Gain Control of BOMs and Versions with Dynamics 365

Increasing product complexity and growing documentation requirements are driving many manufacturing companies to adopt new approaches to managing bills of materials (BOMs) and product changes. Engineering Change Management (ECM) in Microsoft Dynamics 365 Finance is designed for exactly this purpose – and real-world project experience shows how it can deliver tangible benefits.

When BOMs include up to 1,800 components

At an electronics manufacturer producing customized circuit boards with BOMs containing up to 1,800 components, version control was critical. Components were continuously replaced with new variants offering similar functionality, but without proper documentation, the company could not prove to customers that the changes were acceptable.

Before transitioning to Dynamics 365, management was handled manually and depended on customizations made by a single key employee in a legacy XAL system. In practice, it was difficult to ensure consistency, traceability, and timely documentation. With the ECM module, the company gained:

• Full version control and traceability at component level
• Automated workflows for change orders
• Visibility across departments for active and obsolete versions
• End-to-end lifecycle overview of products

The result was fewer errors, reduced waste, and improved ability to meet customer requirements for documentation and version control.

Not only for complex products

ECM is also relevant for companies with less complex BOMs. One example is a manufacturing business with many customer-specific variants. Here, BOMs often contained only a few lines – but precision and documentation were essential, as the same item could be used in both ballpoint pens and trucks – each with its own version.

By enabling ECM, the company created clarity around customer-specific versions, reduced the risk of mix-ups, and strategically prepared for future requirements related to documentation and change management.

ECM in practice: Lower risk, better decisions

With ECM in Dynamics 365, change management becomes an integrated, system-supported process. When a change order is created, it is automatically guided through an approval workflow across relevant departments – from production and warehousing to sales and procurement. This enables:

• Better decision-making based on up-to-date product data
• Automated rollout and documentation of versions
• Prevention of overproduction and inventory errors
• Stronger customer and regulatory communication based on accurate product information

The organization gains a shared language and overview, making it easier to plan, follow up, and ensure compliance – without relying on manual workarounds or individual spreadsheets.

Think strategically and start with what matters most

Experience shows that getting started does not require a complete overhaul. Many companies begin by enabling ECM for selected items – such as products with frequent changes or customer-specific configurations – and expand from there. It is also possible to activate version control after implementation if the need arises later.

However, there are clear advantages to taking a long-term approach: if ECM is enabled and configured from the start, the foundation is already in place, avoiding costly adjustments later.

Ready for the next step

At AlfaPeople, we have helped a wide range of manufacturing companies implement ECM in Microsoft Dynamics 365. We understand the common challenges and requirements – and how BOM management in Dynamics 365 can evolve from a manual burden into a strategic tool.
Contact us for an informal discussion on how ECM and version control can create value for your business.