What is Product Data Management (PDM)?

Product Data Management is the process of organizing, managing, sharing and distributing product-related information across teams, departments and workflows in an organization.

Also known as PDM, product data management allows for the efficient storing and distribution of data like CAD models, drawings, technical specification sheets, bills of materials and other details or files necessary to identify, design, manufacture or distribute a product.

PDM typically happens with a software or platform that acts as a “single source of truth” from which teams and stakeholders can work seamlessly. With PDM software, product designers, engineers, suppliers and other partners, for example, all have access to the same, consistent product data.

When teams across the product lifecycle process work with reliable, updated and consistent data, costly errors, delays and supply chain disruptions are far less likely.

Without an effective PDM strategy, on the other hand, brands risk delays and data inconsistencies that come from working with siloed or manual data platforms, like spreadsheets and email.

Wasting time constantly retrieving and updating information in different platforms or systems can quickly lead to countless hours that could be better spent on products themselves. A 2021 report conducted by Wakefield Research found that 54% of surveyed professionals “spend more time searching for documents and files they need than responding to emails and messages.”

This problem is most damaging for engineering and development teams, which are at risk of constantly focusing on non-value-added tasks instead of high-level work that could lead to more profitable products.

Lacking an effective PDM strategy can also result in:

• increased product costs
• higher compliance and security risks
• longer time-to-market metrics

What does this loss of time and resources look like in the real world?

For years, manually preparing and updating separate product files kept Ravensburger, the classic puzzle and toys company, from executing an efficient product data management strategy.

“We had to create Excel files for different retailers,” said Patrick Bartl, Ravensburger’s Head of Data & Platform Management. “For example, when we want to list our products at Auto [a German retailer] or on Amazon, we need to provide comprehensive data files.”

This process, which took hours to complete with every update, plagues product-led companies in every industry. Brands that understand the value of data unification, however, can avoid these common pitfalls.

When product data is managed efficiently, particularly in industries with complex product lines, like fashion, retail and cosmetics and personal care—it can quickly lead to positive changes in product direction and quality.

Improved Efficiency

A centralized PDM platform avoids data silos, where product data lives on different systems that may not always be accurate or up-to-date. In the case of spreadsheets, for example, multiple versions of a file may not always reflect consistent updates across an organization.

Organizing product data in one place makes collaboration easier and from there, operational efficiency can spread to nearly every team and stage of product development.

Streamlined Products

By working on the same reliable and consistent product data, teams can design, manufacture and distribute products far more efficiently. Where other businesses may waste time with manual data retrieval, modern brands with efficient PDM strategies can streamline their entire product lifecycle process.

Faster Time-to-market

Better data means better workflows that are less likely to be delayed by disruptions, errors and other supply chain obstacles. All that adds up to products that ship to market faster, which means efficient product data translates directly into a tangible competitive advantage.

Once products are on the market, it’s also easier to update and iterate as you receive feedback from your customers and partners.

Stronger Compliance and Risk Management

For some industries, having reliable data in one place makes it easier to manage complex compliance and risk management standards that some organizations must abide by. When failure to comply with regulations or laws can mean disastrous delays and errors, having the right product data strategy in place is key to compliance success.

PDM works by centralizing product data into one easy-to-use storehouse. Typically, this is a software platform that allows teams, stakeholders and partners to enter and update product data as needed.

PDM software works by managing, organizing and securing product data from start to finish, from ideation and conception to product distribution and support. This means that at any point in the product development lifecycle, a PDM platform has the most up-to-date and accurate product data available to everyone who needs access.

Product data management also includes:

• Integration with other systems: PDM software can work with CAD, ERP, PLM and other platforms to ensure product data is shared wherever your organization needs it.
• Data standardization: product data that might be inconsistent in different files is filtered and made accurate with PDM, so attributes, files and naming conventions are easy to manage.
• Secure, centralized access: unlike manual processes, PDM ensures product data is stored securely, often offering cloud-based encrypted storage of product files and information.
• Workflow management: with PDM, product data can be organized and managed to reflect your product’s actual product lifecycle, so it’s easy to see where iterations and updates need to occur.
• Data reporting and analytics: improved data visibility allows PDM to offer unparalleled reporting and tracking that organizations don’t get with manual or siloed data systems.

Put simply, product data management works by turning disjointed data systems from a costly, time-consuming liability into a resilient competitive advantage that positively affects every stage of product collaboration.

The benefits of PDM software are clear, but not all platforms are equal. When choosing which PDM system to implement in your business, it’s essential to consider your key objectives, data needs and collaboration capabilities. Here’s where to start.

Compatibility

PDM systems should integrate with standard product systems like CAD and PLM. If your industry requires specialized software or tools for product development, focus on integration capabilities first and foremost.

Scalability

The difference between where your organization is today and where it will be five years from now may be significant. Finding a PDM solution that allows your brand to grow into new opportunities and technologies can prevent having to make costly transitions down the road.

Security and Access

As security becomes more of a concern for today’s tech-based organizations, PDM software should offer secure but flexible access to critical product data and files.

Businesses in complex or highly regulated industries, in particular, should consider the kind of access control, collaboration and security measures that PDM offers its teams and external partners.

Organizational Fit and Ongoing Support

Not all product data, files and needs are the same, which means finding the right PDM software requires considering industry and organizational fit. Some PDM solutions may be more customized to retail companies, while others are more appropriate for manufacturing organizations.

Beyond just technical specs, you’ll want to find a PDM partner who understands the needs of your organization, your industry and your customers, so that your data systems reflect the pain points of each.

Finding the best PDM solution may be based on the size of your company, the complexity of your product lines, their reputation in an industry, or even firsthand testimonials and case studies.

Why is fit so important? When a PDM provider knows your industry and business inside and out, it’s easier to anticipate challenges and opportunities that may come up as you streamline your product data strategy. Working with a solution that’s been there before can make all the difference.

For brands that understand the growth potential of effective PDM, finding the right provider is about creating a long-term partner—not just a software subscription.

Though they’re often mistaken for one another, PDM and PLM systems serve different and distinct purposes.

Where product data management (PDM) centralizes product data and files, PLM—or product lifecycle management—is a broader system that manages the product lifecycle from start to finish.

A PDM system may include assets like CAD drawings, bills of material and technical product specifications, but a PLM system incorporates entire workflows, like:

• product ideation and strategy
• regulatory and compliance frameworks
• supplier and partner communication
• product service, support and sustainability initiatives

Engineering teams and product designers typically use PDM software focused on technical product details. In contrast, PLM is used by just about everyone in a product’s lifecycle—think product managers, supply chain teams and C-level leadership.

For some organizations, PDM is the first step toward better data unification. As their needs grow, they may scale into a PLM system that incorporates that data strategy into a larger product development perspective.

When implemented effectively, product data management can be a transformative edge for your entire organization, from product design to delivery. Brands that make their data processes more efficient not only save time and resources but also get to market quicker and deliver what customers want.

With Centric PXM, your brand can leverage the power of data efficiency, collaboration and iteration in a way that’s impossible with manual or separate systems. Our agile, cloud-based platform turns accurate, consistent and reliable product data into a powerful lever for scalable growth.