Businesses are well aware of the benefits of Product Lifecycle Management (PLM) and Enterprise Resource Management (ERP). These systems help businesses manage more efficiently, streamline critical information and improve their bottom-line. However, these systems can be made more useful by their integration. Let’s take an in-depth look at how PLM and ERP integrations can help businesses increase their capabilities.
Product Lifecycle Management (PLM)
PLM focuses on manufacturing and production processes, covering all stages of product development from idea development, design, manufacturing to disposal. PLM helps businesses organize important data, such as a list of approved manufacturers, product files, and material bills. Using PLM, you can easily track product information changes and communicate them to critical parts of the supply chain.
PLM manages all data in one center and keeps it all on one page. PLM updates in real-time to enable user access to the latest product information. This feature is especially helpful when multiple departments make changes to production processes. There are many PLM solution providers like Xavor that can help you increase the power of the system.
Enterprise Resource Planning (ERP):
An ERP software is used to manage the financial information of the business. It serves as a platform for reporting on sales forecasting, shipping logistics, accounting, customer support and manufacturing planning.
ERP is a highly useful tool for manufacturing businesses to enhance coordination between the finance, manufacturing and sales sectors. However, other businesses can take advantage of their systems accounting and inventory management features.
The ERP system helps you track all orders from receipt to delivery, giving you a clear picture of your delivery timeframe, manufacturing capacity and inventory. With all this information, businesses can make decisions to avoid purchasing and inventory of goods or to make better information about inventory.
Advantages of PLM-ERP Integration:
PLM and ERP integration have their own perks and advantages, but when these two systems are integrated together, they help to take full advantage of each system. Integration also brings its own more powerful benefits. Let’s see how this integration can help businesses to produce a successful product:
Cost Reduction:
With PLM and ERP integration, data is automatically transferred back and forth, and errors are minimized. You only need to input data once; It transfers directly to another system, providing more accurate estimates and information. Increased accuracy means purchasing orders are placed more confidently so as not to waste money on unnecessary supplies. It also prevents product shortages, delays in the delivery of orders and the appointment of supply chain costs. With all the data in one place, you get a clear picture of your business operations, and you can easily identify areas where you can reduce costs.
Enhanced Departmental Collaboration
Different people in multiple departments often have to enter data in different business systems, especially large organizations. Sometimes employees use unfavorable formats, upload slightly different information or have no access to other employees’ data. In that case, it could lead to miscommunication and confusion. It ends up with unnecessary expenses, lost income and mistakes.
Integrating your business systems, especially PLM and ERP, keeps everyone on the same page and gives employees the same data access. This is very beneficial for tracking changes. If any minor changes or adjustments need to be made, especially at the last minute, it is important to inform the relevant parties in advance of the changes. With PLM and ERP integration, the affected party automatically receives the updated information. Users can also view the history of changes to get a clear idea of how they happened over time.
Increased Efficiency
Integrating PLM and ERP will increase the efficiency and productivity of the business, which will help increase revenue. Real-time data exchange between systems means that businesses are always informed of what is happening and plan accordingly. When businesses are provided with more information about activities, they can more easily identify potential areas of improvement.
The system eliminates the need to input data multiple times, so employees also have more time. With PLM-ERP integration, automatic data transfer and updating handle all repetitive tasks. Employees can use their skills to improve business productivity.
High Customer Satisfaction
PLM and ERP mostly focus on the internal processes of the business, but using them together can help businesses execute customer orders faster and with greater accuracy. Both of these tools automate many processes within the organization by giving employees more time to fulfil orders, improve products, assist customers, and focus on other important tasks that make customers happy. You can also, in some cases, use these systems to directly manage customers for product testing and improved product preparation. Once PLM and ERP integration takes effect, you can also integrate them with a Customer Relationship Management Solution or CRM. It improves data usage and accuracy in your CRM, helping businesses to improve customer relationships.
Conclusion:
Although PLM and ERP deal with different business needs, the processes that support these two systems are interrelated, and it can be beneficial to integrate your PLM and ERP. These systems that work with each other provide more useful and accurate results.
