Understanding ROI: The Business Case for PLM

ROI Matters More Than Ever

In previous posts, we explored why legacy systems hold teams back and how to identify the right PLM solution to drive change. The final step is understanding why ROI is the measure that matters most.

Leaders today expect proof from measurable results in speed, efficiency and margin protection. Outdated systems drain resources and limit visibility, while modern PLM platforms delivers a measurable business impact.

Centric PLM™ drives ROI at every level of the company. It explores cost savings, revenue growth, productivity gains and strategic advantages, to make better decisions faster backed by real-time data.

How PLM Drives Measurable Efficiency ROI

How much time do teams really get back when PLM steps in for manual, disconnected work?

Efficiencies based on real-world customer data models in a 100-user organization:

$2.75M+ in labor time annually tied up in tasks that Centric PLM dramatically reduces or eliminates.

What PLM Means for Teams

The most immediate way PLM demonstrates ROI is the cost reductions that come when companies eliminate outdated workflows.

1. Cut reliance on spreadsheets

Scattered spreadsheets are a hidden cost. They require manual entry, increase errors and complicate version control. Centric PLM customers report a 93% reduction in spreadsheet use, translating into fewer mistakes, less duplicated effort and reduced administrative workload.

2. Lower sample and material costs

Sample management is one of the most resource-heavy elements of product development. Centric PLM centralizes sample tracking with integrated material libraries and visual collaboration tools and replaces redundant manual workflows with digital approvals and visual review.

3. Connect 3D design to PLM for virtual approvals

Centric PLM’s 3D Connect plugins integrate design tools with PLM to remove rework and close the loop between design, costing and production.

4. Streamline compliance and audits

Compliance requirements increase complexity every year. Companies without centralized systems scramble to collect certifications and testing records. By managing compliance data within PLM, teams spend less time chasing documents for audits and reduce the risk of costly fines or recalls.

ROI is not limited to cost savings. The right PLM platform drives measurable revenue growth.

1. Launch more products with the same resources

With Centric PLM, teams manage higher SKU volumes without the need for increased headcount. Customers have reported a 200% increase in styles launched with the same number of employees.

2. Accelerate time-to-market

Speed is a revenue driver. Being first to market captures market share where competitors often fall short. Centric PLM reduces time-to-market by up to 60% and empowers brands to respond in-season to demand signals.

3. Scale across channels and markets

Disconnected systems create barriers to expansion. PLM drives multi-channel growth without multiplying overhead. With Centric PLM’s modular architecture, companies add capabilities as needed instead of overhauling systems.

Global trade conditions shift quickly. Without the right tools, sourcing teams face higher landed costs, supply chain disruption and margin erosion. Centric PLM includes Tariff Management and Scenario Simulation capabilities that enable real-time impact analysis.

• Impact simulations run instant tariff scenarios to understand cost implications in seconds, enabling rapid risk mitigation and sourcing adjustments
• AI cost analysis predicts fluctuations and models trade changes faster
• Rebalance sourcing through rapid supplier or material adjustments that maintain compliance
• Instant BOM and updates to costing sheets reflect tariff impacts immediately
• Automated quote requests streamline vendor communication and update landed costs instantly
• Live margin visibility tracks tariff exposure across categories and SKUs, empowering fast responses and strategic decision-making

Sustainability has become a company requirement. Regulators and consumers demand transparency in sourcing, materials and production.

Centric PLM embeds sustainability into the product lifecycle:

• Track certified fabrics and approved suppliers
• Flag compliance risks before production
• Drive sustainability KPIs across teams

Time wasted on information searches, duplicate work or waiting on approvals undermines ROI. PLM avoids these inefficiencies by creating visibility and structure.

1. A single actionable source of truth

By centralizing product data, Centric PLM ensures teams work from the same set of accurate, updated information to reduce miscommunication, shorten feedback loops and increase accountability.

2. Faster onboarding for new employees

When product history and documentation are stored within PLM, new employees access past styes, BOMs and supplier data immediately, which translates directly into productivity gains.

3. Vendor collaboration without friction

In global supply chains, vendor collaboration often creates bottlenecks. Centric PLM’s vendor portal provides suppliers with real-time updates to reduce delays and miscommunication. Built-in messaging eliminates email chains, saving up to 30 minutes per user daily.

Beyond tactical savings, PLM drives strategic value to boost long-term competitiveness.

1. Agility in uncertain markets

Recent years have demonstrated how quickly global conditions shift. PLM provides the agility needed to adapt sourcing regions, rebalance assortments and respond to evolving consumer expectations.

2. Data-driven decision making

Integrated AI and market intelligence provide executives with visibility into both performance and underlying drivers to power proactive decisions and protect margins.

3. Future-proof scalability

As companies grow, systems must scale alongside them. A modular designed PLM fuels expansion across categories and regions without disruption. This ensures long term ROI.

Building a case for PLM means equipping companies to grow and compete in a volatile environment. ROI spans reduced costs, higher revenue, greater productivity and strategic resilience.

Centric PLM drives proven results, from emerging brands looking to scale early-on, to global enterprises transforming operations, Centric Software is the partner for digital innovation.

The challenges are clear, the benefits are proven and the ROI is measurable.