All PLM companies will trumpet what their software can do for you and your company. But why is PLM so important? While you probably know the answer to that question, it sometimes helps with decision making to see it all on paper.
Here is why PLM is so important to any company that sells any products.
It Lets You Track Your Products
Products do not stay popular forever, even the really popular products. The best example of this is the Christmas holidays. Think back on all the toys that were popular one year and forgotten the next. Toys, however, are not unique.
Product trajectories are present in just about every line of retail. Even patio furniture goes through trends. So do clothes, vehicles, cookware, etc. You name it, with very rare exception, there is a product timeline that inevitably leads to a product being discontinued.
PLM software lets you track all that and lets you compare the cost of making and delivering that product to a consumer versus the revenue it generates. That lets product managers make decisions based on data and not gut assumptions.
It Helps Pinpoint Your Financial Position
Most product managers know good selling objects versus duds. What they might not know, however, is how profitable a product is and what products drive costs versus profit across a company. If you do not know those two, you have no frame of reference for making any decisions.
What PLM software does is lets a manager see individual items and their costs and profitability as well as how an entire slate of products performs. This lets product decision makers see what products they should keep and what they can shelve. That alone will improve profitability, just by eliminating waste.
A major reason PLM software is so valuable is that it lets different departments throughout a company and beyond communicate in real time. Waiting on a memo or email is no longer necessary because employees can check the status of a product or order in real time.
In addition, meetings can be held online and important documents, orders, client notes, etc., can be updated in real time as decisions are made. This avoids miscommunications and provides a paper trail for anyone who is not clear on what was decided in what meeting.
PLM software companies constantly promote the benefits of their software individually, but the benefits of PLM go far beyond a single software package. If you are considering implementing PLM software for your company, these are three reasons among many why doing so is a great choice.