In Ordoro, a product can be either a kit or a Bill of Materials. What are these and how are they different?
- Ordoro’s Kitting logic calculates how many kits/bundles you can create on the fly.
- Our Kitting code looks at the component’s available quantities and determines how many you could build in the moment.
- Once a kit is shipped, the component quantities will automatically reduce.
- You sell a Soccer Bundle with cleats, shin guards, and a soccer ball.
- Each of these components can be sold separately as well.
- When an order is placed for the Soccer Bundle, you pull each item individually and package them to ship.
- These items are not pre-packaged together before the order comes in.
Bill of Materials (BOM) definition
- Bill of Materials (BOM) determines the components needed to build a finished good.
- A finished good is different than a kit because it is manufactured beforehand and is a complete item.
- It cannot be disassembled easily and recombined with other components to build another finished good.
Bill of Materials example
- You sell a Stereo Set of two speakers.
- Each speaker is considered a finished good as it cannot be easily disassembled.
- The Bill of Materials for each speaker is comprised of the box, woofer, and wires.
- 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.
- When the speaker ships, only the inventory for the finished good reduces, not the components.