What is the difference between Kitting and Bill of Materials?

In Ordoro, a product can be either a kit or a Bill of Materials. What are these and how are they different?

Kitting definition

1. Ordoro’s Kitting logic calculates how many kits/bundles you can create on the fly.
2. Our Kitting code looks at the component’s available quantities and determines how many you could build in the moment.
3. Once a kit is shipped, the component quantities will automatically reduce.

Kit example

1. You sell a Soccer Bundle with cleats, shin guards, and a soccer ball.
2. Each of these components can be sold separately as well.
3. When an order is placed for the Soccer Bundle, you pull each item individually and package them to ship.
4. These items are not pre-packaged together before the order comes in.

Bill of Materials (BOM) definition

1. Bill of Materials (BOM) determines the components needed to build a finished good.
2. A finished good is different than a kit because it is manufactured beforehand and is a complete item.
3. It cannot be disassembled easily and recombined with other components to build another finished good.

Bill of Materials example

1. You sell a Stereo Set of two speakers.
2. Each speaker is considered a finished good as it cannot be easily disassembled.
3. The Bill of Materials for each speaker is comprised of the box, woofer, and wires.
4. Once a Manufacturing Order for the speaker is complete, the components are consumed so their inventory is reduced while the speaker (finished good) quantity increases.
5. When the speaker ships, only the inventory for the finished good reduces, not the components.