Navigating BOM Challenges in Aged Product Manufacturing

Welcome to the intricate world of aged product manufacturing, where time itself is a component in the production process. For those in industries like winemaking or distilling, managing the aging process within your inventory system can be as complex as the flavors in a finely aged brandy.

Consider a winery specializing in brandy that ages over several years. Initially, they set up their Dynamics 365 Business Central without a crucial link in their Bill of Materials (BOM) – the aging process. Each year of aging was treated as a separate purchase item, not stages of the same product, causing forecasting and replenishment suggestions to miss the mark.

The Pitfall:
Without a proper BOM connection, predicting the need for aged brandy at various stages becomes guesswork. The system cannot foresee that the 1-year-old brandy is a precursor to the 2-year-old variant, leading to potential shortages or overstocking.

The Fix:
The solution was to establish a BOM that accurately reflects the aging process. In our example, the BOM for 2-year-old brandy must list the 1-year-old brandy as a material, and so forth. This change ensures that production planning, inventory tracking, and forecasting recognize the continuity and dependency of each product stage.

The Lesson:
In essence, the aging process must be mapped out within your ERP system, with each aged state of the product connected back to the original. This not only improves accuracy in forecasting but also elevates the understanding of product flow and lifecycle within your company.

If you’re in a similar situation, it's time to revisit your BOM setup. Align it with the actual processes of your product’s lifecycle to ensure a smooth manufacturing journey from raw material to an aged masterpiece.

Remember, in industries where products mature over time, your BOM isn’t just a list. It's the story of your product's life.