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Is it a Bundle or a Bill of Material (BOM)?
Is it a Bundle or a Bill of Material (BOM)?
Anya Bacon avatar
Written by Anya Bacon
Updated over a week ago

Bundle or Bill of Materials (BOM)

Make sure you fully set up your store on Prediko so that all the features we have on offer can be utilised. Here is a helpful guide to decide on whether your product should be set up as a Bundle or as a BOM.

What is a Bundle?

A bundle is a set of two or more related products, commonly offered at a discount. They are comprised of 'child products' or products that can be bought as standalone items. Selling bundles on your store can provide the following benefits:

  • increase your average order value

  • provide value in the form of curation to your customers

  • pass along discounts to your customers

  • clear out old inventory

  • drive more visibility for your products

See here for more info on how bundles work in Prediko and how to setup.

What is a Bill of Material (BOM)?

A Bill of Materials (BOM) is a comprehensive inventory of the raw materials and components needed to assemble a product. You can create a BOM in Prediko - see here for more info.

What is the difference between the two?

Bundle

BOM

Hold Stock?

❌

No, as holding stock of Child Products only, which determines whether can provide a Bundle

✅

Yes, as manufacture the complete product, have to hold stock for a BOM item as well as usually a stock of Raw Materials

Composed of...

Finished Good items, that can be bought in a shop standalone

Raw Materials, that can't be purchased on store

Production time...

❌

No manufacturing or production time is required.

✅

Yes, it takes time to assemble or produce an item.

Can see on the Buying Table?

❌

No, as there is never a need to purchase "Bundles" from Suppliers. Only Child Products are purchasable.

✅

Yes, as need to create a "Production Order" for a specific demand.

How do you Plan for Bundles and BOMs?

Bundle: Once the Bundle is connected, we attribute the demand from a Bundle to a Child Product - so you know how much to order Child Products to satisfy all real demand.

e.g. you sell 50 units of Bundle A composed of Product X and Product Y. We "bump up" demand for Product X and Product Y by 50 units, as this is what you will need to keep in stock to satisfy demand.

Child Products X and Y demand = Standalone demand + Bundle requirements

BOM:

Now 👉 Calculate the demand for a BOM with notification in the Production Order if you have enough Raw Materials to produce it. No demand curves are created for Raw Materials (so need to manage stock yourself for Raw Materials).

Q2 2024 👉 Demand is attributed to Raw Materials from BOM products, notifying when you need to re-order Raw materials in time.

Then Raw Material Demand = BOM demand

What more is coming up on a roadmap in 2024?

  • See "Health" status and demand for Raw Materials based on how they will be consumed for BOMs

  • Raise PO for Raw Materials that you are missing from the Production Order directly

  • Ability to add Finished Goods to BOM, not just Raw Materials as now

    • then Child Products X and Y demand = Standalone demand + Bundle requirements + BOM demand

  • Raw Material, which is made up of other Raw Material

  • Raw Material reporting

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