For most businesses, a single software platform that can manage all product development stages is a huge benefit. It is for this reason why product lifecycle management (PLM) software has become so crucial for many enterprises. The benefits of PLM are numerous and include:
· Being a single source of truth for all stages of product development.
· Integrating into your supply chain.
· Simplifying the work that product developers need to do to ship a finished product.
PLM software used to be exclusive to engineering companies. However, many other industries are starting to find a use for this type of product, and with a few simple tweaks, a PLM can be customized for almost any industry.
PLM software is even more important in a globalized marketplace. When you have multiple parts from different countries, it is crucial to have a central repository to track and manage these pieces. Modern PLM software is becoming a foundational pillar of successful businesses.
Benefits of PLM software
The main benefit of using PLM software is that it's a central repository for everything related to product development. It is a single source of truth where you can see how product development is going. Having such a system means you will never be out of the loop, and you will always have information on hand to make corrections when you see things going off course.
It enables all the stakeholders in your organization to communicate quickly and efficiently. It allows you to manage resources to speed up the development process. It also allows you to coordinate supply chains to ensure you always have every part needed to build your physical products.
Gather and connect data throughout the lifecycle
PLM software can act as a database but without fixed datatypes. It means you can store multiple different types of data in the same central repository. This is crucial, as it means you can go through a product's entire life cycle without using any other software. PLM software can do it all, which ensures that everyone is always on the same page.
You can also see the relationships and how things changed through each part of the process, and this means you can go backward and make corrections as time goes on. When you change a part in one step, it will update in all phases and you can get all the tracking information along with these updates. Everything is interlinked and looking at who changed what is as simple as pressing a button.
With the way modern-day product development works, there are many risks inherent in manufacturing products in multiple countries. There are different certifications in each country, and regulations you have to follow. It can be difficult ensuring that your product complies with each country's laws. PLM software can help you with that. It can ensure that you are compliant through each step of the product development process and you can track changes to see exactly where you went wrong if there's a problem.
You can also use the PLM software to report user complaints, which is a critical part of compliance. In today's social media world, having just a few people angrily post about your product on social media could lead to disaster. PLM software allows you to manage products from the cradle to the grave. You can mitigate risk and stop potential issues before they even crop up.
PLM software can also ensure you always have the source materials needed to build your product. Global supply chains are complex, and any instability could potentially cause your factory to shut down for an extended period. You can use PLM software to ensure you always have enough source materials.
Low production costs
Most PLM software includes modules to estimate production costs, which you can lower by comparing different suppliers. It gives you a holistic view in one central location. You can even create real-time costing and analysis to know what you are paying at that moment. If you integrate AI algorithms, you can also start predicting how prices will change in the future. All of these features lead to you reducing the cost of bringing your product to market.
Improved forecast accuracy, reduced inventory and less stock outages
With PLM software, you will be able to adjust to the marketplace a lot more quickly. If there is something about a product that customers don't like, you can quickly redesign it with the help of PLM software. You can use software to manage inventory by creating accurate forecasts. You can use this forecasting model to stock inventory and not produce more products than needed. It also helps you see bottlenecks in the supply chain, so you can optimize everything to work at peak efficiency.
Since PLM software will help you reduce risk, inventory, and product complaints, it is more likely to increase revenue. This software enables you to optimize every single part of product development cycle, so you will be able to get a lot more revenue from what you put in. You will be able to adjust to the market's needs, which ensures more customers.
Your entire organization will be on the same page, so everyone can work together to drive the right KPIs that lead to even better revenue.
PLM software can change your business, and it is a crucial component for companies that need a central repository for developing and maintaining products from cradle-to-grave. It is a vital piece of software for companies that want to maximize productivity and improve their bottom lines.