PLM and SCM Integration is the Key to Competitive AdvantageJune 4, 2013
The concept-to-delivery process in today's fashion business is extraordinarily complex and fast paced. In order to respond to rapidly changing trends and meet customer expectations, fashion companies must constantly strive to reduce product development time and increase speed to market. That's a key reason why faster time to market continues to be the #1 benefit that companies hope for from their PLM investments.
But PLM alone will not deliver the results that companies expect. As Apparel Magazine noted in a report on PLM and Sourcing integration, "lead time, cost management, product quality, and access to raw materials force sourcing organizations into tough decisions sometimes at odds with the goals of customer-centricity. In this environment, sourcing maturity and alignment with product lifecycle management activities play an increasingly important role in balancing the tradeoffs that must be made." There's plenty of room for improvement, too: the same report notes that less than 10% of companies have optimally integrated PLM and Sourcing technologies and processes. [[more]]
We see it every day at NGC. The companies that implement a fully integrated PLM and SCM system are the ones that realize the full benefits of both solutions: unified business processes that drive productivity improvements throughout the product lifecycle, simplified training, and faster adoption by their users. These are also the companies that see the greatest gains in improving speed to market, increasing both top-line revenue and profit margins, and delivering higher quality products.
You'll be hearing a lot more from NGC in the coming weeks and months about integrating PLM with SCM and Global Sourcing. As the Apparel Magazine report summed up: "In an environment of constant change, resilient sourcing capabilities are essential to smooth operations and success in achieving fresh and relevance in shoppers' eyes. When paired with product design and development capabilities and aligned to support fast-moving decision decisions to maximize the benefits to the company, the sourcing/PLM combination becomes an engine to drive corporate success." Apparel Magazine, Dec. 2011