Comparing the Differences in PLM and PDM Software

Product data management, or PDM, is a software solution designed to organize, unify and control all data related to product design, engineering and development within a business or department.

With PDM software, a business can track files, blueprints, versions, changes and any other impertinent data related to the design and engineering of their products.

According to a 2003 product data book, PDM can include “structures of the products, including lists of their components and product configurations that identify all artifacts,” as well as development and “product infrastructure” data.

This can include bills of materials (BOMs), CAD files and other industry-specific engineering documents. Put simply, PDM helps design and engineering teams keep product design data in one place for easy, accurate access.

Companies in particularly technical fields—think automotive, aviation, or other complex manufacturing—can use PDM to ensure that designers, engineers, project managers and other stakeholders are all on the same page when it comes to design statuses and updates.

Streamlining the management of technical data and documents in one “single source” platform allows design changes and updates to occur seamlessly—all while minimizing the time it takes for various roles to see design processes from a high level.

PDM can also provide version control and tracking for improved documentation, which may be helpful in industries with strict regulatory or compliance standards. The bottom-line benefit of PDM for businesses is that it can significantly reduce the time design teams spend on non-productive tasks, like repetitive document and data retrieval.

By making it easier to find data in one place, PDM software allows design teams to spend more time on valuable, productive tasks like product design and development.

Key takeaway: PDM helps to centralize data and processes for design and engineering teams.

Product lifecycle management, or PLM, is a solution that manages every stage of a product’s journey, from conception and development to production, sales and disposal. PLM offers end-to-end management of workflows, teams, processes and data to ensure cross-functional collaboration from start to finish.

Put another way: PLM works beyond just the design and engineering teams by ensuring the stages before and after product design are all on the same page.

When used effectively, PLM can be the backbone of a product’s life, allowing any teams or roles involved in the process to know what’s happening at any time. PLM can also be considered a project management system for the complexities of product development.

Like PDM, product lifecycle management focuses on centralizing and unifying data and processes. However, PLM offers a more holistic, comprehensive way to manage product data by focusing on the entire product lifecycle or supply chain.

The core benefits of PLM may appear to be internal to a business—improved efficiency, faster time-to-market, reduced costs and waste—but the public also benefits from companies using PLM.

For starters, brands and retailers that use PLM systems can integrate real-time feedback and changes into their workflows, meaning consumer trends or sentiment changes can be quickly embedded into future products or updates.

PLM can also help companies make their products more sustainable and efficient—something many consumers are willing to pay for.

An April 2024 report showed that 80% of surveyed consumers were concerned about the impact of the goods they purchase and when presented with similar products, 71% of those surveyed would choose the brand that followed more sustainable practices.

Overall, PLM streamlines workflows throughout a product’s lifecycle and helps companies create better products that are in higher demand and can get to market quicker. As an approach to product development, PLM makes brands, retailers and manufacturers more agile, competitive and able to compete in future markets that change rapidly.

Key takeaway: PLM centralizes data, processes and teams across the entire product lifecycle, not just in design and engineering stages.

PDM and PLM systems have a common goal: centralizing and organizing product data while making access and insight as simple as possible.

For technical companies with complex products, either type of software can help streamline product development processes on a “single source of truth.” While their scopes may be different, some of the common features both tools offer include:

• Version control and tracking: PDM and PLM platforms can each track changes, updates, revisions and versions of a product so that teams and roles can see what’s changed—or needs to change—over time.
• Improved collaboration: Both platforms can remove data silos and inefficiencies by keeping data, documents and processes all in one place, which makes it easy for teams and stakeholders to collaborate efficiently. This can lead to quicker and more informed decision-making within a specific team or at a company-wide level.
• Faster time-to-market: Because PDM and PLM both streamline the product development process, either platform can get a product to market faster with efficient tracking of versions and iterations.

Both approaches focus on efficiency, collaboration and centralization to make design more manageable for companies, so deciding which is best for an organization often comes down to the differences between PDM and PLM.

Although they serve similar functions, PDM and PLM serve much different purposes for product-led companies. PDM serves as a limited hub for technical data and files, where PLM becomes an end-to-end strategic approach that extends far beyond design and engineering.

Here’s a look at some of the main differences between PDM and PLM.

• Management scope: PDM focuses on design and engineering teams, whereas PLM’s scope includes the entire product development process, from pre-season planning to end-of-season disposal.
• Data management: PDM manages technical data, documents, files and specs, while PLM manages and organizes technical data and information related to project timelines and product stages like manufacturing, sales and customer support.
• Cross-department collaboration: PDM focuses on collaboration within one or 2 teams, whereas PLM offers cross-functional communication across many teams and departments.
• Compliance and quality control: PLM offers tools that help brands and retailers navigate government and industry compliance’s complex and often murky waters.
• Time-to-market impact: PDM makes data management and handling more straightforward, which can speed up product development in the backend. Conversely, PLM can integrate real-time, front-end feedback from consumers so that products can be iterated quickly.
• Digital transformation: PDM can be a valuable component of a larger digital transformation strategy, but as an end-to-end approach, PLM offers a more robust solution to complex digital transformation efforts.

While both have core strengths and advantages: PDM is ideal for individualized, tech-heavy projects, whereas PLM is better suited to brands that need a fully integrated approach to design, production, sales and support.

Both systems are valuable and provide an excellent ROI when implemented effectively and the choice of which platform to use depends largely on the company, its product offerings, industry and the scope of its broader goals.

PDM may be better suited for companies that focus heavily on engineering concepts. These companies may find the lower initial upfront investment and narrower scope of PDM systems more palatable.

Companies with complex product lifecycles or those that cater to audiences with quickly changing preferences —like fashion and apparel, or food and beverage—can benefit from PLM’s all-encompassing tools that streamline processes beyond product engineering.

Similarly, brands and retailers that rely heavily on fast times to market or frequent product iterations may find PLM software advantageous, as it can easily incorporate consumer feedback into product lifecycle iterations.

Key takeaway: PDM is a helpful solution for the specific organization of technical data, whereas PLM is ideal for cross-departmental visibility, traceability and collaboration across an entire product lifecycle.

PLM is an ideal and agile solution for brands, retailers and manufacturers seeking end-to-end lifecycle management. From conception to post-sales support, PLM software integrates data, teams and processes to reduce efficiency and improve profits.

At Centric Software®, clients that leverage our PLM solutions see increased margins, faster time to market and significant growth in sales. Thousands of brands rely on Centric to power their product lifecycles and streamline product design from the inside out.