Product lifecycle is one of the most important elements in any organization’s manufacturing of products from handling to marketing and so on. It is a process that defines how long a product must be used before it can be disposed. In short, this concept is all about keeping products in great quality and working order so they can be used and passed on.
To know more about this process, we recommend you continue reading as we’ll discuss what is product lifecyle management (PLM) and how it can benefit your business in today’s article.
Definition Of Product Lifecycle Management (PLM)
In essence, lifecycle management refers to the proper handling of goods as they move to particular stages of their product lifespan. To be specific, these stages include the development and introduction phase, growth, maturity, stability, and product decline. And this concept of handling goods applies to both the manufacturing and marketing aspects of a product.
The PLM concept guides businesses to make informed decisions on how a product should be priced, promoted, expanded, and cost-cutting as well.
Why PLM Software Is Essential
Today, product lifecycle management is implemented by businesses through IT product lifecycle management software. And this is effective since it brings together different departments and employees within an organization that are involved with product manufacturing to streamline their tasks. And through this software, it also helps the company realize their goal of manufacturing a good that is far superior to its competitors which then translates to more profit.
Also, PLM systems help companies cope with the engineering challenges and increasing complexity of generating new products. In fact, PLM is already considered as a cornerstone of a manufacturing company’s IT structure along with Customer Relationship Management (CRM), Supply Chain Management (SCM), and Enterprise Resource Planning (ERP).
The Benefits Of PLM
A sound PLM structure can benefit a company in terms of marketing the product faster, placing better quality products on the market, improved product safety, reducing waste and errors, and increasing sales opportunities.
Other benefits include:
- Reduced prototyping cost
- Better product quality and improved product reliability
- Timely and accurate solicitations from suppliers (Request For Quote)
- Savings through the re-use of original data
- Develop a product optimization framework
- Manage seasonal fluctuation better
- Reduce material cost and better forecasting
- Optimize supply chain collaboration
Brief History
A crude concept of PLM was already recognized as early as 1931. But it was further refined 26 years later by Booz Allen Hamilton when he introduced the 5 stages of product lifecycle. And product lifecycle management was further developed years later to make the most of the advantage of introducing new goods to the market.
The first recorded use of modern product lifecycle management was in 1985 when the American Motors Corporation implemented this concept to accelerate product development so they can compete against larger competitors.
Key Takeaways
All in all, product lifecycle management (PLM) is the process of handling goods properly from development to its decline. It involves both the manufacturing and marketing aspects of the product. And its main benefits include reducing product development times, gaining knowledge as to when to expand or lessen marketing efforts. If you need help, Looking Point in Pleasant Hill, CA can help you with their lifecycle management solutions.
