Future-Proof Your CPG Operations with Composable PLM
Consumer packaged goods (CPG) companies have adopted numerous Product Lifecycle Management (PLM) solutions over the past few decades. Some, if not all, have PLM investments that are woven into the fabric of the company. Therefore, it’s difficult to replace or upgrade these solutions due to their dependencies on product, process, formulation, artwork & label management, change management solutions and the level of accrued technical debt.
Ripping out existing PLM systems and replacing PLM altogether brings its own set of organizational challenges, not to mention the high cost of re-implementing PLM at an enterprise level. This makes it challenging for CPG companies to take advantage of modern technological advances such as AI and ML. To address this roadblock, we suggest companies consider Composable PLM.
Composable PLM is an approach to managing the entire lifecycle of a product that emphasizes modularity, flexibility and adaptability. This solution leverages existing legacy PLM investments where upgrades or rip/replace are not feasible due to cost, timeline, complexity or organizational resistance.
Unlike traditional, monolithic PLM systems, composable PLM enables organizations to assemble and configure different PLM capabilities and services as needed, creating a bespoke yet business manageable solution that can easily adapt to changing business requirements and technological advancements.
Think of it as an AI Assistant that can orchestrate multi-system processes and associated data utilizing natural language prompts.
Here’s an example of an interaction with the Composable PLM solution’s AI assistant to help illustrate how it works.
1. Command: “Help me create a Change Order for Product X.”
AI Assistant: “Sure what product and what type of change?”
2. Command: "I want to introduce [name of product] to the Japanese market."
AI Assistant: “To introduce the current formulation of [name of the product], here’s what needs to be replaced in the ingredients [ingredients], would you like me to suggest a replacement that is approved and create a Change?”
3. Command: “Yes.”
AI Assistant: Pulls the ingredient list from one PLM system, the Spec from another PLM system and the Formulation from another PLM system. Then it creates a Change Order with links to all the affected data in their source systems.
Key Capabilities and Business Benefits
Integration of Multiple Authoring Systems
Composable PLM seamlessly integrates diverse authoring tools and enterprise systems, such as computer-aided design (CAD), specification management systems, formulation management systems and traditional Item/ bill of materials (BOM)/change management in PLM to orchestrate the end-to-end product realization and change processes. This enables teams to use their preferred tools and leverage sunk investments in existing systems while contributing to a unified product and process record.
Benefits:
- Eliminates silos
- Ensures data consistency
- Enhances collaboration across teams without forcing a switch from familiar or specialized tools
Inclusion of Legacy PLM Solutions with Niche Functionality
Many organizations rely on legacy PLM systems that offer specialized or industry-specific functionalities. Composable PLM preserves the value of these systems by enabling them to coexist with newer modules.
Benefits:
- Supports gradual transitions
- Reduces disruption
- Allows companies to retain niche functionalities and leverage sunk investments
This last bullet can be particularly useful for specialized manufacturing requirements or compliance-driven industries like aerospace and pharmaceuticals.
Orchestrated Workflow
Orchestrated workflows in composable PLM enable the seamless movement of data and tasks across various modules, systems and teams. Using workflow engines, companies can design automated workflows that align with specific product development or manufacturing processes that span across different functional domains and authoring tools.
Benefits:
- Coordinates activities such as design, quality assurance and compliance checks
- Ensures streamlined operations
- Reduces lead times
AI-Driven Intelligent Routing Logic
AI enhances composable PLM with intelligent routing capabilities and error prevention. By analyzing data and user behaviors, AI algorithms can route tasks and compose appropriate matrixed approvals and information to the appropriate teams or systems based on specific criteria, such as urgency, geography, product line, brand, type of change, etc.
Benefits:
- Reduces manual intervention
- Increases efficiency
- Helps maintain accurate information flows.
- Identifies potential bottlenecks, recommending process adjustments to optimize resource allocation and task prioritization
Interoperability and API-First Design
Composable PLM leverages Application Programming Interfaces (APIs) to allow seamless data exchange between modules and third-party systems.
Benefits:
- Enhances interoperability
- Enables integration with Internet of Things, enterprise resource planning, manufacturing execution system and other enterprise systems
- Creates a holistic view of the product lifecycle
This makes it possible to connect with external ecosystems, supporting data sharing, real-time analytics and collaborative innovations across supply chains.
Scalability and Agility
By designing the PLM system with composable, cloud-native or cloud friendly architecture, companies can scale individual modules up or down as needed.
For example, if a company needs more robust supply chain management tools during a growth phase, it can add or scale modules without impacting other areas, such as quality control or compliance.
Benefits:
This agility allows organizations to quickly adapt to:
- Market changes
- Customer demands
- Regulatory requirements
Continuous Improvement and Innovation
With its modular nature, composable PLM can continuously integrate new technologies and features without disrupting the entire system.
For example, organizations can introduce AI-powered quality checks or predictive analytics modules while preserving the stability of the central system.
Benefits:
- Allows organizations to take advantage of the latest innovations
- Maintains a stable core system
Embedded Product Lifecycle Intelligence
By leveraging advanced analytics, artificial intelligence (AI) and machine learning, Product Lifecycle Intelligence (PLI) extracts actionable insights from data across PLM and other enterprise systems. It identifies patterns, predicts outcomes and recommends improvements in key areas like:
- Data quality
- Right-first-time rates
- Time-to-market
- Regulatory compliance
- Performance
- Manufacturability
Future-Proof Your Operations
Composable PLM is well-suited to organizations facing complex product lifecycle requirements, enabling them to future-proof their operations by maintaining flexibility and operational resilience. This ecosystem approach helps companies drive innovation and sustain competitive advantage, especially in industries where rapid adaptation and process automation are crucial.
Authors
