materials (BoM) management. This paper explores these challenges through a systematic analysis of BoM practices in a leading international company that manufactures complex, configurable capital goods. As a globally leading company in this sector, they specialise in design, manufacturing, transport, installation, and maintenance of these products. 13 Critical requirements for BoM management are identified through a systematic analysis spanning the entire product lifecycle across organisational functions. The study further critically examines how existing BoM theory aligns with these real-world requirements. The analysis reveals significant gaps between traditional BoM concepts, often focused on static, hierarchical structures, and the dynamic, cross-functional demands faced by companies operating in complex Configure-To-Order (CTO) and Engineer-To-Order (ETO)environments. The case company is used to exemplify the operational and organisational complexity inherent in large-scale ETO/CTO environments, highlighting the need for holistic, integrated approaches to BoM management. The industrial findings offer insights into the progressive challenges faced by BoM management, identifying critical requirements and highlighting how complexity propagates throughout an organisation. In an academic context, the findings offer new insights into the gap between theory and practice, as well as the underlying reasons behind the industry’s need for innovative and dynamic models. This paper is therefore relevant for practitioners and researchers aiming to enhance digitalisation, traceability, and collaboration in complex product development and manufacturing contexts.