How to determine if you need product lifecycle management

The size of the company does not determine whether it is suitable for PLM software solutions or not. A good product lifecycle management software can be applied equally successfully at both smaller and bigger companies. As long as it is custom-made to fit the company’s exact needs, of course. However, not everyone can afford quality PLM software. And, even if they manage to afford it, it needs to be properly implemented. In a way to save costs and not make additional ones. After all, in order to incorporate best practices and reduce costs, a good executive needs to think outside of the box. So, if you wish to determine whether you need product lifecycle management or not, you should first think of some basic aspects of your business.

The complexity of processes is a good sign you need product lifecycle management

Now that we have determined that the size of the company isn’t an obstacle, you are probably asking what is next. There is one catch, though. The size does determine the possible turn of profit and thereby the potential amount of money available for investment in PLM software.

the question mark
Will product lifecycle management improve be crucial for your business improvement?

It is not the same if you are looking into PLM for the plant facility system or the apparel PLM software for your small fashion company. The size itself is not important when it comes to whether you can or can not implement the PLM solutions. Of course, you will have more financial resources if you are running a big plant facility instead of a small, family-operated fashion company.

However, there is one thing more important than the actual size of the company. And that is the potential of the enterprise. Whether you own a small fashion line, a huge plant facility, or a medium-size logistics company, the question to answer is whether the processes are becoming more complex or not. If you run a steady business without much potential in growing, you can be in a less favorable position than a small fashion company that is growing at high speed.

As your business develops, you need to find new, creative ways of managing, tracking, and reporting. Not only by one department but by every department that is involved in the introduction of new products and creating new value for the company. And that is a fertile ground for PLM system development.

The projected revenue for new products can tell you if you need PLM solution

Once again, we must mention finances. If you predict a 20% rise in revenue or higher, you will have good use of a comprehensive software solution such as a PLM software for transportation or logistics company, for example. This software will not just help you manage, track, and make business reports. It will also help you increase profit. A good PLM software solution should be able to improve the company’s profitability in multiple ways.

a revenue curve depending on using product lifecycle management
What is the predicted revenue?

With the help of product lifecycle management, your executives will manage to:

  • Control costs. You will not only be capable to control the costs of ingredients and manufacturing, but also the costs of distribution and potential recalls.
  • Speed up time-to-market. Decreasing time-to-market will lead to a faster return on investment.
  • Decrease human errors. Employee errors are a part of every job, but with the automatization of processes, you will significantly lower the number of human errors.
  • Allocate resources better. Once you gain a perspective of every part of your business, with the comprehensive product lifecycle management software, you will allocate resources much easier.
  • Raise standards of quality. All of these changes will automatically lead to higher standards of quality in your company. And with top-notch quality products, you will be able to monetize your business much more successfully.

How you collaborate internally and externally is important

Not every type of collaboration requires the use of PLM software. If you are sitting in the office with several employees with whom you are able to complete any given task, and you work with a single supplier and distributor, maybe you don’t need PLM software. Even though it would certainly benefit your business. However, since many small companies can’t afford customized software solutions to manage their product lifecycle, you need to prioritize.

The PLM software will encompass all tasks and teams. It will help you resolve the challenges with visibility and integration. Connect your departments, suppliers, distributors, and data by this system and the communication will be much more accessible and clearer.

Know your R&D productivity level

You can use spreadsheets for keeping data, but the reality is – there are not too many options from there. On the other hand, using PLM software solutions will provide more opportunities. With the right and properly implemented software, you will get much more use of your databases. It will give you the opportunity to prototype new recipes and optimize formulations. Let’s not forget one of the greatest perks of having a customized PLM system by your side. You will be able to conduct necessary analyzes for compliance issues.

a DNA graphic
Do you know the company’s R&D productivity level?

All these together will result in R&D productivity improvements. Why? Because the improvement in productivity depends on the percentage of R&D projects launched over a year, that yield sellable products. The case is clear, the more you invest in your R&D (not only money but other resources as well), the chances of increasing productivity levels are higher.

Managing global compliance with PLM solutions

How products comply with government regulations is one of the main questions for every production company, no matter the industry. Sometimes having a fully-staffed regulatory department is not enough to avoid concerns and questions on the subject. Your regulatory team should have complete visibility of all of the ingredients that go into any product. That includes specific amounts for each variation of the product in manufacture. And the PLM solutions can provide that.

It is also important to be able to view the analysis while you are in the process of developing the product. Knowing vendor specifications for the supplier’s ingredients is crucial in providing the safety of the products. One of the top priorities of product lifecycle management is to navigate the labyrinth of regulations during the design of product families. You need to be able to lower the cost and complexity of od product design, delivery, and support while having multiple product families supporting numerous sets of regulations. PLM systems will allow executives to do that while giving them analytics and reporting tools to monitor the designing process.

Are you still uncertain whether product lifecycle management is the right choice for your business? If so, we suggest you get in touch with our experts at Frontech Solutions EU today. You will get all the answers you need and become able to make a good decision for your company.

Subscribe to our mailing list to receive the latest news from the PLM world!