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PLM Benefits for Management: 5 reasons to implement a PLM solution

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Vilmer Ståhle
· 3 minute read

Managing resources, ensuring daily operation and making strategic decisions to fulfil business objectives require great overviews, insights and efficient processes.

In this article, we will have a look at how PLM systems can assist managers in their aim to build better organizational practices and execute successful strategies to improve:

  1. Profit margins
  2. Productivity
  3. Resource management
  4. Knowledge retention
  5. Transparency and traceability

1. Greater profit margins

PLM solutions optimize product development and sourcing to help brands increase productivity, save costs and improve profit margins through better collaboration processes. 

When collaborating across internal teams and multiple external suppliers in a PLM system, brands can reduce misunderstandings, reduce time to market, and minimize costly samples and product mistakes to generate extensive cost savings. 

PLM improves tech pack accuracy, enabling stronger sourcing and buying processes where brands can negotiate better prices with suppliers and reduce risks of claims. This makes it easier for brands to meet MOQ and improve the profit margin.

2. Improved productivity

Without a centralized system to handle product data, employees spend valuable time maintaining and searching for data in multiple systems, local drives and email inboxes. Ensuring real-time data processing can be difficult when teams simultaneously work with the same product data across multiple systems, meaning that employees and suppliers risk working with outdated tech packs resulting in redundant work and decreased productivity.

By working in a PLM system, all product data is centralized, enabling the teams to always work with accurate information. 

In other words, PLM systems align departments, create better internal collaboration processes and erase misunderstandings by enabling brands to solely work with real-time information, which can increase productivity by up to 30% and rapidly reduce time-to-market.

3. Resource management

In the development phase, where employees collaborate across departments, it can be challenging to keep an overview of resources and where to allocate them in order to achieve the best possible output. 

PLM provides a clear overview of tasks that need to be handled making it easy to allocate resources and employees. With PLM, managers can see where they need to pay attention and where employees need to take action.

This way, PLM helps managers to plan, schedule and allocate resources the best possible way in order to maximize efficiency.

4. Knowledge retention

When employees are unreachable or have left the company, a common challenge is that brands lose important product knowledge that is critical to ensuring business continuity. 

With PLM, knowledge is gathered in one system accessible for all employees, which eases employee onboarding and minimizes interdependency across teams, since all knowledge is shared through the PLM system. This alleviates the process of onboarding new team members and enables knowledge retention where all employees can access the same information at all times, making it a feasible tool for brands with employees that have interdependent and collaborative tasks. 

This way, gathering information in PLM helps to ensure business continuity when key employees are not available.

5. Traceability and Transparency

When working in multiple systems such as Excel, Dropbox, Wetransfer and email, it can be hard to keep track of item lists, comments, changes, sample statuses, price calculations, MOQ, etc. Ensuring transparency in the product journey is difficult when data accumulates across many systems.

A PLM system centralizes product data, maintains the overview and provides traceability through removing the complexity of managing data in numerous systems. In that way, PLM supports sustainability compliance through full transparency of updated product data accessible for all stakeholders making it easy to trace the entire product journey from the very beginning of the development phase.

To that end, PLM is a suitable tool to help brands achieve a transparent supply chain and enable a fully traceable development process, where the source of all materials can be precisely documented.


In conclusion, implementing a PLM solution can help managers to execute strategic objectives and create better organizational processes. PLM can help brands to increase profit margins by providing a solution to improve productivity, resource management, knowledge retention, traceability, and transparency.

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