Key takeaways
- Detailed PLM for retail can be transformative in a changing landscape
- Eight product lifecycle stages, from concept to disposal
- PLM can underpin growth if pressing challenges are resolved
- A good deployment should address people as well as technology
Product Lifecycle Management for Consumer & Retail
The increasingly digitized and globalized nature of retail means that it’s tougher than ever to drive and maintain competitive advantage. Consumers have never had more choice around how, when and where to shop - especially online - so connecting with them through appealing and innovative product ranges is key.Of course, customer trends and new innovations come on stream all the time, so being able to constantly adapt offerings is a vital part of maximizing market share and profitability. Product Lifecycle Management is the solution that makes this possible, and in this blog, we’ll explore how PLM in retail works, why it’s so beneficial, and the challenges to navigate along the way.
Introduction to Product Lifecycle Management
Product lifecycle management covers the journey of goods throughout its lifespan, from its initial concept and development, all the way through to its retirement and disposal.PLM in retail is especially important, because it allows retail businesses to plan ahead with their offerings and product ranges. Different items can be planned for development, release and retirement at different times, so that retailers can best optimize their ranges. Retail PLM software is a key tool in making this management as easy and user-friendly as possible.
In recent years, there has been a growing trend of prioritizing employee experience in internal tools, recognizing that it leads to increased productivity, loyalty, and job satisfaction. Aligning with this, a well-designed retail PLM system, shaped by experience design principles, can significantly boost employee satisfaction by streamlining workflows and taking the stress and inefficiency out of lifecycle management.
Eight Stages of Product Lifecycle Management
PLM in retail can vary slightly, depending on the nature of the product involved. But generally speaking, there are eight main stages of the lifecycle:
Concept: brainstorming and gathering ideas for new products (or improving existing products), based on market potential, feasibility, and wider company objectives.
Research: competitor analysis, market research and consumer sentiment analysis can help refine the concept to maximize its chances of success.
Planning: developing the product strategy, including project timelines, relevant KPIs, target market identification, resource allocation and pricing decisions.
Prototyping: creating initial models and simulations for testing and refinement, which may necessitate several iterations through feedback and results.
Production: at this stage, the goods can move into production, albeit with a constant focus on optimizing manufacturing processes and ensuring rigorous quality control throughout the supply chain.
Sales: the product is launched into its target marketplace, with the support of marketing campaigns and distribution channels that seamlessly connect customers to purchases.
Support: providing customer service to address any issues that arise, and gathering feedback to inform future improvements, fixes and iterations.
Retirement: phasing a product out of sale, which should include sustainable disposal and recycling of unsold goods to limit any impact on the environment, as well as transitioning customers to newer product versions if required.
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Benefits of Implementing PLM in Retail
A good PLM deployment can make a real difference to a modern retail operation in several different ways:Increased productivity
Everyone involved in product development can use a PLM system to make real-time changes, and engage with a single consistent data set that supports better sales, product success and productivity.Enhanced Collaboration Across Teams
An integrated PLM solution, combined with consistent data, makes it easier for internal teams to come together and contribute to the development cycle. According to Gitnux, 75% of PLM users report improved collaboration across departments.Reduced Time-to-Market
PLM allows design and development processes to be streamlined, which enables products to be launched into markets faster, in turn generating competitive advantage.Efficiency and Waste Reduction
Being able to store design elements and learnings from past projects in a PLM system means that information can be called upon in the future, helping avoid costly errors and reducing wasted time, money and materials.Improved Product Quality and Compliance
Centralizing data within a PLM system can help support stronger and clearer compliance with standards and regulations, which also safeguards product quality.Sales Growth
All of the above benefits come together to make a real difference to the bottom line, supporting better products that reach the marketplace faster, and that generate more sales from customers.
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Unique Challenges in PLM for Consumer & Retail
Taking advantage of all the possibilities of PLM in retail means dealing with several practical and operational requirements along the way, including:.png?width=25&height=25&name=icon1_Rapidly-Changing-Consumer-Preferences%20(1).png)
Rapidly Changing Consumer Preferences
Consumer trends and demands are changing all the time, and that has a major impact on retailers who need to keep their offering relevant. A PLM system therefore has to be agile, so that it can support fast and flexible product development..png?width=25&height=25&name=icon2_Managing-Complex-Supply-Chains%20(1).png)
Managing Complex Supply Chains
A good PLM system is vital to preventing the problems and disruptions that can easily emerge in complex retail supply chains, aiding supplier selection, coordination and performance monitoring..png?width=25&height=25&name=icon1_Ensuring-Sustainability-and-Ethical-Sourcing%20(1).png)
Ensuring Sustainability and Ethical Sourcing
Rising expectations for ethical and sustainable products means that PLM systems need to encompass robust tracking and verification functions. These can demonstrate that products meet required standards across sourcing, design and disposal.Leveraging Technology in PLM
Good platforms for PLM in retail will also work with a number of different systems and technological innovations, including:Integration with ERP and CRM Systems
When PLM systems are integrated with ERP and CRM platforms, workflows and data can be synchronized and streamlined, supporting better decision-making and more integrated operations.Use of AI and Big Data Analytics
According to Gartner, 79% of corporate strategists say AI and analytics are critical to business success. Integrating AI and analytics into PLM can automate tasks, optimize decision-making, and provide contextual support that helps the workforce.Real-World Applications of PLM in Retail
At Ciklum, we’ve been able to help a range of different retailers refine their approaches to PLM, and driven real growth through a coordinated approach to product lifecycle management.
This includes delivering €1.7 million in incremental value to a global sportswear brand by reshaping their PLM system, simplifying complex integrations, facilitating smooth change management, and providing targeted training to minimize disruption. More than 200 staff are trained on the PLM platform, and 38 external systems are integrated within it, facilitating smooth operations even for the most complex of supply chains.
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In Summary: The Future of Product Lifecycle Management in Retail
In the months and years ahead, PLM in retail will be shaped by many of the major trends that are changing the world of technology as a whole. AI-driven decision-making, advanced risk management and transparent sustainability will all play leading roles as retailers strive to balance profitability, compliance and ethical operations.
But in our experience, PLM is about more than just technology, and the way a business approaches it is just as important for success. Building cross-functional teams, enabling continuous improvement and feedback loops, and providing training and development programs are all essential parts of unlocking all the capabilities PLM can deliver.
Need help maximizing the potential of your PLM platform? Find out more about the Ciklum approach to PLM in retail, and our associated consultancy services, here.
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