What does a BOM cost you if nobody’s checked it in 2 years?
If a Bill of Materials hasn’t been reviewed for 2 years or more, it almost always has a problem. Some parts on it cost more than the paperwork says, some are harder to get, and some are close to being discontinued. This cost doesn’t show up as one big number on a budget. It builds up slowly, month by month, in what you pay to buy parts. A proper review of the BOM usually finds savings of up to 15%. Below we explain where this cost hides and how to find it before an audit or a supplier does.
Most companies don't lose money because of one big mistake. They lose it slowly, through dozens of small decisions nobody stopped in time.
A part that was the cheapest option 2 years ago might now be on allocation and bought at a broker price, higher than the standard one. A supplier that used to be the sensible choice might now be the only choice, simply because nobody checked if other options exist. None of this looks like a crisis at first glance. Together, it becomes a real, ongoing cost that the purchasing team pays every month without ever seeing it as one line item.
Why does a BOM stop being accurate, even when the product itself doesn't change?
A BOM describes a product at the moment it was frozen. The parts market doesn't stay frozen with it. Prices change, availability isn't stable, manufacturers discontinue production lines, and competitors bring out cheaper alternatives. The product stands still while everything around it keeps moving. After 2 or three years, the BOM on paper and the real supply situation can be 2 very different things, simply because nobody has checked the difference.
Where exactly does the hidden cost sit?
You'll find it in three places.
Single-source parts.
If a part has only one supplier and nobody has checked for alternatives, every price increase, every supplier delay, every change in terms lands on you directly, with no room to push back.
Parts on allocation or near end of production.
These keep getting bought at the standard price because nobody checked their current status. The cost creeps up quietly, long before anyone sees it in a financial report.
Unidentified alternatives.
A pin-to-pin replacement that's 10-20% cheaper doesn't help if it's sitting in the manufacturer's database instead of in your BOM.
What changes once you review the BOM properly?
It turns those three hidden costs into a clear list of decisions. Which part needs a second supplier. Which one can be swapped for something cheaper right now. Which one needs attention in six months. Which ones are fine as they are. Companies that go through this process find these savings not because something broke, but because nobody had done the math before.
Does your BOM need a check-up? Protect quality, cost, and production.
Reviewing and optimising a BOM isn't just extra work for engineers. It's a real chance to cut costs by double digits, improve quality, and lower the risk in your supply chain.
At Etteplan, we help companies across different industries clean up and verify their BOM data, taking the load off engineering teams and the people responsible for keeping production running.
Find out how much you could save. Get in touch and we'll look at your situation together, then put together an action plan that fits your organisation.
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