Collaboration is key to innovation. ERP systems extend collaboration to external contractors and suppliers via extranets. But, to protect valuable intellectual property and enforce need-to-know rules, PLM systems have unlimited ability to control access on an employee by employee and contractor by contractor basis. You should be able to manage access levels throughout the corporation and out to external design teams without stifling creativity. Each department or project team can set its own access rules, and change them as the project progresses from one phase to the next. Everybody can see everything they need to see and nothing more.

ERP Software

How PLM spurs innovation, performanceand quality for product-driven companies. (Part 2)

External design and manufacturing partners can collaborate on engineering changes, from initiating the engineering change request to processing the engineering change order.  With controlled access, they can be safely brought into the process to request, approve, test or implement changes. Rather than the arm’s length and often contentious relationships with suppliers of old, in the new collaborative model suppliers are treated as trusted partners and part of the process and are likely to rise to the challenge.

An ERP system with PLM enables customers to collaborate in the design and engineering phase as well when their input is needed. Different order process functionality supports engineer to order (ETO) situations where customers specify aspects of design engineering; made to order (MTO) situations where mass customization is customer specified; and made to stock (MTS) processing for standard products. When the manufacturing process includes MTO modules that can be assembled into larger ETO projects, both modes must be supported. In ETO and MTO situations, customers want to be drawn into the process, be able to check order status, participate in review meetings and comment on all aspects of the project as it evolves. The PLM system provides a framework for that interaction.

Collaboration with suppliers is essential to keeping costs low, quality high and deliveries arriving on schedule. In the pre-manufacturing stage, engineering and purchasing teams need to stay in constant contact with suppliers to resolve both technical and bidding issues. With PLM, all relevant technical data is available for review at all stages of the bid process; suppliers with full visibility into project details always have the sharpest pencils.

PLM enables enterprises to tap procurement expertise early in the R&D cycle to determine if obvious suppliers already exist, based on prior experience, or whether the project will need to go out to bid to several suppliers. In the bid process, the system should streamline interaction between bidders and engineering for the purpose of negotiating specification details. Once a bid is approved and a purchase order issued, suppliers have access to order status, can download specifications and project details, provide confirmation of date and quantity requirements, automatically updating all pertinent ERP applications in the process. Manufacturers can use the PLM system as the vehicle for all communication with suppliers, creating an electronic paper trail in the process and eliminating the vagaries of faxes or possible misunderstandings of telephone conversations.

An ERP system with a PLM application adds so many opportunities for added innovation and streamlined decision-making that it transforms the entire strategic sourcing process.