Why does your business need PLM and ERP integration?

As a business owner, you would know how important efficient resource management is for success. And, in today’s world, where automation is becoming more and more prevalent, integrating tools like ERP and PLM can help your business streamline processes.

What is PLM vs ERP?

So, what are PLM and ERP and why do you need them?

What is PLM and what does it do?

PLM stands for Product Lifecycle Management. As the name suggests, it is a tool that facilitates the management of the product, right from the ideation stage to manufacturing to distribution. 

If your business is product-oriented, this can be a valuable resource. An optimised product management process can do wonders for your bottomline.

What are the benefits of PLM?

• Makes compliance easier by creating a single point of all information about the product
• The business can work in sync, across various locations,
• Improves productivity, as well as product quality
• Helps save time and money in materials and ordering,
• Streamlines the process, helping you get the product out in the market faster, and
• Helps increase profits with reduced wastage.

What is ERP and what does it do?

Enterprise Resource Planning, or ERP, is a tool that helps a business manage all the different aspects and resources involved in its running. These systems allow your organisation to centralise all processes, from where they can be managed efficiently.

An ERP system can give your business a bird’s eye view of the various departments, including finance, accounts, inventory, and procurement.

What are the benefits of ERP?

• Brings together all your departments and processes under one ‘roof’,
• Makes cross-department collaboration easier and faster, 
• Improves communication internally as well as externally,
• Provides a better understanding of what needs to be improved and how, 
• Helps with efficient inventory and logistics management

What is the difference between PLM and ERP?

The difference between a PLM system and an ERP lies in their focus. A PLM zooms into a single product, giving you start-to-finish documentation, while an ERP zooms out to give you a ‘big picture’ view while also managing details.

Whilst PLM systems are all about the ideation and planning of the product, an ERP system would help you plan and execute the manufacturing process.

What are the benefits of integrating PLM and ERP?

So, as you can see, PLM and ERP have different purposes. At first glance, they might seem unrelated. However, these complementary tools can be very handy in creating a more efficient production and development process.

Higher efficiency

With integrated PLM and ERP systems, your design and production teams are able to share data in real-time. So, you can design optimised processes which you can tweak as you go.

Plus, since all information is stored in a centralised location, it only needs to be entered once. As a result, you don’t have different departments entering the same data. It saves time and reduces chances of error.

Reduced costs

Since you have data shared between the two systems, you now don’t need someone to transfer it when needed.

And, as we said before, it will only need to be entered once. That, of course, means there will be fewer errors and discrepancies and inconsistencies.

Obviously, with real-time information about your product during the production stage, you will be in a better position to place orders and manage logistics. No more delays due to insufficient material or over-ordering.

All of this means you will save money throughout the process.

Better collaboration

With product design and production communicating seamlessly, enabled by your PLM and ERP integration, your business will operate from a single point of truth. This means they are able to keep up with other departments smoothly.

With improved cross-department communication comes more innovation and fewer errors that might cost your business money.

Happier customers

So, now you have a smoother process, with fewer errors, and you’re also able to identify cost-saving points. And, at the same time, you are also improving your product.

This means you are able to transfer these benefits to your customers, making them happier and more satisfied with your business.

What should come first – PLM or ERP?

Frankly, there is no right or wrong answer to this question. Ideally, you would get better results if both were adopted at the same time.

On the other hand, one might argue that since the product comes first, it is more important to have a PLM system in place.

If you’re not sure about which should come first for your business, why not have a chat with us?