A CoreSolutionS White PaperJuly, 2012

Three Steps to Selecting a PLM System

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Introduction

Product Lifecycle Management (PLM), a system used to manage products through

their lifecycle from concept to retail shelf is now an essential tool for retailers

with large scale global sourcing programs to maintain profitability in a highly

competitive climate. PLM can deliver dramatic efficiency improvements for

retailers, brand owners, manufacturers and other suppliers, with some retailers

cutting their time-to-market by 50 percent.

While there are a number of companies offering PLM services today, there are

currently no more than a handful that can successfully implement a full PLM

system. Making the wrong selection decision can be costly, wasting time and

resources and creating confusion in an organization. This paper is a guide for

issues to consider and criteria to use in selecting the right PLM software package

for your company.

Consider organizational needsDefine System requirementsPrepare for Change

SteP 1SteP 2SteP 3

Contents

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STEP 1: CONSIDER ORGANIZATIONAL NEEDS

Growth and Scalability

If you are implementing a Product Lifecycle Management system you are probably doing so because you want to support both top line growth in your organization and also profitability and bottom line contribution. With growth and increasing revenue, it’s inevitable that there will be a ripple effect of an increase in activities and transactions that need to be performed. Profitability hinges on these activities being executed on-time, with precision and at a lower cost.

When planning for growth, the following points should be kept in mind:

• Will the solution you are considering produce measurable return on investment?

• Can the solution scale to support an increase in the number of transactions and activities?

• Will you have full visibility of all key performance indicators, including proactive measurement of critical milestones in your processes, enabling you to manage by exception, reducing the manual interventions to manage your business processes?

Extensibility

In most cases a PLM implementation is part of a wider organizational improvement strategy. Companies will generally experiment with the new solution in one area of their business, but it is critical that down the road, the solution can be extended into other departments, business divisions and product lines as the market and business needs change.

The PLM system should be adaptable to:

• Your organizational wide process evolution.• Subsequent systems or changes and upgrades to existing systems.• Extending the footprint of the solution to existing and new areas of your

business.• Further optimization in your supply chain down the road.

Ease of use

According to one study, the biggest reason for failure of ERP systems is that they are difficult to adopt and use. In more than 50% of cases, if users find software difficult to adopt, they will switch back to using Excel or other manual tools.

A Product Lifecycle Management solution that will be rapidly adopted needs to be:

• Intuitive to use, with a familiar and consistent user interface.• Easy to train multiple users across departments, with minimal learning

curve• Responsive, reliable and flexible to user requirements• Quick to produce and track measurable results• Able to use remotely but with fast data transfer speeds.

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STEP 2: DEFINE SYSTEM REQUIREMENTS

The PLM market is currently in a state of transition, where some providers are focused solely on specific niches such as apparel and other providers with roots in verticals such as aerospace are adapting their software for the retail, food and other sectors.

PLM offerings are also very different in their scope, while some cover just the concept development to order phase, what industry insiders call “left of the purchase order,” others extend to the “right of the purchase order” and include production, quality, logistics and finance, delivery and payment.

To seriously consider a PLM system, it should have the following minimum requirements:

• Be accessible through a modern web based user interface, with a robust offline mode to cover certain requirements (e.g. import/export spread sheets for low-tech vendors).

• Provide visibility and control across the entire end to end product lifecycle, from planning to product design, sourcing, order management, logistics and finance.

• Feature a configurable workflow, allowing you to tailor the solution to your business environment and unify business process across both internal and external functions.

• Provide seamless access to information, offering a single version of the truth, through a single database and one master data model.

• Offer integrated Critical Path Management functionality, including rollup functions providing live business intelligence and the ability to manage critical milestones by exception.

• Leverage best practices relevant to your business model and product type, with proven success in implementing these in the past.

• Support standards based systems integration, with proven experience in integrating with existing systems in the organization.

TOP 5 SELECTION TIPS

While this paper covers a range of issues that should be considered, we have narrowed down a list of five tips to keep in mind when selecting a PLM provider.

1 Carry out a business process and technology rationalization exercise as part of the implementation; it is the best time to do this exercise.

2 Carry out a requirements gathering exercise to establish the scope and develop a long term plan for Product Lifecycle Management.

3 Do not underestimate the impact to your organization; consider introducing a change management plan and seek partnership with the vendor to work with this plan.

4 Aim to implement in short and measured steps; a phased implementation approach can significantly reduce risk and aid with change management.

5 Avoid a “one size fits all” or “big bang” approach”; while an off the shelf solution may satisfy certain requirements your organization inevitably has unique needs.

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STEP 3: PREPARE FOR CHANGE

Implementing a PLM system is more than installing software, it is actually a

complete rethinking of a company’s production workflow. Multiple departments

and teams will be impacted and for success to happen, certain ingredients are

necessary. While the right vendor is critical, it is important that the client is fully

committed to making the implementation a success. The following are suggestions

for laying a strong foundation for a successful implementation.

Take a phased implementation approach

Working in phases provides room to maneuver. Be reasonable in your

implementation approach and seek partnership from your implementation partner,

who should have the benefit of experience.

• Think stepping stones; don’t be a bull in a china shop.

• Learn from your mistakes, tweak, optimize and improve in every phase.

• Create ambassadors, not enemies through thoughtful planning and well

executed training.

• Remember that 80% of the benefit is in 20% of the effort.

Transform Existing Practices and Processes

Evaluating and implementing a PLM system without simultaneously optimizing

related practices and processes is like buying an Italian sports car to drive on

gravel roads. To perform to their potential, both the car and the technology need

the right conditions. One of the most beneficial aspects of PLM is its ability to

integrate existing data and processes to make the optimal conditions for success.

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IMPLEMENTATION GUIDELINES

A successful PLM implantation is more likely to happen with the support of an

experienced and capable vendor. However just as important is the role of the

client. For a successful implementation, a company should have the following in

place:

• Executive support: Top management within the organization should

understand and support the PLM implementation.

• Empowered steering group: Companies should set up a steering

committee made up of managers from various departments impacted by

the installation.

• Strong project team: The vendor and the client need to work closely

together over many months and should have fully committed resources.

• Vocal ambassadors: Success is often determined by how well the

software is received more than how many features it has, which requires

ambassadors to push its merits.

• Frequent communication: The PLM implementation often raises new

issues within an organization and it is important to have a system of

direct and open communication.

• Training / rollout plans: A clear strategy should be in place to manage

the training and rollout within the organization to ensure buy-in across

departments and with external vendors.

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About Core Solutions

Core Solutions (CORE) helps retailers, brands and suppliers streamline their supply chains from Concept to Delivery. CORE’s extended product lifecycle management (EPLM) technologies enable organizations to drive greater speed, agility, efficiency and profit in bringing private label and branded merchandise to market.

CORE’s CBX software includes modules for Planning, Product Development, Buying, Sourcing, Order Management, Logistics and Finance. Advanced workflow, costing and critical path management capabilities enable CBX to automate processes and synchronize activities, between internal teams and with trading partners. To learn more, visit www.coresolutions.com.

Extended PLM

Core Solutions CBX Enterprise is an Extended PLM system, which means it covers

more than product development and extends to the entire concept to delivery

lifecycle of a product. Clients can start their implementation with several modules

and expand the system based on their requirements. CBX integrates seamlessly

with existing systems.

www.coresolutions.com info@coresolutions.com

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