What is bill of materials?

A bill of materials is the list of all the raw materials, resources, components, assemblies and parts - and the quantities of each of them - that are required to manufacture a product. In a simpler sense, a bill of materials is like an industrial recipe for creating an end product. From a procurement point of view, a bill of materials is a very useful document as it highlights the materials needed to be sourced as well as the ideal quantities of each of them.