PDM vs. PLM vs. ERP: How the Systems Differ
PDM, PLM and ERP systems are important tools for your business processes. Find out here how they differ from each other.
Companies of all types and sizes must constantly and efficiently control their operations and processes - from product development, marketing and shipping to accounting, human resources and IT. Therefore, they rely on PDM, PLM and ERP systems. In this article, you will find out what these tools can do and how they differ from each other.
What is Product Data Management (PDM)?
PDM, or Product Data Management, is the process of managing and controlling product-related data throughout its lifecycle. A PDM system focuses on tracking, organizing and storing product data, including design files and Bills of Materials (BOMs). It helps engineers and designers work more efficiently by providing a central repository for all product data. This enables better collaboration and reduces the risk of data loss and errors.
What is Product Lifecycle Management (PLM)?
Product Lifecycle Management (PLM) refers to the management of a product through its six phases of life cycle: Development, Introduction, Growth, Maturity, Saturation and Degeneration. The process includes not only the manufacture of the product, but also its marketing, sale, and shipment.
A PLM software helps you develop and bring new products to the market more effectively. It integrates, supervises and optimizes the processes of the life cycle. It also supports team collaboration by giving them a single source for product information. With intelligent technologies such as AI, modern PLM systems can also provide real-time insights into market trends and product performance.
What is Enterprise Resource Planning (ERP)?
Enterprise Resource Planning (ERP) describes the process of integrating all the core processes of a company into one system - from HR, marketing and sales to finance, procurement and production. The implementation of an ERP system allows you to streamline business processes, using tools such as artificial intelligence, IoT or BI (Business Intelligence). These help you to automate repetitive business tasks, such as payroll, order processing, invoicing and reporting.
Furthermore, an ERP system ensures data flow between different departments, avoiding redundancies and ensuring data integrity. The best ERP systems are characterized by a flexible, modular structure. So you can focus on the modules that match your business operations (for example, accounting, sales, finance and production).
PDM vs. PLM vs. ERP - what does what mean?
PDM, PLM and ERP systems play a significant role in the business operations of a company. As a subcomponent of the PLM system, PDM software captures and manages all product data throughout its lifecycle. A PLM system, however, goes beyond data management. It manages and tracks the entire product life cycle, including the workflows and systems involved.
In combination, PLM and ERP systems can reach their full potential. While a PLM software tend to deal with product configuration, an ERP solution takes care of material movements, including inventory management, production planning and logistics. It also ensures that quality products are produced in a timely and cost-conscious manner. Therefore, PLM and ERP systems work hand in hand in most leading manufacturing companies. Their functions are so different that you could not simply replace one with the other.
How do PDM, PLM, and ERP differ?
PDM | PLM | ERP | |
Meaning | Product Data Management | Product Lifecycle Management | Enterprise Resource Planning |
Task | A PDM software manages and controls product-related data | A PLM system goes beyond data management. It integrates | An ERP system helps companies manage resources, such as |
Integrations | Developed for integration with CAD tools for managing | It can be integrated into a broader range of enterprise systems | It can be integrated with an eCommerce website, CRM, PLM, EDI (Electronic Data |
Users | Product engineers and designers. | All departments involved in the product life cycle: engineers, | Company-wide: accounting, human resources, purchasing, production, |
Integration of PLM, PDM, and ERP systems
Although PDM, PLM, and ERP systems support different business requirements, they complement each other. Linking these systems offers a range of benefits:
Data accuracy: When you integrate PDM, PLM, and ERP systems, the data updating and transmitting processes are fully automated. This eliminates the potential for human errors and allows your employees to focus on business-critical tasks. Furthermore, data transmission is nearly real-time due to automation. This means that everyone is always up-to-date and has all the necessary information available.
Cost reduction: The increase in efficiency associated with integrating PLM, PDM, and ERP systems leads directly to cost savings. Because the data transmission between the systems is automatic, manual interventions are minimized. This enhances accuracy and ensures consistency between systems. Associated with this are improved forecasts that allow companies to avoid problems like supply bottlenecks, delays in delivery orders or excessive stocks. Through integration you also get a clear picture of your business processes and can recognize improvements and opportunities for cost savings.
Higher customer satisfaction: The increased data accuracy and error reduction leads to more satisfied customers. This is because you can handle their orders faster and more accurately. This also means that your employees can concentrate more on order processing, customer service, and product improvements. After all, more and more processes are automated.
The best PLM systems, ERP tools, and PDM softwares
To help you with the PDM, PLM, and ERP selection here are the best solutions by category:
PDM Software
Upchain
SOLIDWORKS PDM
CIDEONPLM Systems
Oracle Fusion Cloud PLM
DPS
OpenBOM
Dassault Systems
AVEVAERP Systems
microtech büro+
DreamRobot
weclapp
SAP S/4HANA Cloud, public edition
Sage 100
Xentral ERP
ERP vs. PLM vs. PDM - indispensable for companies
PDM, PLM and ERP systems are important tools which support diverse business requirements. A PDM system manages and stores data associated with product development, while a PLM system manages the product through its life cycle. Companies need ERP systems, howerver, to manage all their important business processes (accounting, inventory, production, human resources, customer service etc) at one place. Integration of these three systems provides a variety of benefits - from data accuracy and efficiency increase to cost reductions and higher customer satisfaction.
When integrating the three systems, make sure to choose an ERP system that is compatible with third-party applications. Older systems often do not work with external applications, while many newer offerings tend to limit integration with manufacturer-specific products. If you want to learn more about ERP systems or discover ERP solutions for small businesses you should visit OMR Reviews.
Tim ist ein freiberuflicher Journalist / Content Writer, der OMR Reviews in den Bereichen Marketing und Softwares unterstützt. Seit seinem Onlinejournalismus-Studium schreibt er unter anderem für Computer Bild, XING und Finanzcheck.de. Wenn er nicht gerade am Texten ist, spielt er auf seiner Stratocaster die Klänge von Hendrix, Frusciante und Gilmour nach.
