Summary: Traditional PLM was made up of data silos and outdated information that led to costly production errors. But with the incorporation of the cloud and other digital technologies to this, companies are able to meet their manufacturing goals, from budget to deadline.
Did you know that in 2016 alone, the PLM software niche was valued at $18.80 billion? This is according to the survey conducted by Verified Market Research. On top of that, MarketsandMarkets forecasts that by 2021, the industry would grow to $40.55 billion, with North America leading the way. Additionally, according to the previously mentioned report, the reason for this boom is that manufacturers are realizing the benefits that a PLM software brings.
Cloud-based PLM is likely to become more popular in North America.
We have discussed some of the ways a PLM solution can revolutionize the way you operate below. But before we get to it, here is a quick PLM overview.
What is Product Lifecycle Management (PLM)?
This is an interconnected workflow of tasks related to the design, manufacturing, and management of a product. Traditional PLM was made up of data silos and outdated information that led to costly production errors. But with the incorporation of the cloud and other digital technologies to this, companies are able to meet their manufacturing goals, from budget to deadline.
5 Ways a PLM Software Can Transform Your Business
1. Lower production costs
One of the prevailing trends in enterprise networks is the use of product lifecycle management software to oversee a product from its conception to expiration. One reason is to cut down the expenses related to the production of units. Organizations can achieve this when they have everything they need from procurement to disposal under a single umbrella. This allows everyone involved in the PLM process to collaborate and find ways for the operation to be efficient.
Additionally, a PLM provides enhanced visibility into a manufacturer’s inventory. With this, users can see which parts are reusable to reduce procurement expenses. Another benefit businesses can gain from this is the streamlined purchasing process. Since users can easily see which items have low quantities, they can request their sourcing partners to provide those immediately.
Overall, a robust production management partner can lower production and scrap costs by 25%, respectively.
2. Pared-down administrative overhead expenses
Apart from production costs, an agile PLM also helps cut administrative costs, especially when it comes to compliance. This workflow mostly involves tracking everything regarding decisions such as who made them, when they were made, and more. It has become a complicated process over the years because regulators have become more stringent in enforcing rules.
With a PLM, tracking every choice made by executives, managers, and other decision-makers is logged. This promotes accountability and encourages every member of the organization to be mindful of their actions. This way, they can make intelligent judgments for the good of the company.
Without a digital decision tracking solution, compliance would be difficult and expensive because of the clerical and administrative processes. However, when these things are digitized, it is more seamless to follow decisions and to document everything.
3. Accelerated time to market
In the United States, Apple is still the main smartphone provider for individuals, with 46% of respondents in a survey by Statista. This successful hold in the lion’s share of the smartphone market can be attributed to many things, and one of them is being two steps ahead of their competition, according to an article posted on Time. This can only mean that the device manufacturing giant has a fast time to market, too.
Other companies can take a cue from the way Apple does things by investing in tools that can aid them in streamlining their efforts to stay ahead of the pack. One thing that can do that is a PLM.
In any guide to SaaS, it is inscribed that applications deployed via the cloud share similar characteristics. One of which is the centralization of data. This is also something that any organization can find in a cloud-based PLM. This brings a great benefit to companies because it enables every member of the product lifecycle management process to access the same set of information as everyone else does. This accelerates product design and development, leading to faster production times. Thus, an enterprise’s goods arrive at the market faster.
4. Better product quality
A company’s product quality can make or break their standing in the market they are in. That is why even before it hits the shelves, product management teams have to ensure that they smooth out any creases. In this case, a product lifecycle management solution can give a hand. It integrates intelligence and process–it lets team members access the data they need to enhance the product parts they are working and ensure that it would still work without a hitch with other components.
PLM can also enhance product quality because it empowers employees to collaborate. With integrated collaboration tools, teamwork is something that can happen naturally. This allows people to offer feedback and constructive criticism so that they can reach the quality level they have set.
5. Operational scalability
A small-scale operation does not have to stay that size forever. With a PLM system in the cloud, it is possible for a company to expand and scale because of the deployment type’s flexibility and adaptability to a growing enterprise’s needs. It can accommodate the additional data you upload to the solution as well any user accounts required for smooth-sailing PLM processes.
PLM with the right application
Deciding on the best PLM for an organization takes time and involves poring over a PLM software list. That is understandable because this single software would have impacts that would reverberate throughout an enterprise.
For example, the benefits the PLM team would gain from a software that aids them in their job would be felt by other teams because it would mean that they would not have to wait long for them to also be able to do their tasks correctly.
Additionally, a PLM can boost the revenues of a company. Since everything is interconnected, even the sales and finance team would be able to feel the effects of a PLM application. Thus, it is critical that decision-makers choose and implement the right one that suits their specific business needs.