Imagine a big, sturdy lock that secures your house’s front door. To you, that lock is just a simple thing that helps make you and your family safe at home. However, from the engineering perspective, it is more than just a thing. It is called a box-build. It means the lock comprises dozens of meticulous small and ‘unseen’ components, each playing a critical role in the lock’s functionality. If one component is missing, the lock will lose functionality entirely.
Now, magnify this complexity of just a simple lock a thousandfold more—such as the dashboard of a BMW car for example. Imagine there are hundreds of thousands of cars being manufactured annually and millions of components inside the cars’ dashboards BMW needs to have. Now that is the scale and intricacy of a Bill of Materials (BOM) in the electronics manufacturing industry.
The BOM, a comprehensive inventory detailing every component, from the tiniest resistor to the most sophisticated integrated circuit, acts as the blueprint for producing complex electronic devices. This meticulous documentation not only dictates the product’s physical composition but also showcases the complex choreography of its manufacture, outlining the sequence of assembly, the required tools, and even the testing protocols.
It is complex, yes. Yet, with innovations in place, the work will be made easy. With the right BOM management solution in place, it helps to ensure that every component is available when and where it’s needed, minimizing production delays and maximizing efficiency. It also provides critical visibility into the product’s cost structure, enabling manufacturers to optimize their supply chains and maintain profitability.
Enter Lexi.
What is Lexi?
Lexi is a software company and pioneer in BOM management. Headquartered in Stockholm with a data operations center strategically located in Penang, Lexi leverages global expertise and regional insights to provide cutting-edge, cloud-based BOM management solutions tailored for the electronics industry. Its customers include industry powerhouses in the automotive and industrial sectors, showcasing its expertise and capability in managing extremely complex BOMs at scale.
Lexi’s core mission is simple—to empower product owners by providing them unprecedented transparency and control over their BOM data. By fostering cross-functional collaboration across commercial, engineering, and production teams, the state-of-the-art software ensures that all stakeholders operate from a unified, real-time source of truth. This streamlined approach minimizes human errors, enhances efficiency, and bolsters the bottom line by accelerating time-to-market and mitigating costly production delays.
Lexi is founded in 2011 when the company noticed there was a huge challenge faced by the commercial, production, and engineering teams when they talked to each other comparing their respective bill of materials data which were full of discrepancies. Each has its own version of the data set. They saw a great opportunity to solve this permanently—via automation. This was how Lexi established.
In its early stages, Lexi, an emerging startup at that time, secured long-term contracts with several global OEM powerhouses that recognized the company’s undeniable value. This was over a decade ago. Today, in 2024, Lexi has rapidly grown to become one of the promising scale-up companies in Sweden after raising a series of funds from a number of strategic investors. The company now employs over 50 people in Europe and Asia. From just a handful of prominent names in the industrial sector as its customers, there are now more than 20 well-known industrial and automotive conglomerates taking advantage of Lexi’s BOM Management software to take them forward. This showcases how powerful its value proposition is.
Challenges the automotive and industrial sectors face when managing BOMs
Automotive and industrial electronics manufacturers face several key challenges when it comes to managing their Bill of Materials (BOMs). One significant challenge is decentralized data. This means that crucial BOM information is often scattered across various files and formats, such as Excel spreadsheets. This lack of a centralized repository makes it difficult to access, track, and manage BOM data efficiently. As a result, manufacturers struggle to maintain data consistency, leading to errors and production delays.
Another challenge is reliance on manual processes for BOM management. Many manufacturers still rely on time-consuming manual tasks to update and maintain their BOMs. This not only increases the risk of human error but also limits the ability to respond quickly to changes in demand or supply. Manual processes can hinder collaboration and slow down decision-making, impacting overall operational efficiency.
The lack of insightful analysis presents another challenge for manufacturers. Without the right tools to analyze BOM data effectively, manufacturers may miss valuable opportunities to optimize their processes, reduce costs, and improve product quality. The inability to derive actionable insights from BOM data can impede strategic decision-making and hinder a company’s ability to stay competitive.
Component obsolescence is a persistent issue too. Electronic components can quickly become outdated or unavailable, necessitating costly redesigns and supply chain disruptions. Ensuring compliance with stringent EU regulatory standards adds another layer of complexity, as manufacturers must meticulously track and document the composition and sourcing of their materials to avoid legal repercussions. Moreover, the global nature of supply chains introduces vulnerabilities, with potential disruptions arising from geopolitical events, natural disasters, or supplier bankruptcies. These challenges underscore the need for robust BOM management solutions that can proactively address obsolescence, streamline compliance, and mitigate supply chain risks, ensuring the seamless production of high-quality electronic products.
Lastly, the complexity inherent in electronics manufacturing BOMs poses a significant challenge. These BOMs often involve intricate relationships between components, multiple suppliers, and stringent regulatory requirements. Managing these complexities manually can be overwhelming and prone to errors. It requires a robust system that can handle the intricacies of electronics manufacturing and ensure compliance throughout the BOM lifecycle.
The key component of Lexi’s BOM management
Software
It is a cutting-edge, cloud-based platform designed to revolutionize traditional Bill of Materials (BOM) management. The platform serves as a centralized digital hub, replacing the often disparate and unwieldy Excel spreadsheets that many companies rely on. This consolidation of BOM data into a unified system brings a multitude of benefits, fostering accessibility, scalability, and real-time collaboration across departments.
One of the key advantages of this centralized approach is the ability to shift from reactive to proactive BOM management. By having all BOM data readily available and interconnected, potential issues can be identified and addressed before they escalate into costly problems. The platform’s analytics capabilities further empower data-driven decision-making, providing insights that can optimize various aspects of the product lifecycle, from design and procurement to manufacturing and distribution.
Moreover, the platform is specifically engineered to handle the unique complexities inherent in electronics manufacturing BOMs. These BOMs often involve intricate component relationships, multiple suppliers, and stringent regulatory requirements. The platform’s tailored features streamline the management of these complexities, ensuring accuracy, consistency, and compliance throughout the BOM lifecycle.
In essence, the platform acts as a catalyst for transformation, enabling product owners and stakeholders to break free from the limitations of traditional BOM management. By embracing a digital, centralized, and data-driven approach, companies can achieve enhanced efficiency, agility, and competitiveness in today’s dynamic electronics manufacturing landscape.
Services
Lexi recognizes that each company has unique needs and challenges when it comes to BOM management. That’s why it offers a range of professional support and services designed to ensure optimal implementation and utilization of the platform.
Since the work involves highly sensitive and confidential data, a team of experts will work closely with customers to understand their specific requirements and tailor the services accordingly. This may involve assistance with data collection, data cleaning, data improvement, reports, analytics, monitoring, and user training. Lexi provides a seamless transition to the cloud-based platform, minimizing disruption and maximizing the value derived from the initiative.
Furthermore, its services are not just about technical implementation—as it also offers ongoing support to help customers continuously improve their BOM management practices. This may include sharing industry best practices, providing strategic advice, or facilitating knowledge transfer. The ultimate goal is to empower product owners and their teams to become self-sufficient in leveraging the platform’s capabilities to drive process excellence.
By combining its powerful software with personalized services, Lexi provides a comprehensive solution that addresses both the technological and human aspects of BOM management transformation. This holistic approach ensures that the customers are equipped with the tools, knowledge, and support they need to achieve their desired outcomes.
Consultancy
Navigating BOM Management software can be challenging during the initial stage. One of the key areas where the consultancy can add significant value is in leveraging the innovative capabilities of the cloud-based platform. Lexi works closely with customers to identify opportunities for improvement and develop customized solutions that align with their specific goals. This may involve streamlining workflows, automating tasks, enhancing data accuracy, or improving collaboration across the supply chain.
Furthermore, this consultancy service goes beyond technical aspects as it covers elements such as strategic advice on BOM management best practices, helping companies establish robust governance frameworks, implementing effective change management strategies, and fostering a culture of continuous improvement. Lexi aims to empower product owners with the knowledge and skills they need to lead their companies toward BOM management excellence.
With these, Lexi’s comprehensive ecosystem is unmatchable—supporting product owners at every stage of their BOM management journey. Whether it’s through technology enablement, process optimization, or strategic guidance, the company is committed to helping customers unlock the full potential of their BOM data and achieve lasting success.
Taking control of the data and driving transparency requires innovation
As you can see, Lexi takes innovation seriously, constantly evolving its software to stay ahead of the curve and address the ever-changing needs of the electronics manufacturing industry. This commitment to innovation is evident in the platform’s cutting-edge features, intuitive user interface, and robust compliance capabilities. Lexi is dedicated to empowering product owners to make informed decisions, optimize their processes, and achieve their business goals.
Centralized Data Repository. Lexi eliminates the need for disparate spreadsheets and siloed data by providing a single, centralized repository for all BOM information. This ensures that everyone has access to the same, up-to-date data, regardless of their location or role.
Version Control and Audit Trails. Lexi tracks all changes made to BOMs, providing a complete audit trail that allows product owners to easily identify who made changes, when they were made, and why. This promotes accountability and transparency, making it easier to identify and address any issues that may arise.
Compliance Management. Lexi helps product owners follow industry regulations by providing built-in tools and features that ensure BOMs meet all relevant requirements. This includes features for managing hazardous materials, tracking component lifecycles, and generating compliance reports.
Real-Time Insights. Lexi provides product owners with real-time insight into BOM data, including cost analysis, risk assessments, and supplier performance metrics. This information can be used to make informed decisions about product design, sourcing, and manufacturing, ultimately improving profitability and reducing risk.
Collaboration and Communication. Lexi facilitates seamless collaboration and communication between production, commercial, and engineering teams. By providing a shared platform for accessing and managing BOM data, Lexi breaks down silos and ensures that everyone is working with the same information. This leads to improved efficiency, productivity, and decision-making.
A game changer
Lexi’s BOM management is definitely a game-changer, hands down. It’s not just about its lethal combination of software, services, and consultancy. It’s more than that. It’s all about having the key to unlocking the full potential of your data. Exactly just as Yale lock transformed the security of your home, Lexi is transforming BOM management, providing state-of-the-art, cloud-based platforms that empower product owners like you with many things that weren’t possible before.
In an industry where precision, efficiency, and agility are paramount, Lexi’s innovative platform offers the same reliability and peace of mind that a Yale lock provides. By centralizing BOM data, streamlining processes, and enabling data-driven decision-making, Lexi equips product owners with the tools they need to navigate the complexity of controlling their data’s transparency and make the right decision which eventually will attract success.
For those electronics-driven industrial and automotive product owners seeking to elevate their BOM management practices and secure a competitive edge, Lexi’s cloud-based platform is the answer. Just as the world once embraced the Yale lock for its superior security, the electronics manufacturing industry is now embracing Lexi for its superior BOM management solutions. Don’t leave your BOMs vulnerable to outdated methods—explore Lexi’s platform and discover the future of BOM management now.
— This article is sponsored by Lexi Solution AB