← Glossary

Bill of materials (BOM)

A bill of materials is the structured list of every raw material, component, and sub-assembly — with quantities and costs — needed to build a finished product. Types include engineering (EBOM), manufacturing (MBOM), and single- vs. multi-level BOMs. On Shopify, a BOM lets a kit or manufactured item automatically deplete its component stock when it sells.

How it works

A BOM lists each component with its quantity-per-unit and unit cost, then rolls those lines up into the finished product's total material cost. Multi-level BOMs nest sub-assemblies — a component that is itself built from other parts — while single-level BOMs are one flat list.

Cost per finished unit = Σ (component quantity × component unit cost)

Why it matters

For Shopify merchants who bundle or manufacture, a BOM is what lets selling one finished product automatically deduct the right number of each component from stock — so you never oversell a kit whose parts have run out. It also gives you a true landed cost per unit for margin and reorder math. Apps like Assemblified turn Shopify products into BOM-driven assemblies.

Track this automatically

Logistified calculates and monitors metrics like this across your whole Shopify catalog and turns them into reorder alerts and purchase orders.

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