PLM and ERP systems are tools which complement and communicate with each other and are the fulcrum based on which various yet distinct business needs are supported. While on one hand, PLM manages a product right from the inception phase in all its iteration prior to its release for production, ERP utilizes the very product data determined within a PLM system to assist organizations in managing production of resources and financials with other business activities included.
Here are some of the challenges pertaining to the evolution of the PLM—ERP integration technology. From the business and organizational perspective, the following factors impact the strategy that is applied to systems integration.
- Mergers and Acquisitions
- Geographical Distribution
- Distributed vs. Centralized
- Identifying master system of records and governance
- Information redundancy
Need for PLM—ERP Integration:
Integrating the PLM and ERP systems across the enterprise can help realize several advantages. Listed below are some of the key benefits of an PLM—ERP integration as mentioned in a CIM Data report1.
- 75% reduction in terms of time, cost, and efforts associated with re-keys data entry from one system to the other.
- 75% reduction in the BOM-error cost, since BOMs are created only once and then managed consistently across both the PLM and ERP systems.
- 15% reduction in inventory cost, since designers and engineers are aware of which components are already on hand.
- An 8% reduction in scrap generated.
Within the automotive industry, once the product design has been developed and resources are needed for managing to produce the design, it is the ERP system that steps in to integrate those resources within the framework of the existing PLM system.
PROLIM being at the vanguard of innovation in the PLM space has successfully interwoven PLM and ERP systems to offer its customers from the automotive industry again an ingenious solution to:
- Successfully win new and profitable business.
- Launch new products with minimal recalls and lower warranty expense.
- Better collaborate with customers as well as suppliers to continuously drive innovation.
- Enhance customer satisfaction and increase retention.
- Manage customer requirements without additional headcount.
- Add flexibility to change schedules quickly.
- Build and assemble custom vehicles in sequence with lower costs.
PROLIM’s distinct and innovative ways have always paved the road for greater newness within the PLM space. It is true that both ERP and systems have their distinct and individualistic functionalities which, if combines together can be a potent force overall and thereby give an organization the complete control over its manufacturing processes. Be sure to establish the manufacturing process with an active PLM system before you actually look to integrate it with a compatible ERP system.